EDUCATION: An exploration of ideas, issues and trends in education : At Last, Upbeat Budget News for L.A. Community Colleges

For proof that the economic times are good, look no further than that longtime vortex of financial troubles, the Los Angeles Community College District.

For the first time in years, the district has posted a significant budget surplus, $23.9 million for the fiscal year that ended in June.

Trustees say that the surplus is the result of recent reforms that have improved efficiency and boosted enrollment about 3% in the district’s nine colleges. A healthy injection of state funds has also contributed.

The $333-million unrestricted general budget for 1999-2000 is, overall, 19% higher than last year’s $281-million budget, marking a change from a spell of lean years, when colleges struggled to meet basic expenses.

The district has already allowed itself the luxury of putting $8.5 million of the surplus into a reserve fund, and is taking steps to acquire a new computer system to replace outdated administrative technology.

But for some district leaders, it’s too early to celebrate.

Disagreements over how to spend the new financial cushion have already started to flare. There is no shortage of demands: Many college buildings badly need renovations or cosmetic repairs. Workshops need new equipment. College presidents want to add classes and launch marketing and strategic planning programs.

Also, the influential faculty union--which is in contract talks with the district--is looking for a raise.

“We are still the poorest-paid faculty in the region,” said Carl Friedlander, president of the district’s College Guild unit of the American Federation of Teachers.

Overly generous raises could reverse the district’s gains in a hurry--especially if an unexpected dip in enrollment occurred, said Gerald Hayward, director of Policy Analysis for California Education.

Such a scenario has been played out before. In recent years, the district’s trustees have granted increases that came back to haunt them when revenues to cover the cost failed to materialize.

“Given the history of the district, I would be very cautious about expending [the surplus],” Hayward said. “The worst thing to happen now would be for the board to find themselves in the same predicament they just got out of. It would destroy the credibility they have won.”

But the district’s new chancellor, Marshall Drummond, said some improvement in salaries--beyond the 1.4% cost-of-living increase included in the state budget--is needed to help recruiting efforts.

The district pays its faculty less than the state average, he said, adding that budgets have been so thin for so long that “we have gotten into a habit of not even paying air fare for people to come and interview here. We don’t pay moving costs [to new employees]. Not even a U-Haul.”

Trustee Beth Garfield agreed, saying raises are needed. But mindful of recent history, she emphasized that caution is in order. “We won’t spend money we don’t have. I can assure you of that,” she said.