Presentation on theme: "Sonoma County Junior College District Proposed Budget 2010-11 Presented to the Board of Trustees September 14, 2010."— Presentation transcript:
Sonoma County Junior College District Proposed Budget Presented to the Board of Trustees September 14, 2010
Introductory Comments The State’s economic downturn continues. Recovery is not expected soon. The State is still without a budget for Funding of community colleges is uncertain. The budget being presented is based upon the best information available.
Regarding The Budget Book The Budget is presented in five groupings General Fund (Pages 7-11) Capital Project Funds (Pages 12-15) Other Governmental Funds (Pages 16-22) Proprietary Funds (Pages 23-25) Fiduciary Funds (Pages 26-27) Pages 4-6 show General Fund activity for &
Presentation of the Budget With the exception of the General Fund... revenues of all the “other funds” can only be expended for the specific purpose for which the revenues were received. For , Budgets for these “other funds” are based either upon known revenue and expenditure streams, or on prior year/historical trends.
The General Fund This is the fund under which the primary mission of the District is conducted. It is also the fund where the District has some measure of discretion as to how the resources will be expended. And... it is also the one fund that is most impacted by the State’s budgetary process.
The General Fund The General Fund is comprised of two subfunds: The Restricted Subfund - ( $14.4 Million in Revenues & Transfers ) As the name would imply, Restricted Subfund revenues can only be used to support the program for which the monies were received. Such as... EOP&S, DSP&S, Career Technical Education, etc. The Unrestricted Subfund - ( $103.2 Million in Revenues & Transfers )
The Governor’s Budget All of the reductions roll forward: No COLA, No Growth, 3.4% Workload Reduction, Severe Reductions to Categorical Programs On the Positive Side: % Growth Funding On the Negative Side: % COLA On the Cost-Neutral Side: $20M to go into the Career Technical Education Program... $20M to come out of the EOP&S and P-T Faculty Compensation Programs... ($10M each).
Revenue Assumptions As seen last year... Proposed budget-items can change during the State’s budgetary process... (remember the % Growth Funds?) With regards to major revenue items in We do expect to receive a reduction for the negative COLA. We do not expect any Growth Funding. We do expect Property Tax Shortfalls (deficit funding). We do not expect backfill for the one-time 09/10 ARRA funds. We do expect the Governor’s Categorical funding transfer.
Expenditure Assumptions Prior to negotiations … initial Expenditure projections assumed... Restoration of all salary schedules to the levels Increased Operational Expenditures And, contractually obligated increases for salaries and benefits, which included: -Rank 10 -Step, Column and Longevity Adjustments -Health and Dental Insurance Premium Increases -Increases in the rates for PERS and Unemployment Insurance.
Net Costs over Revenues Based on the assumed changes in revenues and expenditures … And, prior to negotiations … The District was facing a $6.2 Million budgetary shortfall.
Net Costs over Revenues To bridge this gap, the District asked each employee-group for a specific dollar- concession that would: 1)Cover their group’s proportional share of the shortfall, and 2)Cover those cost-increases that pertained to just their group. The District was willing to negotiate any number of ways to achieve the dollar-figure requested.
Net Costs over Revenues All told the concessions that were agreed to amounted to $5.5 Million... (and these cost-reductions were built into the budget). Added to another $ 0.2 Million in other budget reductions … The remainder shortfall is $0.5 Million... ( which results in the reduction seen to ending fund balance). It should be noted the budget built for added $0.7 Million to ending fund balance... in anticipation that would be a worse budgetary year.
Components of Unrestricted Revenue General Apportionment * $ 92,451, % Non-Resident & Foreign Fees * 950, % Lottery * 2,861, % Other Federal & State Revenues 1,239, % Local Revenues & Transfers 5,736, % ________________________ ______________ Total$103,238, % * Revenue directly tied to enrollment / reported FTES = 93.3%
Components of Unrestricted Expenses Salaries & benefits $ 89,030, % Supplies 2,659, % Services 9,016, % Capital Outlay 303, % Transfers & Other Outgo 2,747, % ________________________ ______________ Total$103,758, % The Ending Fund Balance of $8,620,167 represents a “total” General Fund reserve of 7.3%, with only a 0.6% unreserved/undesignated amount above the required 5% minimum.
Strategic Challenge The State’s economic situation is not expected to improve anytime soon. Current concern is that the U.S. might be entering into a double-dip recession... which could manifest into mid-year cuts. Should recovery be years away, even the current level of cost containment (which is reflected in this year’s budget) will be not be sufficient to operate effectively over multiple years.
Strategic Challenge Until the State’s fiscal health improves, the District will need to focus on those things within its control, to maximize revenues, and hold down costs. To this end, in January, the District embarked on a process of “re-engineering” with the purpose of: Making more efficient use of personnel and resources while maintaining services to students and the community.
Closing Remarks is another tight budget year. The State’s economic picture is not expected to be better in in fact, it could be even worse. Going into , the District can expect increases in the area of utilities, insurance and contractual obligations. To position itself as favorably as possible, the District needs to: maintain service levels minimize current year costs, and strive for continued efficiency and productivity.