Sunken Garden Fountain

Finance  & College Operations
Planning & Budget Team

Meeting Notes - February 8, 2013

1)Approve the Joint PBT Notes November 13, 2012

The Notes were approved.


2)Budget Update

Watson recapped the district wide reduction targets using the worst-case scenario (if Prop 30 didn’t pass) and the best case case scenario (if Prop 30 passed).


3)Timeline for Budget Reductions

Lists will be presented to the Board on March 4, 2013

Linda Thor sent out a letter saying that the layoffs will be delayed until June 30, 2013. Using categorical funds to minimize the impacts to staff for as long as possible.

Dan Troy Vice Chancellor of fiscal policy drafted a summary. Please click here to view the document.

Below is a brief summary of the key components for community colleges included in the governor’s budget.
  • No change in student fees.
  • $196.9 million (3.6%) for increased apportionments . Proposed the Board of Governors will determine how the funds will be allocated to districts (e.g., FTES growth/restoration or COLA)
  •  $179 million to buy down the current total of over $800M in past year deferrals
  • $133.2 million in increased General Fund in 2013­14 to offset anticipated redevelopment revenues that are not materializing. ( In 2012­13, the Administration is proposing $47.8 million to offset the estimated redevelopment revenue shortfall, which will likely mean a year-end deficit factor is applied to our apportionment allocation.)
  • $16.9 million to enhance online education efforts in the CCC’s.
  • A five­-year phase in plan to change the census­-based apportionment system to provide a larger apportionment amount to students who are still enrolled at the end of the semester/quarter.
  • Limit state­s upported instruction in community colleges to 90 units. Units beyond the cap would not be state supported, but available at full cost to the student.
  • Require all students seeking a BOG Fee Waiver to complete a Free Application for Federal Student Aid (FAFSA).
  • Shift of the remaining adult education program, including $300 million, from K­-12 schools to community colleges
  • Creation of a $450 million energy efficiency fund for schools and community colleges using funds from Proposition 39 (counts toward Proposition 98 guarantee), with 49.5 million for community college projects.
Some of the key policy proposals such as the census date change and the 90 unit limit have the very real potential to
significantly reduce the apportionment FHDA currently qualifies for depending on how the new rules might actually be
implemented. But the specific details will not be available until the trailer bills (that clarify the budget language) are released at
the beginning of February. Additionally, this is only the first phase in the state budget development process.
  • 90 semester units equal 120 quarter units
  • Enrollment is down 712 FTES. DA is flat for winter. FH is down. Last Summer and Fall both colleges were down. This drop in enrollment could equal about a $3.25m loss in apportionment. The district gets $4565 per FTES
  • We have  2 years  to make up the 712.
  • We had 3 years to  make up 1406 TFES from FY 10/11. Currently we are 712 down.
  • Additional FHDA ongoing costs equal about $1-2M (step/column/benefits/utilities, etc.)
  • No COLA for 4 years really hurts us. Is is most often used to offset annual FHDA expenses and restore B Budgets.
  • District deficit could be between $4-5M.
  • Carry Forward funding will be available.
  • Projecting a solid budget over the next few years.
  • Tax on wealthy is for four years. $250k single $500k married. Prop 30. Can't predict how much money this might raise.
  • May revise will be important
  • It is hoped that the State budget will be passed on time this year.
  • Personnel reductions will go to the Board on March 4, 2013.
  • Effected employees have been notified. Bumping list is being worked on.
  • Doing everything we can to mitigate the impact to employees.
  • Hiring 8 faculty in high-demand departments to maintain FON and to maximize enrollment options.


4)Quick News

Reminder to integrate recommend Technology plan point in decision making

FER PBT - Governance
Building: Administration
Contact: Pippa Gibson
Phone: 408.864.8936

Last Updated: 3/15/13