From the President
Following Up Regarding the Transition to Basic Aid
July 24, 2025
Dear Members of the De Anza Community,
I hope that you are all enjoying your well-deserved summer and getting some rest and relaxation with your loved ones before the start of the new 2025-26 academic school year.
I want to follow up with you regarding the district's transition from state apportionment to community-supported, "basic aid" status, as I know this is a topic of interest to many. Since my arrival at De Anza College six months ago, I have heard many references to neighboring districts that operate under basic aid, and these allusions were made with no small degree of wishfulness. It is certainly true that basic aid districts, funded chiefly through property taxes and student fees, have greater predictability in financial planning and more flexibility in how they operate — and fortunately, soon will the Foothill-De Anza Community College District. This is exciting, and something we can truly look forward to. We will be better able to serve our diverse students, and maintain and develop programs that respond to the needs of our community.
I want to underscore a couple of the central messages in Chancellor Lambert's districtwide communication earlier this week, which I have forwarded at the bottom of this email for your reference.
First, there is much to do during this transition period to prepare to operate strategically as a basic aid district. I am pleased that after much advocacy to update — fairly — the way resources are allocated within the district, that Foothill College President Kristina Whalen and I will co-chair a new Somos Uno Task Force on this and closely related topics, particularly the creation of a sustainable yet necessarily adaptable resource planning and allocation model.
Second, the district's new funding status by no means equates to sudden wealth. There are several reasons for this, including one emphasized by the chancellor: Particularly at this point, we cannot anticipate the degree to which international students will continue to study in the United States, or at De Anza or Foothill colleges, so the amount of nonresident tuition revenue the district can expect is unknown. In addition:
- We will continue to be subject to aspects of the Student Centered Funding Formula (SCFF) related to categorical funding and compliance, so we must still be cautious in establishing enrollment targets. (Moreover, should the district ever move out of basic aid status, we would once again be funded through state apportionment and the SCFF, and we should be mindful of that). I want to thank De Anza College's Instructional leaders present and past, together with faculty and those in Student Services and across the college, who have worked to restore and increase enrollment over the past years.
- In 2026-27, there will be a significant decrease in state dollars for the AB19-funded California College Promise. As part of our mission and values, we will want to continue to support new students who require additional financial assistance.
- Similarly, given new changes to Pell Grant eligibility, we will also want to support students who may no longer be eligible for that financial aid.
- Beyond direct student need, there is significant need for instructional equipment, infrastructure maintenance and repair, and technology, with significant escalation costs in these and other areas.
I know that De Anza College and the district have long enjoyed the support of the community, as evidenced through our stellar reputation, many partnerships, and approval of several bond measures over the years. The district has also demonstrated excellent fiscal management, proven by exemplary bond ratings and annual audits. With basic aid funding status, it is imperative to maintain the confidence of our community, and I am certain that our careful, strategic planning — always with a focus on equity, and serving well all students who come to us, with an increased focus on community needs and partnerships including workforce preparation — will continue that invaluable support.
During this year of transition planning as we prepare to update our strategic plan, strategic enrollment management plan, and more, I encourage your continued engagement through the shared governance process. I commit to maintaining open and transparent communication about our collective budget conversations and decisions, and look forward to working with you during this unprecedented opportunity for De Anza College to define strategic new opportunities to serve our students.
In partnership,
Omar
Omar Torres, Ed.D.
President, De Anza College
President Torres also forwarded Chancellor Lambert's email below:
Monday, July 21, 2025
Dear Colleagues:
I want to share a significant and transformative development for the Foothill-De Anza Community College District. With the release of the California Community Colleges Chancellor’s Office Fiscal Year (FY) 2024-25 Advance Recalculation Apportionment Report, our District has officially transitioned into community-supported or “basic aid” status.
This shift marks a new chapter in how we fund ourselves. As a community-supported district, we will no longer rely solely on state general apportionment. Instead, our core revenue will be derived from local sources, primarily property taxes and student fees. This provides us with greater control and flexibility in how we invest in our colleges and support our students.
What This Means for Us
While this new status offers opportunities, it also brings additional responsibilities. We will use this Fiscal Year (FY 2025-26) as a transition year to ensure we remain grounded in thoughtful planning and inclusive engagement.
Our fiscal priorities during this period include:
- Developing a resource allocation model that is responsive to the distinct needs of the colleges (Foothill College and De Anza College)
- Enhancing fiscal management practices to ensure continued stewardship of public funds
- Sustaining and strengthening student services and support
- Maintaining compliance with all applicable laws and regulations governing California Community Colleges
As a community-supported district, we are entrusted with local taxpayer dollars and must continue to demonstrate the effective and efficient use of these resources. This includes making strategic decisions that balance access, while maintaing quality and productivity. While this new funding structure affords us greater autonomy, it does not mean unlimited spending or expansion. Maintaining prudent fiscal discipline remains essential to ensuring long-term sustainability and public trust.
Ongoing Challenges
It is essential to recognize the efforts we have made districtwide to restore enrollment over the past two years. While we made significant progress, we fell short of our projections. As a result, the increase is not sufficient for the District to exit the State’s “Hold Harmless” funding floor in FY 2025-26.
Transitioning to community-supported status does provide us with greater financial flexibility, but it also comes with new responsibilities and heightened expectations. We must be mindful of the volatility of nonresident tuition revenues, which remain a significant but unstable component of our overall budget. This adds further urgency to develop a resource model that is resilient and adaptive to future changes in enrollment and funding conditions using nonresident revenue sources for short-term strategic investment opportunities.
Introducing the Somos Uno Task Force
In Fall 2025, we will launch the Somos Uno Task Force on Resource Allocation, led by Co-Chairs President Torres and President Whalen. The task force will also include representatives from all constituency groups following the interest-based approach.
This task force will work to:
- Recommend a new resource allocation model
- Propose revisions to relevant board policies and administrative procedures
- Develop a framework for sustainable fiscal management aligned with our mission and values
The task force’s efforts will be informed by the strategic guidance and values of the Board of Trustees, helping ensure that our work reflects a shared vision for equity, transparency, and long-term stewardship.
The Institutional Effectiveness Partnership Initiative – Partnership Resource Team (IEPI-PRT) will serve as a valuable external partner, providing guidance and structure to our efforts.
Acknowledgment of Leadership and Partnership
I want to express my sincere appreciation to Vice Chancellor Christopher Dela Rosa and his team. Vice Chancellor Dela Rosa and Business Services coordinated with the California Community Colleges Chancellor’s Office and the County of Santa Clara to achieve basic aid status. Their diligence, expertise, and commitment have been crucial in ensuring a smooth transition to a community-supported district.
This is a pivotal moment in our District's history. Our move to community-supported status offers us an opportunity to be more innovative, responsive, and strategic. Together, we will build a model that upholds our commitment to students, equity, and educational excellence while continuing to safeguard the public resources entrusted to us.
Thank you for your continued dedication to our mission and the success of our colleges and students.
With appreciation,
Lee D. Lambert, J.D.
Chancellor