FHDA Board Budget Update - June 6, 2011

Board of Trustees June 6, 2011 Meeting Budget Update: Vice Chancellor Kevin McElroy reported on key state decisions that could affect district funding for 2011-12. Based on best estimates, he said Foothill-De Anza is planning on a 13.7 percent workload reduction in the upcoming fiscal year "with full knowledge that everything is in flux." The workload reduction is due to a combination of expected state budget cuts and revenue loss due to enrollment declines the district has experienced in the current fiscal year.

Vice Chancellor McElroy said the district's stability fund stands at $13.87 million. About $10.7 million of it will be used to help close the district's projected $16.2 million operating deficit for 2011-12, supplemented by carryover dollars from the colleges and Central Services. The remaining stability fund is being reserved for 2012-13.

There is some hope that California will pass a 2011-12 budget on time, he said, but the district may not know its level of state funding until later in the fiscal year. The tentative budget will come to the board for adoption on June 20. The new fiscal year begins July 1.