Presentation available at scottlay.com Looking Ahead New CEO Workshop November 15, 2012

Topics Looking Back Looking Ahead Discussion

1910 Fresno becomes first junior college after the Legislature authorizes high schools to offer postsecondary courses

1917 Legislature enacts Junior College Act, extends courses of study to: mechanical and industrial arts household economy agriculture civic education and commerce.

1921 Legislature authorizes creation of local districts Organized under K-12 laws locally-elected governing boards State Department of Education to monitor Creation of Junior College Fund Nation’s first state funding

1960 formally recognized the three systems CCC mission: transfer, vocational and general ed 56 locally governed districts; 380,000 students

1967 Dept of Ed oversight deemed weak Board of Governors created “Bilateral governance” 76 colleges, 610,000 students

1970s s Education Employment Relations Act Proposition first enrollment fee AB Proposition 98 The Era of Change

Before 1990 CaliforniaCommunityCollegeTrustees California Association of CommunityColleges

Community College League of California CaliforniaCommunityCollegeTrustees California CommunityColleges Chief Executive Officers of the California Community Colleges 1990 Government Relations. Leadership Development. District Services.

The League Good financial shape Maintaining 33% reserve Dues 45% of revenue Shift from General Fund to student fee revenue creates financial risk. District services programs hit $14.1 million savings (excluding financial services, retiree health JPA) $10 in savings for each $1 in dues. Task Force on the Future of the League

1990s-2000s : Recession caused fee increases, cuts : Strong revenue growth increased Prop 98 guarantee, fast CCC growth. 2001: Stock market collapse 2008: Real estate, banking collapse Time of significant change.

% white CCC

% non-white CCC

Three Years of Change Significant reduction in “recreational” courses or “lifelong learning.” Limits on repeatability. Priority registration (forthcoming).

CCC Enrollment

K-12 Graduates Change

Proposition 30 “Yes” votes by age: 18-29: 69% 25-29: 61% 30-39: 53% 40-49: 47% 50-64: 48% 65+: 48% Yes: 54.3%, No: 45.7%

Proposition 98 Most common. When general fund growing more slowly than personal income. “Maintenance factor” generated. Or, lower of the two: Use if highest: Test 1: Specific percentage (~40%) of the State General Fund Test 2: Prior year, increased by K-12 enrollment and change in per capita personal income. Test 3: Prior year, increased by K-12 enrollment and change in per capita general fund.

Budget Outlook

Looking Ahead State’s outlook is strong. K-12 graduates 4% lower in than in Students will choose employment over education. Fixed and accrued costs will escalate as % of district budgets. PERS, STRS, Retiree Health, “deferred” maintenance Low demand will give “catch up” time. Opportunities, and challenges ahead with divergent district needs.