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February 16, 2012 - Presented to Senate Budget and Fiscal Review Committee
February 16, 2012 - Presented to Senate Budget and Fiscal Review Committee
February 8, 2012 - The Governor’s budget reduces funding for state financial aid programs by over $300 million. At the same time, it generally maintains or augments funding for the public colleges and universities in 2012-13; reduces budgetary controls on their spending; and commits to annual funding increases in subsequent years, contingent on their meeting undefined performance targets. Furthermore, higher education funding would be subject to “trigger cuts” if the Governor’s proposed tax increases are not approved by voters in November. This report makes a number of recommendations for legislative consideration, including alternative ways to reduce financial aid costs that would have better outcomes for students and the state. The report also urges caution in relaxing budgetary controls in higher education, and identifies alternative ways to structure trigger cuts in order to reduce uncertainty and disruption in higher education programs.
February 6, 2012 - This report analyzes the Governor's Proposition 98 budget package, including his basic budget plan and back-up plan as well as his multiyear plan to retire the "Wall of Debt" as it pertains to outstanding education obligations. The report makes a number of recommendations, including designating new revenues for paying down existing K-14 payment deferrals; replacing the education mandate system with a discretionary block grant; adopting some version of the Governor’s K-12 funding restructuring proposal, with general spending requirements that districts dedicate additional resources to their disadvantaged students; expanding community college categorical flexibility; canceling initiation of the transitional kindergarten program scheduled to begin in 2012-13; and prioritizing access to subsidized preschool for affected low-income children.
January 26, 2012 - The 1992 legislation that authorized charter schools in California created a funding model intended to provide charter schools with the same per-pupil operational funding as received by other schools in the same school district. The state subsequently modified this policy in 1998, enacting legislation specifying that “charter school operational funding shall be equal to the total funding that would be available to a similar school district serving a similar pupil population.” This policy remains in place. In this report, we assess whether operational funding received by charter schools and their school district peers is comparable. We (1) describe the funding models used for charter schools and school districts, (2) compare funding rates for the two groups, and (3) provide recommendations to simplify the funding system, maximize flexibility for both school types, and equalize funding rates for charter schools under the current funding system or under a fundamentally restructured system.
January 11, 2012 - Who Pays Education Costs at California’s Public Colleges and Universities? (updated November 2009). This is one of a series of issue briefs examining important questions about higher education funding in California. For more information on this topic, or to request other briefs from this series, contact the Legislative Analyst’s Office Higher Education section at (916) 319-8349, or visit our Web site at www.lao.ca.gov/highered.
January 6, 2012 - Supplemental report language approved in the 2011 legislative session seeks the LAO's recommendations on the structure and duties of a statewide higher education coordinating body for California. The state currently has no coordinating body, following the Governor’s veto of funding for the California Postsecondary Education Commission in the 2011-12 budget. This report finds a need for robust and deliberate state oversight that enables policymakers to monitor how efficiently and effectively the postsecondary system is serving the state’s needs, and to make changes to improve its performance. This report includes both longer-term recommendations for creating a new state oversight structure as well as interim steps the Legislature could take to help guide the state’s postsecondary policy in the absence of a new agency. In the accompanying video, the LAO's Steve Boilard and Judy Heiman discuss the topic further.
December 5, 2011 - Legislation in 2009 authorized a pilot program whereby college and university campuses could voluntarily administer certain Cal Grant programs that are normally administered centrally by the Student Aid Commission (CSAC). The CSAC developed regulations for the pilot in time for the 2010-11 academic year. No campuses volunteered to participate, however, due to cumbersome program requirements. This report provides background on the existing delivery model for financial aid programs; describes recent proposals for alternative delivery models; and chronicles the development, implementation, and outcomes of the pilot program. The report concludes with our recommendation, drawing on numerous studies over the last two decades, to decentralize Cal Grants through a process that includes a planning period but no pilot phase.
December 1, 2011 - Presented to Joint Oversight Hearing: Education Mandates
November 30, 2011 - How Will the California Dream Act Affect Higher Education Costs? This is one of a series of issue briefs examining important questions about higher education funding in California. For more information on this topic, or to request other briefs from this series, contact the Legislative Analyst’s Office Higher Education section at (916) 319-8349, or visit our website at www.lao.ca.gov.
November 23, 2011 - Presented to Legislative Staff
November 17, 2011 - Presented to CASBO
November 16, 2011 - We forecast that General Fund revenues and transfers in 2011-12 will be $3.7 billion below the level assumed in the June budget package. Such a shortfall could result in $2 billion of “trigger cuts” to various programs—including all of the “Tier 1” trigger cuts and three-fourths of the “Tier 2” cuts. (The Director of Finance will determine the actual amount of such cuts next month.) In 2011-12, we project that the state will have a $3 billion deficit, including the effects of these trigger cuts. In 2012-13, the state will face higher costs due to expiration of a number of temporary budget measures, an increase in Proposition 98 school costs under current law, the repayment of its Proposition 1A property tax loan, and other factors. We project a $10 billion operating shortfall (the difference between annual revenues and expenditures) in 2012-13. The $3 billion “carry-in” deficit from 2011-12 and the projected $10 billion operating shortfall mean that the Legislature and the Governor will need to address a $13 billion budget problem between now and the time that the state adopts a 2012-13 budget plan.
August 17, 2011 - Presented to Select Committee on State School Financial Takeovers
May 26, 2011 - Presented to Senate Budget and Fiscal Review Subcommittee No. 1 on Education