California Community Colleges Budget Update

Spring 2010

Diane Brady, Fiscal Policy SpecialistCalifornia Community Colleges Chancellor’s Office

2.9 million students in 2008-09 112 colleges in every corner of the state Three core missions:

◦Career Technical Education & Workforce Preparation

◦Transfer to 4-Year Institutions◦Basic Skills

California Community Colleges: Nation’s Largest System of Higher Education

Due to: High unemployment Students being displaced from UC and CSU Record numbers of high school graduates

Community Colleges FacingUnprecedented Enrollment Demand

CCC total funding cut by more than $520 million or 8 percent:

◦ $313 million cut to students services programs (counseling, tutoring, services to disabled students)

◦$190 million cut to general purpose funds that support instruction

Deep Cuts to CCCs in 2009-10

Primary Funding Sources: State General Fund $3.4 Billion

(59%) Local Property Taxes $1.9

Billion (35%) Student Fees $367 Million

(6%)

CCC 2009-10 Budget

Total Available Revenue $5.700 BillionDistrict Entitlement $5.890 Billion

Revenue Shortfall ($190 million)

CCC 2009-10 Budget

Budget cuts have forced most districts to make significant reductions in the number of course sections offered

Most districts have cut more than 5 percent of course sections - primarily those taught by part-time faculty

Budget Impacts on the Colleges

Students are having difficulty accessing the courses they need

Course sections are full Waiting lists are longer than ever Many students are being turned away with

no classes

Budget Impacts (cont.)

Many districts used one-time funds to protect categorical programs in 2009-10

Some reductions in counseling, tutoring, and other support services

Even more drastic reductions in student support services likely this Spring and next Fall.

Budget Impacts (cont.)

• 200,000 students beyond funded levels. • Not sustainable; colleges will be forced to

further reduce course sections in the coming year in order to balance their budgets.

• Absent additional funding being provided, over 200,000 students will lose access to a community college education over the next year.

Stretched to the Breaking Point

Assumes a $19.9 billion deficit over the 2009-10 and 2010-11 fiscal years

Despite this deficit, Governor promised to spare education from further cuts

Still far short of funding necessary to serve current students

Colleges probably would be forced to make more cuts under this scenario

Legislature will consider and weigh in on Governor’s budget

Governor’s 2010-11 Proposed Budget

Categorical programs: $10 million cut to EOPS $10 million cut to Part-Time Faculty Compensation $20 million increase in Career Technical Education EOPS, Basic Skills, and Fund for Student Success

are now included as “Flexibility” items

Governor’s 2010-11 Budget Detail

General: 2.2 percent enrollment growth ($126

million) to fund approximately 26,000 more full time equivalent students

Negative COLA of -0.38% (-$22.9 million) Suspension of new Competitive CalGrant

awards Partial backfill of property tax and other

revenue shortfalls

Governor’s 2010-11 Budget Detail

Legislative hearings are beginning now for 2010-11 budget

The Legislature is advised by non-partisan Legislative Analyst’s Office, which presents its own proposal

Governor issues his May Revision in mid-May, after tax revenues are known

Sometime in summer (or even fall) the budget will be finalized and signed by the Governor

Next Steps

Diane Brady

Contact Information

Fiscal Policy SpecialistCalifornia Community Colleges

(916) 327-1554dbrady@cccco.eduwww.cccco.edu