Transcript 2007-08 TENTATIVE BUDGET - Glendale Community College

2010-11
TENTATIVE BUDGET
OVERVIEW
2009-10 GCC BUDGET STATUS
 2010-11 STATE BUDGET
 2010-11 GCC BUDGET DEVELOPMENT
 2010-11 GCC REVENUE ADJUSTMENTS
 2010-11 GCC EXPENDITURE
ADJUSTMENTS
 2010-11 GCC BUDGET STATUS
 PENDING COLLEGE ISSUES
 CONCLUSION

2009-10 GCC BUDGET
STATUS
2009-10 Enrollment (at P2)
Category
CREDIT
Actual
FTE’s
Funded at
P1
Unfunded
Enrollment
Unfunded
Revenue
14,449
12,696
1,753
$8.00M
CAREER
DEVELOPMENT
COLLEGE PREP
2,613
2,536
77
$0.25M
NONCREDIT
1,033
410
623
$1.71M
18,095
15,561
2,534
$9.96M
TOTAL
2009-10 GCC Revenues
Category
Base
Budget
$75,352K
Projected
Difference
$75,352K
$
0
Growth
0
$
0
$
0
Prior Year Adj.
0
$
0
$
0
Prop. Tax Deficit
$(2,210K)
$ (2,538K)
$( 328K)
Part Time Faculty
$
$
$(
Lottery
$ 1,950K
$ 1,950K
Other State
$
$
519K
62K
509K
65K
10K)
0
$
3K
2009-10 GCC Revenues (Page 2)
Category
Budget
250K
Projected
$
310K
Difference
Interest
$
Non-Resident
$ 3,800K
$ 3,200K
$( 600K)
Other Student
Fees
$
528K
$
528K
$
0
Other Local
$
77K
$
77K
$
0
Federal
$
549K
$
549K
$
0
Interfund
$
265K
$
265K
$
0___
Total
$ 81,142K
$ 80,267K
$
60K
$ ( 875K)
2009-10 GCC Expenditures
Category
Budget
Projection Difference
Certificated Salaries
$37,015K
$36,704K
$ 311K
Classified Salaries
$19,112K
$19,288K
$ (176K)
Benefits
$15,171K
$14,952K
$ 219K
Supplies
$
$
552K
$
81K
Services
$ 6,749K
$ 6,179K
$
570K
Equipment
$
$
42K
$
55K
Other/Interfund
$ 3,908K
$ 3,914K
$
(6K)
Reserve
$ 4,848K
Total
$87,533K
633K
97K
0____
$81,631K
$ 4,848K
$ 5,902K
2009-10 GCC Ending Balance
Beginning Fund Balance (7/1/09)
Projected 2009-10 Revenues
Projected 2009-10 Expenses
Ending Fund Balance (6/30/10)
*Equivalent to 6.16% of expenditures
$ 6,391K
$80,267K
($81,631K)
$ 5,027K*
2010-11 STATE BUDGET
2010-11 State Budget

On January 8, 2010, Governor released his
proposed budget for 2010-11
 $19.9 billion State deficit
 Cuts to health and welfare programs
 Extensive Cuts to Corrections
 Assumed $6.9 billion in federal aid
 Extension of temporary tax increases adopted
as part of the 2009-10 State Budget
 Delay in implementation of tax breaks adopted
as part of the 2009-10 State Budget
State Budget Effect on Community Colleges

Overall Community Colleges fared well
 2.2%
enrollment growth
 -0.38% COLA
 $39.9 million property tax adjustment
 Suspension of mandated cost claims
 $20 million transfer to Career Tech Education; $10
million from EOPS and $10 million from Part Time
Faculty Parity
 Adds EOP&S, Funds for Student Success and Basic
Skills to programs subject to categorical flexibility
 Suspension of new competitive Cal Grant awards
May Revise
State Revenues were almost $3 billion over
projections from December through March
 In April, income tax receipts were significantly
lower due to 12+% unemployment eliminating
surplus
 State deficit now at $19.1 billion
 $6.9 billion federal aid was not realistic
 Eliminate CalWORKs Welfare to Work
program and Child Care programs

2009-10 May Revise Highlights


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
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
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Community College Budget virtually unchanged
from Governor’s budget
Governor made a public statement that he would
veto any budget that provided less funding for
higher education
2.2 Percent growth remained in budget
-0.38% COLA remained in budget
$6 million additional property tax backfill funds
Eliminated proposal to suspend competitive Cal
Grants
Redirects $26.7 million in State funding for
CalWORKs
2010-11 State Budget Status


Both the Assembly and Senate budget
subcommittees have developed proposals
Assembly Proposal
 Adds
$3 million more for enrollment growth
 Adds $35 million for categorical backfill
 Provides $100 million for Economic and Workforce
development
 Adds $22 million to eliminate negative COLA
 Rejects $10 million transfer from EOP&S and Part
Time Faculty Compensation to Career Tech Ed
 No fee increase
2010-11 State Budget Status (cont.)

