San Joaquin Delta College Community College District May Revise - Governor’s Budget Raquel Puentes-Griffith, Controller Board of Trustees Meeting May 21, 2013

Overview State Budget Timeline May Revise Highlights District Impact Closing Key Points - Other Considerations

Summary Timeline - State Budget Process  January 10: Governor’s Budget  Late Jan - Feb: LAO Analysis  March – May: Legislative Subcommittees  May 15: May Revise  June 15: Legislature Budget Deadline  Mid – Late Jun: Governor Signs Budget

Governor’s May Revise Budget Highlights Continuing theme of reinvesting in education…. CCC System funding $177 million; from $197 million Split between FTES restoration and COLA Further buy down of deferral to $557.5 million Policy Proposals Withdrawn Adult Education Census date to completion based funding 90-unit cap Issues still to be sorted out in the coming month $50 million in Student Success – how to allocate/restricted? $51 million in energy projects Prop 39 funding Online education efforts

District Impact The proposed $177 million system wide increase in ongoing unrestricted general fund revenue translates to… Approximately $1.2 million in restoration of 266 FTES % Approximately $1.2 million for inflationary COLA % Restoration will increase student access – including summer session Fund new faculty positions, part-time budget and indirect instructional support COLA only offsets less than half of the District's $2.3 million in annual increases in inflationary costs Barely covers the $1.1 million for the 11.2% health benefits increase for Results in balanced budget

Three Year Budget Planning Model – Key Drivers and Revenue

Three Year Budget Planning Model - Expenditures

Three Year Budget Planning Model – Operating Results and Fund Balance

Key Closing Points and Other Considerations  May Revise subject to change – July update  Student Success funding – allocation/restricted?  Tentative Budget will address:  Increased student access  Operational stability funding by institutional priorities  Capital, deferred maintenance, and equipment backlog  OPEB and Passport obligation  Monitor out years of and  Model shows a return to deficit spending  Will future state revenue levels be sufficient to offset inflationary costs and to generate needed FTES?  When will the state’s economic recovery show substantial and sustainable improvement?