Copyright© 2001 by School Services of California, Inc.

Volume 14                   For Publication Date: December 7, 2001             No. 25

Spare The Community Colleges

State Chancellor Tom Nussbaum and members of the Board of Governors have been making the rounds to local newspaper editorial boards to publicize the importance of the community college system, particularly during the state’s economic woes. So far, the Sacramento Bee, San Jose Mercury and L.A. Times, to name a few, have carried editorials supporting the systems’ need to be spared from substantial budget cuts. The editorials have pointed out that the community colleges are key to a rebounding economy.

However, historically the colleges have been affected by what is happening with the economy at the state level and nationally. Cost of living adjustments (COLA) which provide the bulk of new revenue to the system are significantly impacted by the size of the COLA.

As a result, the following is a historical perspective on the size of the community college COLA over the past decade. You will recall that during the recession years of 1991 through 1995 the system did not receive any COLA funding. Even though the state may be faced with a budget deficit of more than $12 billion. It is not likely that a zero COLA will materialize for 2002-03. It is anticipated that next year’s COLA will be in the range of 2.6%.

The COLA is a reflection of the percentage change of the Implicit Price Deflator for state and local government purchases of goods and services for the United States, as Published by the United States Department of Commerce. Although a COLA is specified in statute for the system, the recent history of the community colleges clearly demonstrates that during the recession times the Legislature and Governor may not provide COLAs.

The Chancellor’s Office has requested a COLA of 4% for general apportionment’s for fiscal year 2002-03. As mentioned above, the statutory COLA has been estimated at 2.6% for 2002-03, therefore it is not likely the system will achieve COLA funding in excess of that amount. Stay tuned, the system will know where it stands when the Governor releases his state budget on January 10, 2002.