Sunken Garden Fountain

Finance  & College Operations
Planning & Budget Team

Meeting Notes - January 19, 2018

 

Approve Notes from December 8, 2017

The notes were approved.

 

2018/19 Governor's Budget Update
2018/19 State Budget Chart Major Augmentations

Cheu shared that the latest news on the Governor's 18/19 Budget was posted to the website for review. In the final state budget of his tenure, the Governor sent a clear message to colleges that he expects significant changes in both the delivery and the state’s financial support of education with increased attention to student outcomes. The 2018-19 budget acknowledges the need to prepare Californians for economic instability and uncertainty through timely access to meaningful degrees and credentials.

Among other proposals, Governor Brown makes two significant and notable expenditures in the 2018-19 budget: 1) a new fully online community college targeting working Californians with no degree or credential, and 2) a new outcomes-focused funding formula.

There is very little detail on how the Governor’s proposal will be implemented as this is yet to determined by the analysts. This uncertainly makes forecasting very problematic

 

Budget Reduction Proposals

Cheu presented the FCO_PBT_BudgetReductions_Jan2018 figures. Information is based on the 2018/19 Governor’s proposed budget. At the budget workshop in Sacramento the presenters were not able to detail how the budget funding formula would work.  Cheu highlighted that, therefore, these numbers are in fluctuation as there are many factors that are yet to be determined at the State level. E.g. COLA and new funding formula.

California Community College fully online community college is not tied to the OEI grant. The Chancellor’s Office stated that it would not take away students from traditional community colleges as they are targeting students who work full-time and have family obligations. Most Community College representatives at the budget workshop did not agree with this premise.

Scheduled maintenance funding is historically where money is taken from when other funding projects take precedent.

Reminder that De Anza’s share of the budget reduction is 50% ($5M) of the districtwide $10M target. The College's final budget reduction plan must be in place by April 2018. Finance & College Operations portion is $450K over three years.

The VP1 budget at 12/31/17 slide reflected that Finance & College Operations had a $225K ending fund balance but this was augmented by one-time money from the district.

Proposal 1) Custodians currently provide services for facilities rentals for which costs are not recouped.  Proving a steadily increasing income in the facilities rental account would mean that it maybe possible to fund two additional custodians – on top of the two mentioned in the presentation - from this account.

Proposal 2) Allocate a portion of AVPCO salary to self funded areas that report directly to this position.

Proposal 3)  Move VTA SmartPass from general fund to self supporting fund and move the salary cost with it.

Summary of these three proposed reductions gives a saving of $225K. This leaves another $225K to determine.

During the discussion on how to identify further cuts the following points were made. College Operations division are doing an in depth analysis of the services provided as relates to where the staffing costs are being charged. Historically College supported events will also be analyzed. Print Shop is self funded and has been barely breaking even over the last few years. The retirement of the Print Shop manager has allowed for this position to be eliminated, which has helped their bottom line. The Custodial department is likely to receive retirements/resignations over the next two years, which would mitigate having to layoff staff in filled positions. There is a vacant position in the cashiering area. Cross training staff for coverage of laid-off duties will be scrutinized by the Unions and HR to ensure it is in accordance with staffing contracts. Classification study may also impact the A budget costs although this project has no budget identified to cover any potential changes.

The team approved the proposals as presented.

Grey will report back on the results of the College Operations division meeting at the February 23rd meeting.

 

Quick News

None.

Present: Cheu, Fritz, Gerard, Gore, Grey, Smith, Varela. Notes: Gibson.

 

 

 



FER PBT - Governance
Building: Administration
Contact: Pippa Gibson
Phone: 408.864.8936
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Last Updated: 1/22/18