Sonoma County Junior College District Proposed Budget 2010-11 Presented to the Board of Trustees...
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Transcript of Sonoma County Junior College District Proposed Budget 2010-11 Presented to the Board of Trustees...
![Page 1: Sonoma County Junior College District Proposed Budget 2010-11 Presented to the Board of Trustees September 14, 2010.](https://reader035.fdocuments.us/reader035/viewer/2022062712/56649c9a5503460f94956d6b/html5/thumbnails/1.jpg)
![Page 2: Sonoma County Junior College District Proposed Budget 2010-11 Presented to the Board of Trustees September 14, 2010.](https://reader035.fdocuments.us/reader035/viewer/2022062712/56649c9a5503460f94956d6b/html5/thumbnails/2.jpg)
Sonoma County Junior College District
Proposed Budget 2010-11
Presented to the Board of TrusteesSeptember 14, 2010
![Page 3: Sonoma County Junior College District Proposed Budget 2010-11 Presented to the Board of Trustees September 14, 2010.](https://reader035.fdocuments.us/reader035/viewer/2022062712/56649c9a5503460f94956d6b/html5/thumbnails/3.jpg)
Introductory Comments
• The State’s economic downturn continues.
• Recovery is not expected soon.
• The State is still without a budget for 2010-11.
• Funding of community colleges is uncertain.
• The budget being presented is based upon the best information available.
![Page 4: Sonoma County Junior College District Proposed Budget 2010-11 Presented to the Board of Trustees September 14, 2010.](https://reader035.fdocuments.us/reader035/viewer/2022062712/56649c9a5503460f94956d6b/html5/thumbnails/4.jpg)
Regarding The 2010-11 Budget Book
The 2010-11 Budget is presented in five groupings
General Fund (Pages 7-11)
Capital Project Funds (Pages 12-15)
Other Governmental Funds (Pages 16-22)
Proprietary Funds (Pages 23-25)
Fiduciary Funds (Pages 26-27)
Pages 4-6 show General Fund activity for 2008-09 & 2009-10
![Page 5: Sonoma County Junior College District Proposed Budget 2010-11 Presented to the Board of Trustees September 14, 2010.](https://reader035.fdocuments.us/reader035/viewer/2022062712/56649c9a5503460f94956d6b/html5/thumbnails/5.jpg)
Presentation of the Budget
• With the exception of the General Fund ... revenues of all the “other funds” can only be expended for the specific purpose for which the revenues were received.
• For 2010-11, Budgets for these “other funds” are based either upon known revenue and expenditure streams, or on prior year/historical trends.
![Page 6: Sonoma County Junior College District Proposed Budget 2010-11 Presented to the Board of Trustees September 14, 2010.](https://reader035.fdocuments.us/reader035/viewer/2022062712/56649c9a5503460f94956d6b/html5/thumbnails/6.jpg)
The General Fund
• This is the fund under which the primary mission of the District is conducted.
• It is also the fund where the District has some measure of discretion as to how the resources will be expended.
• And ... it is also the one fund that is most impacted by the State’s budgetary process.
![Page 7: Sonoma County Junior College District Proposed Budget 2010-11 Presented to the Board of Trustees September 14, 2010.](https://reader035.fdocuments.us/reader035/viewer/2022062712/56649c9a5503460f94956d6b/html5/thumbnails/7.jpg)
The General Fund
• The General Fund is comprised of two subfunds:
• The Restricted Subfund - ( $14.4 Million in Revenues &
Transfers )
• As the name would imply, Restricted Subfund revenues can only be used to support the program for which the monies were received.
Such as ... EOP&S, DSP&S, Career Technical Education, etc.
