Assembly BillChaptered/SignedEducation
AB 2121: Community colleges: current expense of education: exclusions.
What AB 2121 does, verified September 29, 2026
The bill authorizes community college districts in California to exclude certain local expenditures from their current expense of education for a period of five fiscal years following the 2025-26 fiscal year. This exclusion applies to expenditures that maintained student support functions previously funded through federal discretionary grants that have been terminated, nonrenewed, or defunded. The community college districts must annually certify their eligibility to the Office of the Chancellor of the California Community Colleges. The provisions of the bill will be inoperative on July 1, 2031, or on the first day of the fiscal year following the restoration of federal funding, whichever occurs first. The bill declares that it is to take effect immediately as an urgency statute.
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Last action: Chaptered by Secretary of State - Chapter 580, Statutes of 2026. (2026-09-27)Alert me
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| Sep. 27, 2026 | Chaptered by Secretary of State - Chapter 580, Statutes of 2026. |
| Sep. 27, 2026 | Approved by the Governor. |
| Sep. 10, 2026 | Enrolled and presented to the Governor at 3 p.m. |
| Aug. 30, 2026 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 73. Noes 1. Page 6916.). |
| Aug. 30, 2026 | In Assembly. Concurrence in Senate amendments pending. |
Latest bill textChaptered version, September 27, 2026 · 1,435 words
Assembly Bill No. 2121
CHAPTER 580
An act to add and repeal Section 84363 of the Education Code, relating to community colleges.
[ Approved by Governor September 27, 2026. Filed with Secretary of State September 27, 2026. ]
LEGISLATIVE COUNSEL'S DIGEST
AB 2121, Berman. Community colleges: current expense of education: exclusions.
Existing law establishes the California Community Colleges, under the administration of the Board of Governors of the California Community Colleges, as one of the segments of public postsecondary education in this state. Existing law establishes community college districts throughout the state and authorizes these districts to provide instruction at community college campuses.
Existing law requires the expenditure, during each fiscal year, for the payment of salaries of classroom instructors by a community college district, of 50% of the district’s current expense of education. Existing law defines “current expense of education” as the gross total expended for certain expenses that include academic salaries, classified salaries, employee benefits, and books, supplies, and equipment replacement, but that generally exclude expenses for student transportation, food services, and community services.
This bill, notwithstanding the above-described provisions, would authorize a community college district, for a period of 5 fiscal years following the 2025–26 fiscal year, or until specified federal funding is fully restored to every community college district, whichever occurs first, to exclude from its current expense of education any local unrestricted expenditures from the community college district’s unrestricted general fund, as provided, and not to exceed a specified amount, that maintain student support functions that were previously funded though federal discretionary grants that have been terminated, nonrenewed, or defunded due to federal action on or after September 10, 2025. If a community college district exercises its authority pursuant to these provisions, the bill would require the community college district to annually certify eligibility to the office of the Chancellor of the California Community Colleges, as specified, and would require the chancellor’s office to maintain documentation and include as part of another specified report, any certifications it receives, as provided. The bill would require the above-described action to exclude local unrestricted expenditures from a community college district’s current expense of education to be taken at a regular public meeting of the governing board of the community college district, as specified. The bill would make its provisions inoperative on July 1, 2031, or on the first day of the fiscal year following the full restoration of specified federal funding to every community college district, whichever occurs first, and would repeal them on January 1 of the year following the inoperative date.
The people of the State of California do enact as follows:
SECTION 1.
Section 84363 is added to the Education Code, immediately following Section 84362, to read:84363.
(a) Notwithstanding Section 84362, for a period of five fiscal years following the 2025–26 fiscal year, or until federal funding is fully restored to every community college district, whichever occurs first, a community college district may exclude, as part of its current expense of education, as that term is used and defined in Section 84362, any local unrestricted expenditures from the community college district’s unrestricted general fund, as defined by the California Community Colleges Budget and Accounting Manual, that maintain student support functions that were previously funded through federal discretionary grants that have been terminated, nonrenewed, or defunded due to federal action on or after September 10, 2025.(b) Community college districts that choose to exclude expenditures pursuant to subdivision (a) shall annually certify eligibility to the chancellor’s office, consistent with submissions that may be required during the college year pursuant to subdivision (h) of Section 84362. The chancellor’s office shall maintain documentation and include certifications the chancellor’s office receives from community college districts in the annual report to the Legislature required pursuant to subdivision (i) of Section 84362.
