87
AGENDA ITEM BACKGROUND
TO: GOVERNING BOARD
DATE
FROM: PRESIDENT
SUBJECT:
March 5, 2012
2011-12 Categorical Flexibility
REASON FOR BOARD CONSIDERATION
ENCLOSURE(S)
ITEM NUMBER
ACTION
Page 1 of 2
C.9
BACKGROUND:
The education trailer bill for the 2009-10 Budget Act; AB X2 (Education Code section 84043) provides for
categorical flexibility for Districts for the categorical programs listed below:
Program
Equal Employment
Economic Development
Apprenticeship
Part Time Faculty Office Hours
Part Time Faculty Compensation
Part Time Faculty Health Insurance
Transfer/Articulation
Matriculation
Financial Aid Administration
Student Success
CalWORKS
Basic Skills
Nursing Support
Disabled Students
Extended Opportunity Programs and Services
EOPS/CARE
Telecommunications
Scheduled Maintenance
Instructional Equipment
Career Technical Education
Transfer From
X
X
X
X
X
X
X
X
Transfer To
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
FISCAL IMPACT:
Part Time Faculty Compensation revenue will be reduced by $1,000, Matriculation revenue will be
increased by $1,000.
RECOMMENDATION:
It is recommended that the Governing Board take testimony from the public, discuss and approve the
proposed transfer of funds.
Administrator Initiating Item:
Graciano Mendoza/
Victoria Lewis
Academic and Professional Matter
If yes, Faculty Senate Agreement
Senate President Signature
 Yes  No
 Yes  No
Final Disposition
Approved
88
Under the flexibility provision, Districts are allowed to redirect funds from any categorical program listed
in the left or “From” column above to any program included in the “To” column on the right side of the
table. Categorical programs under flexibility rules lock in 2008-09 District allocation levels, less the
2009-10 reductions, through 2012-13. Community colleges that elect to use funding in the manner
authorized under the flexibility provision are deemed to be in compliance with the program state and
local funding requirements contained in the statutory, regulatory and provisional language associated
with the programs. It should be noted that the state cannot waive federal compliance requirements. The
District is required to transfer at least $1 from one of the flexible programs in the left column to a
program in the right column to trigger flexibility for all programs in the left column. Districts have the
flexibility to continue to process transfers between programs through 2015-16 upon approval by the
Governing Board. The District will continue to evaluate categorical program flexibility options to best
meet the needs of the college.
The trailer bill was written to provide colleges with an opportunity to review their priorities given the
significant budget reductions sustained in both the unrestricted general fund and categorical programs.
If a college elects to trigger the flexibility provision, the Governing Board of the District shall, at a
regularly scheduled open public hearing, take testimony from the public, discuss and approve or
disapprove the proposed use of funding.
The District does not plan to make significant changes to the original categorical allocations received
from the state for 2011-12.
The District is seeking approval to trigger categorical flexibility to gain relief from statutory, regulatory
and compliance requirements for these programs for 2011-12. The transfer listed below is sufficient to
trigger flexibility per Education Code section 84043.
Account Number
Income
8000
8000
Description
Program Funds
Matriculation
PT Faculty Office Hours
2 of 2
Increase/Decrease
$1,000
($1,000)