MAY 4 , 2012

MARK YEAGER, CO -CHAIR, BUDGET AND PLANNING COMMITTEE

MYESHIA ARMSTRONG, INTERIM CO -CHAIR, BUDGET AND PLANNING COMMITTEE; DIRECTOR OF FISCAL SERVICES

FRANCISCO RODRIGUEZ,SUPERINTENDENT/PRESIDENT

FY2013 Budget Forum

Agenda

Welcome - Mark Yeager

2012-2013 State Budget Status – Myeshia Armstrong

Implications for MiraCosta – Myeshia Armstrong

Budget Process – Mark Yeager

FY13 Budget Assumptions and Reduction Strategies – Myeshia Armstrong, Mark Yeager

Comments from President RodriguezDiscussion and Q&A – Myeshia Armstrong, Mark

Yeager, Dr. Rodriguez

Status of the State Budget

State Budget Gap

Reduced the budget deficit by $9.2 billionSlow economic recovery persistsState Revenues far less than expectedGovernor’s May Revised Budget (May 14)Governor’s Tax Initiative Proposal (Nov

2012)

The State and MiraCosta

The dire state budget situation has a profound impact on apportionment districts (69/72)

“Basic Aid” status Local property tax revenues currently greater than

formula allocation by approximately $30M “Fair Share” exposure = $4.3M

Indirect impacts on MiraCosta Perceptions Expectations

Implications for MiraCosta

$10 per unit enrollment fee increase from $36-$46, effective Summer 2012

Potential mid-year impactsCBO (chief business officers)Funding

Task Force reconvened, Jim Austin - participant

FY2010-11 Revenue Sources(General Fund)

0.027% Federal (too small to register)

4.19% State

85.52% Property Taxes

7.43% Enrollment Fees

2.84% Local

Federal 0.027%

State 4.19%

Property Taxes 85.52%

Enrollment (Res/Nonres) 7.43%

Local 2.84%

FY2010-11 Expense Categories(General Fund)

Salaries & Benefits86.07%

Supplies & Con-tract Svcs7.51%Capital

Outlay1.61%

Transfers& Other2.85%

Utilities1.95%

Revenues & Expenses

$0

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

$70,000,000

$80,000,000

$90,000,000

$100,000,000

Revenues

Expenses

* Projection

Budget Process

Role of BPCPreliminary Budget (Feb 2012)Tentative Budget (June 2012)Final Budget Adoption (Sept 2012)

MiraCosta FY13 Budget Assumptions

The goal for FY12-13 is to adopt a balanced budget

1% increase in property tax revenue0% Funded FTE growthActual FY10-11 expenditures reviewed

against budgeted FY11-12 to determine a target for reductions

Identified $3 million in one-time reduction strategies

Program Review to Resource Allocation Process

“Frost” on District Hiring Divisional Reductions PARS (2010 & 2011)Sabbatical ReductionsHealth & Benefit Allowance

Budget Reduction Strategies: Highlights

District’s Guiding Philosophy & Next Steps

Institutional Goal 4: MCCD will maintain high standards of stewardship and fiscal prudence

Now what?

MARK YEAGER, CO -CHAIR, BUDGET AND PLANNING COMMITTEE

MYESHIA ARMSTRONG, INTERIM CO -CHAIR, BUDGET AND PLANNING COMMITTEE; DIRECTOR OF F ISCAL SERVICES

FRANCISCO RODRIGUEZ,SUPERINTENDENT/PRESIDENT

Discussion and Questions