California Democrats Dismiss Newsom's Proposal of $20M for SF Private Arts School

A budget subcommittee led by Democrats voted on Tuesday against the funding.

California Democrats Dismiss Newsom's Proposal of $20M for SF Private Arts School
SACRAMENTO, California — Governor Gavin Newsom's initiative to allocate $20 million for the California College of the Arts, a small private arts college in San Francisco supported by a tech CEO, faced significant opposition from Democratic state lawmakers on Tuesday.

All four Democrats on an education finance budget subcommittee voted against the governor’s funding request for the college, which has an enrollment of 1,280 students. Just two weeks prior, the institution secured $45 million in donations, with half of that amount coming from Nvidia CEO Jensen Huang. In the same budget proposal for January, Newsom—formerly the mayor of San Francisco—proposed an 8 percent reduction and over $200 million in deferrals for the University of California and California State University systems.

“From an optics perspective, when we're talking about cutting 8 percent of funding for the University of California and the California State University — for us to be singling out one private college for $20 million in taxpayer support is not a good look,” commented Assembly Education Chair Al Muratsuchi, a Democrat who aims to become state superintendent next year.

Nevertheless, at least one prominent Democrat supported Newsom’s plan. State Senator Scott Wiener, who represents San Francisco and chairs the Senate Budget Committee, expressed his full backing for the private school’s funding along with that of public universities, referencing President Donald Trump and Elon Musk’s “efforts to take a wrecking ball to federal education and science funding.”

The subcommittee’s recommendation will advance to the full Assembly budget committee, where negotiations will take place before the state lawmakers finalize a budget in June. Newsom is expected to unveil a revised budget proposal in May.

Amanpreet Singh, a representative from Newsom’s Department of Finance, described the proposal at a hearing prior to the vote as “unique.” She stated that the administration views supporting the California College of the Arts as a significant priority for the state, particularly in Northern California, believing that aiding the institution's financial stability would be more beneficial than allowing it to falter.

Singh emphasized that the school’s programs are “distinct” from those offered by UC and CSU. Newsom’s office highlighted her remarks from the hearing, while Assembly Speaker Robert Rivas opted not to comment.

Founded in 1907, the California College of the Arts offers 22 undergraduate and 10 graduate programs in fields like ceramics, photography, comics, and game arts, with tuition set at $60,000. The institution has seen a 42 percent drop in enrollment over the last five years, contributing to a deficit that Newsom’s proposal aims to address.

David Howse, the college president, explained to lawmakers that the funding would be allocated for staffing and infrastructure repairs. He described the college as “a private institution with a clear public impact.”

“I know you are aware of the immense challenges facing higher ed: declining enrollment, rising cost and economic uncertainty, destabilizing once stable institutions — essentially putting higher ed institutions across the state at risk,” Howse remarked. “These challenges do not spare our public partners, nor do they exempt private institutions like CCA.”

Following the vote, Assemblymember David Alvarez, the committee chair, noted in an interview that the recommendation “signals the priorities of the Assembly, which is to public education.” The San Diego Democrat pointed out that the school’s operating deficit of $4.2 million is significantly smaller than the $20 million structural deficit identified by school officials, which includes deferred maintenance costs.

“I think we're reflective of Californians' expectations,” Alvarez stated.

The California College of the Arts is not the only arts institution in San Francisco grappling with financial difficulties. Last year, a nonprofit organization led by Laurene Powell Jobs acquired the San Francisco Art Institute, which had filed for bankruptcy due to $20 million in debt.

State funding for private colleges in California is quite rare. The most recent instances include $50 million allocated to Charles R. Drew University of Medicine in Los Angeles in 2021 for a new medical school, and $5 million granted to the California Indian Nations College in Palm Desert in 2022 to pursue accreditation. Committee staff noted in a report that “both of these appropriations were for specific purposes that have an obvious statewide interest” before advising lawmakers to reject the current proposal.

Allen M Lee contributed to this report for TROIB News