SOCCCD TENTATIVE BUDGET BOARD OF TRUSTEES MEETING JUNE 24, 2008

Tentative Budget Assumptions Net SB361 Revenue Increase of $1.3 Million Net SB361 Revenue Increase of $1.3 Million ($0.4M) Decrease to Base Funding $0.0M Increase Based on 0.00% SB361 COLA $1.7M Increase Based on 1.44% Growth estimate $17.1M GF Unrestricted Ending Balance carried forward from $17.1M GF Unrestricted Ending Balance carried forward from June 24, 20082

Assumptions Continued 7.5% Reserve for Economic Uncertainties 7.5% Reserve for Economic Uncertainties 8.0% Estimated Increase for Health & Welfare Benefits and Property & Liability coverage 8.0% Estimated Increase for Health & Welfare Benefits and Property & Liability coverage Salary Increases: Salary Increases: CSEA and Faculty – to be determined by negotiations June 24, 20083

SOCCCD: Overview of Fund Structure Tentative Budge t General Fund (GF): $212.1 Million, Including: General Fund (GF): $212.1 Million, Including: Unrestricted GF: $197.1 Million Restricted GF: $ 15.0 Million Other Funds*: $164.9 Million Other Funds*: $164.9 Million Total All Funds: $377.0 Million Total All Funds: $377.0 Million * Other Funds Include: Community Education, Child Development, Capital Outlay (Including Basic Aid Projects), Debt Service, Self-Insurance, & Retiree Benefit Funds June 24, 20084

COPS Debt Retirement 1996 Issue = $18.9M 1996 Issue = $18.9M The District retired the 1996 COP issue on The District retired the 1996 COP issue on June 1, 2008 June 24, 20085

OPEB (Retiree Benefits Liability) Actuarial Study performed in May 2006 Actuarial Study performed in May 2006 Total obligation $80.2M Unfunded Liability $58.3M Contribution Obligation $5.4M Current Year Service = $3.5M Past Service = $1.9M Funded with Basic Aid Additional contributions $5.0M (formerly used to retire COPS debt) Another Actuarial Study to be completed this summer Another Actuarial Study to be completed this summer The District has implemented the GASB 45 requirement The District has implemented the GASB 45 requirement An irrevocable trust has been established with Benefit Trust Company An irrevocable trust has been established with Benefit Trust Company June 24, 20086

“Basic Aid” Receipts $ 5,676, $ 9,192, $13,719, $18,419, $27,356, $40,162, $46,899, $52,896, * **$43,490, * $44,882,034 * Estimated (Exact Amounts Will not Be Available Until the End of Each Fiscal Year). Per OC Tax Assessor, Secured Property Taxes were estimated to increase 7% in , and 2% thereafter. An 18% decline in Supplemental Taxes is projected for ** Decline due to increased SB361 revenue resulting from enrollment growth June 24, 20087

Basic Aid Funds Included In Budget $10.4M OPEB (Retiree Benefits) Contribution $10.4M OPEB (Retiree Benefits) Contribution $ 2.5M ATEP Operating Budget $ 2.5M ATEP Operating Budget $ 1.3M Additional 1% Contingency $ 1.3M Additional 1% Contingency $ 0.9M General Election Expense $ 0.9M General Election Expense $30K for Legislative Advocacy for Basic Aid issues $30K for Legislative Advocacy for Basic Aid issues $29.8M Funding for Future Capital Projects $29.8M Funding for Future Capital Projects June 24, 20088