1. Board Study Session on Student Services Funding
December 7, 2010

2. 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

3. Cuts to Selected Categoricals

4. 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 the District deficit spent approximately $6.4 million.
Of this amount, $3.5 million is attributed to deficit spending on employee benefits.

5. 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.

6. 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.”

7. Benefit Budgets (continued)

8. Benefit Budgets (continued)

9. Study Session on Student Services Budgets
Questions?