May 2017

Higher Education

Summary of CCC Recommendations

Program  May Revision Proposal LAO Recommendation

General purpose
apportionment funding

 Increases by $160 million ongoing. Adopt. Colleges can use flexible funds to meet highest  priorities.

Deferred maintenance and instructional equipment

 Provides additional $92 million one time, bringing total to $136 million one time.  Adopt. Addressing CCC's deferred maintenance backlog is a high state priority for one-time funding.
Enrollment growth

Lowers 2017-18 growth rate from 1.34 percent to 1 percent and reduces by $22 million. Authorizes allocation of unused amount to backfill apportionment shortfalls.

 Adopt. Based on recent attendance reports, 1 percent is a more reasonable estimate.
  Makes no change to 2016-17. Modify. Reduce funding by $50 million to reflect updated attendance reports and redirect funds to deferred maintenance or other high one-time priorities. 
 

Revises 2015-16 upward by
$26 million to reflect smaller enrollment decline than expected.

 Adopt. Reflects updated attendance reports.
Full-Time Student
Success Grants

Increases by $1.9 million to raise award by $100 per year (for new maximum award of $700) and increases caseload estimate.

 Adopt. Community college students have significant unmet financial need. 
2015-16 apportionment
increases

Increases 2015-16 funding by a total of $55 million to reach higher Proposition 98 spending level. 

Conform to Proposition 98 Package. Spending level in 2015-16 will need to conform to overall budget package. No major underlying programmatic issues. 
Guided Pathways Makes various policy changes.

Modify. Adopt proposed changes but increase amount designated for state-directed technical assistance to participating colleges and strengthen accountability requirements.
State operations Provides additional state operations funding and positions.

Adopt. CCC and DOF staffing review indicates additional data, technology, research, institutional effectiveness, and legal services support warranted.
Equal Employment
Opportunity (EEO)

Provides $1.8 million from EEO Fund (one time).

 Adopt. Uses special fund balance for authorized purposes. 
Apprenticeships

Provides colleges two additional years to use 2015-16 and 2016-17 California Apprenticeship Initiative grants. 

 Adopt. We have no concerns about this proposal.
Contracts

Exempts certain contracts from competitive bidding. Applies only to contracts between Chancellor's Office and colleges.

 Modify. Exempt contract renewals, but not new contracts.