AGENDA ITEM BACKGROUND
TO: GOVERNING BOARD
DATE
FROM: PRESIDENT
March 3, 2014
SUBJECT:
2013-14 Categorical Flexibility
REASON FOR BOARD CONSIDERATION
ENCLOSURE(S)
ITEM NUMBER
Page 1 of 2
ACTION
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
Academic Senate
Childcare Tax Bail Out
Equal Employment Opportunity
Economic Development
Part-time Faculty Office Hours
Part-time Faculty Health Insurance
Part-time Faculty Compensation
Transfer Education and Articulation
Physical Plant and Instructional Support
Apprenticeship
Apprenticeship Training
Student Success and Support Program
Career Technical Education
Student Financial Aid Administration
Foster Care Education Program
Fund for Student Success
CalWorks
Student Success Initiative –Basic Skills
Nursing Support
Disabled Students
Extended Opportunity Prog. & Services
CARE
Telecom & Technology Services
Adult Education
Expanding Delivery of Courses through
Technology
Administrator Initiating Item:
Graciano Mendoza/
Victoria Lewis
Transfer From
X
X
X
X
X
X
X
X
X
Academic and Professional Matter
If yes, Faculty Senate Agreement
Senate President Signature
Transfer To
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
 Yes  No
 Yes  No
Final Disposition
FISCAL IMPACT:
Part Time Faculty Office Hours revenue will be reduced by $1,000, Student Success and Support
Program 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.
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 2013-14.
The District is seeking approval to trigger categorical flexibility to gain relief from statutory, regulatory
and compliance requirements for these programs for 2013-14. The transfer listed below is sufficient to
trigger flexibility per Education Code section 84043.
Account Number
Income
8000
8000
Description
Program Funds
Student Success and Support
Program
PT Faculty Office Hours
2 of 2
Increase/Decrease
$1,000
($1,000)