Foothill and De Anza students may pay $10 to $12 per unit nextyear, less than the $16 per unit that was initially projectedearlier this year by the district budget committee.
Mike Brandy, vice president of finance and college services,announced this positive development in the ongoing budget crisisduring a town hall meeting in the Hinson Campus CenterWednesday.
He said that Gov. Gray Davis has called for a 1 percent cut infunding to Disabled Student Services and Extended OpportunityPrograms and Services, a significant change from a proposed 45percent cut earlier in the year. Also, the Child Development Centerstaff is working with the college to remain open, by cutting hoursof operation and taking a 25 percent voluntary pay cut.
The district budget committee received “fairly positive May Revise”numbers from the governor’s office in May, due in part to strongcommunity college advocacy efforts across the state. Davisinitially proposed a $500 million cut to California communitycolleges, which dropped to $260 million, and was even less thanthat in the latest state senate assembly.
Brandy says that the total impact to the school district fromreductions in the state budget will likely be $7 to $11 milliondollars, He cautioned against too much optimism however, sayingthat the district still has an $18 to $25 million budget gap thatit has to close.

C hanges in the school’s budget will continue to take placeuntil Davis submits his final state budget to the legislature onJune 30, but some close to the governor have speculated that he maysubmit it as late as mid-August. The student tuition rate will beset after the district receives the finalized state budget fromSacramento.
Cuts totaled $10 million have been made to the district budgetalready, through reductions in the “B” budget (operating budget forsupplies and materials) and in operating expenses, the removal ofvacant positions and layoffs by the seniority bumping system.Brandy said that there won’t be any change to the reduction plan,and the layoffs will continue as planned.
He explained, “Our [budget situation] is not necessarily justcaused by state revenue problems. They’re also caused by a varietyof factors which all indirectly relate to the economy that we’rein.”
A separate factor in the budget gap is made up of a $2 millionincrease in the cost to the district from the Public EmployeeRetirement System, which has been losing investment money of latein the down economy.
Brandy joked that when an employee retires, the first thing hethinks of is their retirement cost to the district.
Approximately 800 district employees will receive a regular salaryincrease for seniority in the fall, which will cost the districtanother $1.04 million.
Increases in workers’ compensation, unemployment insurance andutility rates make up the rest of the $18 to $25 mil budgetgap.
Brandy expressed concern that the $10 to $12 per unit cost could bebad for the district, as it may turn students away from theadmissions desk in the fall.
“The news about increased fees will drive more students, who aremarginally making it at $7 a unit, to apply for financial aid inthe fall,” said Cindy Castillo, director of financial aid andscholarships.
The financial aid office processed 6,000 applications in the2001-2002 school year, and 8,000 applications so far this year.Castillo anticipates even more next fall. The office awardedstudents $7.9 million in aid for 2001-2002, and will distribute tostudents approximately $9.5 million by September.