Fiscal Planning and Budget Development Process Interview EADM 732 Fiscal Planning and Facilities Management Dr. Nicolas D. Ferguson

By Miguel Lopez and Cynthia J. Spence

Dr. Edwin Deas

Dr. Deas earned his Ed.D. from the University of San Diego and his Master of Arts degree in Education from San Diego State University.

Current Position: Vice President, Business Affairs College of the Desert. Began service on April 21, 2008.

Previous Position: Vice President, Administration and Bursar University-College in Nanaimo British Columbia, Canada. 25 years of service.

Involvement by Others

•Departments and Unions Edwin Deas, VP Business Affairs, (non-voting co-chair), Wade Ellis, Fiscal Services (non-voting member), Rey Ortiz, Academic Senate Rep, Linda Emerson, Academic Senate Rep, Chuck Decker, CTA Rep, Kelly Hall, CTA Rep, Cathy Levitt, CODAA Rep, Carol O'Keefe, CODAA Rep, Misti Carrillo, CSEA Rep, Lauro Jimenez, CSEA Rep. Adrian Gonzalez, Dean Rep, Farley Herzek, VP Academic Affairs. Diane Ramirez, VP Student Affairs •Community - None

Business Staff Dedicated to Budget Development and Monitoring

Dr. Deas

Wade Ellis - Director Terri Alm and Aurora Perez Accounting Specialists Lynn Sacher – Accounting Specialist Diana Ortiz, Misti Santana, and Ceil Woodward – Payroll Specialists Janet Assof – Financial Analyst Jennette Gfroerer Accounting Tech/Accounts Payable

Sample Budget Documents (forms, reports, communications)

Meeting #5 December 14, 2009 3:30 p.m. - 5:00 p.m.

Foundation Board Room

AGENDA

1. Call Meeting to Order 2. Approval of Minutes – November 23, 2009 3. Recap of Previous Meeting 4. Energy Efficiencies & Other Potential Facilities Cost Savings by Steve Renew 5. Continuing Discussion on Operational Efficiencies

Technology Used?

•Galaxy – owned and operated by Riverside County •Excel Files – Created by departments

Size (ADA) – Growing, Stable, Declining?

Growing – Not paid for 1000 students

Budget Assumptions

87 % of Budget is spent on Salaries and Benefits The Step Movement Salary Scale is increasing this cost by ½ Million More Each Year!

Budget Development Calendar/Timeline

 July 1 Begins the fiscal year  June 30 th Ends the fiscal year  One Year Budget  Four Year Projection

Budget Development Guide

 Maintain an open and easily understood multiple year budget and process that increases efficiency and decreases waste.

 Budget planning and reports include the whole picture (all sources of funding – restricted and unrestricted).

 Maximize state funding possibilities while seeking alternate sources of funding.

 Maintain Reserve of 5%.

 Maintaining the best level of benefits possible within financial constraints.

 Compliance with the 50% Rule.

Board Policies/Administrative Regulations and/or Procedures

Each year, the President shall present to the Board a budget, prepared in accordance with Title 5 and the California Community Colleges Budget and Accounting Manual. The schedule for presentation and review of budget proposals shall comply with state law and regulations, and provide adequate time for Board study.

Budget development shall meet the following criteria:

The annual budget shall support the District's master and educational plans.

Assumptions upon which the budget is based are presented to the Board for review.

A schedule is provided to the Board by January 31 of each year that includes dates for presentation of the tentative budget, required public hearing(s), Board study session(s), and approval of the final budget. At the public hearings, interested persons may appear and address the Board regarding the proposed budget or any item in the proposed budget.

Unrestricted general reserves shall be no less than 5%.

Changes in the assumptions upon which the budget was based shall be reported to the Board in a timely manner.

Budget projections address long-term goals and commitments.

The President shall establish procedures to appoint a campus-wide budget committee for recommendation purposes.

Reference: Education Code Section 70902

Centralized or Decentralized?

Centralized – However, Dr. Deas prefers decentralized

Check Audit (variances in budget vs. actuals)

•Quarterly reports •Not very specific

Budget Reduction Process (dollar volume of cuts and percentage of budget) •Reductions in State Funding $1,920.000

Apportionment Cut $830,000 Property Tax Shortfall $810,000 •Adjustments $1, 849.896

Hiring Freeze – No Overtime – No Travel Restructuring of Departments Cutting back on hours of operation Could borrow money if need be

How Did the District Handle the Flexibility “to sweep” Categorical Programs? All/Some (which ones)? Not Sweeping Categorical Programs at this time