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AB 2121

Community colleges: current expense of education: exclusions.

2025-2026 Regular Session Introduced by Marc Berman

AB 2121 refines what costs are excluded from California community colleges’ current expense of education, altering funding calculations and district budgeting.

From committee: Be ordered to second reading pursuant to Senate Rule 28.8.
#communitycolleges #currentexpenseofeducation #exclusions
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Bill Summary · AB 2121

Bill Overview

  • bill number: AB 2121
  • Session: 2025-2026
  • Jurisdiction: California
  • Title: Community colleges: current expense of education: exclusions
  • Primary sponsor: (co-sponsor) Marc Berman
  • Current status: In committee and progressing through the Legislature (as of June 22, 2026, ordered to second reading). The timeline shows passage through several committees and a Senate floor action with an urgency clause adopted.

Purpose and Intent

AB 2121 addresses how the current expense of education (CEE) for California community colleges is calculated by specifying exclusions. The bill aims to refine or adjust which expenditures are considered part of the CEE, thereby impacting funding calculations, budgeting, and financial reporting for community college districts.

Key Provisions (as described by the bill's title and typical structure)

  • Clarifies or modifies exclusions to the current expense of education for California community colleges.
  • The exclusions would determine what costs are not included when calculating the CEE foundation program funding or related general expenses.
  • The bill may harmonize CEE calculations with state funding formulas, accounting practices, or other statutory definitions used in higher education finance.
  • Potential alignment with statewide budgeting categories to improve transparency and compliance.

Note: Specific line-item details, dollar thresholds, or enumerated exclusions would be found in the bill’s text. The summary below reflects the general nature of the change indicated by the title.

Who Is Affected

  • California community colleges and their districts, including governing boards and business offices responsible for budgeting and reporting CEE.
  • Students and taxpayers indirectly, through how budgets and state funding are allocated to colleges.
  • State agencies and departments involved in higher education finance, including the California Community Colleges Chancellor’s Office.

Procedural and Timeline Aspects

  • February–June 2026: The bill progressed through multiple committees, reflecting standard legislative review:
    • Referred to Committee on Higher Education (March 2, 2026)
    • Re-referred to Committee on Administrative Procedure and Policy (April 8–9, 2026)
    • Passed as amended out of committee (April 9, 2026; 9 ayes, 1 no)
    • Re-referred to Appropriations (April 13, 2026) and then passed (May 6, 2026; 14 ayes, 0 no)
    • Passed the Senate (May 14, 2026; read and ordered to the Senate floor; urgency clause adopted)
    • Returned to the Assembly for concurrence and subsequently ordered to second reading (June 22, 2026)
  • The urgency clause adopted in May 2026 indicates the bill would take effect immediately upon enactment, addressing an immediate need or policy change.

Potential Impact and Implications

  • Fiscal: By excluding certain expenditures from the CEE, the bill could alter the calculation of state funding or budget allocations for community colleges. This may affect district budgets, cost allocations, and financial reporting.
  • Administrative: Districts may need to adjust accounting practices and alignment with the revised exclusions, including potential revisions to annual financial reports and state submittals.
  • Policy: The bill could clarify or standardize how CEE is defined statewide, reducing ambiguity and ensuring consistency across districts.

Summary

AB 2121 seeks to refine the exclusions applied to the current expense of education for California community colleges. If enacted, it would shape how CEE is computed, influencing state funding calculations, budgeting, and reporting at the district level. The bill has undergone multiple committee reviews and includes an urgency clause, suggesting a timely implementation upon enactment.

Compiled from official sources — confirm details with the bill’s official record.

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