Transcript Prepared by Edralin J. Maduli Current Year Budget Adopted budget balanced  Mid-year “triggers” covered 

Prepared by Edralin J. Maduli
Current Year Budget
Adopted budget balanced
 Mid-year “triggers” covered

2011-12 Mid-Year Budget Actions

Tier 1 implemented
 $30 million reduction, but not backfilled
 $437,917 reduction to District (on-going)

Tier 2 implemented
 Additional $72 million workload reduction
 $1,122,555 reduction to District (on-going)
2011-12 Deficit Factor

January 13th State Budget Workshop
 State Chancellor's Office announced
anticipated additional enrollment fee shortfall
of $100 million

P1 Report released February 16th
 Enrollment fee shortfall: $107 million
 Property tax shortfall: $41 million

League aggressively seeking a backfill
2012-13 State Budget
Governor releases State Budget on
January 5, 2012
 $9.2 billion shortfall ($4.1 billion from
2011-12)
 Close the gap with budget cuts and new
revenues

Governor’s Tax Proposal
November 6th ballot
 Increase sales tax by 0.5% from
January 1, 2013 to December 31, 2016
 Increase personal income taxes on
higher income earners from 2012 to
2016
 Tax increase would generate $6.9 billion
in 2012-13

Community College Budget

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
$218.3 million to “buy back” a portion of
$961 million deferral
$12.5 million block grant for State
reimbursable mandates
No COLA (estimated to be 3.17%)
No enrollment growth funding
Includes apportionment reduction of $146.9
million to balance an identical increase in
property taxes
Consolidate categorical programs into one
block grant of $411.6 million
2012-2013 Triggers

What happens if Governor’s Tax
Initiative fails
 Budget augmentations go away
 Additionally, $264 million apportionment cut
(5.56% reduction)

Impact to the District
 Additional $4 million workload reduction
(about 900 FTES)
District Impact
Planning for 2012-13 is difficult and
challenging.
 Unknowns and risks.

District Budget Development
$6 million shortfall without trigger
implementation
 Additional $4 million shortfall if tax
proposal fails

Tentative Budget Development
without Trigger

Total anticipated shortfall -- $6 million
 Starting Point
○ $4 million carryover from 2011-12
 Additional expenditures for 2012-13
○ $1 million (Step/Column, ACE PG&D, PERS)
 2011-12 Mid-year reduction
○ $ 1 million
Budget Reduction Strategies

Land Corporation funding support
 $1.5 million

Bargaining concessions
 To be determined

District/College budget reduction
 $3 million
What happens if Governor’s
proposal fails
Additional $4 million shortfall for District
 Budget strategy to mitigate shortfall

 Land Corporation funding support of $2.9
million (one-time)
 Associate faculty funding reduction -- $1.1
million savings (on-going)
Planning for 2013-14 District
Budget
If Governor’s tax initiative passes,
District’s budget will be balanced.
 If Governor’s tax initiative fails, District
will need to plan for at least a $2.5
million budget reduction.

District/College Budget
Reduction Plan for FY 2012-13
District Services: $540,000
 Mission College: $1,156,200
 West Valley College: $1,303,800

District Services Budget Reduction
Plan

Savings from vacant positions (4.5 FTE)

Anticipated layoff (1.0 FTE)

Operating budget reduction
Mission College Budget
Reduction Plan

Areas where reductions were made:
 Salary savings:
 College reorganization:
 Line item budget cuts:

Total Reduction:
$897,811
$167,379
$91,010
$1,156,200
WVC’s Goals for the Budget
Reduction Plan

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Meet the WVC budget reduction target of
$1.3M
Ensure the college’s long-term fiscal stability
Align shrinking fiscal resources with
expenditures
Deploy limited resources to high need areas
Limit impact to the instructional program to the
extent possible
Align programs and services to address high
demand areas
Align programs and services to meet the
state’s priorities for community colleges
WVC’s Budget Reduction Plan:
Seven Facets

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
Savings from vacant positions
Shifting position expenses to alternate
funding sources
Reduction/elimination of positions
New position
Reclassifications due to reorganization of
essential functions and duties
Reassignment of existing staff to high-need
areas
Operations of CDC
Statutory Requirements

Full-time Faculty Obligation
 Fall 2012 > 68.23%
 Fall 2011 68.23%

50 % Law
 2011-12 > 50.0%
 2010-11 52.77%