1. Mt. San Jacinto Community College Board of Trustees Meeting January 19, 2012

2. Presentation Topics  2011-2012 Budget Update  Governor’s January Budget Proposal  Potential Impact to: Higher Education California Community Colleges Mt. San Jacinto College Board of Trustees—January 19, 2012 *Budget Information provided by the Community College League of California & the Chancellor’s Office during the Budget Webinar on January 11, 2012

3. Budget Update Budget Update 2011-2012 Budget At Budget Enactment: $400 million ongoing general fund cut Fee increase to $36 per unit effective Fall 2011 January Mid-Year Actions Additional Cuts totaling $102 million Fee increase to $46, effective Summer 2012 Effective ongoing cut of $385 million Board of Trustees—January 19, 2012

4. Threats: More students applying for Board of Governors fee waivers, leading to lower fee revenues Governor proposes cutting $146.9 million in general fund apportionments, with expected increased property taxes from the end of redevelopment Deficit coefficient due to property tax shortfalls Board of Trustees—January 19, 2012 Budget Update Budget Update 2011-2012 Budget

5. Board of Trustees—January 19, 2012 Budget Update Budget Update 2011-2012 Budget “Trigger” Cuts 2011-12 Adopted Budget built on this assumption! Tier 2 Trigger Pulled December 2011 Additional $700K reduction in apportionment revenue Equivalent to 150 FTES

6. Board of Trustees—January 19, 2012 Budget Update Budget Update 2012-2013 Budget

7. Board of Trustees—January 19, 2012 Budget Update Budget Update 2012-2013 Budget

8. Governor plans to collect signatures for an initiative to temporarily increase taxes: November 6, 2012 ballot Simple majority required Raises sales tax by 0.5% from January 1, 2013 through December 31, 2016 Raises personal income taxes on individuals > $250,000 from 2012 through 2016 tax years Board of Trustees—January 19, 2012 Budget Update Budget Update 2012-2013 Budget

9. Board of Trustees—January 19, 2012 Budget Update Budget Update 2012-2013 Budget New Budget Triggers If the revenue targets associated with the governor’s tax plan are not met, triggered cuts would be made:

10. Board of Trustees—January 19, 2012 Budget Update Budget Update 2012-2013 Budget

11. Board of Trustees—January 19, 2012 Budget Update Budget Update 2012-2013 Budget Community College Scenarios  $218 million “deferral buy-back”  $12.5 million mandates block grant  $218 million “deferral buy-back”  $12.5 million mandates block grant  $264 million base cut, workload reduction of around 5.56%  No Scenario A Augmentations  $264 million base cut, workload reduction of around 5.56%  No Scenario A Augmentations Categorical Consolidation Both Scenarios $411.6 million Scenario AScenario B

12. Board of Trustees—January 19, 2012 Budget Update Budget Update 2012-2013 Budget Deferral “Buyback” Maneuver “spends money,” “reducing debt,” without a program benefit. 2012-13 Proposed 2011-12

13. Board of Trustees—January 19, 2012 Budget Update Budget Update 2012-2013 Budget Categorical Flexibility

14.  Tax measure is politically uncertain and costly.  Tax measure may not yield full $6.9B(LAO suggests perhaps only $4.8B)  Planning will be difficult. Workload reduction of 5.56% will be decided in November  Student fee shortfall with more BOG waivers.  Property tax shortfall, particularly in light of redevelopment projections/uncertainty. Board of Trustees—January 19, 2012 Budget Update Budget Update 2012-2013 Budget Budget Risks

15. Board of Trustees—January 19, 2012 Budget Update Budget Update Redevelopment Successor Agency Oversight Boards  Budget Bill ABXI 26 included as part of the fiscal year 2011-12 State budget dissolves more than 400 Redevelopment Agencies (RDA’s) in the State.  Supreme Court decided RDA’s may be abolished  Successor Agencies will be established to pay the on- going obligations of RDA’s.  Each oversight board will be comprised of seven members appointed by the County Board of Supervisors, the County Superintendent of Education and others.  The legislation stipulates that each oversight board will include a community college representative appointed by the State Chancellor of the California Community Colleges

16.  Redevelopment Agencies (RDA’s) in the MSJC district include:  Banning Redevelopment Agency  Beaumont Redevelopment Agency  Calimesa Redevelopment Agency  County of Riverside Redevelopment Agency  Hemet Redevelopment Agency  Lake Elsinore Redevelopment Agency  Murrieta Redevelopment Agency  Perris Redevelopment Agency  San Jacinto Redevelopment Agency  Temecula Redevelopment Agency Board of Trustees—January 19, 2012 Budget Update Budget Update Redevelopment Successor Agency Oversight Boards

17. 2012-2013 Base Revenue (Before reductions) $49,131,469 Number & percent credit FTES 9,309 (96.08%) Number & percent noncredit FTES 258 (2.66%) Number & Percent CDCP FTES 122 (1.26%) Board of Trustees—January 19, 2012 Budget Update Budget Update 2012-13 Budget Simulation for MSJC Scenario A: Governor’s Budget & Tax Package Scenario B: Governor’s Budget, with Failure of Tax Package Net Apportionment Cut: $0$-2,425,942 Workload reduction percent: 0%5.56% Total FTES Reduced0-539.14

18. Board of Trustees—January 19, 2012 Budget Update Budget Update Ten Year Revenue Analysis November Initiative Passes

19. Board of Trustees—January 19, 2012 Budget Update Budget Update Credit FTES –Actual vs. Funded

20. Board of Trustees—January 19, 2012 Budget Update Budget Update Timeline JANUARY 1234567 891011121314 15161718192021 22232425262728 293031 APRIL 1234567 891011121314 15161718192021 22232425262728 2930 FEBRUARY 1234 567891011 12131415161718 19202122232425 26272829 MARCH 123 45678910 11121314151617 18192021222324 25262728293031 MAY 12345 6789101112 13141516171819 20212223242526 2728293031 JUNE 12 3456789 10111213141516 17181920212223 24252627282930 June 15—Constitutional deadline for Legislature to send budget to Governor May 14—Governor releases May Revise Legislative Budget Hearings & Proposals Governor’s January Budget Proposal

21. Questions? Board of Trustees—January 19, 2012 State Budget Update & Governor’s 2012-2013 Budget Budget Development Committee Becky Elam, VP Business Services Dr. William Vincent, VP Student Services Dr. Dennis Anderson, VP Instruction Irma Ramos, VP Human Resources Beth Gomez, Dean Business ServicesMichael Welden, Faculty Member, Math Ted Blake, Learning Center Elias Escamilla, Counselor Elisabeth Anghel, Librarian Gail Jensen, Business Services Jennifer Pickens, Instructional AidKaren Connell, Business Services Fred Frontino, DSPSBruce Brady, Procurement Ana Moreno, Student Government Steven Sanchez, Student Government