Budget Update—August 10, 2010

Now that the drama surrounding the water bond is behind us (postponed until 2012), the budget may be brought back to the front burner. Or, perhaps not, as the Legislature is focused on moving several hundred bills through the final turns in the legislative maze before the session officially ends on August 31.

An Alameda County judge yesterday relieved one of the budgetary pressure points, when he issued a temporary restraining order against the governor's latest furlough order for state employees. State employees were scheduled to begin furloughs again this Friday.

Meanwhile, the Budget Conference Committee adopted the plan crafted by the Democratic Caucuses in each house. The plan provides community colleges $83 million more than the governor's proposal, and spares the state's CalWORKs welfare-to-work program and state-funded child care. The Democratic plan would perform a complex tax swap--leading to $1.8 billion net tax increase on individuals--while implementing an oil severence tax and delaying corporate tax cuts scheduled to take effect January 1.

The major changes to the community college budget include the rejection of a proposed negative cost-of-living adjustment, no cuts to EOPS and Part-time faculty complensation, a $25 million augmentation for workforce development programs, and $38 million in state funds to backfill one-time federal funds used to mitigate categorical cuts in 2009-10.

Republicans and the governor have said they oppose the Democrats' plan, although the governor said recently that the two sides were only "around $4 billion" apart. The total tax increase proposed by Democrats is around $4.5 billion, and it's widely expected that if a compromise can be worked out around the tax issue, the rest of the budget will follow.

As of this morning, it is unclear when (and if) the Conference Committee plan will be voted on by the two houses. It could happen as early as Thursday, although it appears less likely as the week's minutes tick along.

Meanwhile, stay tuned. As soon as we get word of a budget vote, we will let you know and ask for you to contact your legislators to support the funding for community colleges.

Budget Conference Committee Status
Major Community College Items

League-Supported Action.
  Governor Senate Assembly Conference
(-$23 million)
no cut no cut no cut
Enrollment Growth 2.21% 2.21% 2.25% 2.21%
Part-Time Faculty
-$10 million no cut no cut no cut
EOPS -$10 million no cut no cut no cut
Backfill ARRA money that supported categoricals in 2009-10 not proposed not proposed $35
$35 million
Career Technical
$20 million no increase no increase no increase*
Basic Skills
Initiative Language
no new
20% of
based on
basic skills success
budget bill language to require
study of
performance-based funding model for basic skills program
Student Financial Aid Administration no language redistribute money based
on Pell Grant (rather than BOG) awards
no language
CalWORKs make money flexible, conforming to CalWORKs elimination proposal same as
same as 2009-10 same as
Economic/Workforce Development same as
same as
+$100 million +$25 million**

* The League was neutral on the career-technical augmentation, because it was scheduled to be paid for by cutting EOPS and Part-time faculty compensation.

** These funds would be "available for the Economic and Workforce Development Program for the purpose of maintaining existing and creating new workforce training programs. The chancellor’s office shall allocate funds on a competitive basis to districts demonstrating an ability to offer workforce training in green technology, nursing, allied health and other industry sectors in demand of skilled workers."

Community College League of California
2017 O Street, Sacramento CA 95811-5211
(916) 444-8641 | (916) 444-2954 fax
Email: cclc@ccleague.org

| Privacy Policy

© 2014 Community College League of California. All Rights Reserved.
Website Design by The Lone Designer