• The Unrestricted Subfund - ( $103.2 Million in Revenues &
Transfers )
![Page 8: Sonoma County Junior College District Proposed Budget 2010-11 Presented to the Board of Trustees September 14, 2010.](https://reader035.fdocuments.us/reader035/viewer/2022062712/56649c9a5503460f94956d6b/html5/thumbnails/8.jpg)
The Governor’s 2010-11 Budget
• All of the 2009-10 reductions roll forward: No COLA, No Growth, 3.4% Workload Reduction, Severe Reductions to Categorical
Programs
• On the Positive Side: + 2.21% Growth Funding
• On the Negative Side: - 0.38% COLA
• On the Cost-Neutral Side:$20M to go into the Career Technical
Education Program ... $20M to come out of the EOP&S and P-T Faculty Compensation Programs ... ($10M each).
![Page 9: Sonoma County Junior College District Proposed Budget 2010-11 Presented to the Board of Trustees September 14, 2010.](https://reader035.fdocuments.us/reader035/viewer/2022062712/56649c9a5503460f94956d6b/html5/thumbnails/9.jpg)
2010-11 Revenue Assumptions
• As seen last year ... Proposed budget-items can change during the State’s budgetary process ... (remember the 2009-10 3% Growth Funds?)
• With regards to major revenue items in 2010-11...
• We do expect to receive a reduction for the negative COLA.
• We do not expect any Growth Funding.
• We do expect Property Tax Shortfalls (deficit funding).
• We do not expect backfill for the one-time 09/10 ARRA funds.
• We do expect the Governor’s Categorical funding transfer.
![Page 10: Sonoma County Junior College District Proposed Budget 2010-11 Presented to the Board of Trustees September 14, 2010.](https://reader035.fdocuments.us/reader035/viewer/2022062712/56649c9a5503460f94956d6b/html5/thumbnails/10.jpg)
2010-11 Expenditure Assumptions
• Prior to negotiations … initial 2010-11 Expenditure projections assumed ...
• Restoration of all salary schedules to the 2008-09 levels
• Increased Operational Expenditures
• And, contractually obligated increases for salaries and benefits, which included:
-Rank 10 -Step, Column and Longevity Adjustments -Health and Dental Insurance Premium Increases -Increases in the rates for PERS and Unemployment
Insurance.
![Page 11: Sonoma County Junior College District Proposed Budget 2010-11 Presented to the Board of Trustees September 14, 2010.](https://reader035.fdocuments.us/reader035/viewer/2022062712/56649c9a5503460f94956d6b/html5/thumbnails/11.jpg)
2010-11 Net Costs over Revenues
• Based on the assumed 2010-11 changes in revenues and expenditures …
• And, prior to negotiations …
• The District was facing a $6.2 Million budgetary shortfall.
![Page 12: Sonoma County Junior College District Proposed Budget 2010-11 Presented to the Board of Trustees September 14, 2010.](https://reader035.fdocuments.us/reader035/viewer/2022062712/56649c9a5503460f94956d6b/html5/thumbnails/12.jpg)
2010-11 Net Costs over Revenues
• To bridge this gap, the District asked each employee-group for a specific dollar-concession that would:
1) Cover their group’s proportional share of the 2009-10 shortfall, and
2) Cover those 2010-11 cost-increases that pertained to just their group.
• The District was willing to negotiate any number of ways to achieve the dollar-figure requested.
![Page 13: Sonoma County Junior College District Proposed Budget 2010-11 Presented to the Board of Trustees September 14, 2010.](https://reader035.fdocuments.us/reader035/viewer/2022062712/56649c9a5503460f94956d6b/html5/thumbnails/13.jpg)
2010-11 Net Costs over Revenues
• All told the concessions that were agreed to amounted to $5.5 Million ... (and these cost-reductions were built into the budget).
• Added to another $ 0.2 Million in other budget reductions …
• The remainder shortfall is $0.5 Million ... (which results in the reduction seen to ending fund
balance).
• It should be noted the budget built for 2009-10 added $0.7 Million to ending fund balance ... in anticipation that 2010-11 would be a worse budgetary year.
