This measure amends the state Constitution and state law in a variety of ways to change community college funding requirements, fee levels, and governance. Establishes a Minimum Annual Funding Level for Community Colleges. This measure changes the Proposition 98 formula by establishing separate funding guarantees for the community college system and for the K-12 system. Beginning in 2007-08, the total amount of General Fund and local property tax revenues allocated to school districts and community colleges under Test 2 and Test 3 would be calculated separately for each system. (Test 1 would continue to be calculated as one number covering both K-12 and community colleges.) In Test 2 and Test 3 years, the minimum funding guarantee for K-12 schools would increase according to the existing Proposition 98 formula, based on growth in the economy and K-12 attendance. For community colleges districts, however, the minimum funding guarantee would increase based on economic growth and changes in the college-age population, as well as other specific factors. Specifically, starting in 2007-08, the community colleges’ enrollment growth factor would be the sum of the following percentages: The greater of (1) the percentage change in the population of California residents between 17 and 21 years of age or (2) the percentage change in the population of California residents between 22 and 25 years of age. The prior year’s unemployment rate, less 5 percent. (This factor would be applicable only when the unemployment figure was above 5 percent.) Irrespective of the above calculations, the community college growth factor is capped at 5 percent in any year. In addition, the growth factor cannot be less than 1 percent so long as the percentage of state residents enrolled at community colleges is less than the average enrollment rate over the preceding 20 years. Establishes Share of Maintenance Factor for Community Colleges. Community colleges would receive 10.46 percent of any funds the Legislature allocates as repayment of the Proposition 98 maintenance factor that exists at the time this measure becomes effective. This is roughly the percentage of total Proposition 98 revenues that was allocated to community colleges in 2005-06. Reduces and Caps Education Fees for Students. The measure reduces the per unit fee to $20 or, if it is lower, the fee existing upon enactment of the measure. The current fee is $26 per unit. In addition, the measure caps annual fee increases at 10 percent or, if it is lower, the percentage change in per capita personal income in California. It also specifies that any changes to the fee shall be effective for the fall academic term that follows at least 60 days after the fee change is approved. The measure does not require any fee increase, however. Exempts Executive Officers of the BOG from Civil Service. The measure amends the State Constitution to exempt executive officers of the BOG from state civil service regulations. It also authorizes the Board of Governors (rather than the Governor) to appoint a Chancellor and up to six deputy chancellors and vice chancellors as its executive officers. Establishes Community Colleges in State Constitution. The state Constitution currently mentions the community colleges in various financial contexts, but does not formally establish or define the community colleges. (This is done instead through state statute.) This measure more formally recognizes the community college system in the state Constitution. The measure also establishes the community colleges BOG in the Constitution. In doing this, it makes a number of changes to the composition of the board, including an increase in its membership from 16 voting members to 19 voting members. The measure also provides the BOG with the authority to employ and set the compensation for its executive officers.