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Dear Colleagues:
This message provides a quick update on federal American Recovery
and Reinvestment Act (ARRA) State Stabilization funds provided to the
California Community Colleges as part of the major revisions to the
2009-10 State Budget adopted in late July.
• We have just been informed by the Department of Finance (DOF) that
the California Community Colleges will receive a total of $35 million
in ARRA State Stabilization funds, not $37 million as we had been
previously notified. DOF indicated that the earlier report of $37
million was a draft figure that was shared with us in error. The $35
million figure is the final number and should not change.
• As explained in earlier budget updates, the amount of ARRA State
Stabilization funds available to the community college system is
determined by means of a formula which compares the budget cuts to K-12
schools, CCC, UC, and CSU and distributes a pot of $4.9 billion in ARRA
State Stabilization funds across the four educational segments in
proportion to those cuts.
• Currently, Chancellor’s Office staff is working on calculating
ARRA allocations for each community college district. As noted in
earlier updates, each district’s allocation of ARRA State Stabilization
funds will be determined based on cuts to the categorical programs. We
aim to complete these calculations and share the estimated
district-level allocations with the field by the end of this week.
• Chancellor’s Office staff has also been working with the
Governor’s Office of Planning and Research and the State Controller’s
Office to put in place the funding mechanisms necessary to disburse
ARRA funds. Community college districts will be required to sign a
certification prior to the disbursement of funds, expend the funds in
an expedited time frame in order to comply with federal cash management
rules, and complete some basic reporting once the funds have been
expended. We are currently preparing guidance to districts on exactly
what steps must be taken in preparation of the disbursement of ARRA
funds and hope to distribute this guidance by next week. Our best
estimate is that ARRA State Stabilization funds will be distributed to
community college districts by the end of October.
Regards,
Erik Skinner
Vice Chancellor for Fiscal Policy
California Community Colleges,
Chancellor's Office
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