Challenges Ahead
Despite stable funding in the 2025-26 budget, the CCC system faces several persistent and emerging challenges. Many districts continue to grapple with structural deficits driven by rising operational costs and flat or declining enrollment. Although the budget includes funding for modest enrollment growth, overall student headcount remains below pre-pandemic levels, which affects SCFF allocations and long-term financial planning. Deferred maintenance and aging infrastructure continue to pose operational and safety risks, especially in districts with limited local resources. Workforce pressures are also mounting, as inflation and high housing costs make it increasingly difficult to recruit and retain qualified faculty and staff.
Cuesta College should remain focused on managing its SCFF standing. Rebounding, but not yet fully recovered, enrollment and the end of temporary emergency protections are likely to constrain general-purpose revenue growth. As of 2025-26, Cuesta College is expected to be funded at the SCFF "floor" level, with no further hold harmless COLA adjustments. Future funding increases will depend on sustained enrollment recovery.
Fortunately, the District’s prudent fiscal management and strong reserves position us to absorb cost increases in salaries, pensions, and insurance. However, caution is advised for any ongoing budget commitments.
Potential Areas for Action in 2025-26:
• Prioritize one-time investments in pension stabilization, potentially using
ERTC-related funds
• Strengthen enrollment management and outreach, including international
student recruitment
• Plan for funding of refresh cycles for technology infrastructure
• Explore opportunities for property-based revenue generation
• Preserve reserves to buffer against deferrals and apportionment shortfalls
Conclusion
While the 2025-26 state budget reflects considerable fiscal strain, the CCC system has been relatively protected. The 2025-26 adopted budget provides modest increases and maintains the SCFF framework, albeit with continued reliance on temporary solutions. Cuesta College’s strong reserves and cautious budgeting provide stability in a time of volatility. We must continue to focus on enrollment, efficiency, and strategic investments to navigate the uncertain fiscal environment ahead.