Summer courses have been slashed, employee paychecks could be delayed and Inland Valley students will be denied access from community colleges and universities as a result of the state's budget crisis, campus officials said. Community college officials said they are resorting to using cash reserves to cover employee paychecks since state funding for the month of July is not likely to arrive due to the budget deadlock.

"The state controller's office has indicated that they will not be sending the normal allocations that they (usually) send on a monthly basis," said Earl Davis, vice-president of business services at Chaffey College. "Our July allotment would have been about $2.5 million. We will not be receiving that until the budget passes. Should it continue in August, it be be another 8 percent of our revenue, or another $2.5 million, that would not be coming in."

Davis said the college has adequate cash reserves to carry it through the summer.

"While it will be a inconvenience, we will still be able to move forward with our normal operations," he said.

The Rancho Cucamonga campus, with a student population of approximately 20,000, has already slashed its summer classes by almost 70 percent, Davis said. There is only one 6-week summer session instead of the normal two. Last summer, the college served approximately 14,000 students. This year, 6,400 students are taking summer courses.

Policy, staff cut

Mt. San Antonio College, in Walnut, faces a budget shortfall of more than $3.1 million for 2003-04, said Nancy Rice, vice-president of administrative services.

College officials are also using the school's reserves to pay for employee salaries, which comprise 85 percent of the annual budget. Some $6.6 million in payroll and $1 million in benefits are disbursed each month, according to officials.

Rice said Mt. SAC has been coping with serious cuts through a variety of methods -- including recent retirement incentive packages that were offered to staff and revisions to the budget reserve policy.

At Mt. SAC's June 25 Board of Trustees meeting, board members approved revisions to the College's general fund policy, including a provision to waive the policy of maintaining a 10 percent unrestricted general fund balance.

The revisions amend the policy and allow reserves to fall to five percent, officials said.

Trustee Fred Chyr raised concerns regarding the time period to restore general fund reserves.

According to the amended policy, "the College will present a plan to restore the deficit or shortage within two fiscal years."

Scott Lay, director of state budget issues for the Community College League of California, said the league is continuing to actively lobby the legislature to pass a budget that is fair to community colleges.

"We are also finding mechanisms where we can help local districts," Lay said. "We have a program that 34 colleges are participating in where they borrow money in the beginning of the (fiscal) year to meet any cash flow shortages."

Cal State boosts fees

The California State University system is preparing to take a $330.2 million reduction in its 2003-04 budget. At the July 15 and 16 Board of Trustees meetings, members are expected to consider a proposal to increase graduate and undergraduate fees by 30 percent. In December, the board voted to raise fees by 10 percent for undergraduates and 15 percent for graduate students.

The proposed 30 percent increase would boost undergraduate fees from $1,572 to $2,046 and graduate fees from $1,734 to $2,256.

CSU officials said student fees would still be lowest among comparable universities nationwide.

Other reductions in the CSU system have included a 9 percent mid-year cut and additional 6.1 percent reduction in the Chancellor's office, which represents total reductions of $4.5 million. The cuts include the elimination or freezing of approximately 45 positions.

The State Controller's Office has notified CSU that employees can expect to receive their normal paychecks for the the month of July on July 30 as scheduled. If necessary, the Controller's office will provide an update in late July on the status of August paychecks, according to CSU officials. August paychecks are scheduled for disbursement on August 29.