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LEGISLATIVE ANALYST STROKES COMMUNITY COLLEGE CAPITAL OUTLAY PROJECTS WITH A VELVET GLOVE — In the least onerous analysis in decades, the Legislative Analyst made only four recommendations to reduce community college project funding as proposed in the Governor's Budget. One recommendation was to eliminate $108,000 for Chancellor's Office planning and studies. The remaining recommendation was to reduce the allowances for three libraries, which are alleged to be over the costs recognized by the Legislature when working drawing were approved. The complete text of the Analyst's recommendations is contained below.

Paul H. Holmes

California Community Colleges (6870)

The proposed 2000-01 capital outlay program for the California Community Colleges totals $290.2 million from the general obligation bonds approved by the voters in November 1998. This amount includes $283.6 million for 68 projects that have been previously funded by the Legislature and $6.6 million for 14 projects that are proposed to the Legislature for the first time. The estimated future cost to complete all projects in the budget is $77.7 million. Figure 1 shows the types of projects proposed in the community college program.

Planning and Studies

We recommend the Legislature delete a $108,000 augmentation for statewide planning and studies because the Chancellor's Office has not substantiated the need for these additional funds. (Delete $108,000 from Item 6870-301-0574 [1].)

We recommend the Legislature delete the request for $108,000 for planning and studies because no information has been provided to justify why additional funds are needed for these purposes. For each state-funded capital outlay project, the Chancellor's Office charges each community college district a fee (based on cost of construction) for its staff services. These fees are included in each approved capital outlay project. Consequently, funds are available for the Chancellor's Office project-specific costs. General planning is the responsibility of the Chancellor's Office staff who are funded in the support budget. Consequently, these activities are funded in the support appropriation for the Chancellor's Office. Therefore, we recommend the Legislature delete the requested $108,000 augmentation under Item 6870-301-0574 (1).

Library Projects Over Budget

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Three library projects are proposed in the budget for construction funding at costs that are higher than recognized by the Legislature when working drawing funds were approved in the 1999-00 Budget Act. These projects and the increased costs are shown in Figure 2 (see next page).

No information has been submitted to explain the reason for these increases. Therefore, we recommend the construction appropriations proposed in the budget be reduced to the estimated construction costs (adjusted for inflation) recognized by the Legislature at the time funding for working drawings was approved in the 1999-00 Budget Act.

For more information, contact Paul Holmes or Shannon Mahoney.

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