Presentation available at scottlay.com

Looking AheadNew CEO WorkshopNovember 15, 2012

Topics

•Looking Back

•Looking Ahead

•Discussion

1910Fresno becomes first

junior college after the Legislature authorizes high schools to offer

postsecondary courses

1917Legislature enacts Junior College Act, extends courses of study to:

•mechanical and industrial arts

•household economy

•agriculture

•civic education and

•commerce.

1921Legislature authorizes creation of local districts

•Organized under K-12 laws

•locally-elected governing boards

•State Department of Education to monitor

•Creation of Junior College Fund

•Nation’s first state funding

1960• formally

recognized the three systems

• CCC mission: transfer, vocational and general ed

• 56 locally governed districts; 380,000 students

1967

•Dept of Ed oversight deemed weak

•Board of Governors created

•“Bilateral governance”

•76 colleges, 610,000 students

1970s - 1980s•1976 - Education Employment

Relations Act

•1978 - Proposition 13

•1984 - first enrollment fee

•1988 - AB 1725

•1988 - Proposition 98

The Era of Change

Before 1990

CaliforniaCaliforniaCommuniCommuni

tytyCollegeCollegeTrusteesTrustees

CaliforniaCaliforniaAssociation Association

ofofCommunityCommunity

CollegesColleges

Community College League of Community College League of CaliforniaCalifornia

CaliforniaCaliforniaCommuniCommuni

tytyCollegeCollegeTrusteesTrustees

CaliforniaCaliforniaAssociation Association

ofofCommunityCommunity

CollegesColleges

Chief Chief Executive Executive

Officers of the Officers of the California California

Community Community CollegesColleges

1990

Government Relations. Leadership Development. District Services.

The League• Good financial shape

• Maintaining 33% reserve

• Dues 45% of revenue

• Shift from General Fund to student fee revenue creates financial risk.

• District services programs hit $14.1 million savings (excluding financial services, retiree health JPA)

• $10 in savings for each $1 in dues.

• Task Force on the Future of the League

1990s-2000s

•1991-94: Recession caused fee increases, cuts.

•1994-2000: Strong revenue growth increased Prop 98 guarantee, fast CCC growth.

•2001: Stock market collapse

•2008: Real estate, banking collapse

•Time of significant change.

198061% white

CCC

200868%

non-white

CCC

Three Years of Change

•Significant reduction in “recreational” courses or “lifelong learning.”

•Limits on repeatability.

•Priority registration (forthcoming).

CCC Enrollment

K-12 Graduates Change

Proposition 30“Yes” votes by age:

•18-29: 69%

•25-29: 61%

•30-39: 53%

•40-49: 47%

•50-64: 48%

•65+: 48%

Yes: 54.3%, No: 45.7%

Proposition 98

Most common.

When general fund growing more slowly than personal income. “Maintenance factor” generated.

Or, lower of the two:

Use if highest:

• Test 1: Specific percentage (~40%) of the State General Fund

• Test 2: Prior year, increased by K-12 enrollment and change in per capita personal income.

• Test 3: Prior year, increased by K-12 enrollment and change in per capita general fund.

Budget Outlook

Looking Ahead• State’s outlook is strong.

• K-12 graduates 4% lower in 2020-21 than in 2009-10.

• Students will choose employment over education.

• Fixed and accrued costs will escalate as % of district budgets.

• PERS, STRS, Retiree Health, “deferred” maintenance

• Low demand will give “catch up” time.

• Opportunities, and challenges ahead with divergent district needs.