Budget Information

Budget Information

Budget & Legislative Update - Oct. 1, 2010


October 1, 2010

Dear Colleagues,

As the week draws to an end and the calendar turns, there is still no budget deal to announce. Legislative leaders and the governor are very close, with "pension reform" as the major sticking point. The "Big 5" group of the governor and four legislative leaders met for five hours yesterday and plan to meet again today.

While there is little disagreement about needing to make some changes to the enhancements made during the 2000 bubble to the CalPERS retirement program, SEIU Local 1000--representing the largest number of state employees--wants to negotiate the changes as part of collective bargaining, while the governor wants to include the changes in the budget package adopted by the Legislature. There are also some observers who believe SEIU would prefer to wait until after the election, and hold any collective bargaining discussions with Jerry Brown should he win.

The discussions around pension reform continue to be limited to CalPERS, even though the elephant in the room is the more significantly underfunded, and more difficult to tackle, CalSTRS.

On the community college budget, all indications are that the budget package will be at or above the governor's proposal. We believe enrollment growth will be included, as well as a small amount of resources to mitigate last year's categorical cuts. Of course, until there is final agreement, details can change.

We still believe that there will be a budget deal by next week. Nevertheless, we are working with a major bank to provide districts an additional borrowing facility if budget negotiations fail and the dreaded "wait until after the election" strategy occurs.

Last night was the deadline for the governor to act on bills adopted in the 2009-10 Regular Session. Our legislative staff will compile a final Bills of Interest for the website soon, but here are some of the results of the most closely watched bills acted on in the final flurry. The League's summary analysis and position of the bills were included in our September 22 Bills of Interest.

Signed into law:

AB 2302 (Fong): Transfer Pathways
AB 2385 (Perez): Accelerated Nursing and Allied Health Pilot Program
SB 1143 (Liu): Student Success Task Force
SB 1440 (Padillo): CSU Transfer Associate's Degree


AB 194 (Torrico): Retirement: Final Compensation - Cap at 125% of Governor's Salary
AB 827 (De La Torre): Public Employees: Executive Contracts
AB 1413 (Fuentes): California DREAM Act
AB 1987 (Ma): Retirement: Final Compensation/180-Day Waiting Period
AB 1997 (Portantino): CCC Financial Aid Pilot Program
AB 2682 (Block): CCC Student Assessment Pilot Program
SB 1425 (Simitian): Retirement: Final Compensation/180-Day Waiting Period
SB 1460 (Cedillo): California DREAM Act

Finally, I'd like to thank the Ohlone College students, faculty, staff, administration and trustees for their hospitality yesterday and for opening the doors for me to talk about "Student Success Amidst Budgetary Blues: Establishing a Vision for Student Success in an Increasingly Global Environment" as part of the college's World Forum speakers series. Although the best part of the day was the second hour of discussion which is not archived, the http://www.ohlone.edu/instr/worldforum/ video of my talk should be available today, and you can view the PDF of the PowerPoint I used. As always, I appreciate your comments and feedback at scottlay@ccleague.org.

Have a great weekend, and I hope we're talking about a budget deal this time next week.

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

Budget Information
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Last Updated: 10/1/10