Budget Information

Budget Information

Update on the Budget - May 27, 2014

Colleagues,

 

This week, the budget subcommittees of both the Senate and Assembly took action to close out their versions of the Proposition 98 budget.  In the wake of the Legislative Analyst’s response (linked below) to the Governor’s May Revision (linked below), which found approximately $2.5 billion more in revenue over the 12-13 through 14-15 fiscal years, both houses chose to spend significantly over the Governor’s level.  In total, the CCCs would receive $246 million more in funding in the 14-15 fiscal year than under the Governor’s plan and $34 million more in the 13-14 fiscal year.  The funding plans approved by both houses (they took a coordinated approach this year, unlike in previous years) include the following augmentations to the Governor’s May Revision:

 

·         $51.3 million increase to the maintenance item, plus language allowing local flexibility to use for maintenance or instructional equipment for a total of $199.3 million (labeled as a 1-time commitment)

·         $50 million increase to DSPS for a total of $134.2 million

·         $47.3 million to double the general apportionment COLA (to 1.7%) for a total of $94.6 million

·         $25 million for the conversion of part-time faculty  positions to full-time

·         $18 million increase to EOPS for a total of $106.6 million

·         $15 million increase to CalWORKs for a total of $49.5 million

·         $13 million increase to apprenticeship programs ($8 million for CCC programs and $5 million for K12 programs) bringing the new totals to $15.2 million and $20.7 million , respectively

·         $10 million increase to EWD for a total of $82.9 million (increases beyond the current $22.9 million are considered 1-time)

·         $6.5 million increase to Part-time Faculty Office Hours for a total of $10 million

·         $5 million for Student Success for Basic Skills Students for a total of $25 million, plus language designating $3 million of the total for professional development

·         $3.4 million increase to Child Care programs for a total of $6.8 million

·         $1 million increase to Foster and Kinship Care Education for a total of $6.3 million

·         $0.5 million for the Academic Senate for a total of $1 million

·         $34 million in current year funds to pay off prior mandate claims

 

If this sounds a bit familiar, that may be because at this time last year the LAO and Department of Finance also had significantly different reads on the likelihood that current year revenue increases would carry forward into the subsequent fiscal year.  Last year, the Governor prevailed on the level of revenues though he did agree to make room for expenditures for certain categorical programs in the final budget.  As the houses largely affirmed the Governor’s proposals (including language to increase the CDCP rate up to the credit rate as of 2015-16) and chose to augment on top of them, it would seem that the key focus of the discussion over the next few weeks will be geared toward persuading the Governor to move at least a bit in the direction of the LAO’s estimate.

 

Next week, the full budget committees of each house will meet to largely affirm the work of the subcommittees, and it is expected that a budget conference committee will convene during the first week of June to begin hashing out agreements between the two houses and with the Governor.  It is expected that the final budget will be passed on or before June 30th.

 

Attached to this message is the summary of the May Revision I presented to the Board of Governors on May 20th (written prior to the legislative actions).  Also, barring a delay in the passage in the final budget, we are hoping to have our annual North/South Budget Workshops take place in the latter part of July.  Dates and locations will be announced soon. 

 

In the meantime, please have a wonderful and safe holiday weekend!

 

Regards,

 

Dan Troy

Vice Chancellor, College Finance and Facilities Planning

California Community College Chancellor’s Office

 

Department of Finance May Revision Budget Summary:

http://www.ebudget.ca.gov/2014-15/Revised/BudgetSummary/BSS/BSS.html

 

LAO’s May Revision Overview:

http://www.lao.ca.gov/Publications/Detail/3017

 

 

 

 

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Budget Information
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Last Updated: 5/27/14