CCCSFAAADecember 10, 2011

General Fund Tax Revenues

1.5%5.1%

5.4%7.3%

5.4%

Budget Outlook

Triggers• Higher of LAO and DOF

projections of 2011-12 revenue.

• If revenues more than $1 billion below, “Tier 1” trigger.

• If revenues more than $2 billion below, “Tier 2” trigger.

• LAO: $3.8 billion below.

• DOF: December 15.

• Triggers “pulled” in January.

CCC Triggers

Tier 1•$30 million apportionment cut•$46/unit fee effective summer

Tier 2•$72 million apportionment cut

Proposition 98

Test: 2 2 2 1 2 Susp. 1 2 1 1 2 2

2.4%-13.3% 1.8%

3.8%

0.2%

$4.1bsuspension

0.0%4.3%

5.0% 4.3% 5.2% 4.2%

CCC FundingLAO Assumptions; Proposition 98 at 11% +

$46/unit

$330m$285m

$257m$325m $280m

(assumestriggers)

CCC Budget ScenariosLAO Prop. 98 Assumptions

2012-13

2013-14

2014-15

2015-16

2016-17

COLA $153m $91m $116m $136m $147mCOLA% 3.09% 1.75% 2.16% 2.41% 2.51%

1% Growth

$49m $52m $54m $56m $59m

“Leftover”

$131m $144m $89m $135m $77m

“Achieving the dream”

isn’t difficult.

★full-time status★student

cohorts/engagement

CCC Financial Aid

Pell GrantsRecord higher education demand and changes in eligibility has program growing faster than expected.

• $1.3 billion current year shortfall

• House appropriations bill cuts by $3.8b by reducing eligibility:

• limit to 6 years (from 9)

• cut off students with fewer than 6 units

• eliminate “ability to benefit” students

• Impact: $419 million cut to California aid, affecting 64,477 students

• Disproportionately impacts community college students

• Pell is larger than all other aid sources to CCC students, combined

BOG Fee Waiver

•1,154,272 headcount students

•$410.7 million

•Effective fee rate: $288/FTES

•Does it continue to make sense?