Dear Peralta Community,
I'm writing to share information with you regarding our current FY 2020-21 budget. As part of the annual California state budget process, the state provides apportionments, with First Principal Apportionment (P1) in February and Second Principal Apportionment (P2) in June. This is an update regarding our P1, First Principal Apportionment.
The Peralta Community College District (District) receives operations funding from the state of California in accordance with the Student-Centered Funding Formula (SCFF), which bases general apportionments – discretionary funds available to community college districts – on three calculations:
Despite a decrease in enrollment at Peralta (and across Community Colleges broadly), there have been adjustments made to ensure the District will remain at the same level of funding it received prior to the SCFF.
General Funding Background
The base allocation relies primarily on enrollment measures as of the current year, while the supplemental allocation and student success allocation rely on data primarily from the prior year. Generally, the Chancellor’s Office certifies apportionments three times per year with P1 and R1 (first recalculation) in February, Second Principal (P2) in June, and Advance in July; however additional certifications are completed as necessary.
Background – P1
The Total Computational Revenue (TCR) in P1 reflects the inclusion of the newly applicable TCR stability protection, which provides the greater of the current year or prior year TCR. Peralta received approximately $6.7 million in a Stability Protection Adjustment to offset the decline enrollment in fiscal year 2020-21. The Hold Harmless Protection for fiscal year 2020-21 remains at approximately $ 7.1 million.
2020-21 P-1 Summary
While we are receiving the same amount of TCR, we have a $13.7 million potential "SCFF Cliff" gap we need to address (approximately $6.65 million for Stability Protection Adjustment and approximately $7.1million from Hold Harmless adjustment). We all need to work together in order to reduce this "SCFF Cliff." We can do this via our work on Strategic Enrollment Management (SEM) as we strive to both increase enrollment and control costs.
If you have questions, please let me know - you can reply to this message or write to me at email@example.com.
All the best,
Interim Vice Chancellor of Finance & Administration
Peralta Community College District
Note: This post was originally sent as an email announcement to employees on Monday, March 8, 2021.