Transcript BUDGET WORKSHOP - Cuesta College

2013-2014
Governor's January Budget Proposal
Budget Assumptions
 Balanced Budget, no structural shortfall in 2013-2014
and beyond
 Modest, steady growth in next five years
 Lower debt service with repayments to special funds
 Higher revenue projections of over $6 billion
 Prop 30 (temporary)
 Prop 39 (permanent)
 5% spending increase in education and Medi-Cal
Affects on California Community
Colleges
 Increase in Prop 98 spending by $587 million
 Increase of 5% over 2012-2013

Funding to grow over next several years
 Increases in percentage of Prop 98 fund due to shifting of
Adult Education to Community Colleges
Affects on California Community
Colleges
 Multi-year Education Plan
 Pushes down decisions to the local level
 Decrease in student completion time
 Continue to pay down the “wall of debt”
Reforms for rebuilding the system
 90 unit state subsidized cap on credit units
 Reinvest apportionment funds based on completion
 Require BOG Fee Waiver applicants to complete a
FAFSA
 Increase number of online courses
 Continue to pay down “wall of debt”
 Implement Prop 39
Implementation issues
still to be resolved
Theme of the budget:
Build an efficient
educational system
Threats
 Revenue Volatility
 Percentage of state revenue from income taxes has risen
from 33% to 61%
 Top one percent of income earners pay approximately
40% of income tax revenue
 Capital Gains has historically fluctuated between $29
billion and $100 billion
 Prop 30 (2012) raises incomes taxes for high income
earners through 2018 only
Threats
 California economic recovery sputters
 Rising health care costs
 Sequester/Debt Limit fight
 Local revenue shortfalls
Timeline for State Budget
 January – May: Legislative Hearings
 End of January: Legislative Analyst Office (LAO)
releases its analyst of this budget
 May 14: May Revise
 June 15: Constitutional deadline for Legislator to send
budget to Governor