Board Adopts Budget as Funding Formula Shift Promises Millions in New Revenue

The Contra Costa Community College District Board of Trustees moved on multiple fronts at its Sept. 9 meeting — adopting a $229.9 million budget poised to benefit from an eight-year advocacy win on state funding, naming an interim chancellor to steer the district through a leadership transition, and declaring an emergency over a fire-damaged campus building that underscored a deepening facilities crisis.

• District adopts 2026-27 budget under hold harmless, but a state policy change could boost projected enrollment-based funding from 24,800 to over 26,000 FTES — potentially worth millions

• Board unanimously ratifies Dr. Micaela Ochoa as interim chancellor at $393,432; permanent search targeted for spring

• Fire shuts down Contra Costa College art building through August 2027; trustees warn deferred maintenance crisis will worsen without a new bond

• Trustees Barrett and Honig blast last-minute amendments to state baccalaureate bills that strengthened CSU veto over community college bachelor's degrees

• Strategic plan year-one review shows $1.23 million in OER savings for students and progress on 60% of priority areas

• United Faculty and Local 1 signal optimism on long-awaited raises as budget picture brightens

• Enrollment climbs across all three colleges, with Los Medanos up 2.5% year-over-year

Budget Adoption: Eight Years of Advocacy Finally Pay Off

The board unanimously adopted the 2026-27 budget after a public hearing that drew no community comment — but the real story lies in what's coming next for the district's finances.

The basics: California community colleges are funded through the Student Centered Funding Formula (SCFF), which rewards districts based on enrollment and student outcomes. Districts that would lose money under the formula operate under "hold harmless" — meaning they receive at least as much as they did before the formula took effect. Contra Costa has been in hold harmless since the SCFF launched, but a critical state policy change is about to change that.

Why it matters: After eight years of district advocacy, the state agreed to calculate SCFF funding based on a district's three-year enrollment average or its highest year — whichever is greater. CFO Tony Wold explained the significance: "Had we not had the policy change, we would have had our SCFF calculated on that 24,800 number. Now we're looking at it being calculated at over 26,000, which will be verified once we get to P2 in April."

That jump from 24,800 to 26,000+ FTES could translate into millions of dollars in new revenue once the district transitions off hold harmless. The budget is currently allocated at $229.9 million with a $3.5 million structural deficit distributed across sites — but incorporating undistributed SCFF revenue turns that gap into a surplus.

Where things stand: The district ended fiscal year 2025-26 with a small surplus after starting with a projected $3.8 million deficit, and its two-month reserve requirement increased from $42 million to $44 million. The OPEB (retiree health benefits) trust is 97% funded, with $233 million in assets against $236 million in liabilities. One-time state investments include $3 million for a student support block grant and $2.7 million for deferred maintenance.

Wold cautioned that federal policy remains a concern, warning that it "continues to impact whether or not we will receive additional grants that we're applying for that support our students" and has reduced international student enrollment, cutting into revenue.

What's next: The district is revising Business Procedure 1801 — its internal allocation model — through participatory governance, with a target first reading in November and adoption in December. That revision will determine how SCFF revenue flows to individual colleges. Board President Diana Honig noted the formula change was "something we've been advocating for for how many years, Rebecca? Like eight years."

The vote passed 4-0 (For: Honig, Li, Barrett, Sandoval; Absent: Marquez).

Dr. Micaela Ochoa Named Interim Chancellor at $393K

The board ratified an internal appointment to lead the district through a leadership transition as Chancellor Mehdizadeh prepares to retire.

Why it matters: The choice of an insider signals the board's priority on continuity during a pivotal period — the SCFF transition, ongoing labor negotiations, and a facilities crisis all demand institutional knowledge.

Board President Diana Honig framed the decision clearly: "Our choice for interim chancellor will provide continuity, stability, and a deep understanding of our organization, culture, and priorities. And the person we chose is Dr. Micaela Ochoa."

