Budget Information

Budget Information

Governor's May Revise Spreadsheet & Regulatory/Statutory Relief Effort


June 3, 2009


May Revise Detail Shared

I am sending along an updated League budget tracking spreadsheet (pdf) reflecting the Governor’s May Revise proposal.  The detailed information was recently made available.

By and large the “big” picture items remain the same – the colleges are slated to receive a roughly $825 million reduction over the next 13 months, no relief for the property tax shortfall ($41.1 M CY and $116.7 M BY), and the Administration is still proposing to cut $85 million in categorical funding in the current year and defer $115 million of current year unrestricted apportionment funding to the next fiscal year.

Please note the following:

  • The $58.3 million remaining of growth funds has been redirected to the apportionment base to offset the projected $116.7 million property tax shortfall.  With that action the 3% enrollment growth included in the February 2009-10 Budget Act has been zeroed out
  • The final list of exempt categorical programs:
    • 2008-09: Categorical reductions of $85 million
    • 2008-09: Foster Care Education ($5.2 M), Cal Works ($43.5 M), Financial Aid Administration ($$51.2 M), and TTIP ($26.2 M) are exempt from the reductions.
    • 2008-09 Categorical reduction percentage is 14.7%
    • 2009-10: Categorical reductions of $334 million
    • 2009-10: Foster Care Education ($5.2 M), Financial Aid Administration ($$51.2 M), and TTIP ($26.2 M) are exempt.  The Cal Works program is NOT exempt in the budget year.
    • 2009-10 Categorical reduction percentage is 53.5% (applied to DSPS, EOPS, CARE, and Matriculation AFTER 3% categorical growth removed ($10.2 M)


The Administration proposes categorical flexibility similar to K-12 categorical flexibility for the current year and budget year for all programs except the ones listed above.

The Administration’s proposal will be discussed in conference committee when the Education issues are addressed.  The Legislature will of course have an opportunity to alter the Governor’s proposal and the final product will be different; however given the magnitude of the budget shortfall – estimated $24 billion – and the draconian reductions proposed in other areas of the budget, the college budgets will be cut.  The question is whether we will be successful in garnering federal budget stabilization funds or a modest amount of enrollment fee increase revenue to mitigate the cuts now proposed.

League / CBO Regulatory and Statutory Relief Effort

Yesterday, Scott Lay sent a note to CEOs outlining an effort to develop a list of recommended regulatory and statutory items needed to ensure districts fiscal survival.  I have contacted the representative body of the CBOs – the ACBO Board – and enlisted their help to coordinate several brainstorming sessions.  A number of CBO’s have also contacted me and expressed a desire to submit recommendations.  While I will be working directly with the ACBO board, I encourage any CBO to contact me and submit items to the list.  Please include as much detailed analysis as possible.

Given this budget is unfolding in real time I will be approaching this effort in a two fold manner

A)      short-term issues directly tied to the budget principles supported by the CEO Board as reflected by the “budget compromise” proposal.This proposal was crafted by several community college leaders and has been shared with legislative staff/control agencies.  The goal of the package is to avoid disproportionate cuts to the colleges, minimize poor policy choices, and to enable as much flexibility as possible to allow colleges to protect access and the core institutions that must survive the downturn.

Essentially the proposal:

  1. Rejects the $120 million cut specifically for physical education course and restore with federal stimulus funds or by limiting the community college cut to a proportional share of Prop. 98.
  2. Limits the cuts to 15% each for support services for poor (EOPS) and disabled (DSPS) students.
  3. Applies the remaining categorical cut across-the-board to all other categoricals, and adopt the same flexibility and mandate relief provided to K-12 categorical programs in February.
  4. Limits the student fee increase to a reasonable level of $22 per unit, and use the revenue to backfill the categorical program cuts.
  5. To the extent the apportionment is reduced by a specific reduction or a revenue shortfall (property tax or structural); reduce local district workload to match available funding to ensure constant general funding per student.

B)      long-term issues requiring further analysis and time to implement.  Given the State Controller has urged the Legislature and Governor pass a budget by June 15, 2009 (pdf),  items not addressed under the short-term automatically move to the long term issue list.

The League will study each suggestion put forward and we look forward to receiving your suggestions.

 

Theresa D. Tena
Director of Fiscal Policy
Community College League of California
1121 L Street, Suite 805
Sacramento, CA  95814
(916) 441-0353




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Last Updated: 6/4/09