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Nov 20, 2012 Mission College Presented by: Rick Bennett, VP Admin Services.

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Presentation on theme: "Nov 20, 2012 Mission College Presented by: Rick Bennett, VP Admin Services."— Presentation transcript:

1 Nov 20, 2012 Mission College Presented by: Rick Bennett, VP Admin Services

2  Dec 2007 Great Recession  Most severe economic decline-Great Depression  Downgraded US debt  Officially over July 2009-hard times keep coming  Economy slow to recovery- 1st Qtr. Growth  2010 3.9% 2011 0.4% 2012 1.9%  Public sector continues to shrink  Economy needs private sector employment to rebound; tax revenues will lag Rocky Ground--National Perspective

3  Assumes approval of Nov 6 Prop 30 tax initiative to raise new revenues  0.25% increase in Sales tax for 4 years  Increase in personal income tax for wage earnings in excess of $250K for 7 years  Total State Budget will still be $11B below 2007-08 State 2012/13 Budget…

4  SB 361 still in place…for now  Hold harmless from shortages in Redevelopment Authority (RDA) Revenues  Meet FON and 50% Law  Funding for 310 FTEF  Cash flow is a trickle in 2012/13 FY  No COLA (last COLA was 2007-8)  No policy changes to categorical programs  Mandate Block Grant ($28 per FTES in lieu of claims) 2012/13 Budget Assumptions

5  Part of a 3 year recovery plan from 11/12 cuts  Shortfall--revenues $6M less than Budget  Ongoing 3 year recovery plan  $3M reduction plan  $1.5M new revenues Land Corp  Reductions in Associate Faculty  Mission’s component is $600,000.  3.5% salary concessions and furloughs from all MC staff—Faculty in negotiations District 2012/13 budget

6  Ca. Community College System  Gains $50 M to restore portion of FTES lost in last 4 years  $160M in deferral repayments from the state  Decrease obligation from $961M to $801M  District Workload Increases 141 FTES ($640K)  Mission 65 FTES With Prop 30 Passage

7 Tax Passes Minimum$2.5M shortfall earlier cuts $1.5M to restore bargaining concession $1.0M for salary, benefits & operational cost increases 2013/14 Shortfall Planning Still in the woods even with Prop 30 Recovery Plan $1.0 Budget Reductions $1.5M Continuing WVM LandCorp Funding

8  Snakes in the Grass  Redevelopment Authority (RDA) shortfall  $340M owed to the System  Potential delays and litigation  Potential 2013 mid year cuts if state doesn’t increase tax revenues Risky Budget for 12/13 and 13/14

9 LAO report of 11/12/12 showed decrease in State’s budget deficit from $13B to $1.9B Potential relief for community colleges in 13/14 and 14/15 when combined with Prop 30 revenues Positive News

10 Prop 39 passed by 60% margin Tax Treatment for Multistate Businesses. Clean Energy and Energy Efficiency Funding. Education. Potential additional State Revenue for CCC’s May mean $25-50m per year for the CCC system over 4 years and $100m or more per year after 4 years

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