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Report 92-5: Current Methods and Future Prospects for Funding California Public Higher Education: The First in A Series of Reports on Funding California's Colleges and Universities into the Twenty-First Century

Published by The California Postsecondary Education Commission

March 1992

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Supplemental Budget Language to the 1991-92 Budget Act directed California's higher education systems and the Postsecondary Education Commission to conduct a series of studies relating to the financing of California's public colleges and universities. This report represents the first in a planned series of Commission reports designed to address that request. In it, the Commission describes the State's current methods and likely prospects for financing public higher education.

The First section of the report provides background information into the Commission's ongoing fiscal studies.

The second section offers a technical description of the process through which the higher education systems' operating and capital outlay budget are funded.

Finally, the third section supplies information on how the systems have fared in recent budget deliberation, both individually and in comparison to other states around the country. In addition, it outlines projections of total State General Fund revenues through 2001-02, as well as long-range expenditure trends in major State budget categories, including higher education.

As this report indicates, the most optimistic estimates available indicates, the most optimistic estimates available indicates an emerging structural imbalance between revenues and expenditures, culminating in the year 2001-02 with a budget deficit of over $6 billion. Less optimistic estimate place the projected 2001-02 deficit at approximately $20 billion. The report concludes with a discussion of how a variety of trends in the State budget (both in the budget process and in economic trends) combine to make higher education extremely vulnerable to continued reductions in resources over the next decade, especially for the university systems.

The Commission adopted this report at its meeting of March 30, 1992, on recommendation of its Policy Development Committee.


Related Topics: Enrollment Demand and Capacity Analysis | Budgeting and Financing of Higher Education
 

Further information may be obtained from the Commission's Research Staff
(916) 445-1000 or via e-mail at Research_Staff@cpec.ca.gov.

A copy of any publication may be requested from the Commission's Publications Unit
(916) 445-1000 or via e-mail at Publication_Request@cpec.ca.gov.

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