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Faculty Association of California Community Colleges

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Infamous 'Broken Deal' Legislative Priorities. Special Election/Prop 76. CC Initiative ... The Infamous 'Broken Deal' What's the Broken 'Deal? ... – PowerPoint PPT presentation

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Title: Faculty Association of California Community Colleges

1
Faculty Association of California Community
Colleges

Best Political Voice for Community College
Faculty in the State.
-Sacramento News Review

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Topics of Presentation

Californias Structural Deficit
Budget Facts and Figures
Infamous Broken Deal
Legislative Priorities
Special Election/Prop 76
CC Initiative

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Californias Ongoing Fiscal Problems
8
BACKGROUND Revenues Once Soared
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Capital Gains Fell Sharply
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No One Predicted the Decline
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Hello Mr. California One Idea

California is thinking about borrowing money to
paper over the budget gap. It must be getting the
same come-ons I get Congratulations, Mr.
California! You have been pre-approved for a
platinum Visa card at a low introductory APR of
1.9 and a credit line of 5 billion! Get enough
of those and youve got your budget deficit taken
care of. Then, watch the mail for this letter
Dear Mr. California Over your head in
credit-card debt? Well show you how to get out
from under it, for a fraction of what youre
paying each month!
Source The Sacramento Bee

13
Schwarzeneggers Promises

Balance the budget
Protect education
Reverse restoration of vehicle license fee
No tax increases
Fully-fund community colleges under Prop 98
requirements

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Lets remember one thing

In his first day in office, Gov. Schwarzenegger
blew a 4 billion hole into the deficit when he
reversed the restoration of the vehicle license
fee.

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Budget Facts and Figures
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9.1bil gap
17

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So whats the plan?2005-06

Reductions Bonds (dollars in millions)
Prop 98 2,284
Business, Trans and Housing 1,311
Health and Human Services 1,167
General Government 928
Education 543
Resources 475
Youth and Adult Correctional 272
Others 20
New Economic Recovery Bonds 1,683
Revenue Issues 409
Total 9,092

19
Whats the impact on community colleges?
20
January Budget

Proposes healthy increase for ccs 373 mil.
more 7.4 increase
Growth up 3
COLA up 3.93
Restoration of 31.4 mil. for district
accountability
One-time increase of 20 for career-technical
Education
No fee increases
Prop 98 split at 10.35 (up from 10.25)

21
Dont get too happyWait until you see the
context

Increase is mostly growth and COLA no attention
to part-time faculty, low revenue districts or
non-credit
Hidden cut of 40 mil. to community colleges
State proposes to eliminate contribution to
CalSTRS
Broken Prop. 98 deal of 2004-05 impacts cc
budget

22
The Infamous Broken Deal
23
Whats the Broken Deal?

Prior to 2004-05 budget, CTA and other K-12
entities agreed with Gov. to rebase Prop. 98 by
2 bil.
In addition to original 2 bil., Gov. withheld
additional funding in 2004-05, required by Prop
98
Withholding money from 2004-05 means less money
for 2005-06

24
What does it mean?

Prop 98 is suspended for 2004-05 obligation for
K-12 and community colleges is reduced by 2 bil.
Additional spending obligations are not reduced
in the bill questionable whether law compels
such spending
Reduction in one year compels reduction in
further years
Reductions in Prop. 98 affect ccs, although no
strictly cc organization participated in deal

25
Gov. reneges on the Deal

However, given the size of the State's budget
shortfall and to avoid significant reductions in
programs critical to the health and well-being of
the State's most vulnerable children and
families, the Administration proposes to maintain
2004-05 expenditures at the Budget Act level, as
adjusted for changes in local revenues and ADA
growth. This proposal results in savings of 1.1
billion in 2004-05 and an additional 1.17
billion in 2005-06.
-- GOVS JAN. BUDGET --

26
Impact of Broken Deal

Gov. announces that he wont fund additional
spending obligation of 1.1 bil. in 2004-05, and
1.17 bil. numbers are revised upwards to 1.8
bil. in 2004-05, 1.3 bil. in 2005-06
Impact on ccs dependent on Prop 98 split

