General Budget Information
How is RCCD funded by the State?
RCCD receives an apportionment from the State equaling $4,564 per full-time equivalent student (FTES) for credit classes and $2,745/per FTES for non credit classes, which goes into Fund 1000 (aka the General Fund). The State sets an enrollment cap of funded FTES for each community college district. RCCD’s funded enrollment cap for 2010/11 is roughly 26,600 FTES. If our colleges serve additional students beyond that cap, we do not receive any state funding for those FTES.
RCCD receives some categorical funding from the State for such programs as Disabled Student Services, Matriculation, etc. These funds are restricted and can only be used for specific purposes.
RCCD receives state funding for capital construction projects that have been approved and prioritized by the State Chancellor’s Office. These funds require local matching funds from RCCD. Measure C, approved by voters in 2004, is an example of local matching funds. Note: Measure C is classified as a restricted fund.
Everybody talks about Resource 1000. What is that?
Resource 1000 is defined as the Unrestricted General Operating Fund and covers the major operations of the District. Expenditures from Resource 1000 make up 36.5% of the total District budget. Categories include academic and classified salaries (65.7%), employee benefits (19.9%), services and operating expenditures (10.7%), books and supplies (1.6%), interfund/intrafund transfers (1.5%), and capital outlay (.60%). The remaining 63.5% of the District budget comprises a few smaller unrestricted funds such as the bookstore and community education, and numerous restricted funds ranging from parking and student health to capital projects and grants. These funds can only be used as specified by state, federal or district regulations.
Student Enrollment Fees
Does RCCD set student enrollment fees?
No. Community college enrollment fees are established by the State Legislature. RCCD and other community college districts have no control over enrollment fees.
Will community colleges receive the revenue generated by the enrollment fee increase?
A local community college directly receives only 2% of the enrollment fees it collects from students. If a $10/unit fee increase is approved, RCCD would receive an additional 20 cents/unit. The remaining $9.80 goes to the State’s general fund and can be used to fund other state programs and operations.
The Governor has proposed that the increase in student enrollment fees be used to fund growth at community colleges? Doesn’t this benefit community colleges?
No. The most recent state-mandated enrollment fee increase would generate an estimated $110 million. Much of the last fee increase was offset by an increased number of students receiving BOG waivers. While the waivers are good for students, they drastically reduce the funding community colleges receive from the state from this revenue source. When this happens, colleges still face the reality of having to cut class sections. Cutting sections reduces access to students, making it impossible for most colleges to serve more students. In essence, the proposal is like taking a 1-gallon empty gas can from a stranded motorist, replacing it with a 1/2-gallon container, then giving the motorist access to 1.5 gallons of gas if he can fit it in the smaller gas can.
Construction Activities and the Budget
Why is RCCD building more facilities at a time when its colleges are reducing classes and turning away students?
As a community college district, RCCD provides higher education and workforce training and is the quickest way back into the workplace for unemployed workers or those who need new skills.
“State funding reductions and fixed increases in operational costs contributed to the $60 million budget shortfall that RCCD has had to close over the past three years. This reduction has forced RCCD to reduce class sections, but we must still provide a quality learning environment. If we don’t, our students won’t be trained and prepared for changes in industry and career opportunities, and our colleges will not be equipped to meet future demand.
In addition, construction activity at RCCD colleges is putting hundreds of local people to work now, and bringing hundreds of thousands of dollars in economic benefits to local retail businesses and service providers.
Finally, Measure C funds must be used within a specific time period as specified by state law and the voter approved ballot.
I understand that construction is funded by Measure C. Why not use those funds to offset reductions in State funding?
Measure C funds can only be used for capital construction projects at RCCD colleges and education sites as approved by voters in 2004 and stipulated on the ballot measure and according to Proposition 39. Measure C funds cannot be used to cover general operating or program costs.
What can I do to advocate for RCCD and community college funding?
The reality is that everyone, including community colleges, will feel the pain of budget cuts if California is to resolve it’s chronic budget problems. However, you can join us and community colleges statewide in asking the Governor and Legislator to give us the financial flexibility we need to serve students.
2012-2013 Adopted Budget