Message to the Community Regarding District Fiscal Planning
January 17, 2025
Dear San Mateo County Community,
I joined the San Mateo County Community College District (SMCCCD) as a college president and then as district chancellor because, as a former community college student myself, I cherish the power that community colleges hold to transform lives. All of us in this district believe that every person deserves access to education. As the county's only public institution of higher education, we ensure that residents who choose to attend one of our three colleges can do so affordably and with the necessary support to achieve their dreams.
The results of our successful Free College initiative which reversed a decade-long trend of declining enrollment and boosted enrollment by 24%, makes it one of the greatest equalizers of educational opportunity in our county.
Expanding access, removing barriers, and supporting student success is critical to our mission, and our work needs to be grounded in a deep commitment to accountability and transparency. I am proud to share that we are one of the first community college districts to create an internal performance audit unit and hire a permanent performance auditor. Since last summer, I have been working with the auditor to ensure that we have a robust annual audit plan and that all audits and implementation plans are reviewed by the Board publicly and published.
As the recent San Mateo County civil grand jury report recommended for all public agencies in the county, and on our own accord, we are adopting internal controls and using the federal standards in the Green Book as our benchmark. As far as I know, we will be the first in the California community college system to set this standard, and I look forward to the great opportunities for improvements this will bring.
Coupled with these significant initiatives, I have spent my first year as permanent chancellor doing a deep dive into our district finances. I am happy to report that our budget is balanced but there are some gaps that need attention, and I have been seeking guidance from our Board of Trustees. Below are the key points from the public conversations we are having in our board meetings.
1. Fiscal Needs
Last year, I discovered that our District's upcoming fiscal needs could not be met by our annual budget alone. Like all other California community colleges and K-12 districts, we sometimes need additional funding to modernize campus buildings to functionally and safely serve our students. Our latest bond, Measure H, is effectively spent, with no established plan for future maintenance and capital improvement needs.
2. Fiscal Strategy & Financing Options
We are exploring all possible financing options, including private and public, and the creation of a self-funded program to secure the long-term future of this District.
I have shared the upcoming fiscal needs with our Board of Trustees and recently requested permission to explore all funding options. In November 2024, the Board of Trustees approved a strategy that allows our executive team to implement a short-term plan that allocates $55 million to bridge us to any future possible funding opportunities.
In the mid-term, we are looking at pursuing private financing, and as a last resort, public financing options. Our 10-year strategy is to develop a self-funded long-term capital improvement program that could significantly minimize our reliance on future public or private financing needs.
3. Philosophy on Public Financing
Public financing is always a last resort.
After exploration of all options, and in the event our board finds that pursuit of public financing is necessary, we see many opportunities for improvement; especially based on the community feedback about Measure H. My promise to you is to keep you informed as we continue these fiscal discussions over the next few years.
To close this message, my unwavering stance is that, as stewards of the public trust, we are obligated to you and our community to make sure our work has integrity and propriety. If you follow our public board meetings, you will find a new district under new leadership that prioritizes our students, accountability, and transparency. I am excited to collaborate with you during my tenure as Chancellor and look forward to your continued feedback and support.
Melissa Moreno, J.D.
Chancellor