Copyright© 2000 by School Services of California, Inc.

September 15, 2000

Update on Budget Package for 2001-02

The November 2000 deadline for adopting a community college system budget for 2001-02 is nearing for the Board of Governors of the California Community Colleges (BOG). As a result, the Chancellor's Office Finance Formula Task Force and Consultation Council have been meeting to provide input on the final budget recommendations that Chancellor Nussbaum will present to the BOG.

During the initial development of the system's budget package, the budget change proposals that were discussed amounted to almost $900 million in on-going funds. The Chancellor and others felt that this amount was too high. Thus, the Consultation Council was asked to review the budget request and suggest appropriate reductions. Chancellor Nussbaum's September 8, 2000 weekly e-mail provided an overview of what took place at the various meetings.

The following changes were made to bring the budget requests for on-going funds from $864 million to approximately $735 million:

• The augmentation for instructional equipment/library materials and technology ($10 million) was moved from on-going to one-time funds
  
• The augmentation (on-going funds) for Technology II was reduced from $117.3 million to $88.8 million
  
• The part-time faculty equity augmentation was reduced from $100 million to $75 million
  
• The augmentation for Scheduled Maintenance and Repairs ($28 million) was moved from on-going to one-time funds

As a result of the above changes and other slight budget modifications, the system's budget request for on-going funding is taking shape in the following manner:

• $228 million for General Fund Apportionment adjustment based on-$117.2 million for a salary and wage adjustment; $17.4 million for health benefits; $18.4 million for price increase (goods, services, utilities, etc.); and, $75 million for part-time faculty
  
• $152 million for Growth (4%)
  
• $100 million for Partnership for Excellence
  
• $45 million for Ensuring Student Success Statewide (formerly equalization funding)
  
• $12 million for Economic Development
  
• $12.8 million for Outreach and Access (EOPS and DSPS)
  
• $10 million for Faculty and Staff Development
  
• $10 million for Faculty and Staff Diversity
  
• $88.7 million for Technology II
  
• $48.4 million for Noncredit Education
  
• $5 million for Teaching and Reading Program expansion (Governor's program)
  
• $12.7 million for Pell Tuition
  
• $10 million for Service Learning

According to the Chancellor, the above proposal is more reasonable than the initial budget request that was proposed. Nussbaum indicated that more than $300 million of the request is necessary to hold even with inflation and to accommodate increased enrollments. Thus, about $424 million will be devoted to various student access and success improvements. If community colleges were to receive $735 million in new on-going funding it would amount to a $400 million real increase in revenue per FTES.

As you will recall, the system's budget request for 2000-01 was for a little more than $602 million. The final budget approved by the Governor was approximately $498 million. Any improvement on these numbers in 2001-02 will mean a very good budget year for community colleges.

--Arnold Bray