Summary of LAO Findings and Recommendations on the 2011-12 Budget

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Budget Issue
LAO Finding Or

Last Updated
See Detail  California Postsecondary Education Commission Eliminating California Postsecondary Education Commission (CPEC) Modify Governor's 2011 May Revision proposal to eliminate CPEC by ensuring continuation of high priority coordination functions (such as data collection and analysis, and review of new academic programs and campuses) in some form. Options include transferring these functions to an existing department, reforming or replacing CPEC, or delaying elimination (see detailed narrative). 5-20-11
See Detail  CSU Pension Cost "True Up" Proposed $69 million cut directed at CSU is unjustified. Recommend that the Legislature reject the Governor's proposal to, as the administration puts it, "true up" prior-year allocations to CSU under a technical budget control section related to pension costs. Recommend adoption of budget bill language expressing legislative intent that a better process be developed for future allocations to CSU of this type. 5-20-11
See Detail  California Community Colleges Basic aid districts Reduce General Fund support for basic aid districts by a total of $5.9 million in 2011-12. 5-16-11
See Detail  California Community Colleges Funding and flexibility for credit basic-skills instruction Recommend the Legislature reduce the funding rate for credit basic-skills instruction to the same rate provided for noncredit basic skills, for state savings of about $125 million in 2011-12. Provide more flexibility by permitting colleges to (1) hire basic-skills instructors possessing a bachelor's degree or higher, as well as to (2) contract out basic-skills instruction to a third party. 2-16-11
See Detail  California Community Colleges Categorical-program flexibility Approve the Governor's 2011-12 budget proposal to extend categorical-program flexibility through 2014-15 (rather than through 2012-13 under current law), so as to provide colleges an opportunity to create a multi-year plan for allocating resources. Alternatively, enact legislation to allow colleges to use these categorical-program funds for any educational purpose (such as to offer additional course sections) through 2014-15. 2-16-11
See Detail  California Community Colleges Contracting out for noninstructional services Recommend the Legislature ease restrictions on contracting out for noninstructional services. 2-16-11
See Detail  California Community Colleges Prioritizing course enrollment Recommend the Legislature (1) adopt statewide registration priorities that maximize access for the CCC system's most-focused students under the Master Plan; (2) establish a 100-unit cap on the number of taxpayer-subsidized credits a CCC student may accumulate, for savings of up to $175 million in 2011-12; and (3) eliminate state funding for repetition of physical education and other recreational classes, for savings of about $60 million in 2011-12. 2-16-11
See Detail  California Community Colleges Enrollment fees Approve the Governor's 2011-12 budget proposal to raise fees from $26 per unit to $36 per unit in order to leverage more federal funds to mitigate programmatic impacts on CCC services, while shielding financial needy students (who do not pay fees). Consider raising fees even higher than the Governor's proposed 2011-12 level (such as to $40 per unit) to take fuller advantage of the effective federal subsidy of CCC programs. 2-16-11
See Detail  California Community Colleges 50 percent law Give districts more ability to hire faculty that provide direct support services to students by including expenditures on counselors and librarians as part of instructional costs. Alternatively, suspend the law. 2-16-11
See Detail  California Community Colleges Full-time faculty targets (75/25 law) Suspend requirements on the number of full-time faculty that districts must employ. 2-16-11
See Detail  California Community Colleges Intercollegiate athletics Eliminate state funding for CCC intercollegiate athletics, for savings of about $55 million in 2011-12. 2-16-11
See Detail  University of California, California State University Achieving General Fund Savings at UC and CSU Mitigate the impact of proposed budget reductions on UC's and CSU's educational missions by (1) achieving some of the savings in the current year, (2) providing direction to the segments as to how cuts should be accommodated, and (3) making certain policy decisions now for out-year savings. 2-10-11
See Detail  Student Aid Commission Financial Aid Savings Options Modify financial aid programs to better target resources and create GF savings. Options include eliminating non-need-based fee waivers ($25 million), raising minimum GPA for Cal Grant eligibility from 2.0 to 2.5 ($20 million), limiting Cal Grant competitive awards to stipends only (no fee coverage) ($30 million), adjusting Cal Grant financial eligibility criteria (variable), reducing the amount of fee revenue redirected to campus aid programs (variable), and modifying CCC fee waiver program. 2-10-11