6-8-07 Budget Conference Committee and Community Colleges

The Assembly and Senate Budget Subcommittees on Education have concluded action on the Governor’s 2007-08 Budget. Both Subcommittees rejected many of the Governor’s new programs and supported his proposal for an increased cost-of-living adjustment (COLA) of 4.53%.

Both Subcommittees rejected the Governor’s proposal to use public transportation funds to reimburse Proposition 98. And both Subcommittees proposed filling the $364 million Budget shortfall related to the failure to carry the funding for equalization aid into 2007-08 by rejecting nearly all of the Governor’s new programs.

The Assembly version of the Budget is much more favorable to community colleges. The Assembly version rejected the May Revision proposal to reduce $80 million in the current-year and budget-year apportionment item. In the budget year, the Assembly reduced the apportionment item by $40 million, to ensure districts receive funding to support projected enrollments. However, the difference between the Senate and the Assembly versions of the Budget for community colleges is quite different. The Senate accepted the May Revision proposal to reduce $80 million in the current- and budget-year apportionment items. Overall, the Assembly provided $152.7 million in one-time funds, whereas the Senate put forth $202.7 million in one-time funds. Listed below is a side-by-side of the Assembly vs. the Senate versions of the Budget.

The Conference Committee began its work on Friday, June 1, 2007, and hopes to complete its agenda prior to June 15, the constitutional deadline for the Legislature to approve the State Budget.

Assembly	Senate
Growth and COLA for Categorical Programs—Approves $21.2 million for a 4.53% COLA for categorical programs	Fully-fund a 4.53% COLA adjustment for apportionments and select categorical programs
Basic Skills Overcap Enrollment Funding—Reject the $33.1 million redirection in ongoing funds to support matriculation and other student services and shifts funds back to basic skills schedule	Restored $33.1 million to the Basic Skills program. The Administration has proposed that these funds be shifted to the Matriculation categorical program as part of the Governor’s January Budget proposal

Part-Time Faculty Office Hours—Provides $5 million in ongoing funds for part-time faculty office hours		Part-Time Faculty Office Hours and Health Insurance ($10 million)
Nursing/Allied Health Equipment—Approves $49.2 million in nursing and allied health equipment and minor facility reconfigurations		Nursing and Allied Health Program Equipment ($30 million)
Textbook Assistance—Increases the proposed $2.5 million in one-time funds for textbook grants for qualifying students to $5 million		Augmented by $1.9 million (in ongoing funds) to provide textbook grants through the Extended Opportunity Programs and Services (EOPS)
	Mandates—Provides $20 million in one-time funds to help pay for the cost of mandates		Mandates ($35 million)
	Career Technical Education Equipment—Provides $20 million in one-time funds for career technical education equipment and associated facility reconfigurations Career Technical Education—Approves $20 million in ongoing funds and $32 million in one-time funds for a total of $52 million		Career Technical Program Equipment ($20 million)
	Deferred Maintenance—Approves $14.4 million in one-time funds and $27.3 million in ongoing funds for deferred maintenance		Scheduled maintenance and special repairs, replacement of instructional equipment and library materials, hazardous substances abatement programs, and architectural barrier removal projects ($45.6 million)
	Matriculation Services—Rejects the $10 million augmentation for matriculation services		Shifted Governor’s proposed $10 million augmentation for the Matriculation categorical program to enrollment growth in order to mitigate the effect of the above-noted rebenching
	Current and Prior Year Unused Enrollment Growth Funding—Changes the proposed reduction from $80 million to $40 million		Adopted Governor’s proposal to reduce community colleges’ budget by $80 million in the current and budget years (thus, rebenching apportionments on a permanent basis) to account for unused enrollment growth funding
	Nursing Program Enrollment Expansion—Nursing program start up costs and simulators ($9 million		Nursing program start up costs and simulators ($9 million)

Enrollment Growth Funding. Approves a $109.0 million increase in ongoing funds to fund a two percent enrollment growth.

Student Fee Reduction Backfill. Approves an increase of $30.4 million in ongoing funds to backfill

General Purpose Cost-of-Living Adjustment (COLA). Approves $248.5 million for a 4.53 percent COLA for general purpose apportionments.

Career Development and College Preparation Programs. Approves $18 million in ongoing funds.

Part-Time Faculty Office Hours. Provides $5 million in ongoing funds for part-time faculty health insurance.

Professional Development. Provides $5 million in one-time funds and $32 million in one-time funs for a total of $52 million.

Provided $220,000 so that community college districts have access to FCMAT resources.

Appropriated $212.7 million in one-time funds (from both the Proposition 98 Reversion Account and prior-year Proposition 98 “Settle-Up” funds) to the community colleges for a variety of high-priority uses.

Coordination of Nursing and Allied Health Training for 24-hour State Facilities ($15 million)