Governor’s January Budget

 “Best Case Scenario” Budget Package  Entire package assumes voters will approve a $12 billion tax package (measure on June ballot)  Five year extension of temporary taxes:  Personal Income Tax    Dependent Care Exemption Sales & Use Tax Vehicle License Fee

Governor’s January Budget

 Overall, two-year budget shortfall is projected at $25.4 billion  $8.2 billion for 2010-11  $17.2 billion for 2011-12  Total shortfall could grow by additional $1.2 billion (for a total of $26.6 billion) if sale of state-owned real estate does not occur.

 Proposal to address shortfall:  $12.5 billion in spending reductions    $12 billion in revenue extensions and modifications $1.9 billion in “other solutions” Provides $1 billion reserve

Governor’s January Budget

 Major proposed reductions include:  $1.7 billion to Medi-Cal  $1.5 billion to CalWorks  $750 million to Department of Developmental Services  $500 million to University of California  $500 million to Cal State University  $308 million for 10% pay reduction for State employees not covered under collective bargaining agreements  $200 million through various actions including reorganizations, consolidations, and other efficiencies

Community Colleges

 No mid-year cuts (2010-11)  $400 million cut for “Apportionment Reductions and Reforms” – Census date reforms  Represents a 7% funding reduction  Student fee increase of $10 per credit unit  From $26 to $36 … 38% increase  Expected to generate $110 million in revenues  1.9% Enrollment Growth (funded by the $110 million generated from student fee increase)  22,700 FTES

Community Colleges

 Additional $129 million deferral, for a total of $961 million  No further cuts to categorical programs  Categorical flexibility provisions extended through 2014-15  Full funding for Cal Grant program

Budget Uncertainties

 Voters Approving Tax Extensions  Transfer of Redevelopment Funds  Sale of Government Building  Netting Growth with Cuts in CC Budget  Removing Census Date Language  Course Repeatability Issues  Workload Measure Reductions

THE LIST COULD GO ON AND ON….

NOCCCD Ongoing Budget

PY Operating Deficit $ (2,348,619) Anticipated Changes: 10% Benefits Increase PERS Rate Increase (10.7% to 11.2%) (765,880) (263,553) Step and Column Increases ( 1,000,000) Total Operational Reductions Needed $ (4,378,052) Note: The PY Ongoing Operating Deficit excludes a contribution to the Retiree Benefit Fund ($1.5 million) and the Self Insurance Fund ($1.2 million)

Impact to NOCCCD

Budget Cuts $400 million $600 million $900 million Budget Reduction $10 Student Fee Increase Net Reduction Operational Reductions Total Cuts

($10,738,000) 2,953,000 ($7,785,000) $ (16,644,000) $ (24,161,000) 2,953,000 ($13,691,000) 2,953,000 ($21,208,000) (4,378,052) (4,378,052) (4,378,052) ($12,163,052) ($18,069,052) ($25,586,052)

Impact on FTES

Workload Measure Reductions: Credit FTES @ $1,286 Non-Credit FTES @ $863 CDCP FTES @ $863 FTES $7,785,000 % $ FTES $13,691,000 % $ FTES % $21,208,000 $ 1,705 5.15% $ 2,192,630 2,999 9.06% $ 3,856,714 4,646 14.03% $ 5,974,756 2,836 8.57% $ 2,447,468 4,988 15.06% $ 4,304,644 7,726 23.33% $ 6,667,538 2,409 7.28% $ 2,078,967 4,236 12.79% $ 3,655,668 6,562 19.82% $ 5,663,006 FTES Over Cap: 3,705 Credit @ $1,286 $ 4,764,630 Non-Credit @ $863 $ 3,197,415

Full-Time Faculty Obligation

Calculated Obligation – Fall 2010 Compliance Obligation 559.8

529.8

Diff 30 Filled Positions Current Recruitments

Calculated Obligation Workload Reduction Revised Obligation $400 m 559.8

5.15% 530.97

507 Cushion 24 1

$600 m $900 m 559.8

9.06% 509.08

559.8

14.03% 481.26

Available Resources

2010-11 One-Time

Board Discretionary Contingency Growth Funds Negative COLA Budgeted Mandated Cost Revenue Deficit ($2,500,000 - $1,500,000) Faculty Vacancies One-Time Funds $ 2,126,834 3,500,000 573,000 673,000 1,000,000 1,000,000 $ 8,872,834

Available Resources

2011-12 On-going Funds

On-going Growth Negative COLA Budgeted On-going Dollars that can be used to offset cuts $ 3,500,000 573,000 $ 4,073,000 Budgeted Deficit $ 2,500,000

Budget Shortfall

$400 m $600 m Target Cuts On-going Dollars Avail.

Budgeted Deficit Extended Day Reductions (Over Cap FTES) Workload Measure Reduction Subtotal Faculty Vacancies Classified Vacancies $900 m $ 12,163,052 (4,073,000) $ 18,069,052 (4,073,000) $ 25,586,052 (4,073,000) (2,500,000) (2,500,000) (2,500,000) (3,500,000) (3,500,000) (3,500,000) (2,000,000) (4,000,000) $ 90,052 $ 3,996,052 (6,000,000) $ 9,513,052 (1,500,000) (2,880,000) (2,000,000) (2,000,000)

Other Things to Consider

 Capping Medical Benefits  Salary Rollbacks:  FT Positions (1%) - $1,024,049  PT Faculty (1%) - $218,442  Furloughs  1 day/month for 12 months – 5%  Increase Faculty Loads  Layoffs  Eliminating Release Time  Eliminating Summer School and the related impacts  Athletic Programs

Other NOCCCD Impacts

 Additional Deferrals – Estimated at $22 million  Many uncertainties still remain  Could be costly to districts  Redevelopment Changes – Proposal is to phase-out RDA’s over time  Approximately 59% of NOCCCD projected redevelopment payment revenues could be “at-risk”  Hearing that most, if not all, of the proposal will not be implemented