1. 2008-2009/2009-2010 Budget Update Town Hall Meeting June 10, 2009
Jeanine Hawk - Vice-President, Business & Administration
Prepared In Collaboration with Fiscal Services Staff

2. Town Hall Meeting June 10, 2009 May Revise Implications for 2008-09
Unrestricted General Fund
Property tax shortfall: $803,250
General apportionment shortfall: -$790,000
Good News (is there any??)
Reduction is $1,593,250
Deficit Factor Budgeted is $1,420,257
COLA 0%
RESTORATION %
GROWTH %
DEFICIT FACTOR %
Total Reduction=1,593,250

3. Town Hall Meeting June 10, 2009 May Revise Implications for 2008-09
Restricted General Fund – Categoricals (-14.7%)
Basic Skills: $94,088
Cooperative Agencies Resources for Education (CARE): $14,707
Counseling, Placement and Assessment (Matriculation-Credit -$211,033
Counseling, Placement and Assessment (Matriculation-Noncredit): $6,955
Disabled Students Programs and Services: $231,136
Extended Opportunities Programs and Services: $206,316
Instructional Equipment: $35,416
Part-time Faculty Compensation: $146,992
Scheduled Maintenance: $35,420
Reduction is $982,062
Amount Budgeted = 0

4. Town Hall Meeting June 10, 2009 May Revise Implications for 2009-10
Unrestricted General Fund
General apportionment shortfall
Physical education cut
Property tax shortfall
NO GROWTH
Total Reduction is $5, 213,854
Deficit Factor Budgeted at Tentative is $1,433,108

5. Town Hall Meeting June 10, 2009 May Revise Implications for 2009-10
Restricted General Fund – Categorical Reduction-53% (was -58.8%)
Basic Skills: $333,102
Cooperative Agencies Resources for Education (CARE): -$52,066
Counseling, Placement and Assessment (Matriculation-Credit): -$747,126
Counseling, Placement and Assessment (Matriculation-Noncredit): -$24,624
Disabled Students Programs and Services: -$818,296
Extended Opportunities Programs and Services: -$730,425
Instructional Equipment: $125,386
Part-time Faculty Compensation: $520,399
Scheduled Maintenance: $125,397
Total Reduction is $3,476,821

6. Town Hall Meeting June 10, 2009
Possible Savings Towards a Balanced Budget:
Reduce Schedule to Funded FTES $ 2,025,839
Virtual Hiring Freeze-24 Positions mil
Reduce Contracts/Services Additional 5% ,105
Maximize Categorical Carry-Over ,000
Unallocated Basic Skills ,000
Reduce Categorical Budgets by 30% ,500,000
Backfill IE and Scheduled Maintenance ,000
Total Potential Savings $5.8 – 8.3 mil.

7. Town Hall Meeting June 10, 2009 So What’s the Big Picture?? AND
Ongoing:
Structural Deficit $ 3,048,787
State Reductions
Physical Education ,100,000
Categoricals (53.3%) ,476,821
Total Ongoing Reductions Needed $ 8,625,608
AND
One-Time:
Deficit Factor & Tax Shortfall $ 1,853,739
Categoricals (14.7%) ,063
Total One-Time Reductions Needed $ 2,835,802
One-Time Adjustments
Property Tax Backfill – 1,432,267
One-Time Off Schedule/retro Pay – (493,912)

