Transcript Annual Statewide Budget Workshop 2010-2011

Annual Statewide Budget Workshop
2010-2011
Fiscal Services
November 16, 2010
2010-11 Budget Overview
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Passed by Legislature October 8, 2010
Signed by Governor October 8, 2010
Latest budget in state history – 100 days
Previous record was 85 days
How It Was Accomplished
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Budget gap was estimated at $19.3 billion
The gap was closed through a combination
of spending cuts, increased revenue,
federal funds, asset sales, and funding
shifts
Governor vetoed additional spending to
increase size of “rainy day fund” from $300
million to $1.3 billion
Multiple Budget Solutions
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Budget cuts of $7.8 billion
Federal funds estimated at $5.4 billion
Delayed tax breaks totaling $1.2 billion
Sales of state office buildings net $900
million
Borrowing and funding shifts of $2.7 billion
Community Colleges Budget
Overview
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$126 million for enrollment growth
No COLA
New $129 million payment deferral
No increase in student fees
Governor’s Vetoes
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$35 million for partial restoration of
categorical program reductions.
$25 million for Economic and Workforce
Development program to support workforce
training programs.
These funds would have been paid in July
2011, putting additional stress on the 201112 budget.
Budget Details - Growth
Enrollment Growth funded at 2.21%
 Additional 26,000 FTES
 Partially restores workload reduction of
3.34% which districts experienced in
2009-10
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Impacts of 2009-10 Funding Cuts
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Budget cuts resulted in course sections
being decreased by up to 20% at some
districts
200,000 unfunded students statewide
(headcount), with more than 138,000 more
turned away with no classes
Statewide priorities remain career tech,
transfer, and basic skills.
New deferrals for 2010-11
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$129 million in new inter-year deferrals
$703 million in continuing inter-year
deferrals, total of $832 million
$300 million in intra-year deferrals - $200
million deferred from July to October and
$100 million from March to May
Mandated Programs
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$9.5 million for current-year mandate
claims
$22.3 million for mandate claims in prior
years
5 mandates suspended in the current year
A Mandate Working Group will be
established to consider changes to
education mandates
Budget Challenges
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Reliance on questionable assumptions
means mid-year adjustments may be
necessary
Districts will require further borrowing to
absorb the latest deferral
2011-12 System Budget Request
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Budget proposals developed by a workgroup
comprised of members and designees of
Consultation Council, other college
representatives, and System Office staff.
Workgroup recommendations were discussed
before the Consultation Council
The System Budget Request was adopted by the
Board of Governors at its September meeting
Focus on Highest Priorities
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Student Success
Educational Quality
Access
Student Success
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As student support programs have been
significantly cut, improving student success
will be more difficult to achieve.
Request full restoration of student support
categorical programs to 2008-09 levels.
Total costs of $313 million
Educational Quality
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Colleges did not receive COLAs of 4.94%
in 2008-09 and 4.25% in 2009-10.
When combined with the expected
statutory COLA of 1.35% for 2010-11, the
cumulative amounts owed to colleges is
10.88% or $660 million.
Request half this amount of $330 million,
the remaining to be paid in future years
Access
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Colleges served more than 200,000
students about funded levels in 2009-10.
Another 138,000 students were turned
away.
Request 4.7% growth equaling $273 million
to serve and additional 57,000 students.