Board Study Session on Student Services Funding December 7, 2010

Fiscal Year 2009-10 State addressing a $24 billion budget deficit $157 million in cuts to general apportionment $106 million local property tax shortfall $276 million in cuts to categorical programs $703 million in cash deferrals

Cuts to Selected Categoricals

DISTRICT BUDGET – FUND BALANCE Changes in Unrestricted Balances Year Beg Balance Revenue & Trans. Expend. & Trans. Balance   2008 15,481,521 114,266,043 115,840,026 13,907,538 actual 2009 120,640,551 122,089,271 12,458,818 2010 116,707,385 123,128,200 6,038,003 estimate 2011 114,996,940 114,675,587 6,359,356 budget During fiscal year 2009-10 the District deficit spent approximately $6.4 million. Of this amount, $3.5 million is attributed to deficit spending on employee benefits.

Benefit Budget Past practice was to use average benefit rates of: 34.34% for academic employees 41.72% for classified employees These rates were intended to cover all required employer statutory benefits as well as negotiated health and welfare benefits. In hindsight, practice did not adequately provide for sufficient budget to pay for 100% of employer benefits.

Benefit Budgets (continued) Beginning 7/01/10 benefits are budgeted by benefit cost and per position. For every employer paid benefit, a unique account code has been created and the annual cost budgeted for by program. Accounting Advisory – GASB 45 – Accounting for OPEB “OPEB costs for active eligible employees are a direct cost to programs and grants where employees are currently charged.”

Benefit Budgets (continued)

Benefit Budgets (continued)

Study Session on Student Services Budgets Questions?