College officials are keeping a close eye on budget developments this week after Gov. Arnold Schwarzenegger asked legislators Nov. 25 to approve a constitutional cap on state spending.
The cap would expand the governor’s power over the budget and eliminate the long-standing guarantee that roughly half of all new state revenue goes to public schools and community colleges under Proposition 98.
“We are looking at this very closely,” said City College President John Romo. “This isn’t necessarily a cut, but it could have an impact on new dollars coming in.”
Proposition 98, enacted in 1988, requires that a certain percentage of the state general fund be allocated for school and community college programs, and that education automatically receive roughly half of any new revenue.
The proposed cap would also restrict the Legislature’s ability to balance the budget through borrowing more money. This means it must cut about 20 percent of the state’s general fund, unless taxes are raised-something the Republican party is strongly opposed to.
In a seemingly contradictory move, Schwarzenegger also asked legislators to approve a bond measure of as much as $15 billion in addition to the spending cap.
Romo says this idea of borrowing more money to deal with the current situation is something both parties can live with, but he is worried about the burden on future generations.
“It’s always a concern with future generations having to deal with the mess,” he said. “That is a big concern of mine.”
The Legislature has until Friday to decide whether it will put the proposal before voters on the March ballot, but Romo’s budget worries span much further than this possible measure.
“I fear more significant cuts to come soon,” Romo said. “I’m worried large mid-year cuts will be brought to light in the next few weeks.”
So far, the college has cut expenses by some $4.7 million since Fall 2002-out of a total $58.1 million annual budget.
This year, spending will exceed income by some $3.7 million.
“We are kind of in a holding period right now,” said Leslie Griffin, City College’s controller of fiscal services. “More developments are expected around February.”
“I’m not optimistic about avoiding cuts in the 2004-05 budget,” he said. “I’m afraid the state is going to come down hard.”