8. Town Hall Meeting June 10, 2009 One-Time Adjustments
EFFECT OF MAY REVISE TO PROPOSED ADOPTED BUDGET -2nd Revision
PROPOSED BUDGET with and REDUCTIONS
ACCOUNTS
PROJECTED FUND BALANCE w/o REDUCTIONS
PROJECTED FUND BALANCE with REDUCTIONS
TENTATIVE BUDGET
PROPOSED ADOPTED BUDGET w/o REDUCTIONS
PROPOSED ADOPTED BUDGET with REDUCTIONS
TOTAL REVENUE AND TRANSFERS (LESS ONE-TIME FUNDING)
133,010,302
136,518,708
TOTAL EXPENDITURES AND TRANSFERS (LESS ONE TIME EXPENDITURE)
(137,313,739)
(138,741,231)
VACANT POSITIONS WITH PAYROLL RELATED BENEFITS*
(1,652,526)
(826,264)
VACANT SAVINGS WITH PAYROLL RELATED BENEFITS*
1,239,395 -
OPERATING SURPLUS/(DEFICIT)
(4,716,568)
(3,048,787)
ONE-TIME FUNDING/(EXPENDITURES):
PRIOR YEAR APPORTIONMENT ADJ - PROPERTY TAX BACKFILL
1,432,267
ONE-TIME OFF SCHEDULE/RETRO PAY WITH RELATED BENEFITS
(483,912)
OPERATING SURPLUS/(DEFICIT) WITH ONE-TIME ITEMS
(3,768,213)
MAY REVISE
(172,993)
(3,780,746)
PROPOSED REDUCTIONS
3,326,208
BEGINNING BALANCE
18,797,976
12,829,763
11,099,708
11,664,766
6,884,424
ENDING FUND BALANCE PRIOR TO DESIGNATED RESERVES
14,856,770
9,780,976
4,270,175
8,161,441
3,381,099
FUND BALANCE RATIO TO TTL EXPENDITURES & TRANSFERS **
10.75%
7.01%
3.06%
5.99%
2.48%
MAY REVISE - CATEGORICALS
(982,063)
(3,476,821)
PROPOSED REDUCTION - CATEGORICALS
565,058
2,199,804
FUND BLANCE REVISE- CATEGORICALS
(574,999)
ENDING FUND BALANCE PRIOR TO DESIGNATED RESERVES WITH MAY REVISE
13,299,7087
13,864,766
793,354
2,104,082
FUND BALANCE RATIO TO TTL EXPENDITURES & TRANSFERS WITH MAY REVISE**
9.58%
10.03%
0.57%
5.14%
1.57%
DESIGNATED RESERVES FOR:
GLOBAL EDUCATION INITIATIVE 09-10
(200,000)
UNFUNDED RETIREE BENEFITS
(2,000,000)
UNDESIGNATED ENDING FUND BALANCE
UNDESIGNATED ENDING FUND BALANCE RATIO
7.87%
8.31%
One-Time Adjustments
Property Tax Backfill – 1,432,267
One-Time Off Schedule/retro Pay – (493,912)

9. Fund Balance Actuals and Projected
Town Hall Meeting June 10, 2009
Fund Balance Actuals and Projected
8.31%
7.87%
5.14%
5.00%
1.57%
.57%

10. Town Hall Meeting June 10, 2009
Budget Objectives Adopted by the BOT – April, 2007
  Protect the College’s ongoing operation by maintaining a fund balance of 5% or more going forward from 2006/07.
Going forward from the 2007/08 budget establish benchmarks that will help guide budget decisions for the College.
Develop a budget plan that brings available ongoing revenues and expenditures into balance effective with the adoption budget for 2009/10.
Proposed New Objective:
Protect the College’s ongoing operation, including categorical programs, by maintaining a fund balance of 5% or more thru 2010/11.

11. Town Hall Meeting June 10, 2009
Budget Principles Adopted by the BOT – April, 2007
Maintain course offerings that are responsive to current student needs but are also fiscally sound based on established measurements such as: WSCH/FTEF.
Establish and maintain an acceptable cost effective level of learning resources and student support services based on comparative performance data as determined by the College.
Maintain employment for permanent personnel and avoid layoffs.
To the degree that they are the basis for revenue projections ensure that enrollment growth estimates are realistic and can be achieved within the fiscal limitations of the College.
Where possible and practicable, use staff attrition and/or existing vacancies as one means of reaching budget targets.
Expedite changes that may produce lower costs over time such as energy saving retrofits, alternative energy sources, reduction or consolidation of facility usage, etc.
Continue to seek external sources of funding, such as grants, to support the College’s core missions, but avoid those with matching, management, or reporting requirements that demand significant college resources.

12. Town Hall Meeting June 10, 2009
Budget Principles Adopted by the BOT – April, 2007 – continued
Establish priorities for Unrestricted General Fund support of activities or programs outside of the core mission of the College.
Develop a budget process that manages the growth of expenditures based on: analysis of program need (rather than historical allocations); realistic expectations of revenues; updated market information; and performance measurements.
In light of the current financial circumstance review ongoing and future planning initiatives in terms of their long term advantages to the College in meeting public demand for services, improving student success outcomes, or to provide new revenues. Modify, defer, or abandon as appropriate those for which the costs outweigh their potential for furthering the College’s core missions and goals.
Make effective use of the College’s established planning structures and processes to recommend specific actions to reach the stated objectives, following the principles listed above. The College President shall clarify how these recommendations will be evaluated and the timelines necessary to arrive at a set of final recommendations for any particular budget cycle.
Programs will not be eliminated or reduced without careful review.
Benchmarks will be used as a guide to inform the decision-making process.

13. Town Hall Meeting June 10, 2009 Next Steps: Principles and Process
Department/Program Dialogue
Budget Committee & DPAC Recommend Ways to Reach Target
BOT Workshop June 23
Begin to Implement Solutions – July 1
Continue to Advocate with Legislators
Provide Quality Teaching, Learning and Program Services to over 21,000 FTES
Wait for the Final Budget – BOT Adopt August/September