CCCSFAAA December 10, 2011

General Fund Tax Revenues 1.5% 5.1% 5.4% 7.3% 5.4%

Budget Outlook

Triggers Higher of LAO and DOF projections of revenue. If revenues more than $1 billion below, “Tier 1” trigger. If revenues more than $2 billion below, “Tier 2” trigger. LAO: $3.8 billion below. DOF: December 15. Triggers “pulled” in January. CCC Triggers Tier 1 $30 million apportionment cut $46/unit fee effective summer Tier 2 $72 million apportionment cut

Proposition 98 Test: Susp % -13.3% 1.8% 3.8% 0.2% $4.1b suspension 0.0% 4.3% 5.0% 4.3% 5.2% 4.2%

CCC Funding LAO Assumptions; P roposition 98 at 11% + $46/unit $330m $285m $257m $325m $280m (assumes triggers)

CCC Budget Scenarios LAO Prop. 98 Assumptions COLA$153m$91m$116m$136m$147m COLA%3.09%1.75%2.16%2.41%2.51% 1% Growth $49m$52m$54m$56m$59m “Leftover”$131m$144m$89m$135m$77m

“Achieving the dream” isn’t difficult. ★ full-time status ★ student cohorts/engagement

CCC Financial Aid

Pell Grants Record higher education demand and changes in eligibility has program growing faster than expected. $1.3 billion current year shortfall House appropriations bill cuts by $3.8b by reducing eligibility: limit to 6 years (from 9) cut off students with fewer than 6 units eliminate “ability to benefit” students Impact: $419 million cut to California aid, affecting 64,477 students Disproportionately impacts community college students Pell is larger than all other aid sources to CCC students, combined

BOG Fee Waiver 1,154,272 headcount students $410.7 million Effective fee rate: $288/FTES Does it continue to make sense?