CCSF Faces Structural Budget Squeeze as Revenue Stays Frozen and Costs Climb

City College of San Francisco's governing board spent nearly five hours on Feb. 26 absorbing the reality of a budget boxed in by frozen state revenue and rising costs — while students pleaded for housing help, faculty union leaders warned of a labor fight, and trustees began laying the groundwork for a possible bond measure and sweeping policy overhaul.

• $166.7M revenue ceiling holds firm as health premiums rise up to 10% and utility rates jump 16%, squeezing CCSF's operating budget for FY27

• Faculty union files cease-and-desist over remote work and multi-factor authentication policies rolled out without bargaining

• Students describe evictions and isolation, proposing a housing fund and new engagement technology to build campus belonging

• Board policy committee proposes 16.7% reserve target and raises the question of whether balanced budgets should still be mandatory

• Vice President Zamora floats a future bond measure, citing improved credit rating and extensive deferred maintenance

• Board unanimously honors two campus arts champions with a plaque at the iconic whale sculpture

Frozen Revenue, Rising Bills

Why it matters: CCSF's primary revenue stream is capped — and every major expense line is moving in the wrong direction.

Vice Chancellor Ligioso presented FY27 budget assumptions showing the Student Centered Funding Formula (SCFF) revenue ceiling remains at $166.7M. The formula, which determines how much state funding community colleges receive, calculates CCSF's actual revenue well below that cap. Annual cost-of-living adjustments (COLA) from the state only narrow the gap between computed revenue and the hold-harmless ceiling — they do not increase total funding.

"Student Centered Funding Formula … will remain at $166.7 million," said Vice Chancellor Ligioso. He estimated it will take roughly eight years before CCSF reaches full formula funding — meaning COLA effectively vanishes into the gap rather than reaching the bottom line.

On the expense side, the picture is bleak. Kaiser premiums are up nearly 10%, Blue Shield over 8%. SFPUC utility rates are rising 15.9% as the agency aligns institutional rates with commercial pricing. "We're seeing double-digit increases over the next five years," Ligioso warned. Software licenses for essential systems like Banner, Oracle, and Microsoft continue climbing at roughly 6% annually. Chancellor Messina explained the limits of consolidation: "Pathi can't replace Banner, and Banner can't replace Canvas. Those are unique costs, and those licenses have been going up statewide."

One bright spot: a $1.25M line item budgeted by the prior chancellor for retirement incentives will not be used, improving the bottom line.

The other side: Public commenter Abigail Bornstein challenged the budget's uniform 2% step-and-column salary assumption, warning it would push full-time faculty wages from the bottom 40% statewide to the bottom 10%. "If the COLA is not passed to the employee pay scales, the full-time faculty wages will move from the bottom 40% in the state to the bottom 10%," she said, demanding a compensation plan.

Restricted funds: Only about a third of prior-year restricted grant carryover has been spent through seven months — raising concerns about leaving money on the table. "The spending of only about a little bit over a third of the prior-year allocations — we need to work on that as a district," Ligioso acknowledged.

What's next: The parcel tax expires in 2032, and Chancellor Messina has engaged political consultants to study renewal options. They are expected to present at the March 12 board meeting — a critical juncture for CCSF's long-term revenue picture. Ligioso committed to refining FY27 assumptions after the state's May budget revision.

Faculty Union Draws a Line on Remote Work

Why it matters: A labor fight is brewing just as AFT 2121 prepares to open contract negotiations.

AFT 2121 President Mary Bravewoman reported that the union filed a cease-and-desist order and a demand to bargain after draft administrative policies on remote work and multi-factor authentication were sent to the Academic Senate and the Participatory Governance Council without first notifying or negotiating with the union — a requirement under California labor law.

"The remote work policy that was presented last week hit faculty hard and it demonstrated a real lack of familiarity with our work. It sparked panic in many of our members and left faculty with a sense of real disrespect," Bravewoman said.

She took particular aim at the district's outside labor counsel, AALRR, a Fresno-based law firm: "A law firm in Fresno should not be directing labor relations at our college."

Bravewoman noted that AFT's bargaining team is preparing its Sunshine Document — the formal opening of contract negotiations — for the next regular meeting. She congratulated United Educators of San Francisco on their recent contract win, signaling the broader labor environment the board will navigate.

What's next: The Sunshine Document is expected at the next board meeting, formally beginning AFT 2121's contract negotiation cycle.

Students Plead for Housing, Belonging, and Voice

Why it matters: Housing instability directly threatens enrollment and completion, and student leaders say CCSF isn't listening.

Multiple students used public comment to describe urgent personal crises and propose institutional solutions. Kelvin, an Associated Students Council of Ocean Campus vice president, disclosed that he is being evicted. "I'm being evicted in two days just for being a full-time student. However, that only begins the process of eviction. I just found out today the final process doesn't actually happen until May," he said. Ekman has written a resolution for the Student Senate for California Community Colleges (SSCCC) to expand housing exceptions for full-time students.

A public commenter named Maggie proposed creating a CCSF student housing fund sourced from college budget reserves, unused student government funds, grants, and local philanthropy.

Kelvin also advocated for the Pathify student engagement plugin, citing a 2022 equity focus group report showing students struggle to form connections at CCSF. "Most of the students here at our campus do not feel belonging and don't have a good ability to connect with one another," he said.

BSU President Brianna Smith criticized a pattern of administration dismissing student concerns and demanded the African American Resource Center be established in the Student Success Center as previously promised. "There seems to be a pattern amongst our administration and our faculty of thinking that the student voice is not important, and that's not actually the most important voice on campus," she said.

