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Christian, Chancellor  \nSONYA CHRISTIAN  \nChancellor  \nJanuary 10, 2026  \nSecretary of the Senate  \nErika Contreras  \nState Capitol, Room 305 Sacramento, CA 95814  \nRE: 2024-2025 Annual Report: Payment of Salaries of Classroom Instructors (Fifty Percent Law)  \nDear Secretary Contreras:  \nPursuant to California Education Code section 84362, the California Community Colleges Chancellor’s Office is pleased to release the 2026 Fifty Percent Law Report. Statute requires each community college district to allocate at least 50% of its annual education expenses, as defined by law, to the salaries and benefits of classroom instructors. The following report provides additional information on the Fifty Percent Law including:  \n• Fifty Percent Law Requirements and Administration  \n• 2024-25 Fifty Percent Law Deficiencies  \n• 2024-25 Fifty Percent Law District Compliance  \n• Fifty Percent Law Five Year Trend  \nIf you have questions about this report, please contact Chris Ferguson, Executive Vice Chancellor of Finance and Strategic Initiatives, [at](at Chris.Ferguson@CCCCO.edu)[ ](at Chris.Ferguson@CCCCO.edu)[Chris.Ferguson@CCCCO.edu](at Chris.Ferguson@CCCCO.edu).  \nSincerely,  \nSonya Christian, Chancellor Enclosure: Report  \nCC:  \nSue Parker, Chief Clerk of the Assembly Office of Legislative Counsel  \nChancellor’s Office  \n1102 Q Street, Sacramento, [CA 95811 | 916.445.8752 | www.cccco.edu](CA 95811 | 916.445.8752 | www.cccco.edu)  \nPrepared By  \nCalifornia Community Colleges Chancellor’s Office  \nCollege Finance and Facilities Planning Division  \nTABLE OF CONTENTS  \nINTRODUCTION 1  \nFIFTY PERCENT LAW: REQUIREMENTS AND ADMINISTRATION 1  \nCOMPLIANCE REQUIREMENT ....................................... 1  \nCHANCELLOR’S OFFICE ADMINISTRATION ............................... 2  \nSTATEWIDE COMPLIANCE TRENDS.................................... 2  \nNarrative Summary ........................................... 2  \nDISTRICTS NOT MEETING REQUIREMENTS IN 2024-25........................ 2  \nExcess Tax School Entities (Basic Aid) ................................ 2  \nCONCLUSION ................................................. 3  \nATTACHMENT 1: FIVE-YEAR TREND DATA BY DISTRICT 3  \nATTACHMENT 2: DISTRICT COMPLIANCE FOR 2024-25 6  \n2026 Fifty Percent Law Report California Community Colleges  \nvii  \nINTRODUCTION  \nThe Fifty Percent Law, established under Education Code section 84362, and implemented through Title 5, sections 59204-59214, requires California community college districts to spend at least half of their annual Current Expense of Education (CEE) on salaries and benefits for classroom instructors. The intent of the law is to ensure that a significant portion of educational spending directly supports classroom instruction.  \nThe California Community Colleges Chancellor’s Office (Chancellor’s Office) is required to report annually to the Board of Governors for California Community College on district compliance, identify districts that fall below the 50 percent requirement, and administer statutory remedies when necessary. Districts that do not meet the requirement must either qualify for an exemption or submit a plan to correct their deficiency. For districts receiving state apportionment funds, the Chancellor’s Office may direct county offices of education to withhold apportionments until a corrective plan is approved.  \nFIFTY PERCENT LAW: REQUIREMENTS AND ADMINISTRATION  \nCOMPLIANCE REQUIREMENT  \nEach district must ensure that at least 50 percent of its CEE is dedicated to salaries and benefits of classroom instructors. Instructional activities, as defined in Title 5, sections 58710 and 58720, include all costs directly tied to teaching students. Qualifying expenditures include:  \n• Academic Salaries  \n○ Salaries for contract, regular, and temporary instructors teaching approved courses.  \n○ Prorated salaries for administrators with teaching assignments.  ","cbCaicfla3aCbSoM","https://ap.wps.com/l/cbCaicfla3aCbSoM","pdf",3392130,18,"English","# Introduction\n# Fifty Percent Law: Requirements and Administration\n## Compliance Requirement\n## Chancellor’s Office Administration\n## Statewide Compliance Trends\n## Districts Not Meeting Requirements in 2024-25\n## Conclusion\n# Attachment 1: Five-Year Trend Data by District\n# Attachment 2: District Compliance for 2024-25","[{\"question\":\"What does the Fifty Percent Law require California community college districts to do?\",\"answer\":\"Districts must allocate at least 50% of their annual Current Expense of Education to salaries and benefits for classroom instructors, as defined by law and implementing regulations.\"},{\"question\":\"Which types of expenses qualify as instructional spending under the report’s guidance?\",\"answer\":\"Qualifying expenditures include academic salaries for approved teaching activities, instructional services agreement direct instructional costs, instructional aide salaries for direct instruction duties under supervision, and associated applicable benefits.\"},{\"question\":\"How does the Chancellor’s Office verify district compliance each year?\",\"answer\":\"The Chancellor’s Office reviews annual financial and budget reports and evaluates independent audit findings, while each district’s compliance calculation is independently verified through the required annual audit process.\"}]","2026 Fifty Percent Law Report - Annual Report: Payment of Salaries of Classroom Instructors | PDF",1792046127,45]