Copyright© 2000 by School Services of California, Inc.

September 15, 2000


By the Way . . .

Equalization Funding Gets a New Name. The Community College Chancellor's Office will pursue a new strategy during the 2001-02 budget debate related to "equalization funding." Equalization funding for community colleges has not been supported by the Administration over the past several years. This year, Governor Davis vetoed the system's $45 million request for equalization funding. As a result, a new approach will be attempted during the 2001-02 budget cycle. Chancellor Nussbaum outlined the new proposal in his September 8, 2000 email.

The new equalization proposal will be entitled "Ensuring Student Success Statewide." According to Chancellor Nussbaum, the basic thrust of the proposal is to address the State's and the system's interest in ensuring that each student, no matter where he or she chooses to attend a community college in the State, has a reasonable level of resources supporting his or her attendance. The principal focus will be to move all districts to a reasonable band of funding (with small college districts to be addressed separately) on the basis of revenue per FTES. The intent is to bring all colleges within a $200 band, $300 band, or a $400 band. The Chancellor's Office will also consider program-based funding standards as part of its goals. In terms of the allocation method, those districts furthest below the statewide average would receive relatively more than those districts just under the statewide average.

Also, in order to secure the support of the Governor, the Chancellor's Office will place conditions on receiving the funds. Districts would be required to address certain system priorities such as, hiring full-time faculty, working with local and regional employers to expand programs for workforce preparation, improve transfer rates, augment budgets for student services and improving plant maintenance and operations.

The Chancellor's Office hopes that through this new approach the system may be successful in achieving equalization funding.