Outline

1. 2012-2013 Budget 2. 2012-13 Unrestricted GF Estimates 3. 2013-14 Governor’s Budget 4. Budget Challenges 5. 2013-14 Budget Timelines 6. Conclusions

2012-2013 Budget

• Prop 30 passed- significant workload reductions avoided • Education Protection Account (EPA) established • Small amount of “growth” (a.k.a. restoration) included-$50 mil system wide • $159 mil deferral buy down • No COLA. COLA last received in 2007-2008. From 07-08 through 12-13, 18.3% or $994 million loss of purchasing power*.

• No restoration of categorical programs • Recalculation includes workload restoration for prior year reductions

* Per CCLC 2013-2014 State Budget and Fiscal Issues memo dated January 18, 2013

2012-2013- AVC Budget Impact

• Base FTES stays at 2011-2012 levels plus a small “growth” (a.k.a. restoration). • 2012-2013 New base is 10,618 FTES. • “Growth” dollars estimated at ~$420K • Deferrals go down from $14,165,447 to $11,821,736 :

2012-13 Unrestricted General Fund Estimates

Beginning Balance Revenues Expenditures Ending Fund Balance Surplus/(Deficit) Reserve % $ 7,502,546 $58,435,608 * $56,541,265 $ 9,396,892 $ 1,894,343 16.6%

*Preliminary figures. Included P1 and PY Recalculation figures dated March 2013. Expect changes with May 2013 Revise and P2. PY Recalculation included an additional $1.775 million of ONE-TIME FUNDS.

2013-2014 Governor’s Budget

• Released Jan 10 th -Declares no longer facing structural shortfalls • State budget estimates a 5% increase over prior year budget in 13-14 and shows surpluses over the next 3 years • Prop 30 & Prop 39 expected to generate $7.2 bil in 13-14 • 2013-14 Prop 98 guarantee expected to be $56.2 bil, a 4.8% increase above 2012-13 estimates

2013-2014 “Proposed” Community College Budget

• Shift $315.7 mil from Adult Education/Apprenticeship to Community Colleges • Includes a $196.9 mil undesignated apportionment increase • $179 mil deferral buy down • $49.5 mil in projects that support energy efficiency • $16.9 mil to expand online course for matriculated undergraduates

Budget Challenges

• No instructional block grant funds received (Last funds received from the State were in 2008-2009 for instructional equipment for $120,622) • No capital outlay/scheduled maintenance funds received (Last funds received were in 2008-2009 for $91,852) • No information technology funds received (Last funds received were in 2008-2009 for $36,036)

Maximize student enrolment Look across the board for expenditure reductions Look for other revenue enhancements Avoid deficit spending

2013- 14 Budget Timeline

• Jan – May: Legislative Hearings End of Jan 2012: LAO releases budget analysis • Mar 1: DOF requests legislative action early on certain items • May 14: Governor releases May Revise • June 10: AVCCD Tentative Budget to Governing Board for adoption • June 15: Constitutional deadline for legislature to send budget to Governor • By July 1: Statutory Deadline for Governor to sign Budget Act • By September 15: AVCCD Final Budget to Governing Board for adoption

Conclusions

• AVCCD 2013-14 Budget Development Process started mid- March • Mar 19, 2013 – California Community College Budget and Policy hearings begin with a focus on Adult Education Realignment and Proposition 39 Funding • A Town Hall Meeting to update the Antelope Valley Campus community on the State of the College budget will take place in April 2013 • May Revise is the next big news in the planning efforts for the 2013-14 budget • Still in the Preliminary stages of the 2013-14 budget!

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Antelope Valley Community College District

Budget Update Current (2012-13) & Out Year (2013-14)