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Report of the Working Group on
Facilities and Finance - Postsecondary
TABLE OF CONTENTS
EXECUTIVE SUMMARY
California has an extensive set of
postsecondary institutions that offer a vast array of activities. Within that
array, state appropriations constitute the core funding for each public segment
of higher education and a large portion of financial aid available to students
in private institutions. The state government also controls directly, or
strongly influences, the level of student charges in public institutions.
Because of this role, it is important
that the state’s approach to finance be tied directly to clear policy
goals that meet the needs of students, serve the interests of the institutions,
respond to the workforce needs of business, and fulfill the fiduciary
responsibilities of state government to the taxpayers. The working group was
guided by the following goals:
Access
Affordability
Choice
Quality
Efficiency
Cooperation
Accountability
Shared
Responsibility
Three challenges pose the most serious threats
to California’s ability to meet these goals: (a) large, current unmet
needs in the operations and facilities budgets of higher education, (b) a strong
growth in enrollment demand, and (c) the lack of a long-term, comprehensive, and
realistic approach to state finance of higher
education,
To help achieve the goals and
meet these challenges, the working group recommends that the Legislature and
Governor take these
actions:
Recommendation 1:
Adopt policies to provide more stability for finance and dampen the
“Boom and Bust” swings of state appropriations for higher education,
by (1) committing to annually fund “core” needs and enrollment
growth, (2) adopting a consistent and rational student fee policy, and (3)
restoring community colleges historic share of the Proposition 98
guarantee.
Recommendation 2:
Improve the state’s accountability framework by modifying and
expanding the “partnership” budget approach, currently applied to UC
and CSU, to (1) include all higher education, (2) clarify the link between
performance and funding, and (3) adopt realistic alternatives for times of
revenue downturns.
Recommendation
3: Change the way state government funds electronic technology to
provide more access and choice for
students.
Recommendation 4:
Reform the state’s approach to student charges in the public segments
and maintain the Cal Grant need-based financial aid entitlement.
Recommendation 5: Review
the state’s methodology for determining and funding facilities in
California higher education, and, as appropriate for each segment, make changes
to emphasize, comprehensive space planning, multiple use facilities, sharing of
space among institutions, and incentives to maximize other sources of capital
outlay.
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