This message provides a quickupdate on federal American Recovery and Reinvestment Act (ARRA) State Stabilization funds provided to the California Community Colleges as part of the major revisions to the 2009-10 State Budget adopted in late July.

·         We have just been informed by the Department of Finance (DOF) that the California Community Colleges will receive a total of $35 million in ARRA State Stabilization funds, not $37 million as we had been previously notified. DOF indicated that the earlier report of $37 million was a draft figure that was shared with us in error. The $35 million figure is the final number and should not change.

  ·         As explained in earlier budget updates, the amount of ARRA State Stabilization funds available to the  community college system is determined by means of a formula which compares the budget cuts to K-12 schools, CCC, UC, and CSU and distributes a pot of $4.9 billion in ARRA State Stabilization funds across the four educational segments in proportion to those cuts.

 

·         Currently, Chancellor’s Office staff is working on calculating ARRA allocations for each community college district. As noted in earlier updates, each district’s allocation of ARRA State Stabilization funds will be determined based on cuts to the categorical programs. We aim to complete these calculations and share the estimated district-level allocations with the field by the end of this week.

 

·         Chancellor’s Office staff has also been working with the Governor’s Office of Planning and Research and the State Controller’s Office to put in place the funding mechanisms necessary to disburse ARRA funds. Community college districts will be required to sign a certification prior to the disbursement of funds, expend the funds in an expedited time frame in order to comply with federal cash management rules, and complete some basic reporting once the funds have been expended. We are currently preparing guidance to districts on exactly what steps must be taken in preparation of the disbursement of ARRA funds and hope to distribute this guidance by next week. Our best estimate is that ARRA State Stabilization funds will be distributed to community college districts by the end of October.

 

Regards,


Erik Skinner


 

Vice Chancellor for Fiscal Policy

California Community Colleges,

Chancellor's Office

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