27
Where can I find The Deal?SB 1101 of 2004

THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS
FOLLOWS
SECTION 1. (a) The Legislature hereby invokes
subdivision (h) of Section 8 of Article XVI of
the California Constitution with regard to the
amount of moneys that are required to be applied
by the state for the support of school districts
and community college districts during the
2004-05 fiscal year pursuant to subdivision (b)
of Section 8 of Article XVI of the California
Constitution.
(b) The amount of money that shall be applied by
the state for the support of school districts and
community college districts during the 2004-05
fiscal year shall be calculated by subtracting
the amount of two billion three million nine
hundred ninety-six thousand dollars
(2,003,996,000) from the amount that would
otherwise be required to be applied for the
support of school districts and community college
districts during the 2004-05 fiscal year pursuant
to subdivision (b) of Section 8 of Article XVI of
the California Constitution, if the Legislature
had not invoked subdivision (h) of Section 8 of
Article XVI.
(c) Subdivision (a) does not apply to
subparagraph (B) of paragraph (3) of subdivision
(b) of Section 8 of Article XVI of the California
Constitution.
SEC. 2. This act is an urgency statute necessary
for the immediate preservation of the public
peace, health, or safety within the meaning of
Article IV of the California Constitution and
shall go into immediate effect. The facts
constituting the necessity are In order to make
the necessary statutory changes to implement the
Budget Act of 2004 at the earliest possible time,
it is necessary that this bill take effect
immediately.

28
CTA files lawsuit to recover lost Prop. 98 funds
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May Revise adds revenues to CCS

COLA INCREASED TO 4.23
NEW EQUALIZATION FUNDING AT 40 MIL.
RESTORATION OF 31.4 MILLION (ACCOUNTABILITY)
INCREASE OF 17.4 CAREER-TECHNICAL ED
10 MIL. FOR ONE-TIME COSTS ASSOCIATED WITH
NURSING PROGRAMS
PROP 98 SPLIT TO 10.46

30
Senate suggests wish list for community colleges
if 2 bil. from Deal is restored

(1) Additional Enrollment Growth 27,850,000
(2) Additional Equalization 40,000,000
(3) Noncredit Rate Enhancement 30,000,000
(4) Restoration of Matriculation/
Counseling/Placement 23,300,000
(5) Health Services Fee Backfill 14,000,000
(6) Restore Special Services for CalWORKS
students 9,000,000
(7) Partially restore prior-year unfunded
COLA 21,754,000
(8) Economic and Workforce Development 10,000,0
00
(9) Fully fund Part-Time Faculty Office
Hrs/Health Ins. 7,100,000
(10) Restore funding for Academic Senate
30,000
(11) Professional Development 2,500,000
(12) Scheduled Maintenance and Instructional
Equipment 22,500,000
(13) CALREN Network Access for CCC Centers
475,000
(14) Electronic Transcript Exchange
691,000

31
Assembly takes its own path

ADDS
Backfill 2004-05 Prop. Tax Shortfall 33
mil.
Un-funded Growth
20 mil.
Non-Credit Rate Enhancement 20 mil.
Mandate Claims 10 mil.

REJECTS
Equalization 40 mil.
Career-Tech 37.4 mil.
Nursing 10 mil.

32
Final legislative deal Increase of nearly 440
mil. ongoing

Restoration of 31.4 million vetoed from district
base apportionments last year
4.23 cost-of-living adjustment for the general
apportionment and selected categorical programs
3 student enrollment growth (34,000 FTES)
1.76 growth for selected categorical programs
30 million for credit equalization
20 million for career technical education
10 million to increase nursing enrollment and
equipment
10 million to reimburse districts for mandates
1 million for the California Partnership for
Achieving Student Success (Cal-PASS) program
33 million to backfill any shortfall in 2004-05
property taxes, with the unused balance available
for credit equalization
No reduction of States contribution to STRS
No student enrollment fee increase

33
Budget news in perspective Adjustment for
inflation

Purchasing power of Prop 98 funds provided per
community college student is down 7.1 percent
from four years ago.

34
Career Technical Education
The Legislature predicated 20 million for Career
Technical Education upon the appropriation of an
additional 20 million for instructional
materials to help English language learners.
The Governor vetoed both appropriations, but
indicated that the 20 million for Career
Technical Education could return if separated
from the other request.
35
Career Technical Education (cont.)
SB 70 (Scott) restores 20 mil. in Career
Technical Education funds. Signed into law.
36
Deferral still in place

Community College budget for 2005-06 still built
on 200 million deferral
Will factor into budgetary calculations for
several years

37
Dont forget the second bite of the apple

Gubernatorial Reduction
Backfill of Prop. Tax Shortfall goes from 33 to
15.6 mil.

