District Funding Boosted by Passage of Propositions 51 & 55

November 30, 2016

The passage of Propositions 51 and 55 will benefit the State Community College District stands to gain increased state funding.

Proposition 51 grants California the authority to sell $9 billion in general obligation bonds, according to the official California voter guide. The guide accounts for $17 billion in liabilities, including $9 billion for the principal and $8 billion in interest payments toward bondholders.

$2 billion is dedicated for community colleges.

The bill is intended to modernize educational facilities for K-12 and community colleges, but has not yet been signed by Gov. Jerry Brown, who has been very vocally opposed to it.

State Center Community College District Trustee John Leal recently attended a conference intended to outline the specifics of the bill.

“The governor hasn’t signed off on that yet, it’s not a done deal,” Leal said. “I have to think he would be more willing to change his mind now that it’s a mandate from the people.”

Should the bill be approved, there are currently three projects that qualify for matching funds from the bill. Construction projects at Fresno City and Reedley College child development centers could get up to 20 percent matching, and the Clovis Applied Technology Facility could get up to 50 percent matching funds, according to Ed Eng, the Vice Chancellor of Finance and Administration.

One of the arguments against the bill is that funds are given out on a first come, first serve basis, and although the district does not hire year-round staffing for these applications, the district does hire consultants for projects such as these, according to Eng.

Proposition 55 is an extension of Proposition 30 which was passed on Nov. 6, 2012, according to Ballotpedia.org. The bill, set to expire in 2016, uses tax revenues from families making $250,000 a year or more to fund K-12 schools and community colleges.

The income tax would generate between $2 and $4.5 billion dollars, with 11 percent being dedicated to community college districts, according to a press release from Paige Marlatt Dorr, a representative from the California Community College Chancellor’s office.

Losing out on that money would have a “major impact” on the district budget, Leal said.

“We would definitely have to dig deeper into the general reserves,” Leal said. “It’s going to allow us to continue to use our bonds for modernization projects.”

Using general funds reallocates money meant for operating costs toward projects the board views as critical for a growing campus.

“Last year we had 26,000 [students] and this year we’re up to 30,000,”  Leal said. “Unlike some of [the] districts where they have declining enrollment, we have been facing increasing enrollment for the past 20 years.”

Leal said that the funds from Measure E, Measure C and other local bonds gives the district a total funding of almost half a billion dollars.

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