Budget Information

Budget Information

May Revise - May 14, 2013

 

2013-14 May Revise

 

 

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Item

January Proposal

May Proposal

Apportionment Changes

$196.9 million, unspecified

  • Cost-of-living adjustment: $87,500,000 (1.57%)
  • Enrollment growth: $89,400,000 (1.5%)

Student Success (formerly Matriculation):

$49,183,000

$99,183,000

Expanding the Delivery of Courses through Technology:

$16,910,000

$16,910,000

Adult Education:

$315,700,000 and shift existing adult education responsibility to community colleges

$30,000,000 for two-year planning grants, with a $500,000,000 pot available in 2015-16 for regional consoritia of schools and CCs. Apprenticeship would continue to be transferred to the Chancellor's Office.

Deferral Buy-down

$179,000,000

$341,000,000 (one-time funds in 2012-13)

Change apportionment to weighted census

Proposed

(Not discussed in May Revision documents; already rejected by legislative committees)

Require FAFSA for BOG Waivers

Proposed

Implement a requirement in 2014-15 to require students to complete FAFSA after one term and to require Board of Governors to develop standards for documenting independent student status.

Implement 90-unit cap on state support (full student cost beyond 90)

Proposed

(Not discussed in May Revision documents; already rejected by legislative committees)

We are diving into the details of the May Revision, and are concerned that the significant current year deficit is not addressed. However, we applaud the governor for finding a balanced approach to student access, success, and equity, as well as his recognition that more time is needed to provide a seamless transition to a new model of delivering adult and noncredit education.
The Legislature is now expected to begin taking action on the final budget, with completion by June 15. We will be meeting with the Consultation Council on Thursday and the CEOCCC board on Friday to develop an advocacy response.
We hope that we can continue to count on your strong support!
If you have any questions, please don't hesitate to contact me at scottlay@ccleague.org or Theresa Tena at ttena@ccleague.org.
Sincerely,

Scott Lay
President and Chief Executive Officer
Orange Coast College '94

 

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From: Troy, Dan
Sent: Tuesday, May 14, 2013 10:27 AM
Subject: May Revision Highlights
 
Colleagues,
 
Below are the highlights of the Governor’s May Revision proposal as it relates to the California Community Colleges.  Please note that more detailed information is required to fully analyze the impact of the proposals, but I thought it would be helpful to communicate the high-level details.  There will be more details to discuss over the next few days and weeks.
 
May Revision Highlights*
 
*Please note that details are revealed slowly.  The figures referenced below are may be rounded, and policy initiative details require an examination of related trailer bill language, which has not been released to us at this time.
 
Policy Proposals –
1)      90-unit cap proposal withdrawn
2)      Census proposal withdrawn
3)      Online proposal doesn’t change
4)      FAFSA: require BOG to develop process for determining student independence (e.g.,  prior year tax return).  Allow 1 term grace period for completion of FAFSA.

Adult Ed –
·         Initial proposal withdrawn
·         $30M, to be spent over 2 years, is proposed for planning of regional adult ed programs (consortium that could include CCDs, K12, CBOs, jails, etc.)
·         Plan is for $500M to be appropriated in 2015-16
·         Entities participating in consortia must maintain 12-13 effort to be eligible for any new funds
·         All programs funded at CDCP rate
·         Instructor qualifications subject to consortium plans

Budget Year –
·         About $227M in programmatic funds ($30M more than was proposed in January)
·         The Governor would allocate the funds as follows:
1.       $87.5M for COLA (1.57%),
2.       $89.4M to restore access (1.63%)
3.       $50M for the Student Success and Support Program (the old Matriculation program) with an allowance that up to $7M could be shifted from that amount to develop e-transcript and e-planning tools.

Deferral Buy Down –
·         The Governor proposes to use the current year increase in Proposition 98 obligations to pay down an additional $179.9M in deferrals. This would reduce the total system-wide deferral to $621.2M.
·         The Governor would further pay down an additional $64.5M in deferrals in the budget year, reducing the system-wide deferral to $557.5M.

RDAs –
Statute passed concurrent with the 2012-13 budget requires the state to backfill any shortage in property taxes related to the dissolution of RDAs that were assumed as part of the CCC budget.  This truing up process is required to be done on or before June 30.
 
Currently, the Department of Finance’s estimate of this shortfall differs greatly form the reports of actual disbursements our office has received from the counties.  While exact estimates from Finance are not yet available as of this writing, they believe we will receive approximately $150M more by June than what has been reported to us so far this year.  Ensuring that the full current year backfill is provided by June 30 is our most important priority, and Department of Finance continues to assure us that it will be provided, whatever the final figures are.  We will work with staff to communicate the importance of truing up our budget.  Certainly, ensuring the current year apportionment is not deficited should take precedence over any other proposals.
 
I will communicate more details as they become available.  The next step includes review by legislative committees, which should begin next week.
 
Regards,
Dan Troy
 
Vice Chancellor, College Finance and Facilities Planning
California Community Colleges Chancellor’s Office



Budget Information
email Email:
Pippa Gibson
Phone: 408.864.8936
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Last Updated: 5/14/13