Section 58774 - Growth and Decline(a) District growth rates for the 2006-07, 2007-08 and the 2008-09 fiscal years shall be determined based upon the regulations and processes in effect as of September 30, 2006, except that by August 31, 2008, the Chancellor shall notify districts of revised growth rates which are adjusted proportionately to reflect the amount of growth funding provided in the 2008-09 Budget Act.(b) Commencing with the 2009-10 fiscal year, district "growth rates" shall be determined by the Chancellor based on, at a minimum, the sum of the following factors:(1) Determination of an equally weighted average rate of change in the primary county population of persons between the ages of 19 and 24 and the rate of change in the primary county population of persons between the ages of 25 and 65, both as determined by the Department of Finance's Demographic Research Unit as determined for the preceding fiscal year.(2) To the extent a college district's primary county unemployment rate exceeds 5 percent for the most recently completed year, an adjustment based on that positive difference shall be added to the rate computed in paragraph (1). In no event shall that positive difference used in calculating this adjustment exceed 2 percent.(3) The Chancellor may also add to these amounts the number of FTES in the areas of transfer, career technical education, and basic skills that were unfunded in the current fiscal year. For this purpose, the following computation shall be determined for each district, and a statewide total shall be calculated:(A) Establish the base level of FTES earned in the prior fiscal year for transfer courses consisting of courses meeting the California State University breadth or Intersegmental General Education Transfer Curriculum requirements or major course prerequisites accepted by the University of California or the California State University.(B) Establish the base level of FTES earned in the prior fiscal year for career technical education courses consisting of courses defined by the Chancellor's office Student Accountability Model codes A and B that are consistent with the courses used for measuring success in this program area under the accountability system established pursuant to Education Code section 84754.5.(C) Establish the base level of FTES in the prior fiscal year for basic skills courses, both credit and noncredit.(D) Add the sum of FTES for paragraphs (A) to (C), inclusive.(E) Multiply the result of the calculation made under paragraph (D) by one plus the district's funded growth rate in the current fiscal year. This figure shall represent the maintenance of effort level for the budget year.(F) FTES in transfer, career technical education, and basic skills that are in excess of the total calculated pursuant to paragraph (E), shall be considered in excess of the maintenance of effort level, and shall be eligible for overcap growth funding if the district exceeds its overall funded FTES.(G) In no event shall the amount calculated pursuant to paragraph (F) exceed the total unfunded FTES for that fiscal year.(c) Each district shall receive a minimum growth allocation of 1% or a rate which will provide at least 100 total FTES. Preliminary growth rates for a fiscal year shall be calculated and made available to the districts as early as possible during the preceding fiscal year. Preliminary growth rates are subject to change.(d) To the extent the computations specified in this section require the reporting of additional data by community college districts, that reporting shall be a condition of the receipt of apportionment for growth pursuant to this section and those funds shall be available to offset any and all costs of providing the data.(e) District growth rates are used to determine growth revenue caps when funding required to meet all FTES increases in the system exceeds the growth appropriation in the annual Budget Act. The district's total revenue growth cap is the sum of the revenue caps for all the district's FTES workload measures. A district's growth revenue cap is calculated by multiplying the marginal growth funding rates for its credit, noncredit, and career development and college preparation FTES by the product of a district's growth rate determined annually pursuant to subdivisions (b) and (c), multiplied by the appropriate base FTES for that funding rate. A district's growth revenue cap for credit FTES, noncredit FTES, and career development and college preparation FTES to the extent funds are available to fully fund increases in these workload measures shall be the sum of the following:(1) Credit FTES -- The product of the current year's marginal credit funding rate multiplied by the growth rate determined pursuant to subdivisions (b) and (c), times the number of base credit FTES.(2) Noncredit FTES -- The product of the current year's marginal noncredit funding rate multiplied by the growth rate determined pursuant to subdivisions (b) and (c), times the number of base noncredit FTES.(3) Career development and college preparation noncredit FTES -- The product of the current year's marginal career development and college preparation noncredit funding rate multiplied by the growth rate determined pursuant to subdivisions (b) and (c), times the number of base career development and college preparation noncredit FTES.(f) Growth revenue shall be computed for districts that have fully restored revenue and FTES lost in the prior three fiscal years due to workload declines in those years. An actual growth revenue computation for credit FTES, noncredit FTES, and career development and college preparation noncredit FTES shall be the sum of the following: (1) Credit FTES -- The product of the current year's marginal credit funding rate times the net change in credit FTES reported in the current year relative to the district's base credit FTES for that year and net of any credit FTES restoration.