Copyright© 1999 by School Services of California, Inc.
By The Way. . .
Los Angeles Community College District Cautioned About Spending Its New Budget Surplus. The Los Angeles Community College District, which has experienced financial troubles in recent years, now appears to be rolling in the green. According to a L.A. Times article, the district has posted a significant budget surplus -- $23.9 million for the fiscal year that ended in June 1999. Trustees say that the surplus is the result of recent reforms that have improved efficiency and boosted enrollment about 3% in the district's nine colleges. A healthy increase in state funds has also contributed.
The $333 million unrestricted general budget for 1999-00 is, overall, 19% higher than last year's $281 million budget. As to be expected, disagreements are already surfacing over how to spend the new financial cushion. At the top of the wish list is faculty raises.
Gerald Hayward, director of Policy Analysis for California Education, indicated that the district should be very cautious about expending the surplus, particularly on overly generous pay raises. Trustees need to be reminded of the past when pay raises were granted, it came back to haunt them when revenues to cover the cost failed to materialize.
Not that long ago, the State Chancellor's Office was considering taking the over the financial management of the district. It is good to see the district on the rebound.