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Governor’s January Budget
“Best Case Scenario” Budget Package
Entire package assumes voters will approve a $12 billion tax package (measure on June ballot) Five year extension of temporary taxes:
Personal Income Tax Dependent Care ExemptionSales & Use TaxVehicle License Fee
Governor’s January Budget
Overall, two-year budget shortfall is projected at $25.4 billion$8.2 billion for 2010-11$17.2 billion for 2011-12
Total shortfall could grow by additional $1.2 billion (for a total of $26.6 billion) if sale of state-owned real estate does not occur.
Proposal to address shortfall:$12.5 billion in spending reductions$12 billion in revenue extensions and modifications$1.9 billion in “other solutions”Provides $1 billion reserve
Governor’s January Budget
Major proposed reductions include:$1.7 billion to Medi-Cal$1.5 billion to CalWorks$750 million to Department of Developmental
Services$500 million to University of California$500 million to Cal State University$308 million for 10% pay reduction for State
employees not covered under collective bargaining agreements
$200 million through various actions including reorganizations, consolidations, and other efficiencies
Community CollegesNo mid-year cuts (2010-11)$400 million cut for “Apportionment
Reductions and Reforms” – Census date reformsRepresents a 7% funding reduction
Student fee increase of $10 per credit unitFrom $26 to $36 … 38% increaseExpected to generate $110 million in revenues
1.9% Enrollment Growth (funded by the $110 million generated from student fee increase)22,700 FTES
Community Colleges
Additional $129 million deferral, for a total of $961 million
No further cuts to categorical programsCategorical flexibility provisions extended
through 2014-15Full funding for Cal Grant program
Budget UncertaintiesVoters Approving Tax ExtensionsTransfer of Redevelopment FundsSale of Government BuildingNetting Growth with Cuts in CC BudgetRemoving Census Date LanguageCourse Repeatability IssuesWorkload Measure Reductions
THE LIST COULD GO ON AND ON….
NOCCCD Ongoing Budget
PY Operating Deficit $ (2,348,619)
Anticipated Changes:10% Benefits Increase (765,880)PERS Rate Increase (10.7% to 11.2%) (263,553)Step and Column Increases (1,000,000)
Total Operational Reductions Needed $ (4,378,052)
Note: The PY Ongoing Operating Deficit excludes a contribution to the Retiree Benefit Fund ($1.5 million) and the Self Insurance Fund ($1.2 million)
Impact to NOCCCDBudget Cuts $400 million $600 million $900 million
Budget Reduction ($10,738,000) (16,644,000)$ (24,161,000)$
$10 Student Fee Increase 2,953,000 2,953,000 2,953,000
Net Reduction ($7,785,000) ($13,691,000) ($21,208,000)
Operational Reductions (4,378,052) (4,378,052) (4,378,052)
Total Cuts ($12,163,052) ($18,069,052) ($25,586,052)
Impact on FTESWorkload Measure Reductions:
FTES % $ FTES % $ FTES % $
Credit FTES @ $1,286 1,705 5.15% 2,192,630$ 2,999 9.06% 3,856,714$ 4,646 14.03% 5,974,756$
Non-Credit FTES @ $863 2,836 8.57% 2,447,468$ 4,988 15.06% 4,304,644$ 7,726 23.33% 6,667,538$
CDCP FTES @ $863 2,409 7.28% 2,078,967$ 4,236 12.79% 3,655,668$ 6,562 19.82% 5,663,006$
FTES Over Cap: Credit @ $1,286 Non-Credit @ $863
3,705 4,764,630$ 3,197,415$
$7,785,000 $13,691,000 $21,208,000
Full-Time Faculty ObligationCalculated Obligation – Fall 2010 559.8 Diff
Compliance Obligation 529.8 30
Filled Positions 507 Cushion
Current Recruitments 241
$400 m $600 m $900 m
Calculated Obligation 559.8 559.8 559.8
Workload Reduction 5.15% 9.06% 14.03%
Revised Obligation 530.97 509.08 481.26
Available Resources2010-11 One-Time Board Discretionary Contingency $ 2,126,834
Growth Funds 3,500,000
Negative COLA Budgeted 573,000
Mandated Cost Revenue 673,000
Deficit ($2,500,000 - $1,500,000) 1,000,000
Faculty Vacancies 1,000,000
One-Time Funds $ 8,872,834
Available Resources2011-12 On-going Funds On-going Growth $ 3,500,000 Negative COLA Budgeted 573,000 On-going Dollars that can be used to offset cuts $ 4,073,000
Budgeted Deficit $ 2,500,000
Budget Shortfall$400 m $600 m $900 m
Target Cuts 12,163,052$ 18,069,052$ 25,586,052$
On-going Dollars Avail. (4,073,000) (4,073,000) (4,073,000)
Budgeted Deficit (2,500,000) (2,500,000) (2,500,000)
Extended Day Reductions (Over Cap FTES) (3,500,000) (3,500,000) (3,500,000)
Workload Measure Reduction (2,000,000) (4,000,000) (6,000,000)
Subtotal 90,052$ 3,996,052$ 9,513,052$
Faculty Vacancies (1,500,000) (2,880,000)
Classified Vacancies (2,000,000) (2,000,000)
Other Things to ConsiderCapping Medical BenefitsSalary Rollbacks:
FT Positions (1%) - $1,024,049PT Faculty (1%) - $218,442
Furloughs1 day/month for 12 months – 5%
Increase Faculty LoadsLayoffsEliminating Release TimeEliminating Summer School and the related
impactsAthletic Programs
Other NOCCCD ImpactsAdditional Deferrals – Estimated at $22 million
Many uncertainties still remainCould be costly to districts
Redevelopment Changes – Proposal is to phase-out RDA’s over timeApproximately 59% of NOCCCD projected
redevelopment payment revenues could be “at-risk”
Hearing that most, if not all, of the proposal will not be implemented