Senate Proposal
 Adds
$22 million to eliminate negative COLA
 Rejects $10 million transfers from EOP&S and Part
Time Faculty Compensation program
 No fee increase



Both Assembly and Senate versions require tax
increases
Joint Budget Conference Committee has been
formed to reconcile and consolidate two
legislative proposals
Entire Assembly and Senate must approve with
a 2/3rds vote
Budget Proposal Summary
Item
COLA
Enrollment Growth
May
Revise
($22.1M)
Assembly
Proposal
Senate
Proposal
-
-
$126M
$129M
$126M
EOP&S
$54M
$64.3M
$64.3M
Economic Development
22.9M
$100M
$22.9M
$14.9M
$24.9M
$24.9M
Part Time Faculty
Compensation
Categorical Backfill
-
$35.0M
-
2010-11 TENTATIVE BUDGET
DEVELOPMENT
GCC Budget Development Process
Unrestricted General Fund

Tentative Budget is based on May Revise
 $1.86M
budget cut/new revenue still required
 Tentative Budget balanced by:
Eliminating Winter intersession
 “Must Do” requests for funded
 Additional Categorical support not funded
 SUI increase not funded

 Includes:
5% General Reserve established - $4.2M
 $500K Contingency Reserve (On-going)
 Use of Ending Fund balance over 5% to balance

Board 2010-11 Budget Preparation
Resolution
Strive to reach growth enrollment FTEs
 Strive to avoid reductions through
layoffs of permanent employees
 Establish a five percent (5%) General
Reserve
 Establish a $500K Contingency
Reserve

2010-11 Rollover Budget

$6.7 million deficit in Rollover Budget
 All
vacant positions put back in budget
 1%/1.5% pay cut restored
 2010-11 Exempt Cost augmentations
included
 $225K augmentation for Winter intersession
 $700K budgeted for categorical support
 $127K reserve set up for amount employee
groups contributed in 2009-10 over required
amount
2010-11 Projected Revenue Changes
Loss of federal funds
($0.548M)
 -0.38% COLA
($0.277M)
 2009-10 Apportionment Adjust.
($0.328M)
 Part Time Faculty Programs
($0.159M)
 None Resident Tuition
($0.600M)
 Blue Shield Rebate
($0.215M)
 Total New Revenue
($2.127M)

2010-11 Expenditure Adjustments
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Step and Column
Health (10% inc)*
Dental
Utilities
Postage
Legal
PERS Retirement
Other Benefits
Winter Intersession
Total Expenditure Adjustments
*Estimate
($ 838K)
($ 297K)
$ 25K
$ 226K
$ 42K
$ 32K
($ 100K)
( $ 25K)
($ 225K)
($1,160K)
Budget Actions Taken
Hiring Freeze
$2.043M
 Eliminate second summer
$0.845M
 Over $10K account review
$0.279M
 2.2% growth revenues
$1.500M
 Reserves over 5%
$0.700M
 2009-10 credit from emp. Groups $0.126M
 3% pay cut from managers
$0.248M
Total Actions Taken
$5.741M

2010-11 Enrollment Projection
(in FTE’s)
Credit
$4,565
Noncredit CDCP
$2,745
$3,232
Total
2009-10 Base
12,695.7
410.3
2,536.4 15,642.4
2010-11 Target (+2.2%)
12,975.0
419.3
2,592.2 15,986.5
2009-10 P2 Report
14,448.7
1,033.6
2,612.5 18,094.8
Block Schedule (8% red.)
(1,155.9)
Eliminate 2nd Summer
(40% reduction)
2010-11 Projection
Unfunded
Revenue
(1,155.9)
(577.1)
(59.3)
(149.8)
12,715.7
974.3
2,462.7 16,152.7
(259.3)
555.0
(129.5)
($1.18M)
(786.2)
166.2
$1.52M ($0.42M) ($0.08M)
Additional Needs Identified
“Must Do” Requests
 Additional categorical support
 State Unemployment Insurance
(0.3% to 0.72%)
 Full Time Faculty Obligation*
Total Additional Needs

*Four hires
$0.170M
$0.380M
$0.236M
$0.080M
$0.866M
“Must Do” Requests
Oracle License
 Software license fees
 Copier maintenance agreements
 Bank Fees
 Student transportation
 International student recruitment
Total “Must Do”

$55.0K
$75.4K
$ 5.8K
$ 6.0K
$14.2K
$14.0K
$170.4K
2010-11 Budget Status
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Rollover Budget Deficit
Budget Actions Taken
Additional Needs Identified
Total Cuts Still Needed
($6.737M)
$5.741M
($0.864M)
($1.860M)
2010-11 Budget Cut Options
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Across the Board Cuts on non-personnel line items
Class reductions/backfill of vacancies
Classified hourly employees
Student Workers
Hourly librarians/counselors
Overtime
Equipment
Staff Development, Study Abroad, Baja, Fire
Academy
Budget Cut Principles
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Minimize impact on students
Proportionate cuts to all Divisions (Instruction,
Student Services, Admin.)
Proportionate cuts to all employee groups (Guild,
CSEA, Management)
Budget cuts evaluated with Master Plan
Permanent Employee layoffs only as a last resort
Strive to meet growth cap
Minimize impact of main semesters
Protect 5% reserve
Pending College Issues

Adoption of State Budget
 2.2%
Growth funding
$1.86M Budget Cut Required
 2011 Health Insurance Premium Increase

 10%
increase budgeted
Additional “Must Do” request funding
 Ending Balance in excess of 5 percent
 2010-11 Collective Bargaining

Conclusion
State’s fiscal problems continue to impact
College budget
 College understood 2010-11 would be a
challenging budget
 College will continue to have budget
difficulties until COLA or new discretionary
revenues are received
