Transcript Jan 19 2012 - Mt. San Jacinto College

Mt. San Jacinto Community College
Board of Trustees Meeting
January 19, 2012
Presentation Topics
 2011-2012
Budget Update
 Governor’s January Budget Proposal
 Potential Impact to:
 Higher Education
 California Community Colleges
 Mt. San Jacinto College
*Budget Information provided by the Community College League of California
& the Chancellor’s Office during the Budget Webinar on January 11, 2012
Board of Trustees—January 19, 2012
Budget Update
2011-2012 Budget
At Budget Enactment:
 $400 million ongoing general fund cut
 Fee increase to $36 per unit effective Fall 2011
January Mid-Year Actions
 Additional Cuts totaling $102 million
 Fee increase to $46, effective Summer 2012
Effective ongoing cut of $385 million
Board of Trustees—January 19, 2012
Budget Update
2011-2012 Budget
Threats:
• More students applying for Board of Governors
fee waivers, leading to lower fee revenues
• Governor proposes cutting $146.9 million in
general fund apportionments, with expected
increased property taxes from the end of
redevelopment
• Deficit coefficient due to property tax shortfalls
Board of Trustees—January 19, 2012
Budget Update
2011-2012 Budget “Trigger” Cuts
•Additional
$700K reduction
in
2011-12 Adopted
Budget built
apportionment
revenue
on this assumption!
•Equivalent to 150 FTES
$0
Tier 0
Billions
-$1
Tier 1
-$2
No Additional Cuts
•$30 million Reduction to Community Colleges
•Enrollment Fee Increase of $10 (to $46)
•$23 million cut to Child Care
•$548 million reduction to UC, CSU & Other State Programs
Tier 2 Trigger Pulled December 2011
-$3
Tier 2
• Additional $72 million reduction to Community Colleges
• $248 million to K-12 Transportation
•Up to $1.5 billion cut to K-12 Revenue Limits
(This would be prorated based on the level of reduced
revenue projections)
-$4
Board of Trustees—January 19, 2012
Budget Update
2012-2013 Budget
Board of Trustees—January 19, 2012
Budget Update
2012-2013 Budget
Board of Trustees—January 19, 2012
Budget Update
2012-2013 Budget
Governor plans to collect signatures for an
initiative to temporarily increase taxes:
•
•
•
•
November 6, 2012 ballot
Simple majority required
Raises sales tax by 0.5% from January
1, 2013 through December 31, 2016
Raises personal income taxes on
individuals > $250,000 from 2012
through 2016 tax years
Board of Trustees—January 19, 2012
Budget Update
2012-2013 Budget
New Budget Triggers
If the revenue targets associated with the governor’s
tax plan are not met, triggered cuts would be made:
Board of Trustees—January 19, 2012
Budget Update
2012-2013 Budget
Board of Trustees—January 19, 2012
Budget Update
2012-2013 Budget
Community College Scenarios
Scenario A
$218 million
“deferral buy-back”
$12.5 million
mandates block
grant
Scenario B
$264 million base
cut, workload
reduction of around
5.56%
No Scenario A
Augmentations
Categorical Consolidation Both Scenarios $411.6 million
Board of Trustees—January 19, 2012
Budget Update
2012-2013 Budget
Deferral “Buyback”
Maneuver “spends money,” “reducing debt,” without a program benefit.
2011-12
Board of Trustees—January 19, 2012
2012-13 Proposed
Budget Update
2012-2013 Budget
Categorical Flexibility
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•
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•
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“Flexible” Programs
“Restricted” Programs
Basic Skills
Student Financial Aid Admin.
EOPS
Cal Works
Matriculation
Academic Senate
Equal Employment Opportunity
Part Time Faculty Compensation
Fund for Student Success
Economic Development
Transfer Education & Articulation
Child Care Bailout
Nursing
• Disabled Students
• Foster Care Education
• Telecommunication & Technology
Board of Trustees—January 19, 2012
Budget Update
2012-2013 Budget
Budget Risks





Tax measure is politically uncertain and
costly.
Tax measure may not yield full $6.9B(LAO
suggests perhaps only $4.8B)
Planning will be difficult. Workload
reduction of 5.56% will be decided in
November
Student fee shortfall with more BOG
waivers.
Property tax shortfall, particularly in light of
redevelopment projections/uncertainty.
Board of Trustees—January 19, 2012
Budget Update
Redevelopment Successor Agency
Oversight Boards

