With an eye toward erasing a $9.2 billion state budget deficit, Governor Jerry Brown unveiled his proposed 2012-13 state budget in January.

The deficit is composed of $4.1 billion carried over from the current year, with the additional $5.1 billion coming in the budget year.

To close the gap, the governor proposes to raise revenue, and to make budget cuts.

An updated proposal based on income tax receipts will be released in mid-May.
 

Raising Revenue

The proposed budget assumes passage of the governor's tax plan by voters in November 2012. He intends to raise the state sales tax by a quarter-cent, and increase personal income taxes on those earning more than $250,000 per year. Doing so would generate an estimated $9 billion per year in new tax revenue.

Making Cuts

While raising revenue, the Governor also wants to make significant funding cuts to reduce the deficit. Approximately $4 billion in reductions have been proposed for Health and Human Services, Education, and State Mandates, and other expenditure areas.

The Community College Impact

So what does it all mean for community colleges?

The governor's plan:

• Increases base funding by $218.3 million to buy back some of the $961 million in inter-year deferrals contained in previous budgets.

• Keeps enrollment fees at $46 per unit (fees are set to increase from $36 to $46 this summer).

• Reduces the Prop. 98 general fund by $146.9 million to account for an identical increase in property tax revenue brought about by the closure of redevelopment agencies.

• Does not provide any funding for enrollment growth, cost of living adjustments (COLA), or backfill of the cuts made to categorical programs in the 2009-10 budget.

• Calls for combining all categorical programs into a single budget schedule and allowing districts to use the funding for any categorical expenditure.
   

What if...?
The big question is, what happens if the tax increases don't pass?

The governor's plan calls for $5.39 billion in triggered cuts to take effect. Of that amount, community colleges would absorb an estimated $482.3 million in mid-year cuts, plus lose the $218.3 million increase in base funding.

What's Next?
This is the first step in the budget process, and much discussion, negotiation, and advocacy will follow as the Legislature digests the governor's plan and puts forward its own budget solutions.

Continue to monitor this site for timely updates, as well as suggestions for getting involved and advocating for adequate funding for community colleges.