(c) Expenditures excluded pursuant to this section shall not exceed the amount of federal discretionary grant funding awarded for use by the community college district to maintain student support functions before the termination, nonrenewal, or defunding of the federal discretionary grants due to federal action on or after September 10, 2025.
(d) Expenditures excluded pursuant to this section shall not be considered in determining compliance with subdivision (d) of Section 84362 and the use of this exclusion by a community college district shall not constitute grounds to reduce instructional expenditures. This section shall not reduce or otherwise affect a community college district’s obligation to do all of the following:
(1) Maintain compliance with the requirement of subdivision (d) of Section 84362 that not less than one-half of the district’s current expense of education be expended for salaries of classroom instructors.
(2) Maintain compliance with the Faculty Obligation Number and related requirements established by the board of governors, including Section 87482.6 and Section 51025 of Title 5 of the California Code of Regulations.
(3) Not reduce the number of full‑time faculty positions or otherwise diminish the overall quality of instruction.
(4) (A) Avoid any use of this exclusion to fund the creation or expansion of administrative positions, or to provide compensation increases to administrators or supervisors beyond adjustments otherwise authorized by existing contracts or salary schedules.
(B) For purposes of this paragraph, “administrator” and “supervisor” have the same meaning as defined in paragraph (2) of subdivision (b) of Section 84362.
(5) Continue to treat as a matter of negotiation any decisions affecting instructional assignments, faculty load, or course offerings.
(e) (1) A community college district that chooses to exclude expenditures pursuant to subdivision (a) shall do so by an action taken at a regular public meeting of the governing board of the community college district, with notice provided to the campus community, including faculty, in advance of that meeting consistent with the community college district’s established practices for noticing governing board meetings. The governing board agenda for that meeting shall identify the proposed exclusion as a distinct agenda item.
(2) This subdivision does not preclude a community college district from taking action in compliance with the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the Government Code).
(f) For purposes of this section, the following definitions apply:
(1) “Discretionary grant” means a grant awarded on a competitive basis by the United States Department of Education to a community college district for the specific and limited purpose of funding student support functions. A discretionary grant does not include a financial award provided directly to an individual student on the basis of student eligibility.
(2) “Student support functions” means any activities that were authorized to be funded by federal discretionary grants awarded to a community college district that have been terminated, nonrenewed, or defunded due to federal action on or after September 10, 2025. Student support functions include, but are not limited to, all of the following:
(A) Academic tutoring.
(B) Individualized counseling for personal, career, and academic matters, including advice and assistance in the selection of academic courses.
(C) Mentoring programs, including mentoring provided by faculty, staff, or peers.
(D) Providing information regarding the full range of federal student financial aid programs, benefits, and resources for locating public and private scholarships, and providing assistance in completing financial aid applications.
(E) Providing assistance in applying for admission to, and obtaining financial assistance at, a community college or for enrollment in institutions that grant baccalaureate degrees.
(F) Developing articulation agreements and student support programs designed to facilitate the transfer of students from two-year to four-year institutions.
(G) Programs and services specially designed for students with limited English proficiency, students with disabilities, students who are homeless or formerly homeless, and students who are in, or aging out of, the foster care system.
(H) Securing temporary housing during breaks in the academic year for students who are homeless or aging out of foster care.
(I) Faculty development, curriculum development, and academic instruction support directly related to strengthening a community college’s capacity to serve students.
(J) Community outreach programs designed to encourage elementary and secondary school pupils to develop the academic preparation and interest to pursue postsecondary education.
(K) The development, improvement, or operation of learning centers, tutoring centers, and other dedicated student support facilities, including technology infrastructure for the delivery of those services.
(g) This section shall become inoperative on July 1, 2031, or on the first day of the fiscal year following the full restoration of the federal funding described in subdivision (a) to every community college district, whichever occurs first, and shall be repealed on January 1 of the year following the date that this section becomes inoperative.
Text of AB 2121 as chaptered, from the official record. Connect Plus keeps every version and highlights what changed.Compare versions