Decisions: Dr. Ochoa's contract sets an annual salary of $393,432. A one-month overlap with Chancellor Mehdizadeh, who will take vacation time before retirement, is built into the transition. Per California Government Code Section 54953(c)(3), salary and fringe benefits were orally summarized in public session.

What's next: The board plans to begin identifying a search committee for a permanent chancellor this fall, with the formal search targeted for spring. Trustees committed to a transparent and inclusive process.

The vote passed 4-0 (For: Honig, Li, Barrett, Sandoval; Absent: Marquez).

Art Building Fire Exposes District's Deferred Maintenance Crisis

A fire struck the art building at Contra Costa College on Aug. 29, forcing emergency action and reigniting a debate about the district's aging facilities.

The basics: No one was injured, but the building sustained significant damage. All faculty were relocated and courses moved, except Ceramics 1 and 2, which require a kiln. The building was fenced off and taken offline for scheduling through August 2027.

Where things stand: CCC President Kimberly Rogers reported that remediation beginning the next day would include asbestos abatement, mold cleanup, and fire soot removal. Structural and mechanical engineers will evaluate repair needs that may require Division of State Architecture approval.

Vice Chancellor of Facilities Planning and Construction Ines Zildzic presented the emergency resolution, and Trustee Rebecca Barrett used the moment to broaden the conversation. Barrett, who toured the building a year ago when it was flagged as needing urgent repairs for the bond measure, warned: "Without an additional bond in the future, these types of things are going to start happening where we're not going to have the funds to repair."

Decisions: The board unanimously approved the emergency resolution authorizing emergency contracts for repair and remediation. The vote passed 4-0 (For: Honig, Li, Barrett, Sandoval; Absent: Marquez).

What's next: Insurance will cover some costs, but Barrett emphasized that insurance alone cannot address the underlying deferred maintenance backlog across the district's aging campus infrastructure.

Trustees Fight Last-Minute Amendments to Baccalaureate Bills

The board meeting became a platform for sharp criticism of two state bills — Senate Bill 960 and Assembly Bill 2694 — that were amended less than 72 hours before a final vote, giving CSU greater veto power over community college baccalaureate degree programs.

The basics: The bills were originally designed to make it easier for community colleges to offer bachelor's degrees, particularly in high-demand fields like nursing. But on the final weekend of the legislative session, both bills were significantly rewritten. The entire community college system — the Chancellor's Office, the League of California Community College Trustees and Chancellors — switched from support to oppose.

Why it matters: Community colleges are the largest higher education system in California. The jurisdictional battle traces back to the 1960 Master Plan for Higher Education, which carved out separate roles for community colleges, CSUs, and UCs. Community colleges argue they have the facilities and faculty to offer nursing bachelor's degrees; CSUs say the territory is theirs — but cannot serve enough students.

Trustee Rebecca Barrett was blunt: "We're the largest higher ed system in the country. And it does feel like the CSU and the UC, because of their brands and because of their power in Sacramento, consistently eat our lunch because we're seen as the community colleges and 'they'll figure it out.'"

Barrett also challenged the process: "I don't believe good policy is ever made 72 hours before a vote and with no public hearings and no input from the practitioners."

Board President Diana Honig reported going to the Capitol personally to lobby legislators, securing abstentions from Senator Grayson and Assemblymember Rebecca Bauer-Kahan. Honig described watching the Senate vote and hearing senators frame community colleges as institutions that should "stay in their own lane."

Both trustees called for the community college system to build more collective political power ahead of an expected revision to the Master Plan for Higher Education.

Strategic Plan Year One: $1.23M in Student Savings and AI Expansion

Executive Vice Chancellor of Education Technology Kelly Schelin presented a comprehensive review of the district's five-year strategic plan, reporting measurable progress across 10 of 16 priority areas — roughly 60%.

Why it matters: The plan is producing tangible results for students and faculty alike, from cost savings to workforce readiness.

