Wednesday, June 10, 2009

Sacramento SNAFU

For some alarming insights into the state budget situation and its possible impact on community colleges, I recommend reading an article appearing in yesterday's The Ed Money Watch, a publication of the New America Foundation, a Washington public policy institute and think tank (it appears to be non-partisan).

In her article (“The State Fiscal Stabilization Fund Mess in California”), Jennifer Cohen explains that the state has won approval for federal State Fiscal Stabilization Fund (SFSF) money but its application included a massive accounting error, overestimating the state’s “maintenance of effort baseline funding” (MOE) by $2 billion.

According to Cohen, the “oversight allows the state significant flexibility in its state contributions for education funding in 2009 and 2010.”

She continues:
At the same time, the state failed to include community college funding in its MOE numbers for higher education. As a result, the original SFSF application significantly understated how much money the state will spend on higher education each year....

California's revised SFSF application appeared on the Department of Education's website last Friday even though the revision is dated May 17th. The amendment only changes the MOE baseline numbers … for K-12 and higher ed, not the section where the state commits to actual levels of spending…. As a result, it seems that California hopes to reach the original state contribution levels but is allowing for the possibility of lower spending in the case of real budget problems….

As you know, I am singularly untalented in understanding fiscal issues (and articles such as Cohen’s), but I gather from all of this that disastrous incompetence is afoot, and community colleges stand to lose bigtime.

According to Cohen, “Because the $2.0 billion MOE revision affects K-12 spending and not higher ed spending, California's public schools could face even greater budget cuts than previously expected. Documents from the California Department of Finance suggest that total cuts to spending legislated through the Proposition 98 funding law could be as high as $6.0 billion over two years compared to previously planned budget numbers.”

(All emphases my own.)


Not the time for state education cuts, report says (Riverside Press-Enterprise)

Proposed state higher-education cuts will exacerbate a projected shortage of college graduates and imperil California's long-term economic future, a new report says.

The Inland area, already lagging the state average in the percentage of adults with college degrees and in the proportion of high school students attending college, could fall further behind and continue to have difficulty attracting high-paying jobs, said Hans Johnson, author of the study and associate director of research for the nonpartisan Public Policy Institute of California.

The report, released last week, predicts that the state will face a shortage of 1 million college graduates by 2025 unless current trends are reversed. Forty-one percent of jobs will demand at least a bachelor's degree by 2025, but only 35 percent of California adults will have one, the report says….

1 comment:

Anonymous said...

Wow. Idjits.

Roy's obituary in LA Times and Register: "we were lucky to have you while we did"

  This ran in the Sunday December 24, 2023 edition of the Los Angeles Times and the Orange County Register : July 14, 1955 - November 20, 2...