Today, the Legislature passed SB 840, the budget bill for FY 2018-19, meeting the constitutional deadline to pass an on-time budget by June 15. The Legislature also passed a number of accompanying trailer bills to implement policy changes in the budget. We expect additional trailer bills to be taken up next week, including the higher education trailer bill. The budget includes $138.6 billion in General Fund spending, with total reserves exceeding $15.9 billion. The budget will now go to the Governor for his signature. The Governor does have the authority to veto individual line-item appropriations in the budget bill (i.e. “blue pencil” vetoes), however, because he negotiated the final budget deal with legislative leadership, we do not expect broad use of that authority.
Capital Outlay Projects
The budget includes $49.9 million from Proposition 51 to fund 6 new community college capital outlay projects and provide the second phase of funding for 15 projects first authorized in FY 2017-18.
New Starts in FY 2018-19: The budget includes a total of $9.68 million in FY 2018-19 to fund 6 new community college capital outlay projects (see below). The budget funds both preliminary plans and working drawings for these projects, with the exception of one that will receive funds for preliminary plans only. The Chancellor’s Office had recommended funding 14 new capital outlay projects in 2018-19. CCFC supported the Chancellor’s Office request and is disappointed that the final budget does not reflect the priorities of voters in approving Proposition 51.
New starts include:
Redwoods Community College District - College of the Redwoods: Arts Building Replacement
Coast Community College District, Golden West College: Language Arts Complex
Mt. San Antonio Community College District, Mt. San Antonio College: New Physical Education Complex
Peralta Community College District, Laney College: Learning Resource Center
Peralta Community College District, Merritt College: Child Development Center
Imperial Valley Community College District, Imperial Valley College: Academic Buildings Modernization (preliminary plans only)
Continuing Projects: The budget includes a total of $40.2 million in FY 2018-19 to fund the second phase for all 15 continuing capital outlay projects first authorized in FY 2017-18. 14 of these projects will receive funds for working drawings, and one project at Long Beach Community College District will receive $26.8 million for the Design-Build phase. This is the first state-funded community college Design-Build project.
Click here for a list of the 15 continuing projects.
The budget includes funding for three new projects to be funded by Proposition 98 General Fund sources, not Proposition 51. It appears these projects have capital outlay components but at this time we do not have specific details.
El Camino Community College Public Safety Center - $10 million
Norco Community College Early Childhood Education Center (planning and development) - $5 million
Los Angeles Community College District, Los Angeles Valley College Family Resource Center (capital improvements) - $800,000
AB 195 Fix
CCFC is part of a large coalition of public agencies and labor seeking a resolution to AB 195 (Obernolte), which was chaptered into law in 2017. AB 195 makes significant changes to the ballot label requirements for local bonds measures, requiring information about the cost and duration of the bond to be placed in the 75-word ballot label. This information is misleading and confusing to voters and will push many bond measures below the threshold needed for passage. CCFC supports SB 863, a budget trailer bill that provides a two-year suspension to the provisions of AB 195 for local bonds, allowing time for the issue to be addressed in the regular legislative process while preserving the opportunity for public agencies to place bonds on the November 2018 ballot. This trailer bill did not receive a vote today, and it is our understanding that the Legislature will only bring it up for a vote if the Governor indicates his willingness to sign it.
We still have more work to do! If you are considering a bond in the near future, or if you have a relationship with an individual in the Governor’s Office, please reach out and ask the Governor to sign SB 863!
Deferred Maintenance and Instructional Support
The budget includes $28.4 million for deferred maintenance, instructional equipment, and specified water conservation projects.
These issues were included in the budget compromise negotiated by legislative leadership and the Governor. Related trailer bill language to implement these items is still pending in the Legislature.
Civic Center Act – Budget trailer bill AB 1809/SB 843 updates the Civic Center Act provisions for community colleges, allowing colleges to negotiate a rental price no less than fair market value with groups that do not serve students. Current law caps that charge at fair market value. This bill is still pending in the Legislature.
Online College – The budget includes $100 million in one-time funds to create the college, to be administered by the Board of Governors, plus $20 million ongoing Proposition 98 General Fund. The new college will develop courses and programs that lead to short-term credentials and certifications with labor market value and are not duplicative of programs offered at existing colleges.
Online Education Initiative – The budget provides $35 million (one-time Proposition 98 General Fund) for competitive grants to community college districts for online programs and courses.
New Community College Funding Formula – The budget approves a new community college funding formula, to be phased in over three years. Initially, 70% of funding will be based on enrollment, 20% on enrollment of low-income students, and 10% on performance outcomes. These factors will shift over the three-year implementation period to 60% enrollment-based funding, 20% enrollment of low-income students, and 20% performance outcomes. The formula includes a hold-harmless provision that will guarantee colleges at least a cost-of-living increase for three years.
CCFC Legislative Advocate