Copyright© 1999 by School Services of California, Inc.

December 17, 1999


Capital Outlay Remainder

Fred Harris, Administrator of the Chancellor's Office Facilities Planning and Utilization Unit, recently sent an e-mail to local community college districts alerting them about the timelines for submitting their final capital outlay projects for 2001-02. The Final Project Proposals (FPPs) are due in the Chancellor's Office by February 15, 2000 but FFP submittal does not guarantee acceptance into the next budget cycle. Proposals received by the Chancellor's Office will be subject to further review, scope approval, prioritization with all other submitted projects, and approval by the Department of Finance before inclusion into the Governor's Budget can occur.

With the passage of Proposition 1A in November 1998, $9.2 billion in General Obligation bonds were made available to fund K-12 through higher education capital outlay projects for four years. Higher education received $2.5 billion of the Proposition 1A funds. Of that amount, community colleges are receiving an average of $186 million per year for four years, and an additional $55 million during the last two years of the bond for new campuses, small campuses and off-campus centers, according to Mr. Harris.

The Chancellor's Office anticipates that only $10-15 million will be available for funding preliminary plans on new projects to start in 2001-02. This amount should be available after funding for continuing phases of previously approved projects is deducted.

Capital outlay funding for 2001-02 is further complicated by the Department of Finance's requirement that all Risk Level 5 and 6 seismic retrofit projects remaining on the Chancellor's office seismic survey be completed within the proceeds of the current G.O. bond.

Based on the new capital outlay criteria adopted by the Board of Governors and the limited amount of funding available, no more than one new start project will be selected for funding per campus. Based on the limitations of Proposition 1A and the facilities needs of the system, it seems imperative that Proposition 26 on the March 2000 ballot be approved by the voters. Approval of bonds by a simple majority vote could be a life-saver for many community college capital outlay projects.

-- Arnold Bray