State Budget Update from California Community Colleges' Vice Chancellor Erik Skinner - 7/20/2009:

Dear Colleagues,

Governor Schwarzenegger and legislative leaders just emerged from Big 5 negotiations to announce that a budget deal has been reached. The governor indicated that the deal bridges the full $26 billion budget shortfall and includes a commitment to pay schools and colleges roughly $9.5 billion in future years due to under funding in the 2008-09 fiscal year. This commitment had become a major stumbling block in negotiations over the past week. The deal does not include suspension of the Proposition 98 minimum funding guarantee.

Legislative leaders indicated that the budget package was as good as they could manage given the circumstances. The Big 5 refused to answer any questions about the details of the package until legislators are briefed. It is likely that the budget package will be put up for a vote as early as this Thursday.

Based on behind the scenes conversations, the community college portion of the budget plan is generally consistent with the Conference Committee version. We have heard rumors of restoration of some of the cuts to SB 70 CTE programs (a governor's initiative that was enacted in a bill carried by then Senator Jack Scott) as well as the possibility of additional funding deferrals for colleges and schools.

As more details emerge, we will share them with you.

Regards,

Erik Skinner

Vice Chancellor for Fiscal Policy
California Community Colleges,
Chancellor's Office