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 students (FTES) for specified purposes.
This bill would require the board of governors to adopt a stabilization formula for calculating 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 sanction, the district has identified a new funding source sufficient for the specified payment of any fund liability, and the districtbegin delete developsend deletebegin insert submitsend insert an improvement planbegin delete certified byend deletebegin insert
toend insert 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.
This 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.
This bill would declare that it is to take effect immediately as an urgency statute.
Vote: 2⁄3. 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:
(a) The board of governors shall adopt a stabilization
4formula for calculating a qualifying community college district’s
5revenue level for a qualifying fiscal year. This formula shall
6provide for revenue adjustments if all of the following conditions
7are met:
8(1) The community college district or a campus of the district
9is subject to a probation or a “show cause” accreditation sanction.
10(2) The community college district has identified a new funding
11source sufficient for the full payment of any fund liability in equal
12installments over the next two years.
P3 1(3) The community college districtbegin delete developsend deletebegin insert submitsend insert an
2improvement planbegin delete certified byend deletebegin insert toend insert the Chancellor of the California
3Community Colleges thatbegin delete complies with allend deletebegin insert includes bothend insert of the
4following:
5(A) The plan requires a six-month accreditation compliance
6report from the board of trustees of the community college district.
7(B) The
end delete
8begin insert(A)end insertbegin insert end insertbegin insertA six-monthend insert accreditation compliancebegin delete report isend deletebegin insert report,end insert signed
9by the chancellor of the community college district and passed by
10the board of trustees of the community collegebegin delete district.end delete
11begin delete(C)end deletebegin delete end deletebegin delete The accreditation compliance reportend deletebegin insert
district, whichend insert details
12the progress the community college district has made before the
13date of thebegin delete report and includes aend deletebegin insert report.end insert
14begin insert(B)end insertbegin insert end insertbegin insertAend insert timetable for the completion of a full and satisfactory
15accreditation response.
16(b) The stabilization formula adopted pursuant to subdivision
17(a) shall provide that, for a qualifying community college district,
18decreases in full-time equivalent students shall result in adjustments
19in
district revenues as follows:
20(1) Decreases in full-time equivalent students shall result in
21revenue reductions beginning in the year following the initial year
22in which the district qualifies for stabilization funding pursuant to
23subdivision (a) at the district’s marginal funding per full-time
24equivalent student.
25(2) Revenue reductions in the second and third year after the
26district qualifies for stabilization funding pursuant to subdivision
27(a) shall include payments by the district of equal installments in
28each of these years to cover the difference between the revenue
29the district would have received pursuant to subparagraph (B) of
30paragraph (6) of subdivision (d) of Section 84750.5 and what the
31district did receive pursuant to paragraph
(1).
This act is an urgency statute necessary for the
33immediate preservation of the public peace, health, or safety within
34the meaning of Article IV of the Constitution and shall go into
35immediate effect. The facts constituting the necessity are:
36Accreditation problems facing community colleges threaten
37basic services and require immediate response.
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