Budget Information

Budget Information

Senate Approves Budget - July 24, 2009

 

Dear Colleagues,

Scott Lay and others have been up all night monitoring action on the budget, which is expected to conclude today. Although there is little change to the 2009-10 cuts as adopted by the conference committee, there has been a major development with regard to Proposition 98 restoration funding.
If you have been following the budget updates from the League and from Vice Chancellor Erik Skinner, you will be aware that a major area of negotiations over that last several days has been the Proposition 98 "maintenance factor" to ensure that underfunding of Prop 98 will be restored when the state's revenues recover. Last night the Senate adopted provisions that will restrict community colleges to only 8% of restoration funds (instead of our statutory 11% share) and further specify that those funds are to be evenly divided between Career Technical Education and General Purpose funding. This would lock in the deep cuts to student support services for many years to come, even beyond the state's economic recovery! Given the deep body of research that shows the importance of support services for the academic success of underprepared and first generation students, this would be a setback of immense proportions for the future of California higher education.

Please read Scott's update below.

Linda

Linda Michalowski
Vice Chancellor, Student Services and Special Programs
California Community Colleges

+++++++++++++++++++++++++++++++++++++++++++++
From: Scott Lay
To: Michalowski, Linda
Sent: Fri Jul 24 12:09:08 2009
Subject: League Budget Update (07/24/09): Senate Approves Budget

 

July 24, 2009

Dear Linda,

After a marathon all-night session and not enough sleep to avoid embarrassing typos, this will be a quick message. The Assembly is still considering the local government package, the out-year Proposition 98 funding bill and a bill to allow limited oil exploration off the coast.

Since many of you are on alternative schedules because of the summer, however, I wanted to get this message out before too late. We expect the Assembly to eventually pass the package of bills today, and don't expect significant changes to the community college budget.

Early this morning, the Senate approved a package of 32 bills to revise the 2009-10 state budget, including significant reductions to community colleges. The package for community colleges <http://www.ccleague.net/impact/> is largely as expected, although there are a few changes:

the $85 million 2008-09 reduction was not made in either fiscal year, reducing the total cut to community colleges
career-technical education is being reduced by $10 million (to $48 million) instead of $20 million, funded by cutting $10 million SB 1133/QEIA funds that were to be allocated for scheduled maintenance and instructional equipment
the previously scheduled 2008-09 $115 million deferral will take effect next spring, and will be increased to $163 million, with a total "rolling," ongoing deferral of $703 million (increase from existing $540 million deferral)

One significant disappointment appears in the language that was approved to repay the "maintenance factor" owed K-12 and community colleges due to the underfunding of Proposition 98. The language provides that community colleges are only to receive 8% of the $11.2 billion, and that the community college funds will be split equally between SB 70 career-technical programs and general purpose funding.

While CTE and general funding are high priorities, the language could lock in the cuts that programs like Matriculation, EOPS, DSPS, Economic Development and many more are taking this year. We will be having a policy discussion among community college leaders to decide whether to fight for a change when the repayment starts (unlikely before 2012-13).

Several issues are a bit vague and not all language is yet available to the public. We will work to get the details to you so your college community can proceed with the challenging task of working harder with fewer resources to do the best to serve your students as we keep up the fight in Sacramento.

Enjoy your weekend,

Scott Lay
President and Chief Executive Officer
Orange Coast College '94
Community College League of California
2017 O Street, Sacramento, California 95811
916.444.8641 . www.ccleague.org



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Last Updated: 7/27/09