Copyright© 2007 by School Services of California, Inc.

                                      Volume 20                   For Publication Date: January 19, 2007             No. 2

Community College 2007-08 Budget Highlights 

The Governor’s Budget reflects total funding of $19.8 billion, including $14.1 billion General Fund and Proposition 98 sources for all major segments of higher education, which reflects an increase of $1.1 billion above the revised 2006-07 Budget. These amounts represent a 5.7% total funding increase, including a 6.4% increase in General Fund and Proposition 98 sources above the revised 2006-07 Budget. 

Major Program Changes 

§       A $109.1 million increase (2%) for enrollment growth for apportionments. This funding will enable community colleges to enroll an additional 23,000 fulltime equivalent (FTE) students. This level exceeds the 1.65% change in the adult population, equally weighted between the 19-24 and the 25-65 age groups, the new statutory index factors relevant in 2007-08 pursuant to Chapter 631/2006. 

§       A $224.9 million increase for the cost-of-living adjustment (COLA 4.04%) for general-purpose apportionments. 

§       A $19.6 million increase for categorical program enrollment growth and COLA (2% and 4.04%, respectively). These programs provide essential services to special populations and include basic skills, matriculation, disabled students programs and services, campus childcare tax bailout, and extended opportunity programs and services. 

§       A $33.1 million redirection of surplus basic skills overcap incentive funding to support additional matriculation and support services for community college students. Of this amount, $19.1 million is specifically dedicated to additional counseling and tutoring services for those students most at risk of failing to complete a meaningful education program.

§       A $9 million one-time current year increase and a $9 million ongoing increase to support additional nursing program capacity in community colleges. These funds are available in the community college base from set asides from the Budget Act of 2006 and are proposed to assist colleges in expanding enrollments by providing start-up funding for new nursing programs, funding new clinical simulation laboratories, expanding services that will reduce attrition, and funding incentives for additional prerequisite science courses. 

§       A $33.2 million increase to offset the remaining fee revenue reduction incurred by colleges in the budget year due to the reduction in student fees from $26 per unit to $20 per unit in the spring of 2007 and other workload adjustments. 

§       $1 million in one-time current year funds for the California Partnership for Achieving Student Success Program (CalPASS). 

§       $350,000 in ongoing funds for Fiscal Crisis and Management Team (FCMAT) assistance to community colleges.

§       $119.8 million, reflecting a $7 million increase from the 2006-07 Budget, for Extended Opportunity Programs and Services and Special Services 

§       $114.4 million, reflecting a $7 million increase from the 2006-07 Budget, for Disabled Students Programs and Services 

§       $1 million to maintain the current level of funding for Part-Time Faculty Health Insurance, and $50 million to maintain the current level of funding for Part-Time Faculty Compensation 

§       $52 million to maintain the current level of funding for Career-Technical Education 

§       $479.4 million to fund 60 projects out of the 2006 California Community College Capital Outlay Bond Funds 

Community College Fees 

The Budget proposes no fee increase, so fees for credit courses will remain at $20 per credit unit per the 2006 Budget Act. 

Proposition 98 

The Budget includes $8.6 billion ($6.6 billion from General Fund and Proposition 98 sources), which reflects an increase of $322.2 million ($362.3 million General Fund and Proposition 98 sources) above the revised 2006-07 Budget. This is a 3.9% total funding increase, including a 5.9% General Fund and Proposition 98 increase over the current year.

—Jamillah Moore, Ed.D.