League Budget Update

November 11, 2008

 

LAO: Increase fees to $30 per unit; cut "enrichment" classes

The Legislative Analyst's Office (LAO), which is the nonpartisan advisor to the Legislature, today issued a report analyzing the governor's proposed midyear cuts and making suggestions of its own.

In the report, the LAO generally endorses the governor's revenue proposals, but also calls for a partial restoration of the higher vehicle license fee ("car tax"). Additionally, the LAO recommends taking action now on deeper cuts for the 2009-10 fiscal year.

For community colleges, the LAO recommends:

·  Eliminating the 0.68% COLA adopted in the budget act
·  No 5% cut to the general apportionment
·  Increasing fees to $26 per unit on January 1, 2009 and to $30 on July 1, 2009
·  Reducing funding to the regular noncredit rate for:
·  "certain credit-bearing physical education classes (such as pilates, racquetball and golf)" effective January 1, 2008
·  "additional enrichment courses (such as ballroom dancing, drawing and photography)" effective July 1, 2009

Upon full implementation, the reduction in reimbursement rates would cut community college funding by $200 million in 2009-10. Colleges would not be able to keep the $120 million in increased fees.

Read the entire report