By Jory Segal, 02.03.14

BASIC AID for Community Colleges
(also known as Locally Financed)
1.  Every county in the state has a pot of money that it divides up amongst the local schools, parks, libraries, etc.
2. The state has a formula for funding community colleges.  It provides a set amount for each full-time equivalent student that the college educates.  (known as the general fund)
3. If the pot of money that the county allocates to the local community college district is smaller than what the state would allocate to the district based on its FTES funding model, the state makes up the difference.

District A has 10,000 FTES.  The state decides to allocate $5000 per full time student.  The total would be $50,000,000.  The county property tax assigned to District A is $40,000,000.  Therefore, the state will pay District A $10,000,000 to make up the difference.

District B also has 10,000 FTES.  BUT, the district has a large property tax base, and is allocated $60,000,000 from their county property tax.  District B will NOT receive any funds from the state, but they get to keep and use all $60,000,000.  (It’s almost like winning the lottery.)

4.  The state also provides a separate pots of money for each school that is called categorical funding.  (This includes programs like CAL WORKS, DSP, Grants, and other programs.)  These programs are funded on a need basis and also the number of students that will qualify to use the funds.  Categorical funding can range from about 10% to 20% of the entire budget, depending upon the college district.  Categorical funding is NOT locally financed.