Transcript 2007-08 TENTATIVE BUDGET - Glendale Community College

2010-11
FINAL BUDGET
OVERVIEW
STATE BUDGET
 ENROLLMENT
 COLLEGE BUDGET
 REVENUE ADJUSTMENTS
 EXPENDITURE ADJUSTMENTS
 RESERVES
 PENDING ISSUES
 BUDGET FORECAST

2010-11 STATE BUDGET
May Revise Highlights
GCC
No fee increase
 2.2% Enrollment Growth
$1.5M
 -.38% COLA
($277K)
 $39.9M Property Tax Backfill
 $10M shift from PT Parity to
Career Tech Ed
($149K)
 Categorical program flexibility
 Suspension of Comp. Cal Grants

Conference Committee Proposal
Crafted by Democrats
 Delays corporate tax breaks ($2B)
 Imposes an oil severance tax ($1.2B)
 Includes a tax swap ($1.8B)

 Increases
personal income tax
 Increases vehicle license fees
 Reduction in sales tax
 Provides federal income tax relief for
taxpayers
Effect on Community Colleges
No fee increase
 2.21% enrollment growth
$1.5M
 Reject negative COLA
$277K
 $35M ARRA backfill
$549K
 $25M for Economic & Workforce Dev.
 Reject $10M cut to PT Parity
$149K
 Establish JPA to accelerate mandated
cost reimbursement.

State Budget Status
State budget moving in right direction
 Currently being discussed in both the
Assembly and the Senate
 Republicans have already rejected plan
 Hopefully agreement can be reached by
end of summer

ENROLLMENT
Enrollment Trends
Enrollment Categories
2006-07
2007-08
2008-09
2009-10
11,965
13,280
13,277
12,696
680
272
321
410
2,051
2,470
2,577
2,536
Total Funded FTEs
14,696
16,022
16,175
15,642
Unfunded Credit FTEs
0
277
1,082
2,268
Unfunded Non-Credit FTEs
0
123
735
847
Unfunded Career Dev/College Prep
0
147
620
504
0
547
2,437
3,619
897
995
975
795
15,593
17,564
19,587
20,056
Funded Credit FTEs
Funded Non-Credit FTEs
Funded Career Dev/College Prep
Total Unfunded FTEs
Non-Resident
Total FTEs
Enrollment

650 FTEs over 2008-09
 30%
reduction in Winter intersession
 College is more efficient

Over 3,600 FTEs unfunded FTEs in 2009-10
 3.37%
reduction in workload
 Excluding nonresidents almost 1 in 5 students are
unfunded
 2.2% growth target
 Reduction for elimination of second summer
 Absorb impact of block scheduling

Enrollment currently not a problem at College
COLLEGE BUDGET
COLLEGE BUDGET DEVELOPMENT
Unrestricted General Fund

2010-11 Budget Preparation Principles
 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
COLLEGE BUDGET DEVELOPMENT
Unrestricted General Fund
Final Budget is based on May Revise
 2009-10 Ending Balance was $5.81 million
(7.16%)

 Amount
in excess of 5% used to balance Final
Budget
Includes 5% General Reserve
 $1.2M budget cut/new revenue still required

 Final
Budget balanced by eliminating Winter
intersession
REVENUE ADJUSTMENTS
Revenue Adjustments
Category
2009-10 Growth
Tentative
$1,500,000
Final
0
Loss of federal funds
($548,000)
0
-0.38% COLA
2009-10 Apportionment Adjust.
($277,000)
($328,000)
0
0
Part Time Faculty Programs
Non-Resident Tuition
($159,000)
($600,000)
0
0
Blue Shield Rebate
Total Apport. Adjustment
($215,000)
($627,000)
0
0
EXPENDITURE
ADJUSTMENTS
Expenditure Adjustments
Augmentation
Tentative
Step & Column
$838,000
Health Insurance
$297,000
Utilities/Postage/Legal
Final
($300,000)
PERS Retirement
$100,000
Winter Intersession
$225,000
$50,000
State Unemployment Insur.
$236,000
Categorical Support
$380,000
Full Time Faculty
$106,000
“Must Do’ Requests
$170,000
Total Expenditure Adj.
$1,160,000
$942,000
“Must Do” Requests
Augmentation
Tentative
Final
Oracle License
0
$55,000
Other software licenses
0
$75,000
Copier maintenance agree.
0
$ 6,000
Bank Fees
0
$ 6,000
Student Transportation
0
$14,000
Int. Student recruitment
0
$14,000
Total “Must Do”
0
$170,000
Budget Actions Taken
Budget Action
Tentative
Vacant Positions
$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 employee groups
$0.126M
3% pay cut from managers
$0.248M
Total Budget Cuts
$5.741M
Final
$0.126M
$0.918M
$1.044M
2010-11 Budget Summary
Category
Amount
Per Cent
Certificated Salaries**
$35,374,384
43.07%
Classified Salaries
$19,045,834
23.19%
Benefits
$15,925,803
19.39%
$70,346,021
85.65%
Supplies
$620,875
0.75%
Services
$6,525,975
7.95%
$137,061
0.17%
$3,685,000
4.49%
$812,337
0.99%
$82,127,269
100.00%
Total Employee Cost
Equipment
Inter-fund Transfers
Reserves*
Total
*Does not include $4,200,000 General Reserve
**Excludes Winter intersession
RESERVES
2010-11 COLLEGE UNRESTRICTED
GENERAL FUND RESERVES
Reserve
On-Going
General Reserve (5.11%)
Contingency Reserve (0.61%)
Subtotal Mandatory (5.72%)
Senate PFE Grants
One-Time
Total
$4,200,000
$4,200,000
$500,000
$500,000
500,000
$4,200,000
295
$4,700,000
295
Reallocation Reserve
103,037
103,037
Unallocated Ending Balance (2009-10)
209,005
209,005
$4,512,042
$5,012,337
Total Reserves
$500,295
PENDING ISSUES
PENDING BUDGET ACTIONS

Adoption of State Budget
 2.2%
Growth funding
$1.2M Budget Cut Required
 2011 Health Insurance Premium Increase

 10%
increase budgeted
Blue Shield Rebate - $613,000
 2010-11 Collective Bargaining

BUDGET FORECAST
Budget Forecast
2011-12 will be another budget challenge
 College used one time budget solutions

 Use
of reserves to balance budget
 Positions must be left vacant
College must continue to end year with
significant excess reserves over 5%
 College will have to fund its inflationary
cost increases with potentially little new
discretionary revenue.
