Housekeeping Call will be recorded & available at CCC Confer later this afternoon ALL PARTICIPANTS WILL BE SILENCED TO REDUCE BACKGROUND NOISE. Questions may be submitted via WEB CHAT ONLY. Individual submitting the question and the question will be stated during the call.

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May Revise Webinar AGENDA 3:00pm – 3:30pmWEBINAR Presentation 3:30pm – 4:00pmQ & A PARTICIPANTS Scott Lay, President/CEO, The League Jack Scott, Chancellor, California Community Colleges Erik Skinner, Exec. Vice Chancellor, California Community Colleges Theresa Tena, Director Fiscal Policy,The League Dan Troy, Vice-Chancellor Fiscal Policy, California Community Colleges

Budget Webinar The May Revise Proposal Proposals for Community Colleges Initial Response and Analysis Questions and Comments

Overview Economic recovery = $6.6 B increased tax revenues Even with revenue and $13.4B in solutions structural shortfall of $10B. Governor Browns continued call for a vote of the people - $9.4 of solutions Wall of debt

Updated Budget Deficit Budget Deficit in February $26.6 Cuts and Other Solutions-13.4 Higher Revenues -6.6 Higher Spending 2.0 Proposition 10 Litigation 1.0 Remaining Deficit 9.6 Build Reserve 1.2 Solutions Needed$10.8

Wall of Debt Budgetary Borrowing$34.7B –Deferred payments to K-14, Economic Recovery Bonds, Loans from Special Funds, Underfunding of P-98 etc. Authorized Unsold Bonds$48.2B Bonds Sold and Owed$81.1B

Out-year Structural Shortfall

Proposition 98 Increased revenue triggers an increase in Proposition 98 guarantee CY Prop 98 Increase –K-12$72M –CCC$57M –Total $129M BY Prop 98 Increase –K-12 $2.653B –CCC$ 340M –Total $2.992B

Proposition 98 Proposition 98 and the Wall of Debt –New Proposition 98 funds should be used to erase all of the deferrals and pay off owed mandate claims. Deferral Buyback is invisible will not buy more course sections or rehire faculty/staff Not NEW money - funding to remain flat overall

CCC May Revise Proposal 11% of Proposition 98 to CCC $350 million "buy-down" of the $961 million inter-year deferral to $611 million (no programmatic effect) adjustments for changes in local property tax collections; $57M CY and $75M CY offsets lower student fee collections in the CY.

What is NOT in MR for CCC No additional cuts No policy reforms Await the recommendations of Board of Governors Student Success Task Force

Community College Budget Where do things now stand? Likely range of impacts to CCC Scenario #A Roughly a $290 million impact net of enrollment fees. (~5% reduction). Included in budget bill held by Legislature

Community College Budget Scenario #B Roughly a $490M net reduction (~10% reduction) Assumes tax package does not pass.

Pressure Points Proposition 25 – June 15 deadline State will run out of cash Election (when?) vs. Legislative Vote Redistricting Commission

Questions and Comments Please submit your questions online.