Copyright© 2008 by School Services of California, Inc.

Volume 21                   For Publication Date: October 10, 2008             No. 21

California Community Colleges Prepare 2009-10 Budget Request

With the long-overdue 2008-09 Budget, the Chancellor’s Office faced the anomaly of having to prepare its 2009-10 System Budget Request before knowing the exact content of the current fiscal year’s Budget. The System’s Budget Request—technically known as a Budget Change Proposal (BCP)—is a document submitted to the Department of Finance (DOF) by the Chancellor’s Office and other state-funded entities to propose changing the funding to be provided to the entity in the next fiscal year. Due by September 30, the BCPs are used by the DOF to craft the Governor’s January Budget Proposal.

The 2009-10 System Budget Request is ambitious in seeking more than $1 billion in additional ongoing funding, and $419 million in additional one-time funding for California Community Colleges (CCC). The ongoing funding would amount to a 16% increase over the Conference Committee’s proposed CCC Budget this year.

The requested funding is categorized into five categories reflective of the system’s Strategic Plan Goal Areas. We highlight some of the funding requested under each of the categories (dollars are in thousands).

The items included in the BCP are all important and do reflect system need. We caution, however, that the CCC are unlikely to receive anywhere near the total amounts requested. Governor Schwarzenegger has been very supportive of community colleges, but, with declining state revenues, the January Budget Proposal is likely to propose significant cuts rather than augmentations for CCC and other state-funded entities. We may also see the Governor propose midyear cuts.

The BCP includes some items that are less likely to be funded, given previous gubernatorial actions, the state’s fiscal situation, and potential policy priorities. These include:

1. Funding for a cost-of-living adjustment (COLA) deficiency from 2008-09. With no one receiving a COLA in the current fiscal year, it’s unlikely that CCC would receive funding for the deficiency. Unlike K-12, CCC do not have a deficit factor that is required to be repaid.

2. Funding for COLA in 2009-10. The system sought a 4% COLA, while recognizing that the number will probably be higher. School Services estimates the 2009-10 COLA at 5.6%; however, is also recommending that its clients budget for a COLA of zero, believing it is unlikely that the COLA will be funded in 2009-10.

3. Funding for new programs, such as the $9.75 million sought for a new initiative, the School-to-College Bridge Program, or the $2 million sought for the Accreditation Assistance Team that would assist districts with the accreditation process. (Small districts in particular are having problems with research, and the Accrediting Commission for Community and Junior Colleges of the Western Association of Schools and Colleges [ACCJC/WASC] has placed about 23 community colleges on warning status.) Legislators have been reluctant to start new programs when current programs are being cut.
4. Funding of more than $110 million for part-time faculty compensation and benefits, and to increase full-time faculty positions. Funding for part-time faculty office hours and health insurance was started under a Republican administration, but the current Republican Governor has not been supportive. The proposed increase would meet the local commitment (match) that has occurred for these items, and an increase in full-time faculty positions might help with basic skills. Part-time faculty now teaches 70% of basic skills courses, but may not be as engaged at the college as full-time faculty.

5. Funding for reimbursement of state mandates. The BCP includes $217 million in one-time funds to bring the state current in paying mandates and $50 million for other state mandates. However, given the state’s ongoing structural deficit, it is likely that the state will continue to provide only $1,000 per mandate rather than anything close to the amount requested in the BCP. The minimum funding assures that K-14 districts continue having to comply with the mandates.

The approximately 4% growth sought is equal to the minimum that should be provided pursuant to SB 361. We’re more likely to see funding for growth than for COLA next year. The question is whether the growth funding ultimately provided will be adequate. The Chancellor’s Office’s numbers are not yet out, but we’re hearing anecdotally that some colleges are experiencing 8% or higher enrollment growth.

With the new requirement that California’s eighth graders be assessed in Algebra and the need for at least 3,000 additional algebra teachers by 2011, we may see more of a willingness to augment funding for Mathematics Engineering Science Achievement (MESA); the Fund for Student Success requests $2.2 million more funding for MESA.

Of course, much of the above could change if the Governor calls a special session to deal with the current year’s Budget and community colleges receive their share of cuts. Stay tuned . . .

—Deborah Harmon