State budget update - May 21, 2014


May 21, 2014

Dear Colleagues,

Good morning from Santa Rosa, where I'm getting ready to speak to the Association of Chief Business Officials.

Yesterday afternoon the Senate Budget Subcommittee on Education Finance took actions on the higher education budget, including community colleges. In doing so, the committee relied on the higher revenue and Proposition 98 projections by the Legislative Analyst's Office (LAO), as identified in its report last Friday. With Proposition 98 estimates $313 million more in the current year and $2.237 billion in the budget year (2014-15), this allowed the Senate committee to include significantly higher expenditure amounts. The Assembly is expected to also include higher spending levels when it deliberates today and tomorrow.

Here is a chart that reflects the Senate's actions, prepared by League Vice President Theresa Tena.

The Senate's action (and expected similar actions by the Assembly) reflects the great advocacy by our district and state-level advocates.

Of course, it is unlikely that the governor will be willing to accept the LAO's total revenue numbers, as he continues to be wary about fiscal contingencies. We will be encouraging a compromise and hope that some of the additional funding priorities above May Revise identified by the Senate can be included in the final budget deal.

The STRS issue will be handled separately tomorrow by budget subcommittees that oversee state administration.

Thank you for your great advocacy.


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

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