The governor released his January budget proposal today for 2010-2011.  In this proposal, the governor has taken significant steps to protect college access at a very difficult fiscal time for California. This gives hope to the graduating high school seniors and unemployed Californians seeking education and a skilled job.  Although the state budget shortfall is projected at $20 billion, the good news for community colleges is that overall this budget provides for a net increase in funding of about $100 million.  This likely translates into approximately $1 million for our district.

Highlights

• The budget provides $126 million to fund enrollment growth of 2.21 percent (about 26,000 new full-time students).

• Reduces funding for apportionments and select categorical programs by $22.9 million to account for a negative cost-of-living adjustment (COLA), computed at -0.38% due to reductions in the statutory inflationary index.

• Maintains most categorical cuts from the previous year but does not include backfill from federal funds.  In addition, EOPS is reduced an additional $10 million as well as part time faculty compensation by another $10 million.  Career Technical Education is increased by the corresponding $20 million.

• No student fee increase is proposed at this time, however the Community College League of California continues to work on a fee proposal that ties increases to an index so colleges can plan ahead in the future.

• The governor's plan also proposes the suspension of the competitive Cal Grant program, with no new awards provided beginning in fall 2010.

• The budget protects community colleges from declining property taxes by allocated additional general fund resources .

• To note also, all budget gimmicks including apportionment deferrals roll forward.