What the Measure Would Do

This measure would reauthorize existing, voter-approved local funding that is set to expire in 2026. It would continue funding instructional programs and student success at existing rates for the Peralta Community College District (PCCD) colleges: College of Alameda, Laney College, Merritt College, and Berkeley City College.

Funds generated by the reauthorization measure would be used only to augment (not replace) existing funding already allocated for

• Programs to prepare students for jobs/careers and university transfers
• Job retraining programs to prepare students and adults for 21st-century jobs
• Core academic programs such as math, science, and English
• Programs to attract and retain high-quality faculty

The funds would not be taken by the state or used for administrator salaries. They would be governed by strict accountability requirements, including independent oversight by a citizens’ parcel tax oversight committee.

If approved, starting July 1, 2027, the measure would authorize the PCCD to continue imposing a total of $48 per parcel per year, generating approximately $8 million annually. It would expire in 2036.

The Backstory

The original parcel tax that supported the PCCD was passed in Alameda County in 2012. It set a rate of $48 per parcel per year for eight years, generating about $8 million annually. In 2018, the parcel tax was renewed at the same rate to continue the funding when the original tax was set to expire.

State funding for California community colleges comes mainly from State Proposition 98, which covers a large share of districts’ operating budgets. However, recent shifts in funding formulas and the phasing out of cost-of-living adjustments mean many districts face fiscal pressure. The PCCD has struggled with long-term enrollment, a critical driver of state revenue, although its enrollment rate has improved since the COVID-19 pandemic.

Three federal relief bills passed during COVID-19 provided billions in aid to colleges, allowing the PCCD to begin waiving tuition. Between 2022 and 2024, all four PCCD colleges waived tuition and fees for students who completed the Free Application for Federal Student Aid, which led to enrollment numbers rebounding to nearly pre-pandemic levels and greater student diversity, with more students of color and older students. The federal aid has now run out, but the district received a state grant that allowed it to continue for another year. The future of the fee waiver program is uncertain.

In part due to these factors, the PCCD faces a projected $11.8 million deficit for fiscal year 2025–26. In early 2025, district leaders acknowledged that deficits could persist in future budgets without structural change. PCCD administrators have discussed reducing the number of colleges in the four-campus district, possibly by consolidating operations, to decrease costs.

To address other long-standing structural issues and the projected budget deficit, PCCD initiated its multi-year District Transformation Plan, which focuses on reorganizing governance structures, aligning program costs with student demand, right-sizing operations, and drawing down liabilities. This effort will include consolidating Laney College and Merritt College into Oakland City College to streamline operations.

The PCCD Board of Trustees approved a resolution to put the proposed measure on the Alameda County ballot to extend the original voter-approved parcel tax when it expires at the end of 2026. The measure requires a two-thirds majority to pass.

Equity Impacts

This parcel tax fund is targeted to programs that help low-income students, first-generation students, working adult students, and students of color succeed — students who disproportionately attend community colleges. Continuing this revenue stream supports equity in access to education, and the funds cannot be used for any other purpose.

The tax does not include exemptions for low-income and senior residents. The financial impact would disproportionately burden low-income homeowners, making it a regressive tax.

Pros

• The measure would fill a funding gap for core instruction and student success programs without raising existing taxes.
• Independent audits and a citizen oversight committee must report annually on revenues and expenditures.
• The measure would support community colleges in high-need communities where state funding alone is insufficient and federal funding has been cut.

Con

• The flat-rate parcel tax is regressive because all parcels pay the same amount regardless of property value.