AB 1199, as amended, Fong. Community colleges: funding.
Existing law establishes the California Community Colleges under the administration of the Board of Governors of the California Community Colleges. Existing law authorizes the establishment of community college districts under the administration of community college governing boards, and authorizes these districts to provide instruction at community college campuses throughout the state.
Existing law requires the board of governors to develop criteria and standards, in accordance with specified statewide minimum requirements, for the purposes of making the annual budget request for the California Community Colleges to the Governor and the Legislature and allocating state general apportionment revenues. Those statewide minimum requirements include, among other things, a requirement that the calculations of each community college district’s revenue level for each fiscal year be based on specified criteria, with revenue adjustments being made for increases or decreases in full-time equivalent studentsbegin insert (FTES)end insert for specified purposes.
This bill would require the board of governors to adopt a stabilization formula forbegin delete making the calculations ofend deletebegin insert calculatingend insert a community college district’s revenue level for each fiscal year, which would provide for revenue adjustments if certain conditions are met, including that the community college district or a campus of the district is subject to a probation or a “show cause” accreditation sanctionbegin insert,
the district has identified a new funding source sufficient for the specified payment of any fund liability,end insert and the district develops an improvement plan certified by the Chancellor of the California Community Colleges.
Under existing law, for credit and noncredit instruction, decreases in FTES are required to result in revenue reductions beginning in the year following the initial year of decrease in FTES, and at the district’s marginal funding per FTES.
end insertbegin insertThis bill would require the adopted stabilization formula to provide that, for a qualifying community college district, decreases in FTES are required to result in prescribed adjustments in district revenues beginning in the year following the initial year in which the district qualifies for stabilization funding.
end insertVote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 84750.9 is added to the Education Code,
2to read:
begin insert(a)end insertbegin insert end insert The board of governors shall adopt a stabilization
4formula forbegin delete making the calculations ofend deletebegin insert calculatingend insert a qualifying
5community college district’s revenue level for a qualifying fiscal
6year. This formula shall provide for revenue adjustments if all of
7the following conditions are met:
8(a)
end delete
9begin insert(1)end insert The community college district or a campus of the district
10is subject to a probation or a “show cause” accreditation sanction.
11(b)
end delete
12begin insert(2)end insert The community college district has identified a new funding
13source sufficient for the full payment of any fund liability in equal
14installments over the next two years.
15(c)
end delete
16begin insert(3)end insert The community college district develops an improvement
17plan certified by the Chancellor of the California Community
18Colleges that complies with all of the following:
19(1)
end delete
P3 1begin insert(end insertbegin insertA)end insert The plan requires a six-month accreditation compliance
2report from the board of trustees of the community college district.
3(2)
end delete
4begin insert(end insertbegin insertB)end insert The accreditation compliance report is signed by the
5chancellor of the community college district and passed by the
6board of trustees of the community college district.
7(3)
end delete
8begin insert(end insertbegin insertC)end insert The accreditation compliance report details the progress the
9community college
district has made prior to the date of the report
10and includes a timetable for the completion of a full and
11satisfactory accreditation response.
12(b) The stabilization formula adopted pursuant to subdivision
13(a) shall provide that, for a qualifying community college district,
14decreases in full-time equivalent students shall result in
15adjustments in district revenues as follows:
16(1) Decreases in full-time equivalent students shall result in
17revenue reductions beginning in the year following the initial year
18in which the district qualifies for stabilization funding pursuant
19
to subdivision (a) at the district’s marginal funding per full-time
20equivalent student.
21(2) Revenue reductions in the second and third year after the
22district qualifies for stabilization funding pursuant to subdivision
23(a) shall include payments by the district of equal installments in
24each of these years to cover the difference between the revenue
25the district would have received pursuant to subparagraph (B) of
26paragraph (6) of subdivision (d) of Section 84750.5 and what the
27district did receive pursuant to paragraph (1).
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