2020-21 May Revise Public Forum Friday, May 22, 2020
Table of Contents 1. 2019-20 Budget - Current Year a. 2019-20 California community college funding b. MPC budget to actuals to date 2. 2020-21 Budget - Next Year a. Impact of COVID-19 on May Revise b. Statewide budget outlook c. California community college budget projections d. Next steps in 2020-21 statewide budget development i. Statewide ii. MPC
2019-20 Statewide Budget Update 1. 2019-20 Proposition 98 Total Funding a. $77.3 billion for K-14 public education (down 5% from Governor's January proposal) i. $52.3 billion in general fund sources (down 7.2% from Governor's January proposal) ● Personal income tax, sales/use tax, corporate tax ii. $25.0 billion in property tax sources (down 0.6% from Governor's January proposal) 2. 2019-20 Statewide Revenues Unknown a. The below delays impact the ability for firm statewide revenue estimates at this time i. Personal Income Tax (PIT) -2019 Income tax extension until July 15 ii. Sales Tax iii. Property Tax b. CCC apportionment deferrals for May 2020 and June 2020 into next fiscal year
2019-20 MPC General Fund Budget vs. Actuals As of 5/12/2020
Impact of COVID-19 on May Revise 1. Has impacted the future year budget forecasts for the entire state 2. Changed the budget numbers outlined in the 2020-21 January Budget Proposal a. $5.6 billion statewide surplus b. $21 billion in reserves ($18 billion in Prop 2 rainy day fund) 3. Required a statewide plan to address current and projected revenue deficits 4. Recession “resiliency” estimates included in May Revise a. Potential revenue deficits projected through 2023-24 (Legislative Analyst Office estimate) 5. Delayed collection of statewide revenues a. Adds to the element of the “unknown”
2020-21 Statewide Budget Outlook 1. Statewide Prop 98 funding estimates a. All K-14 public education (in billions) 2020-21 Budget January Proposal May Revise Change General Fund $57.6 $44.9 -$12.7 (-22%) Property Tax $26.5 $25.6 -$0.8 (-3%) Total Budget $84.1 $70.5 -13.5 (-16%) b. California Community Colleges to receive 10.93% split of Prop 98 funding
2020-21 Statewide Budget Outlook 1. The Governor outlined expectations for community colleges in 2020-21: a. Maintain levels of access - especially for underrepresented students b. Expects colleges to maintain current workload levels (FTES) c. Expand & improve online programs d. Statewide collaboration on a common learning management system e. Focus policy development to improve opportunities for underrepresented students f. Explore expansion of competency-based learning & credit by examination g. Expand and share open educational resources (OEI)
2020-21 Community College Budget Outlook 1. Community College Prop 98 Funding (10.93% estimated split) a. Across the 73 districts and 115 colleges (in billions): 2020-21 Budget January Proposal May Revise Change General Fund $5.6 $4.3 -$1.3 (-23%) Property Tax $3.4 $3.3 -$0.1 (-4%) Total Budget $9.0 $7.6 -1.4 (-16%) b. Prop 98 includes the Student Centered Funding Formula (SCFF) and numerous categorical programs
2020-21 Community College Projections 1. Removal of January proposed COLA of 2.29% (Reduces Student Centered Funding Formula and many categorical programs) 2. Removal of January enrollment growth funding of 0.5% 3. Approximately 8% reduction of Student Centered Funding Formula (SCFF) a. However, Hold-Harmless provision extended through 2022-23 4. An approximate reduction of Strong Workforce by 55% 5. A reduction in CalPERS & CalSTRS scheduled increases
2020-21 Community College Projections Systemwide budget adjustments included in the May Revise: ● ○ Reduction in funding support for local campus food pantry services Reduction of PT faculty office hour funding ○ ○ Reduction of funding for Dreamer Resource Liaisons Elimination of instructional equipment funding for dual enrollment students ○ ○ Elimination of deferred maintenance and instructional equipment funding Maintains legal service funding for undocumented students ○ ○ Maintains funding for 2-year free tuition program (CA Promise) Note: Reductions effectively eliminate most all proposed increases that the Governor ■ made in his January Proposal
2020-21 Next Steps: Budget Development 1. California a. June Enacted Budget i. Due by June 15th b. August or September Revise i. Budget Bill Junior ii. Proposes final adjustments to June enacted budget 2. MPC a. Tentative budget to Board by July 31st (extended) b. Campus-wide budget discussions in September & October with current budget information c. Final Budget to Board by October 31st (extended)
Feedback and questions Steven Haigler Interim Vice President, Administrative Services shaigler@mpc.edu
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