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Report 02-1: Fiscal Profiles, 2001

Published by The California Postsecondary Education Commission

January 2002

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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 2001-02. 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 eleventh in the series, retains the formatting and structure of prior years.

Among major highlights, the report shows that the 2001-02 State Budget:

  • Total State government-authorized government spending in California is more than $204 billion in 2001-02. Total State spending is estimated to increase by more than $13 billion in the current year, or 7.1% over 2000-01 levels but State General Fund expenditures will actually decrease by almost $1.3 billion from 2000-01 levels.
  • State General Funds plus Local Property Tax revenues for Califo
  • rnia’s three public higher education systems in 2001-02 increases by $511 million over the prior year.
  • $241 million is provided for enrollment growth in the public higher education systems. The budget provides $114 million for a 3.0 percent growth in full-time students (FTES) at community colleges (30,800 FTES); $62.3 million is provided for an additional 8,760 FTES in the State University system, an enrollment growth rate of 3.0 percent; and $65 million funds enrollment growth of 7,100 FTES students at the University of California, a 4.1 percent increase in funded enrollment; and
  • Total K-12 spending, including funding sources not listed in the Governor’s Budget, is more than $52 billion, an increase of $3.2 billion (6.0 percent) over the current year. K-12 General fund spending is more than $32 billion, an increase of $2.5 billion (8.3 percent). Combined State and Local spending (including non-Prop 98 funds not mentioned above) per pupil is estimated to grow to $7,487, up six percent ($333) from 2000-01 levels.
The report documents that the State’s six-year trend of unanticipated, sometimes dramatic revenue growth has ended. For the first time since 1993-94, total State General Fund expenditures in the budget year are projected to be lower than in the prior year. While there is still some public sector revenue growth expected for 2001-02, all signs point to an economic recession, at least for the near term, which will cost the State many billions of dollars. As a mostly discretionary part of the budget, the State’s higher education enterprise is most vulnerable to funding cuts as a result of the State’s revenue problems.
Related Topics: Budgeting and Financing of Higher Education

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