FACCC WEEKLY E-MAIL REPORT

Friday, May 12, 2006

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--Governor Releases May Revision: CC Budget Increased
--Serve on a FACCC Committee: FACCC Needs Your Talent

 

GOVERNOR RELEASES MAY REVISION: CC BUDGET INCREASED

Gov. Schwarzenegger released his May revision to the January budget proposal today, which accounts for higher than expected revenues. Current year revenues are $2.7 billion, and revenues for the 2006-07 budget year are up $4.8 billion, totaling a $7.5 billion increase.

With economic indicators such as the California unemployment rate falling to 4.8 percent, coupled with strong national economic growth, it appears California’s budget is on the rebound.

Due to the recent volatility of California’s revenues, the governor is treating the current-year gain as a one-time event, and is proposing a total reserve of $2.2 billion. In addition, he is proposing a $3.2 billion payment of future debts, including higher payments of the Economic Recovery Bonds approved by voters in 2004.

A majority of the additional revenue in the governor’s budget is being proposed for Proposition 98 spending, to resolve outstanding litigation.

The May Revise includes a $244.4 million increase in community college funding for the current fiscal year (along with a one-time current year increase of $257.3 million), and an additional $80.4 million for 2006-07 (changing the Proposition 98 split to 10.7 percent).

The current year community college budget is proposed to be increased as follows:

--$100 million for deferred maintenance, instructional equipment and hazardous substance abatement;

--$77.7 million for a general purpose block grant, distributed on a FTES basis, allowing each district to address local priorities. An additional $22.3 million is also provided from the Prop. 98 Reversion Account, bringing the total to $100 million;

--$40 million for career technical education equipment and associated facility reconfigurations;

--$15 million for payment of prior-year amounts owed for mandated cost claims that have been audited;

--$23.6 million set aside for one-time costs associated with implementation of a new funding formula;

--$500,000 to extend high-speed internet services to 52 offsite centers;

--$500,000 for the expansion of Student Clinical Placement Registries in all regions of the state, and to establish an online CCC Faculty Registry.

The 2006-07 community college budget is proposed to be increased as follows:

--COLA from 5.18 percent to 5.92 percent, resulting in $32.6 million for apportionments; and $2.3 million for select categoricals, including Extended Opportunity Programs and Services, Disabled Student Programs and Services, Matriculation, and Basic Skills. These categoricals will be funded according to their existing allocation, plus COLA and growth.

--29.5 million increase for ongoing deferred maintenance, instructional materials, and hazardous substances abatement costs;

--$24 million increase for Matriculation;

--$15 million increase for the Economic Development program;

--$10 million increase in apportionments to support remediation programs at community colleges for high school students who have failed to pass the California High School Exit Exam;

--$4 million increase for ongoing claims of current mandated programs;

--$2.5 million increase for apprenticeship instructional program support;

--$1.5 million increase for nursing programs to initiate a nursing faculty stipend incentive program;

--$800,000 increase for the Telecommunications and technology Services program to pay for increased costs of high-speed internet service delivery;

--$500,000 increase for Telecommunications and Technology Services program to support the California Partnership for Achieving Student Success.

The May Revise proposes an $85 million base reduction in apportionments to reflect the unused 2005-06 growth funding.

It is important to note that, despite additional revenues, there are no decreases in student fees.

The Assembly and Senate Budget Subcommittees will deliberate the governor's May Revise over the next two weeks. After which time, the Assembly and Senate will reconcile their respective versions of the budget through a conference committee process.

Click here to view the May Revise.

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SERVE ON A FACCC COMMITTEE: FACCC NEEDS YOUR TALENT

FACCC could not be a successful advocate without the participation of our members. We work in Sacramento on your behalf, but you are the core of our association. One of the best ways to get involved in your organization is to serve on a committee.

FACCC committees include:

- Awards and Scholarships
- Communications
- Legislative & Advocacy
- Membership Organizing
- Nominations, Leadership Identification & Elections (NLIE)
- Part-Time Faculty
- Policy
- Political Action Committee (PAC)
- Professional Development
- Retirement

Click here for detailed committee descriptions and to apply. Terms run for two-years with the possibility of renewal.

If you’re interested in volunteering, or have more questions, please contact Membership Director Stephanie Davi at sdfaccc@aol.com or (916) 447-8555. Please let her know your top three choices by June 5, and we’ll do our best to accommodate your interests.