38
LEGISLATIVE PRIORITIES

AB 1402 (Blakeslee) Would ensure that property
tax shortfalls dont trigger mid-year cuts
AB 1604 (Saldaña) Would ensure that community
colleges are paid even if the State hasnt
approved a budget

39
Jan. 2005 Gov. Introduces Year of Reform

Budget Give Gov. unilateral authority
Pension Destroy Defined Benefit program
Redistricting Redraw lines without census
K-12 Teachers Replace collective bargaining with
merit pay extend tenure process

40
Gov. calls for Special Election
PRICE TAG UPWARDS OF 80 MIL.
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Impact of Prop 76 on CCs
Potential cuts up to 400 mil. Gov. could choose
to cut community colleges disproportionately to
all other programs
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Why Do CCs Need an Initiative?
45
Problems with Prop 98

Primary funding source
75 of total community college revenues
Varying but limited share
Low 9.4 (93-94)
Current 10.46
Overall guarantee annually adjusted
Previous year, multiplied by
K-12 enrollment growth rate
Change in per capita personal income

46
Demographic bubble means more students need
higher ed.
47
What we Need to Address

Improve Finance
Streamline Governance
Ensure Access through Affordability

48
Projected Enrollment Growth
49
Prop. 98 Split When lawmakers ignore the law
1990-2006
50
Maintain Prop 98, but separate community colleges
from K-12 based on enrollment

The split pot would eliminate the prop 98
battle between community colleges K-12
The initiative creates a growth formula that
would blend adult population, high school
graduation, unemployment and persistent growing
regions

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Strengthen System Office/Local Governing Boards

The initiative would create a system office
independent of the states bureaucracy, overseen
by the community college Board of Governors
similar to the CSU system

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Roll Back Fees

Separate Proposition 98 pot would enable the
colleges to use increased revenue to reduce and
stabilize student fees

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DID ANYONE READ THIS?
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Report to the Legislature Pay Attention

Student Headcount Losses. After fifteen (15)
consecutive primary terms of headcount growth in
the system, Spring 2003 marked the first decline
in the number of students in the CCC system.
Spring 2003s headcount loss of 3.1 was followed
by a loss of 3.4 in Fall 2003, and another 0.9
loss in Spring 2004. On an annual unduplicated
student headcount basis, FY 2003-04 saw a
dramatic loss of over 280,000 students from the
CCC system, equivalent to a loss of almost 50,000
FTES (full-time equivalent students).

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Lets Look to the Future
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CA 2025 ITS YOUR CHOICE
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CA 2025 Its Your Choice

One of the most threatening trends is the
potential mismatch between the education
requirements of the new economy and the amount of
education its future population is likely to
have.

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CA 2025 Continued

If the trends continue, there will be a gap
between the number of college graduates demanded
by the states economy and the number of
Californians with college degrees. If the gap
doesnt narrow, and if the California working-age
population doesnt have the education required by
jobs in the 2025 economy, will we have a
generation of chronic underemployed, who will
need the states social and income-transfer
programs?

59
Future Prospects in California

By 2010
Latinos, at 42 of the population, will become
the majority
Industries with the greatest growth (service,
transportation, and finance) require post-high
school levels of education and strong language
skills
Manufacturing will only have a 3.7 growth rate

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Labor Demand Will Outstrip Supply
Employment Policy Foundation
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Trained workforce dependent upon community
colleges

If the United States wants to stay on the
cutting edge, it must do a better job of
educating its workforce.
William Archey, president and chief executive of
the American Electronics Assn.

62
Why community colleges Alan Greenspan

Generic capabilities in mathematics, writing, and
verbal skills are key to the ability to learn and
to apply new skills and thus to earn higher real
wages over time. The avenues to acquiring those
skills are many, and one effective tool that we
have developed to facilitate the transition to a
new job or profession has been our community
colleges.

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to ccs charity

Supporting community colleges is not charity. It
does not represent a give-away to students or the
middle class. With growing numbers of jobs being
"outsourced" overseas, it is in California's
interests that our population be as highly
educated and skilled as possible. Funding
community colleges at a barebones level is not
the way to ensure California is competitive in
the global economy. San Francisco Chronicle,
March 17, 2004

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What You Can Do
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Become a grass-roots lobbyist (not just during
the opening phase of the budget process)