Revised Deferrals for 2021–22 BY BRIANNA GARCÍA BY ROBERT MCENTIRE, EDD posted February 17, 2021 The recent release of CCC Deferrals and Repayments for 2020–21 and 2021–22 trailer bill language (TBL) confirms deferral plans for 2020–21 and proposed changes to deferrals for the 2021–22 fiscal year. Since the adoption of the 2020–21 Budget Act, the state’s economic picture has improved dramatically. Collections for property taxes and the “Big Three” taxes (personal income, sales and use, and corporate) that drive General Fund revenues, and subsequently Proposition 98, have come in higher than expected. Recognizing improved economic conditions, the 2021–22 Governor’s Budget proposal attempts to strike a balance between sustaining funding levels, restoring programs, and restoring cash flow. The Governor’s Budget, and recently released TBL, includes a proposal to reduce 2021–22 deferrals from $1.45 billion to $326.5 million. In our article “Cash Deferrals and Budget Deferrals” in the June 2020 Community College Update, we laid out the impact of cash deferrals and budget deferrals on cash management practices and provided advice to ensure your college’s ability to meet its financial obligations. And, consistent with the information provided in “Ask SSC…With Deferral Buy Downs, Should We Stop Our TRANs?” in the January 2021 Community College Update, the TBL keeps the current year deferrals in place. However, in recognition of the higher than expected revenues, the anticipated deferrals for 2021–22 are projected to decrease from $1.45 billion to $326.5 million as follows: Current Year and Budget Year From To Amount Comments (2021–22) (2022–23) $163,237,000 May 2022 July 2022 Cash deferral equals budget deferral $163,238,000 June 2022 July 2022 Cash deferral equals budget deferral We once again caution you that this is still just a proposal and early in the budget development process. Therefore, we recommend, when projecting your cash, that you assume all deferrals remain in place until more definitive action is enacted. .