there’s a lot in this budget - laccd.edu · there’s a lot in this budget. 1/23/18 2 state...
Post on 28-May-2018
212 Views
Preview:
TRANSCRIPT
1/23/18
2
StateBudget:TheBigPictureEducationmakesuphalfofstatespending.
$9.2BCCCs
RevenueFramework
RevenueVolatility– It’simportant!
•Top1%ofincomeearnerspayaround40%ofincometaxes.
•FractionofPITpaidby1%ofreturnswiththemostincomeisatanalltimehigh.
•Thevolatilityofcapitalgainsandbusinessincomecausestheselevelstoriseandfall.
CommunityCollegeLeagueofCalifornia � OfficeofGovernmentRelations
1/23/18
3
Thisyear’sprimarybudgetdiscussion…
HowwillfederaldecisionsimpactCalifornia’sbudget?
CommunityCollegeLeagueofCalifornia � OfficeofGovernmentRelations
?
ChangingPoliticalLandscape
100%ofAssemblyMembersareservingunderthenewterm-limitlawsandpostProp.30/55.
14 outof80AssemblyMemberstermedout
6 outof40Senatorstermedout
1/23/18
4
StateBudget:CommunityCollege
CommunityCollegeLeagueofCalifornia �OfficeofGovernmentRelations
CaliforniaCommunityColleges
Ongoing
Increaseapportionment fundingandimplementnewallocation formula
$396
FundAB19feewaiverprogramandconsolidated financialaidprogram
79
Provideongoingsupport fornewonline college 20
Makeotherongoingaugmentations 51
Subtotal ($546)
OneTime
Funddeferredmaintenanceandinstructional materials $275
Provideone-timesupport fornewonline college 100
Fundotherone-timeactivities 53
Subtotal ($428)
Total $974
1/23/18
5
State’sBudgetImpactonCommunityColleges
Amongotherproposals,GovernorBrownproposes3significantchangesandnotableexpenditures inthe2018-19budget:
CommunityCollegeLeagueofCalifornia � OfficeofGovernmentRelations
ProposesnewfullyonlinecommunitycollegetargetingworkingCalifornianswithnodegreeorcredential
Proposes a newoutcomes-focusedfundingformula
Asksstakeholderstoproviderecommendationsfortheconsolidationofcategoricalprograms
Growth • Accessresourceshelpcollegesmeetthedemandforclasses.
• Growthfundsprovidemorestudentswitheducationalopportunitiesforsuccess.
• Thecurrentproposalwillallowustoserveapproximately25,000morestudents.
$60Millionor1%
CommunityCollegeLeagueofCalifornia �OfficeofGovernmentRelations
1/23/18
6
COLA• Providesnecessaryresourcesforongoingcostsandoperations
• 2018-19COLAwillalsobeprovidedtotheAdultEducationBlockGrant
$161MillionOr2.51%
CommunityCollegeLeagueofCalifornia �OfficeofGovernmentRelations
Per-StudentFunding
• Generaloperatingfundsdirectlyimpactstheservicesweprovidetohelpstudents persistandcomplete.
• Funds areconditionedonadoptionofanewcommunitycollegefundingformula.
AlsoknowasGeneralOperatingFunds
$175Mil.forthetransitiontoanewformula
CommunityCollegeLeagueofCalifornia � OfficeofGovernmentRelations
1/23/18
7
FundsAB19FeeWaivers
CommunityCollegeLeagueofCalifornia � OfficeofGovernmentRelations
• Thebudgetprovides$46 milliontofundthefeewaiverprogramestablishedbyChapter 735of2017(AB19,Santiago).
• AB19authorizesfeewaiversforallresidentfirst-time,full-timestudents.
• Thelegislationallowscollegestousetheirprogramallotmentsforotherpurposes,suchasprovidingmorestudentsupport services.
Student-FocusedFunding
CommunityCollegeLeagueofCalifornia � OfficeofGovernmentRelations
• Governorproposesanewallocationformulaandprovides$175milliontoensurenocollegereceiveslessunderthenewformulathanitwouldreceiveundercurrentlaw.