Another public commenter, Misha Trent, described buildings physically deteriorating, empty new buildings, and students who don't know who their board members are.

Where things stand: During the Chancellor's report, CTO Patrick Patrick Ekoue-Totou explained the college is evaluating purchasing Pathify's club module rather than rebuilding clubs on a new version of the Ready Education platform, to avoid a double migration. He said he would report back on funding sources in April. Student Trustee Campos echoed support for both the engagement tool and broader student concerns about facilities and mental health.

Policy Committee Eyes 16.7% Reserve and Deficit Spending

Why it matters: With frozen revenues, the question of whether CCSF can deficit-spend could define its fiscal strategy for years.

Trustee Susan Solomon, chairing the board policy ad hoc committee, presented proposed revisions to seven board policies covering budget preparation, board duties, officers, meetings, and decorum. The most consequential change: Board Policy 8.01 would establish a minimum 5% reserve with a goal of maintaining 16.7%, expressed as the ending fund balance of unrestricted general funds.

"At no less than 5%, with the goal of maintaining 16.7% — that's the whole piece that's new," Solomon said.

She also flagged a deeper philosophical question. "I would like us to have a discussion about whether we want to say we must have a balanced budget. That appears a few times. And now that we're going into frozen revenues, we may end up deficit spending," she said. The current policy language requires a two-thirds majority vote for any deficit spending.

Additional proposals include debating whether to allow abstentions in officer elections, whether to impose term limits on board officers, and standardization efforts such as replacing "legal authority" with "references" and creating one searchable document for all board policies. Trustee Martinez suggested renaming BP 8.01 to "Budget Preparation, Fiscal Accountability and Financial Planning" and offered edits to anti-racist culture language in BP 1.02.

No votes were taken. Board President Chisti announced plans for a mini-retreat to discuss board policy housekeeping.

VP Zamora Plants the Seed for a Future Bond Measure

Vice President Luis Zamora proposed beginning conversations about a future bond measure for CCSF. "I keep thinking about the maintenance and all of the things on that list," he said, referencing the extensive deferred maintenance backlog.

Zamora cited the college's improved bond rating — upgraded from negative to stable — and the limited $1.5M annual repair budget for a 90-year-old, multi-campus institution. He suggested conducting a public survey to gauge appetite before advancing further, noting this would target a future election cycle rather than the current year.

Board Unanimously Honors Arts Champions at Whale Sculpture

Professor Barbara Lass, chair of the Works of Art Committee, presented a proposal for a 12x18-inch memorial plaque at the whale sculpture on Ocean Campus honoring Julia Bergman and Dana Galloway.

"Julia Bergman passed away in 2017. She was a longtime Rosenberg librarian, the founding and longtime chair of the Works of Art Committee. She was responsible for establishing the Diego Rivera mural archive," Lass said. Galloway, a classified professional in broadcast media for over 30 years, championed the whale sculpture's installation and died in 2020.

Susan Buckman gave an emotional tribute to Galloway, noting the plaque would be the first physical memorial since Galloway died during the pandemic when no in-person service was possible. Madeline Mueller referenced a San Francisco Chronicle article by Peter Hartlaub celebrating the campus as one of the city's best free art museums, connecting it to architect Timothy Pflueger's vision of CCSF as the artistic southern entrance to San Francisco.

Decisions: The resolution, moved by Trustee Martinez and seconded by Student Trustee Campos, passed unanimously 8-0 by roll call.

Prop 28: A Pipeline Opportunity for CCSF?

Public commenter Harry Bernstein urged the board to explore how CCSF could capitalize on Proposition 28, the 2022 arts education funding guarantee that provides $1 billion annually for K-12 arts instruction. He argued CCSF should build teacher training pathways in dance, media arts, music, theater, visual arts, graphic design, and animation — many areas where the college already offers certificates. He recommended the board form a committee to explore opportunities.

Madeline Mueller added that the original legislation lacked pipeline funding for teacher training, creating a gap CCSF could fill as other colleges reduce arts programs. She noted plans to meet with Prop 28 author Mike Stone in Bakersfield to discuss the opportunity.

Minor Items

• Closed session: The board voted 6-1 (one abstention) to non-renew a classified manager's contract. Individual votes were not disclosed.

• Remote participation: The board voted 7-0 to allow Trustee Chung to participate remotely with just cause; Chung did not vote on this item.

• Non-resident tuition: The board adopted a $409-per-unit non-resident tuition rate for FY 2026-2027 — the statewide average and lowest available option — by acclamation. The rate generates approximately $11M in annual revenue.

• Consent agenda approved by acclamation, including tenure for Tina Wong and Jeffrey Wilson (effective fall 2026), tenure-track progress for seven additional faculty, and a data center UPS upgrade.

• Meeting minutes from Jan. 22 continued to March 12 due to formatting and accessibility issues with a 434-page combined PDF.

• New legal counsel: Chancellor Messina welcomed Amy McClellan as general counsel, filling a position vacant for four years.

• Org chart review: Trustees pressed on persistent vacancies including the Director of Maintenance and Grounds (two failed searches, expected to be filled shortly) and the Chief of Staff role (in active recruitment). Trustee Chung thanked the administration for expanding staff to address ghost/fraudulent student enrollments and praised the org chart as the most comprehensive in her tenure.

• Off-site parking shuttles: Chancellor Messina announced shuttles from off-site parking lots beginning Monday-Thursday service the following week.

• Integrated planning: Academic Senate President Katia Fuchs reported six faculty appointed to jointly develop a new Strategic Education Plan and Facilities Master Plan.

• DCC Chair Darlene Alioto congratulated the finance team on upgrading the bond rating from negative to stable.