(2) Noncredit FTES -- The product of the current year marginal noncredit funding rate times the net change in noncredit FTES reported in the current year relative to the district's base noncredit FTES for that year and net of any noncredit FTES restoration.(3) Career development and college preparation noncredit FTES -- The product of the current year marginal career development and college preparation noncredit funding rate times the net change in career development and college preparation noncredit FTES reported in the current year relative to the district's base career development and college preparation noncredit FTES for that year and net of any career development and college preparation noncredit FTES restoration. If the district's career development and college preparation noncredit base is zero and the current year is the first year the district has reported career development and college preparation noncredit FTES, growth revenue shall be calculated using the regular noncredit marginal rate for that portion of career development and college preparation noncredit FTES converted from regular noncredit FTES. The funding rate differential shall be reported as a "career development and college preparation funding rate adjustment." If total noncredit (regular and career development and college preparation noncredit) FTES is greater than the noncredit base FTES level, growth revenue for that portion of career development and college preparation noncredit in excess of the noncredit FTES base shall be calculated as the product of the career development and college preparation FTES and the career development and college preparation noncredit marginal funding rate for that portion of career development and college preparation noncredit in excess of the noncredit FTES base.(g) If the total growth computed in subdivision (f) is less than zero, the district's base revenue for the subsequent fiscal year shall be adjusted in accordance with subdivision (h). If the amount computed in subdivision (f) is greater than zero and less than or equal to the revenue cap computed pursuant to subdivisions (b) and (c), the district revenue shall be adjusted by the amount computed pursuant to subdivision (f). If the amount computed in subdivision (f) is greater than the revenue cap computed pursuant to subdivisions (b) and (c), the district's revenue could be constrained by the revenue cap computed pursuant to subdivisions (b) and (c).(h) A decline in FTES for any particular workload occurs when the actual funded FTES is less than the amount of the corresponding base FTES. A district receives stability revenue when its total growth revenue from all FTES measures is negative. Total growth revenue shall be the sum of all the positive and negative growth revenue for all FTES.(i) A district shall be entitled to additional funding in its basic allocation equal to the amounts identified in subdivision (i) of section 58771 and as adjusted for inflation pursuant to section 58773 in subsequent years to the extent additional resources are provided in the annual Budget Act for any new colleges or centers added in the current fiscal year or if sufficient general apportionment base funding exists to fund new colleges and centers. Growth funds appropriated in the annual Budget Act shall be available to fund any new colleges and centers if other specific new funds are not provided in the Budget Act and there are not sufficient unallocated funds remaining in the general apportionment schedule. The intent of this section is to fund increases to the system's basic allocation before funding FTES growth as identified in subdivisions (e), (f) and (g) above.(j) This section shall become inoperative on April 30, 2009.Cal. Code Regs. Tit. 5, § 58774
1. New section filed 5-29-91 and submitted to OAL 6-3-91 for printing only pursuant to Education Code section 70901.5; operative 6-30-91 (Register 91, No. 28).
2. Amendment of section and NOTE filed 1-17-2007; operative 1-17-2007. Submitted to OAL for printing purposes only pursuant to Education Code section 70901.5 (Register 2007, No. 9).
3. Editorial correction of subsection (f) (Register 2007, No. 25).
4. Amendment filed 7-17-2007; operative 8-16-2007. Submitted to OAL for printing only pursuant to Education Code section 70901.5 (Register 2007, No. 35).
5. Amendment of subsections (a)-(b), (b)(2)-(3), (b)(3)(B), (b)(3)(F), (f)(3) and (j) filed 6-13-2008; operative 7-13-2008. Submitted to OAL for printing only pursuant to Education Code section 70901.5 (Register 2008, No. 25). Note: Authority cited: Sections 66700, 70901 and 84750.5, Education Code. Reference: Section 84750.5, Education Code.
1. New section filed 5-29-91 and submitted to OAL 6-3-91 for printing only pursuant to Education Code section 70901.5; operative 6-30-91 (Register 91, No. 28).
2. Amendment of section and Note filed 1-17-2007; operative 1-17-2007. Submitted to OAL for printing purposes only pursuant to Education Code section 70901.5 (Register 2007, No. 9).
3. Editorial correction of subsection (f) (Register 2007, No. 25).
4. Amendment filed 7-17-2007; operative 8-16-2007. Submitted to OAL for printing only pursuant to Education Code section 70901.5 (Register 2007, No. 35).
5. Amendment of subsections (a)-(b), (b)(2)-(3), (b)(3)(B), (b)(3)(F), (f)(3) and (j) filed 6-13-2008; operative 7-13-2008. Submitted to OAL for printing only pursuant to Education Code section 70901.5 (Register 2008, No. 25).