• Thenewcommunitycollegefundingformularepresentsthemostsignificantchangetocommunitycollegefundinginmanyyears.
• Theneedforanewfundingformula isexacerbatedbythefactthatcommunitycollegeshavelostnearly $80millioninenrollmentgrowthover thelasttwoyears.
1/23/18
8
FormulaParameters
CommunityCollegeLeagueofCalifornia � OfficeofGovernmentRelations
• BaseGrants(50%offormula) — District basegrantsbasedonFTESenrollment.
• Supplemental Grant(25%offormula)— Supplementalgrantsbasedonthenumber oflow-income studentsthatthedistrict enrollsreflecting twofactors:(1)enrollment ofstudentswhoreceiveaCollegePromiseGrantfeewaiver(formerly knownastheBOFWaiver)and(2)enrollment ofstudentsthatreceiveaPellGrant.
• Student SuccessIncentiveGrant(25%offormula)— Additional fundingfor:1)thenumber ofdegreesandcertificates grantedand2)thenumber ofstudentswhocomplete adegreeorcertificate in3yearsorless,3)fundsforeachAssociateDegreeforTransfergrantedbythecollege.
• Hold HarmlessProvision— During thefirst yearofimplementation, districtswouldbeheldharmlessto2017-18levels.
FullyOnlineCollege
CommunityCollegeLeagueofCalifornia � OfficeofGovernmentRelations
Expanding Public Online Options• Thebudgetincludes$120million—$100 million
onetimeand$20millionongoing—forthecreationofanewonlinecommunitycollege.
• Thecollegewouldcreateonlineprogramsalignedwithindustryneedsandestablishcompetency-basededucationaloptions.
• Targetworkingadultswhohaveahighschooldiplomabutnotacollegedegreeorcertificate.
1/23/18
9
HonorTheVotersWill
CommunityCollegeLeagueofCalifornia � OfficeofGovernmentRelations
Fund Capital Outlay Projects• In 2016, California voters approved a facilities
bond providing a $2 billion infrastructure investment in California’s community colleges.
• The proposed budget only funds five of 29 ready-to-go capital projects. Over $42billioninfacilitiesneedsoverthenext10years,including$29.9billion inunmetcapitalfacilityneedsidentified inthecurrentCapitalOutlayPlan.
FundsthatEnableSuccess,EquityAndSustainedQuality
System FundingAmountK-12 $12,057
CCC $7,984
CSU $14,914
UC $26,162
• InvestinHigherCommunityCollegePer-StudentFunding.
• CollegescannotmaintaintheirQUALITYandgrowinnovationwithoutageneraloperatingresources!
1/23/18
10
GrowingObligationstoEmployeesandCaliforniaTaxpayers
0.00%
5.00%
10.00%
15.00%
20.00%
25.00% 20
13-14
2014
-15
2015
-16
2016
-17
2017
-18
2018
-19
2019
-20
2020
-21
STRS
PERS
• Withoutsufficientresources tocoverthegrowingcostofbusiness,thehealthandsafetyofourstudentsandfacultyisjeopardized.
• Furtherattention isneededforthesubstantial fiscalchallengesdistrictsfaceinyearsaheadduetoSTRS,PERS,healthcare andteachingcosts.
CommunityCollegeLeagueofCalifornia � OfficeofGovernmentRelations
Alone,STRSandPERScontributioncostsareestimatedtoincreasetoapproximately$400
millionannuallyby2021.
TheBudgetProcess
CommunityCollegeLeagueofCalifornia �OfficeofGovernmentRelations
January
• GovernorBrownreleases2017-18budgetproposal.
February- April
• Legislatureconductshearings toconsiderGovernorBrown’sProposal
May
• GovernorBrownrevises budget totakeintounanticipatedincreaseordecreaserevenues.
May
• Budgetcommitteesvotestoapprovebudget.
July1st
• Startofthenew fiscalyear.
LateJune
• Governorsignsbudget.
June15
• Constitutionaldeadline topassbudget–Legislatorsdonot receivepayif thebudgetdoesnotpass.
May- June
• BothStateAssembly andSenatevotetoapprovetheirbudget.
top related