Fullerton College - Business Office

Fullerton College Budget Update

updated 5/26/10

Governor Schwarzenegger recently issued the anticipated revision to his January budget proposal. While the governor proposes additional deep cuts to many health and human service programs, there are few changes to the community college budget. The updated budget plan, based on the Administration’s latest revenue and expenditure estimates, will frame the remainder of this year’s legislative budget process. With the basic parameters now in focus, the Capitol’s budget deliberations will begin in earnest.

As expected, the size of the overall budget shortfall has not changed significantly from the magnitude identified in January. Whereas the January budget proposal contained an estimate of $19.9 billion, the May Revision identifies an estimated budget shortfall of $19.1 billion. What has changed is that many of the solutions proposed by the Governor in January are no longer available. Most significantly, $6.9 billion that the Governor planned on getting from the federal government did not fully materialize.

To make up for these lost solutions, the Governor relies almost exclusively on deep budget cuts in health and human services program. Among these is the total elimination of CalWORKS welfare to work program ($1.1 billion) and deep cuts to In-Home-Supportive Services ($637 million). By anyone’s standards these are brutal cuts that, if enacted, would represent a drastic reduction in the safety net available to California’s most vulnerable citizens. Even the Governor’s spokesman referred to the proposed cuts as “terrible.”

Highlights (see the league budget chart below):

For the California Community Colleges, the May Revision remains virtually unchanged from the Governor’s Budget released in January. Key features, consistent with the January proposal include:

2.2 percent enrollment growth ($126 million). This proposed augmentation would fund approximately 26,000 full-time equivalent students and help the colleges respond to the tremendous enrollment demand they are currently experiencing.

- 0.38% COLA (-$22.9 million). While the economic factors used to calculate the COLA have changes slightly since January, the Administration chose not to update this figure.

Changes to the January budget proposal are as follows:

· A downward revision of $6 million in 2010-11 local property tax revenues. The Governor proposes an augmentation of $6 million in state funding to offset this reduction.

· A reduction of approximately $6 million in federal TANF funds as a result of his proposed elimination of the CalWORKs program. In addition, the Governor proposes that the $26.7 million in state funding previously provided for CCC CalWORKs be redirected to support any categorical expenditure through the Categorical Flexibility provision.

While community colleges fared relatively well in this proposal, the devastating cuts to our student success and operational categoricals included last year continue. Further, a proposed $1.2 billion elimination of child care services under Proposition 98 and the proposed elimination of CalWORKs will likely affect many community college student parents.

Two hot topics the Legislative Analyst's Office (LAO) has brought up in particular include the student enrollment fee and concerns about apportionment funding for Physical Education courses. As you recall, the Governor has proposed maintaining the fee at its current level, $26 per unit whereas the LAO has proposed increasing it to $40 per unit. The LAO and a number of legislators continue to raise concerns about the apportionment funding of physical education, athletics, and fitness programs in community colleges. Both of these issues will undoubtedly be cause for much debate.

We are likely looking at a prolonged summer budget fight, and it is likely that a budget won't be adopted until September. Many of the solutions proposed by the governor will be very difficult for Democratic legislators to swallow, and the injection of budget and pension reform could complicate the closing of the budget gap. The legislative debates that must take place between now and then will be difficult and time-consuming, especially since the prospect of additional cuts is being opposed vigorously by the general public and also because the controversial prospect of generating revenue through new or modified taxes is now being openly pursued.

From a District standpoint (see the May 25th Board report below) we are anticipating a $4.3 million budget deficit that we expect to cover from carryover funds for the 2010/2011 year. Looking ahead the 2011/2012 is expected to be even worse and the District will be negotiating during the upcoming year with the bargaining units. In addition it is expected that categorical programs could be consolidated with additional cuts forthcoming.

The Budget Development Committee concluded its work for the year. The most up to date list of campus budget cuts are posted here and the tentative budget is being developed at this time. Meeting notes are posted on the BDC page for all meetings.

Fullerton College will make every effort to keep cuts away from permanent positions and will also be cautious about reducing or eliminating course offerings. In addition, the college recognizes that across-the-board cuts are not an effective means to achieving large budget cuts. Check this page frequently for new developments.

