2015-2016 Governor`s Proposed Budget

Board of Trustees Meeting
January 22, 2015
Presented by:
Becky Elam, Vice President of Business Services
Julie Venable, Director of Budget and Accounting
2015-16 State Budget Overview
K-14 Summary
Community College Overview
Higher Education Summary
Free Community College Proposal
Next Steps
Board of Trustees Meeting - January 22, 2015
Governor Jerry Brown released the 2015-16
proposed State Budget on Friday, January 9, 2015
The proposed Budget projects state revenues of
$113.4 billion in the budget year, plus $1.4
billion in carryover funds, to cover $113.3 billion
in state expenditures
The Department of Finance (DoF) forecasts
General Fund revenues to increase $2.6 billion in
the current year above the 2014-15 State Budget
Act level, and $5.3 billion in 2015-16.
Board of Trustees Meeting - January 22, 2015
The Governor's Budget calls for:
A plan to reduce the state's unfunded liability for
retiree health care costs and a new way to fund K -12
school facilities.
To continue the efforts to build a high-speed rail
project, connecting northern and southern California.
Adding $1.2 billion to the state's newly revised "rainy
day fund," for a total of $2.8 billion pursuant to
Proposition 2, the voter-approved initiative
championed by the Governor last November.
Board of Trustees Meeting - January 22, 2015
State Budget to provide K-14 education with an increase of
about $8 billion, including $1 billion for community
K-14 Education
Adult Education
Prop 2 (Rainy Day Fund)
◦ Proposed $500 million block grant, which the Governor indicates
is an integral component of the state's workforce development
◦ Mandates that a portion of state revenue growth that exceeds a
minimum level be dedicated to the rainy day fund.
◦ The Governor's Budget reflects $2.8 billion for the state's rainy
day fund
◦ No deposit is proposed for the Proposition 98 portion of the Rainy
Day Fund.
Board of Trustees Meeting - January 22, 2015
The Governor's 2015-16 State Budget Proposal
includes significant increases specific to community
◦ $106.9 million to fund 2% growth, and the State Budget
summary continues with the new growth formula starting in
the 2015-16 fiscal year.
◦ $92.4 million to fund the 1.58% cost-of-living adjustment
◦ $125 million in base allocation to reflect increased
operating expenses, including the increase in required
contributions for employee pensions.
◦ $94.5 million to eliminate the last apportionment deferral
starting this year.
◦ No changes to current fee levels.
Board of Trustees Meeting - January 22, 2015
In addition to the $500 million for Adult Education the
State Budget proposes these additional funding
◦ Prior-Year Mandates: $353.3 million in one-time funds, to
be allocated on a per full-time equivalent student (FTES)
basis, to pay down outstanding state mandate claims
◦ Enhanced Non-Credit Rate: $49 million
◦ Career Technical Education Pathways Program: $48 million
in one-time funds to the Chancellor's Office
◦ Apprenticeship: $29.1 million
Board of Trustees Meeting - January 22, 2015
The Governor proposes an increase of $200 million for
student success programs:
◦ $100 million for the Student Success and Support Program
◦ $100 million for student equity plans.
Other community college State Budget proposals
◦ $39.6 million for Prop 39 energy efficiency program grants
◦ $25 million (instead of the current year's $50 million) to
fund Awards for Innovation in Higher Education
Board of Trustees Meeting - January 22, 2015
The Rest of Higher Education
An increase of $119.5 million is provided to the
University of California (UC) system, contingent on the
system keeping tuition flat, not increasing nonresident
enrollment, and taking action to control costs.
The California State University system is also receiving
an additional $119.5 million, which is also intended to
keep tuition and fees flat, and $25 million for
innovation awards for more timely degree completion.
The UC Regents recently took up the matter of
increasing tuition, so this will be a contentious issue in
the budget deliberations.
Board of Trustees Meeting - January 22, 2015
President Proposes Two Years of Free Community
On January 8, 2015, President Obama issued a statement
declaring his plan to offer "the first two years of community
college free for everybody who's willing to work for it ... "
The cost of the plan has not yet been specified, but the intent
is for the federal government to pay for approximately 75% of
student tuition expenses and the states are to pick up the
The President estimates that approximately nine million
students nationwide could benefit each year if all states
Board of Trustees Meeting - January 22, 2015
Budget Calendar
First Principal Apportionment – Certification
of Fiscal 2013-14 Revenue Limit – February
Governor’s May Revision
MSJC Tentative Budget – June
Final State Budget by June 30, 2015
Adoption of MSJC 2015-2016 Budget –
Board of Trustees Meeting - January 22, 2015
Budget Development Committee:
Michael Welden
Ted Blake
Nizam Kazi
Becky Elam
William Vincent
Patrick Schwerdtfeger
Patti Howell
Jennifer Pickens
Jeanine Gardner
Jeanne Maggard
Diane Morales
Ricardo Grande
Paul Hert
Julie Venable
Gail Jensen
Brandon Moore
Rebecca Teague
2015-16 Governor’s Proposed Budget
Board of Trustees Meeting
January 22, 2015