Budget Information

Budget Information

2016-17 Final Budget Update

 

CCCCO

From: "Rodriguez, Mario" <mrodriguez@CCCCO.EDU>
Date: July 7, 2016 at 9:07:11 AM PDT
To: ceo-all <ceo-all@listserv.cccco.edu>
Subject: 2016-17 Final Budget Update
Reply-To: "Rodriguez, Mario" <mrodriguez@CCCCO.edu>

Colleagues,

 
Last week the Governor signed the 2016-17 budget and corresponding trailer bills without any changes from the budget approved by the Legislature.  Below is a summary of the augmentations contained in the budget.


Apportionments

$114.7 million (2%) for increased access (approximately 50,000 more students).
$75 million in general operating expense funding.
$31.7 million to cover lower than initially estimated 2015-16 property taxes.  To the extent our property tax deficit is less than this amount at P2, these remaining funds will be allocated as one-time mandated costs payments.  (one-time)
$105.5 million to pay down prior year mandate claims.  The funds will be distributed one-time on a per-FTES basis. (one-time)
Allows community-supported districts to receive their fair-share of the $62.3 million provided in the 2015-16 budget to increase the ratio of full-time faculty.
 
Instructional

$300,000 increase for the Academic Senate to, in part, support implementing the Workforce Taskforce recommendations.
$30 million increase to the existing Basic Skills categorical. Funds remaining eligible, yet previously not funded, Basic Skills Transformation program applicants in 2016-17, and provides the Chancellor’s Office a year to develop a new formula for the Basic Skills Initiative. The 2017-18 formula will be based 50% on performance metrics, 25% on low-income students, and 25% on FTES in evidence-based basic skills practices.
Restoration of CalWORKs ($8.683 million), part-time faculty office hours ($3.658 million), and the MESA and Puente ($2.366 million) programs.
$5 million increase for statewide activities necessary to support the Adult Education Block Grant program. These funds will be used to continue providing webinars, trainings, convenings, professional development, and technical assistance over the next three years.  (one-time)
 
Workforce

$200 million for the Strong Workforce Program to improve and expand efforts for workforce, consistent with recommendations from the Workforce Task Force. Eliminates the 60% cap on ongoing expenditures, yet maintains the 60%/40% (college/region) split.
$48 million for the CTE Pathways Program, budget language makes this program permanent, however, it will be folded into the Strong Workforce Program beginning in 2017-18.
$1.8 million for the apprenticeship program to provide parity to apprenticeship rates relating to various general purpose funding augmentations received by colleges in 2015-16.
$1.4 million for the Los Angeles Trade Tech early childhood education apprenticeship pilot program. (one-time)
 

Technology

$12 million is added to the Telecommunications and Technology Infrastructure Program (TTIP) to support 10 Gig circuits throughout the system. These circuits will be procured for and managed centrally to take advantage of our systems economies of scale. ($7 million is one-time)
$3 million is added to the TTIP program for the purpose of enhancing data security.
$20 million is provided for the online course exchange. (one-time)
$5 million for the Zero-Textbook Cost Degree Program to incentivize programs that have no costs to students for the use of textbooks.  (one-time)
 
Facilities

$49.2 million is provided for energy efficiency projects and workforce development consistent with the intent of Proposition 39.
$184.6 million for deferred maintenance, instructional equipment, and drought response activities.
Increase the Division of State Architect minimum project cost thresholds to $100,000 for structural and $225,000 for nonstructural.  This proposal will improve efficiency by allowing more projects to be exempt from Division of State Architect approval.
 
Financial Aid and Outreach

$2.2 million is added to the Full-Time Student Success Grant, to provide supplemental financial assistance to Cal Grant B and Cal Grant C recipients taking 12 units or more.
$15 million to fund California Promise Programs which will be implemented through AB1741 (Rodriguez).  (one-time)
$2.5 million for the I Can Afford College Campaign to increase public outreach for baccalaureate pilot programs, non-English speaking households, and areas with declining enrollment.
 

Other

$2 million increase for the Equal Employment Opportunity Program. This is in addition to the $2.3 million in one‐time for FON penalties.
$10 million for the Institutional Effectiveness Partnership Initiative, in part, to augment support of technical assistance to the colleges.
$25 million to fund Innovation Awards which provide grants related to innovative practices in community colleges. Changes the focus of the awards to address equity issues, encourages the use of technology, and increases students' access to financial aid. (one-time)
The Compton CCD’s loans are refinanced to 2.307%, which allows an opportunity for the district to reinvest in operation needs.  The interest rate is the same as provided to two K-12 districts in the prior year’s budget.
Commencing in 2017-18, the apportionment restoration period for San Francisco CCD is extended from three years to five years and the restoration target is set at their 2012-13 level of funding.
$2.5 million to continue coordination and technical assistance efforts for inmate education programs across the state. (one-time)
 
For those interested in reading the statutes associated with a particular program, below are the budget and trailer bills enacted as part of the 2016-17 spending plan:
·         Budget Act is SB 826
·         K-12 trailer bill is SB 828
·         Higher Education trailer bill is AB 1602
 
While the increase in resources is appreciated, now comes the hard work of implementing the programs and priorities funded in the budget.  Over the next weeks and months the Chancellor’s Office will begin rolling out these programs through our advisory groups,  stakeholder groups, and other forums.  In the interim, feel free to contact me with any questions on the above, and I look forward to seeing many of you at the Budget Workshops the first week of August.
 
Regards,
Mario Rodriguez
Acting Vice Chancellor
Finance and Facilities Division
CCC Chancellor's Office
(916) 324-9508
mrodriguez@cccco.edu



Budget Information
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Last Updated: 7/7/16