For More Information, Please Read the Following Documents:

Board Budget Presentation May Revise (5.25.10)

CCLC Budget Chart May Revise (5.20.10)

Board Budget Update PowerPoint Presentation (11.23.09)

Memo re: Budget Efficiencies from Budget Officer Adam O'Connor (7.6.09)

Memo from President Kathleen Hodge (06.18.09)

Memo from President Kathleen Hodge (05.19.09)

Impact of Proposed Budget Cuts on NOCCCD (06.30.09)

Fullerton College BDC Review of 401 Budget Reduction Suggestions

Approved Campus 2009-2010 Operating Allocation (6.24.09)



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			Fullerton College Budget Update updated 5/26/10 Governor Schwarzenegger recently issued the anticipated revision to his January budget proposal. While the governor proposes additional deep cuts to many health and human service programs, there are few changes to the community college budget. The updated budget plan, based on the Administration’s latest revenue and expenditure estimates, will frame the remainder of this year’s legislative budget process. With the basic parameters now in focus, the Capitol’s budget deliberations will begin in earnest. As expected, the size of the overall budget shortfall has not changed significantly from the magnitude identified in January. Whereas the January budget proposal contained an estimate of $19.9 billion, the May Revision identifies an estimated budget shortfall of $19.1 billion. What has changed is that many of the solutions proposed by the Governor in January are no longer available. Most significantly, $6.9 billion that the Governor planned on getting from the federal government did not fully materialize. To make up for these lost solutions, the Governor relies almost exclusively on deep budget cuts in health and human services program. Among these is the total elimination of CalWORKS welfare to work program ($1.1 billion) and deep cuts to In-Home-Supportive Services ($637 million). By anyone’s standards these are brutal cuts that, if enacted, would represent a drastic reduction in the safety net available to California’s most vulnerable citizens. Even the Governor’s spokesman referred to the proposed cuts as “terrible.” Highlights (see the league budget chart below): For the California Community Colleges, the May Revision remains virtually unchanged from the Governor’s Budget released in January. Key features, consistent with the January proposal include: *2.2 percent enrollment growth ($126 million).* This proposed augmentation would fund approximately 26,000 full-time equivalent students and help the colleges respond to the tremendous enrollment demand they are currently experiencing. *- 0.38% COLA (-$22.9 million).* While the economic factors used to calculate the COLA have changes slightly since January, the Administration chose not to update this figure. Changes to the January budget proposal are as follows: · A downward revision of $6 million in 2010-11 local property tax revenues. The Governor proposes an augmentation of $6 million in state funding to offset this reduction. · A reduction of approximately $6 million in federal TANF funds as a result of his proposed elimination of the CalWORKs program. In addition, the Governor proposes that the $26.7 million in state funding previously provided for CCC CalWORKs be redirected to support any categorical expenditure through the Categorical Flexibility provision. While community colleges fared relatively well in this proposal, the devastating cuts to our student success and operational categoricals included last year continue. Further, a proposed $1.2 billion elimination of child care services under Proposition 98 and the proposed elimination of CalWORKs will likely affect many community college student parents. Two hot topics the Legislative Analyst's Office (LAO) has brought up in particular include the student enrollment fee and concerns about apportionment funding for Physical Education courses. As you recall, the Governor has proposed maintaining the fee at its current level, $26 per unit whereas the LAO has proposed increasing it to $40 per unit. The LAO and a number of legislators continue to raise concerns about the apportionment funding of physical education, athletics, and fitness programs in community colleges. Both of these issues will undoubtedly be cause for much debate. We are likely looking at a prolonged summer budget fight, and it is likely that a budget won't be adopted until September. Many of the solutions proposed by the governor will be very difficult for Democratic legislators to swallow, and the injection of budget and pension reform could complicate the closing of the budget gap. The legislative debates that must take place between now and then will be difficult and time-consuming, especially since the prospect of additional cuts is being opposed vigorously by the general public and also because the controversial prospect of generating revenue through new or modified taxes is now being openly pursued. From a District standpoint (see the May 25th Board report below) we are anticipating a $4.3 million budget deficit that we expect to cover from carryover funds for the 2010/2011 year. Looking ahead the 2011/2012 is expected to be even worse and the District will be negotiating during the upcoming year with the bargaining units. In addition it is expected that categorical programs could be consolidated with additional cuts forthcoming. The Budget Development Committee concluded its work for the year. The most up to date list of campus budget cuts are posted here and the tentative budget is being developed at this time. Meeting notes are posted on the BDC page for all meetings. Fullerton College will make every effort to keep cuts away from permanent positions and will also be cautious about reducing or eliminating course offerings. In addition, the college recognizes that across-the-board cuts are not an effective means to achieving large budget cuts. Check this page frequently for new developments. For More Information, Please Read the Following Documents: Board Budget Presentation May Revise (5.25.10) CCLC Budget Chart May Revise (5.20.10) Board Budget Update PowerPoint Presentation (11.23.09) Memo re: Budget Efficiencies from Budget Officer Adam O'Connor (7.6.09) Memo from President Kathleen Hodge (06.18.09) Memo from President Kathleen Hodge (05.19.09) Impact of Proposed Budget Cuts on NOCCCD (06.30.09) Recommended Fullerton College Budget Reductions (06.19.09) Fullerton College BDC Review of 401 Budget Reduction Suggestions Approved Campus 2009-2010 Operating Allocation (6.24.09)