Transcript Sonoma County Junior College District 2009

Sonoma County
Junior College District
2009-10 Adopted Budget
Presented to the Board of Trustees September 8, 2009
Introductory Comments
The State’s economic downturn continues ...
Rising unemployment and the loss in property values,
means less tax revenue coming into the State, which
results into less funding for community colleges.
... and, economic recovery in California is not
expected anytime soon!
2009-10 State Budget
 The Budget was signed into law July 28
 It contained $24 billion in budget “solutions”
$16 billion in cuts
$ 8 billion in borrowing and gimmicks
... and, this was on top of $35.8 billion in
budget solutions adopted in February!
State Budget Impact
on Community Colleges
 $754 million loss in state support (-12.1%)
 This is partially offset by $210 million in new
revenues
$130 million in Federal ARRA funds *
$ 80 million increase in student fees (from $20/unit to $26/unit)
... still, the net loss is $544 million (-8.7%)
* The latest CCLC estimate is that only 25% -35% of this funding will come to
community colleges ... placing the net loss to be around -10.1%
State Budget Impact
on Community Colleges
Specifically, the loss in revenue means ...
No COLA
(statutory COLA would have been 4.25%)
No Growth
(3% growth had been included in the February Budget)
A 3.39% reduction in “workload measures” *
* This means a reduction in the number of Base FTES that the state will fund
And ...
 A 62% cut to a majority of state-funded Categorical
Programs!
District Budget for 2009-10
With the exception of the General Fund ...
revenues in most of the District’s other
funds can only be expended for the specific
purpose for which they are received.
For 2009-10, the budgets for these other
funds are based upon either:
• known revenue and expenditure streams, or
• on historical amounts.
The General Fund
This is the fund under which the primary
mission of the District is conducted.
It is also the fund where the District has
some measure of discretion as to how the
resources will be expended.
And ... it is the one fund that is directly
impacted by state budget reductions.
2009-10 General Fund
Revenue Assumptions
 Revenues for State-funded Categorical Programs (in the
Restricted General Fund) reflect only state-provided amounts*
* (additional one-time federal amounts will not be known until the end of September)
 In addition to no COLA, and no growth, the Unrestricted
General Fund revenues reflect the following major reductions:
Base Workload Reduction
Property Tax Shortfall
Lottery Revenue
Interest Income**
-
$ 3,360,000
$ 1,914,000
$ 137,000
$
140,000
** Payment of $703 million in 2009-10 apportionment funding is deferred until July,
2010 ... (this represents 11.2% of community college funding)
Workload Reduction

Normally, the funded FTES for one year becomes
the “base” funded FTES for the subsequent year.

For 2008-09, the District reported ... (and is scheduled
to be funded for) ... 21,274 FTES ... (which normally would
be the base for 2009-10 ... however ...)

Due to workload reduction, the District will receive
“base” FTES funding for only 20,436 FTES.
Note:
Below 20,000 FTES, the District would lose an additional $1.1
million in funding!
2009-10 General Fund
Expenditure Assumptions
 In the Restricted General Fund, expenditures for State-funded
Categorical Programs reflect the reduction in state funding
 In the Unrestricted General Fund, expenditures reflect the
following major changes:
Step/Column/Longevity
Health & Dental Premiums
Operating Costs (postage/utilities)
Increased PERS rate
Sabbatical Deferral
5% Discretionary Cost Reductions
Unfilled Positions
Furloughs
Schedule Reduction
+
+
+
+
-
$
620,000
$
420,000
$
325,000
$
60,000
$
370,000
$
500,000
$ 1,100,000
$ 1,285,000
$ 4,000,000
2009-10 General Fund
Budget Summary
Prior Year’s Adopted Budget
Projected Ending Fund Balance
$
8,543,657
Beginning Fund Balance
$
8,492,320
Revenues & Transfers-in
$ 120,433,624
Total Resources
$ 128,925,944
Total Expenditures
$ 119,454,785
Ending Fund Balance
$
9,471,159 *
* This represents a reserve of 7.9% of expenditures
Ending Fund Balance
General Fund - Ending Fund Balance
(As a Percentage of Expenditures)
16.0
15.0
14.5
14.5
14.5
14.2
13.7
14.0
13.2
13.2
13.5
13.0
12.0
12.0
12.0
13.2
12.2
11.7
12.4
11.2
11.4
11.0
11.1
10.8
10.0
10.4
9.0
9.0
7.9
8.0
8.4
7.4
7.0
7.0
6.0
98-99
99-00
00-01
01-02
02-03
03-04
Statewide Average (per State Fiscal Data Abstract)
04-05
05-06
06-07
07-08
08-09
District (per District's records)
09-10
Strategic Challenge

On the same day that the state budget was signed into
law, Chancellor Scott issued a memo warning of the
following “specific threats to community colleges”
• Uncertainty Regarding Federal ARRA Funds
• Mid-Year Cuts
• Property Tax Shortfall
• Structural Imbalance in the State Budget
Strategic Challenge
• Although the District has offset the loss of
revenues it expects to receive during 2009-10
... further losses could (and probably will) occur.
• Given the state’s fiscal situation, the District
can expect current state-cuts to continue into
2010-11, and should be prepared for the
possibility of even larger cuts in 2010-11.
Strategic Challenge

For these reasons, the District has proposed
a tight budget and continues to carefully ...
Manage enrollment
Maximize revenues
Contain costs

... while at the same time
Meeting the needs of our students
Meeting District initiatives
Ensuring long-term fiscal stability
Questions ?