Maxwell ReedSantiago Canyon College’s request for a $4 million line of credit was unanimously approved at the Sept. 28 board meeting.
SCC’s request came after school officials discovered a $3.7 million deficit stemming from budgeting errors, according to the 2026-27 adopted budget.
The money would be available as needed and would cover the college’s potential investments as it works to balance its budget, including through cuts across the campus. No further details were provided about how the money would be disbursed.
“I’ve spoken with leadership across all stakeholders, and everyone knows that everyone needs to sacrifice. Everyone is in as a college,” said Interim SCC President and Vice Chancellor of Academic Services Enrique Perez. “I’ve never seen this, and I’ve been here quite some time. It’s amazing to see when everyone comes together and says, ‘we’re done, we’re moving forward’.”
Rancho Santiago Community College District Trustee Cecilia Iglesias said she was concerned about how much was being budgeted for spending at SCC, with only $770 earmarked for capital outlay.
Capital outlay funds come from Fund 41, a government fund primarily focused on scheduled maintenance projects such as paying for facilities, renovations and minor repairs.
Igledias also addressed the more than $300,000 budgeted for supplies and materials, which she considers nowhere near enough.
“I would just say, I agree with you. No, we’re not spending enough because I have programs coming to me with ridiculous amounts, tiny amounts, just to keep going. And that, to me, means that we are not budgeting well at that college,” said Perez. “I should not have key programs for the college asking me for $10,000.”
Fund 13, which constitutes unrestricted one-time funds for SCC, has $7.2 million carrying over from the previous fiscal year. Before the college confirms how much of a deficit they are facing, they are exploring if money from Fund 13 could be transferred to Fund 11, the general fund.
“We need to move those expenses over to the correct fund before we can determine what [the deficit] amount is,” said Ingram. “They may not have $7.2 million at the end of the day, which is why they’re asking for the line of credit, because if there’s some things they need to do, they need the cash to do it.”
If the full $7.2 million in carryover is not needed to cover SCC’s deficit, the $4 million credit line will not be used. However, if the college does use any of the money, it will have a two-year deadline for repayment.
“This gives SCC some financial runway, but it also comes with responsibility,” Ingram said in a Sept. 29 email recap of the Sept. 28 board meeting. “The college did not arrive at its current financial position overnight, and it will take thoughtful planning and difficult decisions to address it.”
