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Legislative Update

View the legislative bills report here. (updated June 26, 2026)

July 17, 2026

Governor Newsom Signs Higher Education Budget Trailer Bill

It was a quiet week in Sacramento as the Legislature is currently enjoying the second week
of its monthlong summer recess.
While the Legislature is on its break, Governor Gavin Newsom remains busy taking action on
bills that have hit his desk over the past couple of weeks, including Senate Bill (SB) 135
(Committee on Budget and Fiscal Review, Statutes of 2026), the higher education budget trailer
bill.
SB 135 makes statutory changes affecting the state’s higher education segments, including the
investments for the California Community Colleges (CCC) in the State Budget. The most
relevant portions of the 2026-27 Enacted Budget for CCC are outlined in the joint analysis
published by the California Community Colleges Chancellor’s Office in partnership with
ACCCA, ACBO, and the Community College League of California.

CalPERS Reports Preliminary 14.8% Investment Return for 2025-26 Fiscal Year

The other big news in Sacramento related to TK-14 education was that the California Public
Employees’ Retirement System (CalPERS) reported a preliminary net return of 14.8% on its
investments for the 2025-26 fiscal year.
The return exceeded both last year’s 11.6% investment gain and the 6.8% assumed rate of return
adopted by the CalPERS Board of Administration. It also represents CalPERS’ strongest annual
investment performance in five years and continues a four-year trend of strong year-over-year
returns.
Public equities (24.1%), private equity (17.0%), and private debt (11.0%) led the portfolio’s
performance, while real assets (6.3%) and fixed income (5.9%) also posted positive returns. Over
the longer term, the fund earned annualized returns of 6.83% over 5 years, 8.57% over 10 years,
and 6.81% over 20 years.
These preliminary investment results will help determine employer contribution rates for local
educational agencies and community college districts for the 2027-28 fiscal year, with updated
projected rates expected from CalPERS later this fall.

No Update for the Next Two Weeks

With the Legislature on its last two weeks of summer recess, we will be taking a break from our
weekly ACCCA Update for the next two weeks. Unless there is breaking news, we will return to
our regular production schedule for the week ending August 7, where we will provide a preview
for the final weeks of the 2026 legislative year.