1. The View from Sacramento Dan Troy, Vice Chancellor, CCCCO

2.  State Budget Reductions  Over $800 million in direct cuts since 2008-09  Net workload reduction of $450 million  No COLA since 2007-08

3.  Bad Budgets have resulted in a decline in FTES:  1,205,741 funded FTES in 2008-09  1,098,014 funded FTES in 2011-12  Reduction of almost 9%

4.  Another Trigger Cut?  Failure of Governor Brown’s November initiative would lead to a current year base reduction of $338.6 million – almost a 7.5% workload reduction.  Deficits?  Protection from RDA shortages, but what if state doesn’t have the money?  No protection from fee revenues or other property tax shortages.

5.  Proposition 98  DOF estimates $17.2 billion on Prop 98 growth over 4 years, if initiative passes.  That equates to about $475 million in average increases for CCCs over that time.  Growth is pitted against COLA, categorical programs, and deferral pay down over that time.  Regulations  FON and 50% Law.

6.  Lack of State Funding ≠≠ Lack of State Direction.  Explicit Focus on the “Big Three”  Basic Skills  Career Technical Education  Transfer Chapter 33, Statutes of 2011: “It is the intent of the Legislature that community college districts, to the greatest extent possible, shall implement any necessary workload reductions in courses and programs outside of those needed by students to achieve their basic skills, workforce training, or transfer goals.”

7.  Little Support for Enrichment Courses in Tough Times  Push for Completion  Rejection of Extension Efforts (AB 515, SB 1550)  Keeping the public sector public

8.  LAO Recommendations  Eliminate state funding for intercollegiate athletics.  Eliminate state funding for repetition of physical education and other recreational classes.  Eliminate state funding for noncredit PE and fine-arts classes (activity).  Reduce funding for credit basic skills instruction to the rate for non-credit basic skills instruction.

9.  Department of Finance Recommendations  Fund based on completion (2011).  Repeal FTES-based funding system (2012).  Governor Brown is still considering outlook on higher education in the midst of deep budget problems.  Discussions indicate interest in elements of SSTF agenda, particularly in regard to streamlining path for completion and transfer.