Abstract
California's economic recession from 1991 through 1995 presented the most severe financial crisis in the history of the California community colleges. The purpose of this study was to determine the nature and significance of expenditure pattern changes that occurred during the recession relative to the apex of community college funding and contemporary public administration budgetary theory and practices. Secondarily, the study was intent on determining whether differences existed between the operational responses of multi-college versus single college districts. Data for this research were extracted from several sources, including primarily standardized reports from the Chancellor's Office, California Community Colleges. In addition, other sources which presented prior period expenditure responses to fiscal expansion and contraction were utilized to operationalize and compare the variables under study. Comprehensive descriptive and statistical ratio-of-costs and costs-per-unit analysis of statewide trends in funding, expenditures, enrollment, and staffing patterns served to identify several important changes in the operations of California community colleges during the recession. First, it was discovered that substantial differences in funding and expenditure levels occurred between multi-college and single college districts. Second, although single college districts received substantially less revenue, they achieved a greater (17,011 FTES) enrollment than multi-college districts. Third, statistically significant expenditure and staffing level changes occurred between the two segments. Single college districts increased their proportion of expenditures directed toward instruction, while multi-college districts preserved and expanded their administrative and student services functions relative to a decline in instructional expenditures. Fourth, it was determined that both segments responded initially to the recession by reducing non-personnel expenditures. As the fiscal crisis became more chronic, reductions in personnel also occurred, yet again, at different proportions by employment categories between the segments. Contrary to earlier research, this study demonstrated that prior period spending patterns were not maintained. The incrementalistic theory of public administration budgetary practice was not consistent with the behavior of California community colleges during the period under study. The findings induced several operational and conceptual recommendations to assist the community college system's capability to better respond to future needs, changing environmental conditions and to provide a basis for future research.