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Report 00-7: Fiscal Profiles, 2000

Published by The California Postsecondary Education Commission

November 2000

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This report contains and analyzes statistical information about the financing of California postsecondary education from the 1965-66 fiscal year through 2000-01. In addition, there is information on California public elementary and secondary education financing as well as State government in general. The Commission compiles, disseminates and analyzes this information to provide policy makers with comprehensive and comparable financial data that can be used in comparative analysis of higher education finance issues. This document also provides an efficient and accurate response to the many questions that the Commission receives each year. This report, the tenth in the series, retains the formatting and structure of prior years.

Among major highlights, the report shows that the 2000-01 State Budget:

  • Total State government-authorized government spending in California is almost $190 billion in 2000-01. Total State spending is estimated to increase by nearly $18 billion in the current year, or 10.4 percent over 1999-00 levels and State General Fund expenditures will increase by almost $12 billion over 1999-00.
  • State General Funds plus Local Property Tax revenues for state's three public higher education systems increases by a $1.34 billion over last year - by far the largest one-year funding increase in the past 36 years. Total State General Fund spending for the public systems in 2000-01 is $8.5 billion dollars and when added to local revenues is more than $10 billion.
  • Nearly a quarter-billion dollars is provided for enrollment growth in the public higher education systems. The budget provides $117 million for a 3.5 percent growth in full-time students (FTES) at community colleges (32,286 FTES). $73 million is provided for an additional 12,577 FTES in the State University system, an enrollment growth rate of 4.5 percent. $51.2 million funds enrollment growth of 4,644 FTES students at the University of California, a 3.75 percent increase in funded enrollment; and
  • Total K-12 spending, including funding sources not listed in the Governor's Budget, is nearly $50 billion, an increase of $5.2 billion (12 percent) over the current year. K-12 General fund spending is more than $30 billion, an increase of $4 billion (16 percent). Combined State and Local spending (including non-Prop 98 funds not mentioned above) per pupil is estimated to grow to $7,022, up seven percent ($465) from 1999-00 levels.
The report documents that the past five State budgets have seen unanticipated and unprecedented revenue growth for the State of California. Since 1996-97, non-federal State revenues have jumped by almost $34 billion - total State General Fund expenditures were less than this in 1987-88. If the State's economy continues to perform as it has for the past six years - and it shows every sign of doing so - public revenues should continue to accumulate. In this environment, the State's higher education enterprise should continue to prosper, as should the aspirations and educational attainment of those Californians so enrolled.

The Fiscal Policy and Analysis Committee of the Commission discussed this report at its meeting of October 16, 2000.

Related Topics: Budgeting and Financing of Higher Education

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