March, 2002

The California Community College System suffers from chronic underfunding:

• California community colleges rank 45^th in the nation in per student funding support.
• Since Prop 13 was enacted, the following changes in funding per student have occurred:

K-12 System $1,632 $ 7,080 434%

UC System $7,129 $25,554 358%

CSU System $3,111 $10,822 348%

CCC System $1,561 $ 4,675 299%

• Nearly 100,000 more students took classes this past Fall compared to the previous Fall, totaling almost 1,700,000 students in the California community college system.

UC System 8% 11%

CSU System 18% 20%

CCC System 74% 69%

• State COLA has not kept pace with inflation. During the 1990’s, COLA increased by 17.4% while inflation increased by 31.3% [no COLA increase was allocated for 4 years].
• The state has failed for 11 years to allocate the 11% of Proposition 98 funds intended for the community college system. The current percentage share of funds going to community colleges is less than 10.2%. It should be noted that the LAO’s analysis indicates the Governor’s budget recommendation for next year understates total Proposition 98 funding requirements by over $800 million.
• Summary:

1. If community college appropriations had kept pace with the rest of education in the 1990s, Santa Rosa Junior College would have over $8 million more in its current funding base (each year).
2. If legislative intent had been maintained in allocating 11% of Prop 98 funds to community colleges, Santa Rosa Junior College would have over $7 million more in its current funding base (each year). Since 1991, SRJC has lost over $50 million because of the legislature’s failure to keep its promise.
3. If California community college appropriations matched the average funding per student across the nation, Santa Rosa Junior College would have more than $40 million more in its funding base (each year).

1. Governor/Legislative Analyst 2002/03 Budget Recommendations

The Governor’s budget recommendation provides a 1.7% increase for next year, but also contains reductions and restructuring proposals that will eliminate or harm long-standing programs.

1. Governor’s Proposed Cuts in Major Programs

1. CalWORKs will be eliminated. This welfare-to-work program has proven successful in training individuals to obtain jobs and eliminate/reduce dependency on public support. The Governor’s proposal will result in a loss of $568,000 at SRJC and will cut services to 400 students referred by the county. In addition, 40 students will lose $260,000 in wages (one-half from employers, one-half subsidized by the program); employers will lose the incentive to provide a paid training position for students. Other support services for these at-risk students will be reduced or eliminated as well.
2. Matriculation funds are reduced by $26.8 million, a 38% cut ($474,000 at SRJC). This is a long-standing base program that has demonstrated huge success in improving student retention. If this budget reduction is sustained by the legislature, many support services will be reduced or eliminated: writing tests for course placement; counseling functions prior to enrollment; orientation programs and services; the Faculty Advisor program; and core services in the Admissions and Records office.
3. Telecommunications and Technology Infrastructure Program funds are reduced by $19.8 million, a 36% reduction ($98,000 at SRJC). These funds are used to purchase new technology/software and to provide staff to support the use of technology. Last year, the entire TTIP amount was used for start-up costs associated with the new Technology Academy in Petaluma, which has been acclaimed by the Telecom Industry. Loss of these funds will result in losing the staff postions necessary to support the college’s telecommunications network, its Web applications, and other software support.
4. Economic Development funds are reduced $8.8 million, a 50% cut ($84,000 at SRJC). This funding is used exclusively for salaries to support the Redwood Empire Small Business Development Center. Reductions of this magnitude will have a serious impact on the college’s ability to serve the needs of entrepreneurs seeking assistance in developing their business applications for the marketplace.
5. Faculty and Staff Development funds totaling ($5.2 million) are completely eliminated under the Governor’s recommendation ($95,000 at SRJC). This long-standing program has yielded excellent results in: training employees for re-certification, providing technology training, supporting employee orientation programs and professional development activities, and assisting in employee training for the special needs of community college students from diverse backgrounds and cultures.

1. Categorical Consolidation

The LAO supports the $121.7 million in categorical reductions proposed by the Governor and adds to it a recommendation to consolidate 11 categorical programs into two block grants.

During the latter half of the 1990’s, as the state’s economy moved forward at an unprecedented rate, the legislature created 14 new categorical programs. At SRJC, the percentage of the college’s budget controlled by these categorical programs increased from 9% to 17%.

Now that the economy has weakened, the LAO proposes to consolidate programs into block grants. This recommendation is disguised as a positive opportunity for the local districts "to use these and other categorical funds effectively…by increasing their flexibility." It is curious that the state shows its strongest interest in protecting institutional budget flexibility only when the state budget is under seige.

2. Moving All K-12 Adult and Vocational Education Programs To CC’s

The Governor has proposed a massive consolidation of almost $1.3 billion in adult and vocational programs from the State Department of Education and the Secretary for Education into the community college system. There is little detail to the Governor’s recommendation explaining the purpose of the consolidation and how the transition would occur. Similar proposals in the past have always been met with stiff resistance from the K-12 and Social Services sectors because of the critical role these resources play in supporting long-standing programs.

1. Legislative Recommendations

The following recommendations should be considered by the Governor and California legislature as the final budget for FY 2002-03 is developed:

1. As a first priority, COLA and growth should be fully funded, and the COLA factor should be applied to the Partnership For Excellence Program.
2. All the additional Prop 98 funds that are constitutionally due to the educational system should be appropriated, with a priority placed on restoring the balance of funds owed to the community college system.
3. The categorical programs cut in the Governor’s recommendation should be restored after fully funding COLA and growth, with any additional Prop 98 funds targeted toward improving those programs that most directly affect students.
4. The LAO’s proposal to consolidate categorical programs into block grants should be rejected.
5. If the Legislature approves a student fee increase, all revenues derived from that increase should be allocated toward restoration of the categorical program reductions and toward meeting the needs of the highest risk students.