1. (a) “Salaries of classroom instructors” as used in Education Code Section 84362 means:

   1. (1) that portion of salaries paid for purposes of instruction of students by full-time and part-time instructors employed by the district, and

   2. (2) all salaries paid to district classified employees who are

      1. (A) assigned the basic title of “Instructional Aide” or other appropriate title designated by the governing board which denotes that the employees' duties include instructional tasks, and

      2. (B) employed to assist instructors in the performance of their duties, in the supervision of students, and in the performance of instructional tasks. Instructional aides who perform instructional and noninstructional tasks shall have their salaries and benefits prorated. An employee shall be deemed to be under the supervision of an instructor for the purpose of Education Code Section 84362 if the employee performs duties under the general direction of an instructor.

         In addition, salaries of classroom instructors shall include the cost of all benefits provided such instructors and instructional aides (Object of Expenditure code 3000 as defined in the California Community Colleges Budget and Accounting Manual).

2. (b) “Current expense of education” (CEE) shall include Object of Expenditures 1000 through 5000 for activity codes 0100 through 6700 as defined in the California Community College Budget and Accounting Manual less expenditures for activity code 64XX (Student Transportation) and less expenditures of:

   1. (1) categorical aid received from the federal and state government requiring expenditure in a program not incurring any instructor salary expenditures;
   2. (2) categorical aid received from the federal and state government requiring disbursement of the funds without regard to the requirement of Section 84362;
   3. (3) funds for lease agreements for plant and equipment;
   4. (4) funds received from the federal or state government pursuant to the “Economic Opportunity Act of 1964”;
   5. (5) state or federal funds received for grants to community college students or for the employment of community college students; and
   6. (6) other monies received which are restricted by an external party, law or other legal requirement.

3. (c) “Serious hardship” shall mean conditions under which:

   1. (1) conformance with the 50% requirement during the year of deficiency would have resulted in the district's inability to discharge financial liabilities;
   2. (2) the first year of infusion of new moneys resulted in the district's inability to comply with the requirements of Education Code Section 84362;
   3. (3) unanticipated, unbudgeted, and necessary expenditures resulted in the district's inability to comply with the requirements of Education Code Section 84362; or

   4. (4) the district has expended funds pursuant to Section 59213(f).

      In viewing a district's inability to discharge financial liabilities, consideration will be given to such factors as (1) the district's general fund ending balance, less noncash assets, is less than three percent (3%) of general fund expenditures (Object of Expenditure codes 1000 through 6000) for the year application for exemption is filed, or (2) the district's credit base FTES for the year for which exemption is being sought was less than 3,001. New monies shall mean monies which are allocated for transitional program improvement pursuant to Educational Code Section 84755. To the extent that such monies are built into the district's general apportionment funding in the following years, no further consideration for serious hardship will be given.

      Unanticipated, unbudgeted, and necessary expenditures shall mean certifiable expenditures that the district could not have reasonably anticipated or budgeted for, and that were necessary for the district to incur. Such expenditures may include, but are not necessarily limited to, expenditures resulting from arbitration or litigation; replacement or repair of utility services; an abnormal increase in the cost of energy, insurance, or security; or a cost increase mandated by state or federal law.

      In determining the impact of the infusion of new monies, the Chancellor's Office shall determine the amount of new monies pursuant to Education Code Section 84755 which were expended for salaries of classroom instructors and for the current expense of education. Following the Chancellor's determination, the percentage shall be recalculated without the effect of the expenditure of these new monies. If the district would have complied with the requirements of Education Code Section 84362 without the expenditure of new monies, a full exemption may be granted. If the district still does not comply with the requirements of Education Code Section 84362, then a partial exemption may be granted to the degree the deficiency was increased by the expenditure of these new monies.

4. (d) “Attendance FTES” means the units of full-time equivalent student or equivalent accrued by the district during the fiscal year as a result of the attendance of all students as reported to the Chancellor's Office on prescribed attendance reports.

5. (e) “Community college districts of comparable type functioning under comparable conditions” are deemed to be any which:

   1. (1) had met the 50% salary requirement for the year in question;
   2. (2) had CEE per attendance FTES which is within $250 of the district seeking exemption; and
   3. (3) had attendance FTES which is within 30% of the applicant district. If Subsections (e)(2) and (e)(3) above do not yield at least 5 districts, then Subsection (e)(2) will be expanded by $50 increments and Subsection (e)(3) will be expanded by 5% increments until at least 5 districts are determined.
6. (f) Payment of comparable salaries of classroom instructors will be deemed to exist when a district's expenditure for salaries of classroom instructors, divided by attendance FTES, equals or exceeds the same aggregated data for districts functioning under comparable conditions.

For the purposes of Education Code Section 84362, the following terms shall be defined as set forth below.

Note: Authority cited: Sections 70901 and 84362, Education Code. Reference: Section 84362, Education Code.

History

1. Amendment of subsection (a) filed 3-3-86; effective thirtieth day thereafter (Register 86, No. 10).

2. Organizational headings of CCR were renamed as a result of CCR Reformat Project as follows: “article” was renamed to “subarticle”; “chapter” was renamed to “article”; “division” was renamed to “chapter”; and “part” was renamed to “division”.

3. Amendment of subsection (c) filed 6-5-90 by the Board of Governors, California Community Colleges, with the Secretary of State; operative 7-5-90. Submitted to OAL for printing only pursuant to Education Code section 70901.5(b) (Register 90, No. 37).

4. Amendment filed 9-10-90 by the Board of Governors, California Community Colleges, with the Secretary of State; operative 10-10-90 (Register 91, No. 5). Submitted to OAL for printing only pursuant to Education Code, section 70901.5(b).

5. Editorial correction filed 12-3-90 (Register 91, No. 5).

6. Amendment filed 3-4-91 by Board of Governors of California Community Colleges with the Secretary of State; operative 4-5-91 (Register 91, No. 23). Submitted to OAL for printing only pursuant to Education Code Section 70901.5(b).

7. Editorial correction of printing error in subsection (b) (Register 91, No. 43).

8. Amendment filed 9-6-94; operative 10-6-94. Submitted to OAL for printing only pursuant to Education Code section 70901.5 (Register 94, No. 38).

9. Editorial correction of History 6 (Register 95, No. 29).