[ITT-staff] FW: ACCCA's Legislative Update - January 19, 2018

[Adams, Joshua]

FYI

________________________________________
Josh Adams, MBA
Dean, Business and Professional Studies
[cid:3364978133_612873]
1501 Mendocino Ave | Santa Rosa, CA | 95401
tel (707) 524-1731
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From: communications at accca.org [mailto:communications at accca.org]
Sent: Friday, January 19, 2018 10:50
To: Adams, Joshua <jadams2 at santarosa.edu>
Subject: ACCCA's Legislative Update - January 19, 2018



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January 19, 2018

LAO Releases Its Overview of Governor Brown’s 2018-19 Budget Proposal

Last Wednesday, January 10, 2018, Governor Jerry Brown released his proposal for the 2018-19 State Budget. On Friday, January 12, the Legislative Analyst’s Office (LAO), the Legislature’s nonpartisan policy and fiscal advisor, released its overview of the Governor’s Budget proposal.

The LAO maintains that state revenues in 2017-18 and 2018-19 will likely be higher than the Administration’s revised estimates, despite the uncertainties of the recently signed federal tax legislation. The report notes that the Governor’s proposal does not account for the federal tax reform, but that the May Revision is expected to include the Administration’s response to the tax legislation.

The report indicates that more resources could be available at the May Revision due to higher revenue estimates and the expectation that the federal government will reauthorize the Children’s Health Insurance Program, which could lead to an estimated $150 million to $750 million in General Fund savings, depending on the federal cost share rate that is approved.

The report identifies several proposals in the Governor’s Proposition 98 spending plan that are complex and raise issues for the Legislature to consider. These include the incentives created by the new community college funding formula, noting it would be the most significant funding change for the colleges in years, and the governance structure of the online community college proposal, which raises several key issues including governance structure, program offerings, and its relationship to existing online community college programs. The LAO recommends that the Legislature begin analyzing these proposals early so that it has time to understand the problems that the Governor seeks to address and determine the most effective way to address the issues.

The LAO believes that the split between ongoing and one-time initiatives is reasonable and recommends that the Legislature adopt a final budget plan that continues to rely upon a mix of one-time and ongoing spending, since setting aside one-time dollars helps the state avoid over-committing to programs it might be unable to sustain during poor fiscal conditions.




Association of California Community College Administrators (ACCCA)
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