Dwindling revenues are taking a toll on California’s community colleges, and state leaders are worried that greater losses could occur under the governor’s new budget plan if new money isn’t found.
Gov. Jerry Brown’s proposed budget plan calls for $8 billion in cuts, and twice that amount in new revenues to close the $16 billion deficit, state leaders said Tuesday.
For community colleges, full or empty coffers are dependent on three main revenue sources, California Community College Chancellor Jack Scott and Community College League of California CEO Scott Lay said Tuesday.
Those revenue sources are Brown’s tax measures on the November ballot, revenue from the upcoming Facebook IPO (Initial Public Offering) and Redevelopment Agency funds captured from cities and counties, Scott and Lay said.
The governor’s budget package assumes voters will approve a temporary increase in personal income tax on the state’s wealthiest taxpayers, and also increase sales tax by one-quarter percent for four years.
Without the tax package, more cuts would be required and community colleges would take another $300 million hit, Lay said.
All public schools, including community colleges, would be sliced by $5.5 billion, and the University of California and California State University systems would be cut by $250 million each if the tax measures fail.
“It’s all contingent on the passage of the tax initiative in November,” Napa Valley College Vice President of Business and Finance John Nahlen said. (Read more.)