BUDGET NEWS
Fees Could Increase to $26/Unit
 
It could be worse…..but not much if you’re a working student. That could be one way of summarizing the proposed 2004/2005 Governor’s budget for California Community Colleges. The preliminary budget was released on Friday, January 9, and contains, among other things, a proposed fee change of $18 to $26 a unit, a 44.4 percent increase.

On the brighter side, there are no mid-year cuts proposed for the community colleges this fiscal year. The Governor’s Budget for 2004-2005 includes other positive elements:

§ Funded enrollment growth of 3 percent ($125 million)
§ $80 million for equalization
§ Preservation of the augmentation provided in the 2003 Budget Act for financial aid services to students and, importantly, no change proposed to the Board of Governors fee waiver program
§ "Folding-in" of Partnership for Excellence funding into the general apportionment base

However, there are significant challenges to the community colleges posed by the Budget including:

§ A proposed 44 percent increase in the enrollment fee for most students from $18 to $26 per unit
§ A proposed increase to $50 per unit for holders of baccalaureate and other advanced degrees
§ No COLA (cost-of-living-adjustment) funding for community colleges (K-12 will receive COLA)
§ No provision for increased PERS retirement costs for classified employees (again K-12 will receive funds for such costs)

 The "folding-in" of funds previously categorical means, quite simply, that many programs will no longer be classified as categorical. These include Matriculation, part-time faculty compensation, part-time faculty health insurance, part-time faculty office hours and Partnership for Excellence.

The following programs would be funded at the same or reduced level as the 2003-2004 budget:

· EOPS
· CARE
· Fund for Student Success
· Scheduled Maintenance/Special Repairs
· Instructional Equipment and Library Materials
· Hazardous Substances
· DSPS
· Faculty and Staff Diversity
· Foster Care Education Program
· Calworks
· Student Financial Aid Administration (Note: this will be funded at the same increased rate as the 2003-2004 fiscal year – Just under $46.5 million system wide)
· Transfer Education and Articulation

Cuesta’s budget will be discussed in more detail during a joint planning and budget/shared governance workshop, scheduled at 3 p.m., Tuesday, January 27 in the Student Conference Center. Everyone is encouraged to attend.