Analysis of how the Governor's proposed State budget would impact community colleges, by CFT Community College Council President Marty Hittelman.

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From: Martylhitt@aol.com
Date: Thu, 13 Jan 2005 17:28:02 EST

The California Community College Board of Governor’s proposed budget for 2005-06 called for a funding increase of $548.5 million in ongoing funds and $53.7 million in one-time funds over the 2004-05 level.

The Governor’s proposed budget calls for an increase of $373 million in Proposition 98 funds. Schwarzenegger budget includes 3% growth ($136.7 million), 3.93% COLA ($195.5 million), $20 million in one-time funds for joint economic development with K-12. Student fees remain at the current level.

He proposed that the State not pay its 2% of salaries to STRS but rather the districts should either pay it or have the faculty pay it through a negotiated agreement. The STRS charge would cost community college districts an estimated total of $40 million.

The Governor set aside $31.4 million (the amount of Partnership for Excellence funds cut in 2004-05) pending review of district–specific accountability measures by the working group established by AB 1417 (Pacheco). I personally don't like the district-specific accountability measures and would rather see this money appropriated somewhere else - like to increase the part-time funds.

The State Chancellor’s Office budget was cut by $137,000.

The Part-time Faculty Health Insurance ($1.747 million), Part-time Faculty Compensation ($1 million), and the Part-time Faculty Office Hours ($50.828 million) funds remain unchanged from 2004-05.

The CFT proposed and other faculty groups agreed, and Consultation and the Board of Governors included in their proposal for 2005-06 increases in these funds to meet the actual need in 2003-04.

The Governor also proposed no additional funding directed at equalization, noncredit rate enhancement, professional development, or health service fees backfill. The $80 million equalization from last year went into the base. No additional funding for equalization is provided which seemed as no surprise to Assembly Appropriations Chair Judy Chu when I spoke to her on Monday. She was surprised that I thought there would be a second installment toward equalization.

The budget is not bad for community colleges but would have been better if Schwarzenegger had not gone back on his agreement of last year and not recognized the additional $1.1 billion increase in Proposition 98 guarantee since the budget was approved. By not recognizing the increase the State save $1.1 billion this year and $1.2 billion next year, for a two year savings of $2.3 billion.

The Community College share of Proposition 98 seems to be at about 10.35% - up a little from last year.

The Governor also proposed some other items that we will oppose - changes in STRS and PERS to go to a defined contribution rather than a defined benefit plan for new employees, merit pay schemes for K-12 (which could find their way up to community colleges over time), changes in Proposition 98 to not pay back prior year underpayments, a change in the 75/25 rules to exclude vocational technical faculty, and other antigovernment and anti-public employee ideas.

The CFT Executive Council has proposed a by-law change to be voted on at the CFT Convention in March to raise special funds for the initiative and public support battle ahead with a tax of $3 per capita per local FTE per month over a two-year period. We need the fund to fight the millions and millions of dollars that Schwarzenegger and his cronies will raise to battle public employees and education forces. I hope your locals will support the special per capita increase at the Convention.