Where things stand: Schelin reported that $1 million in earmarked federal funds drove OER (Open Educational Resources) expansion: 104 OER projects, 72 AI literacy projects, and participation by 150 faculty. "150 faculty participated in this project and saved or generated an estimated $1.23 million in savings for our students across the district," she said. Across the district, 12,327 student-course enrollments benefited.

Other highlights included K-12 partnership work through the Bay Area K16 Collaborative — CCC served more than 350 students through a high school college connection program, with embedded math tutors achieving 80%-plus success rates. DVC piloted dual enrollment graduation cords with Mount Diablo USD, where six students earned more than 20 college credits before graduating. All three colleges are implementing Course Dog scheduling software to reduce course conflicts, and the district was accepted into the Accessibility Capability Maturity Model program.

On AI, 72 faculty participated in a Community of Practice that produced a student AI toolkit and a Teaching with AI course. Trustee Andy Li connected the urgency, reporting from his third AI Futures Summit that AI had dominated every session. He shared a striking anecdote: a relative who worked at Kaiser doing 100% programming left and returned to find the job was now "100% review of the code, so there's no programming. It's a huge change." Li also flagged that data centers are at 99% capacity with massive worker demand — a potential workforce pipeline opportunity.

What's next: Trustee Li encouraged the district to share its OER savings data with Congressman Mark DeSaulnier for federal advocacy purposes.

Faculty and Classified Staff Signal Readiness to Bargain

Both the district's faculty union and its classified staff union used the meeting to publicly connect the positive budget outlook to long-deferred compensation.

United Faculty President Marina Kraus said the union's highest priority is raises: "Our faculty have continued to do more with less, and compensation needs to reflect the value of that work." Kraus emphasized that competitive wages are essential not just for retention but for the enrollment growth and student success driving the district off hold harmless.

Local 1 President Jeannie Smith struck a similar tone, calling the CFO's budget report a solid platform for discussing scheduled raises members have earned. Smith also raised a separate concern about student workers potentially performing classified work, asking for collaboration: "We just want to make sure that our student workers aren't actually doing classified work."

District Governance Council Chair Scott Heiden noted the colleges are watching the allocation model revision closely as SCFF revenue implications become clearer.

Enrollment Growth Across All Three Colleges

All three campus presidents reported strong starts to fall 2026, a critical metric as the district prepares to transition to enrollment-driven funding.

LMC President Pamela Ralston shared the most specific numbers: 929 sections serving 3,539 FTES, up 2.5% from 3,453 FTES and 907 sections in fall 2025. DVC President Monica Chahal reported enrollments are up with strong campus activity. CCC President Kimberly Rogers noted the college turned a proposed $1.8 million deficit into a $410,000 positive through cross-constituency collaboration.

Student life events drew strong attendance across all three campuses, with LMC's semester kickoff events drawing more than 970 total student participants.

Minor Items

• Consent agenda (items 11B through 16C) approved without discussion. Passed 4-0 (Absent: Marquez).

• Appropriations limit resolution for 2026-27 approved as a routine annual action. Passed 4-0.

• Budget transfers and adjustments for the quarter ended June 30, 2026, approved. Passed 4-0.

• Measure E Citizens Bond Oversight Committee: Two continuing members reappointed. Passed 4-0.

• Ream Creek restoration: Board approved a no-cost agreement with the City of Richmond to remove invasive plantings and maintain Ream Creek running through the Contra Costa College campus. Passed 4-0.

• Constitution Day resolution declaring Sept. 17, 2026, approved. Passed 4-0.

• National Hispanic Heritage Month resolution adopted under the theme "Unidos somos más" (Together we are more). Passed 4-0.

• Student Trustee Nick Bonasera reported goals to fill every available student seat on district committees and shared research into health services models from the Los Rios District.

• CCC President Rogers highlighted 126 Comet scholars receiving $342,000 in scholarships and 25 John Sweatt High School students enrolled using a $100,000 scholarship.

• Chancellor Mehdizadeh announced a countywide Teacher of the Year from DVC and thanked the board for its legislative mobilization.