Budget Bill ABXI 26 included as part of the fiscal
year 2011-12 State budget dissolves more than 400
Redevelopment Agencies (RDA’s) in the State.
 Supreme Court decided RDA’s may be abolished
 Successor Agencies will be established to pay the on-
going obligations of RDA’s.
 Each oversight board will be comprised of seven members
appointed by the County Board of Supervisors, the County
Superintendent of Education and others.
 The legislation stipulates that each oversight board will
include a community college representative appointed by
the State Chancellor of the California Community Colleges
Board of Trustees—January 19, 2012
Budget Update
Redevelopment Successor Agency
Oversight Boards
 Redevelopment Agencies (RDA’s) in the
MSJC district include:










Banning Redevelopment Agency
Beaumont Redevelopment Agency
Calimesa Redevelopment Agency
County of Riverside Redevelopment Agency
Hemet Redevelopment Agency
Lake Elsinore Redevelopment Agency
Murrieta Redevelopment Agency
Perris Redevelopment Agency
San Jacinto Redevelopment Agency
Temecula Redevelopment Agency
Board of Trustees—January 19, 2012
Budget Update
2012-13 Budget Simulation for MSJC
2012-2013 Base Revenue (Before reductions) $49,131,469
Number & percent credit FTES
9,309 (96.08%)
Number & percent noncredit FTES
258 (2.66%)
Number & Percent CDCP FTES
122 (1.26%)
Scenario A: Governor’s Scenario B: Governor’s
Budget & Tax Package
Budget, with Failure of
Tax Package
Net Apportionment
Cut:
$0
$-2,425,942
Workload reduction
percent:
0%
5.56%
0
-539.14
Total FTES Reduced
Board of Trustees—January 19, 2012
Budget Update
Ten Year Revenue Analysis
60
November Initiative Passes
50
40
30
20
10
0
FY02-03 FY03-04 FY04-05 FY05-06 FY06-07 FY07-08 FY0809 FY0910 EST1011PROJ1112
PROPERTY TAXES
ENROLLMENT FEES
FEDERAL
Board of Trustees—January 19, 2012
STATE APPORTIONMENT
OTHER
Budget Update
Credit FTES –Actual vs. Funded
Funded FTES
Actual FTES
12,401
11,160
8,458
9,373
9,730
9,847
10,212
10,961
9,835
10,079
9,867
10,335
10,400
9,309
2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013
Projected Projected
Board of Trustees—January 19, 2012
Budget Update
Timeline
FEBRUARY
JANUARY
MARCH
MAY
APRIL
JUNE
1
2
3
4
5
6
7
1
2
3
4
1
2
3
1
2
3
4
5
6
7
1
2
3
4
5
1
2
8
9
10
11
12
13
14
5
6
7
8
9
10
11
4
5
6
7
8
9
10
8
9
10
11
12
13
14
6
7
8
9
10
11
12
3
4
5
6
7
8
9
15
16
17
18
19
20
21
12
13
14
15
16
17
18
11
12
13
14
15
16
17
15
16
17
18
19
20
21
13
14
15
16
17
18
19
10
11
12
13
14
15
16
28
19
20
21
22
23
24
25
18
19
20
21
22
23
24
28
20
21
22
23
24
25
26
17
18
19
20
21
22
23
26
27
28
29
25
26
27
28
29
30
31
27
28
29
30
31
24
25
26
27
28
29
30
22
29
23
30
24
31
25
26
27
Governor’s
January Budget
Proposal
22
29
23
30
Legislative Budget
Hearings & Proposals
24
25
26
27
May 14—Governor
releases May
Revise
June 15—Constitutional
deadline for Legislature
to send budget to
Governor
Board of Trustees—January 19, 2012
State Budget Update &
Governor’s 2012-2013 Budget
Questions?
Budget Development Committee
Becky Elam, VP Business Services
Dr. Dennis Anderson, VP Instruction
Beth Gomez, Dean Business Services
Ted Blake, Learning Center
Elisabeth Anghel, Librarian
Jennifer Pickens , Instructional Aid
Fred Frontino, DSPS
Ana Moreno, Student Government
Board of Trustees—January 19, 2012
Dr. William Vincent, VP Student Services
Irma Ramos, VP Human Resources
Michael Welden, Faculty Member, Math
Elias Escamilla, Counselor
Gail Jensen, Business Services
Karen Connell, Business Services
Bruce Brady, Procurement
Steven Sanchez, Student Government