State Budget Update - June 10, 2017


From: CCC Chancellor’s Office

June 10, 2017

Colleagues,
 
Conference Committee took action on the budget yesterday evening. Below are actions relevant to the California Community Colleges.
 
On-going
 
· $25 million for Completion Grants of $2,000 for students on track to graduate in two years with demonstrated financial need, generally as proposed in SB 539 (De León)
· $20 million to increase the Full-Time Student Success Grant from $650 to $1,000 annually.
· $5 million for veterans resource centers, which will be detailed in trailer bill language.
· $5 million for the Part-Time Faculty Office Hours program.
· $2.5 million to support the Umoja program.
· $1 million for financial aid offices.
· $503,000 for a COLA on the Mandates Block Grant.
· The on-going funding increases were paid for by reducing the $135.9 million in deferred maintenance and instructional equipment funding by $59 million.
· $1.7 million non-Proposition 98 to increase Cal Grant C from $547 to $1,094 annually.
 
One-time
 
· $20 million for Innovation Awards as proposed in the May Revision.
· $11.3 million to support the transition of Compton College. In addition, Compton College will be provided three-years of stability protection as students transition from El Camino College.
· $8 million for economic development grants for high unemployment areas of the state, which will be detailed in trailer bill language.
· $7 million for veterans resource centers, of which $2 million will be for Norco College, which will both be detailed in trailer bill language.
· $4.5 million to support mental health services, which will be detailed in trailer bill language.
· $2.5 million to support training and compliance with Title IX, generally as proposed in SB 169 (Jackson).
· $2.5 million for Hunger-Free Campus grants, generally as proposed in AB 453 (Limón).
· $1 million to support the Academic Senate as they continue to implement C-ID. In addition, the Chancellor’s Office can enter into direct contracts with the Academic Senate to support statewide initiatives funded with Proposition 98.
· The one-time funding increases were paid for by reducing the $45.8 million in excess revenue above the 2015-16 apportionment entitlement by $36.8 million.
· Six new Proposition 51 capital outlay bond projects:
o Sonoma County CCD - Santa Rosa Junior College - Science & Mathematics Replacement
o West Hills CCD - North District Center - Center Expansion
o Solano CCD - Solano College - Library Building 100 Replacement
o Long Beach CCD - Pacific Coast Campus - Construction Trades 1
o West Valley-Mission CCD - Mission College - MT Portables Replacement Building
o Rancho Santiago CCD - Santa Ana College - Russell Hall Replacement
 
Keep in mind, most of the May Revision was not included Conference Committee since both houses of the Legislature already adopted the vast majority of the May Revision’s proposals. Augmentations such as the base increase, Guided Pathways, the original nine capital outlay projects, the integrated library service, the learning management system, and other May Revision proposals are still in the budget.
 
The actions of Conference Committee were based on the Governor's May Revision revenue estimates. While Conference Committee accepted the May Revision’s over appropriation of Proposition 98 in 2015-16, and the suspension of the 3b supplement for three years, it rejected the Proposition 98 contingency that would have delayed spending the deferred maintenance and instructional equipment program funding. The package maintained the 10.97% split in 2015-16, and the 10.93% split in 2016-17, and increased our split to 10.91% in 2017-18, which effectively becomes 10.94% when calculated with the one-time “settle-up” payments. In short, we at least received our 10.93% “fair share” of the Proposition 98 resources in each of the three budget years.
 
While not an official augmentation, the budget includes trailer bill language requiring public employers to provide exclusive representatives of public employees access to its new employee orientation, and the manner of the access is to be negotiated. Additionally, trailer bill language also specifies an arbitration process for disputes between the public employer and the exclusive representative, among other provisions. There will be more discussion on this issue and I will do my best to unpack this for our system over the next weeks and months.
 
Over the next few days, this package will be adopted by both houses of the Legislature and sent to the Governor for review. Consistent with past years, he will likely use his veto authority only in rare circumstances, and it is unlikely anything will change in the CCC budget since the above augmentations were made as part of an agreement with the Governor.
 
As always, I am available for any questions, comments, and/or concerns.
 
Regards,
Mario Rodriguez
VC Finance and Facilities
CCC Chancellor’s Office
(916) 218-2759
mrodriguez@cccco.edu

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