Copyright© 1999 by School Services of California, Inc.

June 25, 1999

On-Time State Budget Not a Win for
California Community Colleges

The solid bipartisan vote on the $81.7 billion State Budget for fiscal year 1999-00 surprised many legislative observers in Sacramento, including Governor Davis. When the Governor took office back in January he predicted an on-time budget. However, most observers of the budget process viewed the Governor's prediction with some skepticism; after all only one budget in the last 13 years has been ready by the July 1 start of the fiscal year.

It should come as no surprise that Legislators were quick to boast of their ability to work together in a bipartisan manner after a combined Senate and Assembly approved the Budget by a vote of 105-13. Governor Davis was not to be left out in taking credit for the on-time Budget, in a Los Angeles Times article he was quoted as stating, "this budget demonstrates what we can accomplish when we attack our common problems rather than one another."

The broad support for the Budget exceeds any legislative budget vote for a least 30 years. The vote spanned all 70 of the Democrats present, the Legislature's lone independent (Green Party member) and 26 of the 48 Republicans. So why did we get a Budget on time? The speedy budget passage clearly benefited from two major factors: a $4.5 billion surplus and Democratic control of both houses in the Legislature as well as the Governor's Office. Also, Democrats got much of what they wanted. More money for education, health care spending was significantly raised, and the environmental budget was doubled. At the same time, most Republican demands were accommodated. More money for road and sewer repair was included in the Budget. Cuts were made in university and college fees, local government received more and a $500 million reduction in the vehicle license fee.

It remains to be seen whether the Governor or Legislators will see a major boost in popularity because they finally did their job on time.

On-Time Budget Does Not Translate Into an Increase in Funds for Community Colleges

Although the State Budget as submitted to the Governor provides community colleges with an increase in ongoing funds of $283 million (7.8%), this is not a significant increase in funds when compared to the total amount of Proposition 98 dollars available to K-14 education. Also, the Legislature provided an additional $200 million in Proposition 98 spending over the legally required minimum. Community colleges did not benefit from the Governor's support for education when compared to K-12 education, the University of California and the California State University.

In fact, the Conference Committee Budget as submitted to the Governor funds community colleges with 10.37% of Proposition 98 funds. This is approximately the same percentage of Proposition 98 funds received in 1998-99. And, this percentage could be further reduced based on the actions of the Governor when he signs the Budget. It is anticipated that there will be some vetoes by the Governor. The programs that may be in jeopardy include full-time faculty hires ($10.6 million) and outreach programs ($15.5 million).

Governor Davis will be deciding over the next week which items in the Budget to line item veto, if any. Community college districts and organizations should continue to articulate the system's budget priorities to ensure the colleges receives their fair share of Proposition 98 funds.

-- Arnold Bray