![Page 14: Sonoma County Junior College District Proposed Budget 2010-11 Presented to the Board of Trustees September 14, 2010.](https://reader035.fdocuments.us/reader035/viewer/2022062712/56649c9a5503460f94956d6b/html5/thumbnails/14.jpg)
Components of Unrestricted Revenue
• General Apportionment * $ 92,451,759 89.6%
• Non-Resident & Foreign Fees * 950,000 0.9%
• Lottery * 2,861,497 2.8%
• Other Federal & State Revenues 1,239,420 1.2%
• Local Revenues & Transfers 5,736,305 5.5%
________________________ ______________
• Total $103,238,981 100.0%
* Revenue directly tied to enrollment / reported FTES = 93.3%
![Page 15: Sonoma County Junior College District Proposed Budget 2010-11 Presented to the Board of Trustees September 14, 2010.](https://reader035.fdocuments.us/reader035/viewer/2022062712/56649c9a5503460f94956d6b/html5/thumbnails/15.jpg)
Components of Unrestricted Expenses
• Salaries & benefits $ 89,030,678 85.8%
• Supplies 2,659,934 2.6%
• Services 9,016,664 8.7%
• Capital Outlay 303,764 0.3%
• Transfers & Other Outgo 2,747,355 2.6% ________________________ ______________
• Total $103,758,395 100.0%
• The Ending Fund Balance of $8,620,167 represents a “total” General Fund reserve of 7.3%, with only a 0.6% unreserved/undesignated amount above the required 5% minimum.
![Page 16: Sonoma County Junior College District Proposed Budget 2010-11 Presented to the Board of Trustees September 14, 2010.](https://reader035.fdocuments.us/reader035/viewer/2022062712/56649c9a5503460f94956d6b/html5/thumbnails/16.jpg)
Strategic Challenge
• The State’s economic situation is not expected to improve anytime soon.
• Current concern is that the U.S. might be entering into a double-dip recession ... which could manifest into mid-year cuts.
• Should recovery be years away, even the current level of cost containment (which is
reflected in this year’s budget) will be not be sufficient to operate effectively over multiple years.
![Page 17: Sonoma County Junior College District Proposed Budget 2010-11 Presented to the Board of Trustees September 14, 2010.](https://reader035.fdocuments.us/reader035/viewer/2022062712/56649c9a5503460f94956d6b/html5/thumbnails/17.jpg)
Strategic Challenge
• Until the State’s fiscal health improves, the District will need to focus on those things within its control, to maximize revenues, and hold down costs.
• To this end, in January, the District embarked on a process of “re-engineering” with the purpose of:
Making more efficient use of personnel and resources
while maintaining services to students and the community.
![Page 18: Sonoma County Junior College District Proposed Budget 2010-11 Presented to the Board of Trustees September 14, 2010.](https://reader035.fdocuments.us/reader035/viewer/2022062712/56649c9a5503460f94956d6b/html5/thumbnails/18.jpg)
Closing Remarks
• 2010-11 is another tight budget year.
• The State’s economic picture is not expected to be better in 2011-12 ... in fact, it could be even worse.
• Going into 2011-12, the District can expect increases in the area of utilities, insurance and contractual obligations.
• To position itself as favorably as possible, the District needs to:
maintain service levelsminimize current year costs, andstrive for continued efficiency and
productivity.
![Page 19: Sonoma County Junior College District Proposed Budget 2010-11 Presented to the Board of Trustees September 14, 2010.](https://reader035.fdocuments.us/reader035/viewer/2022062712/56649c9a5503460f94956d6b/html5/thumbnails/19.jpg)
QUESTIONS
![Page 20: Sonoma County Junior College District Proposed Budget 2010-11 Presented to the Board of Trustees September 14, 2010.](https://reader035.fdocuments.us/reader035/viewer/2022062712/56649c9a5503460f94956d6b/html5/thumbnails/20.jpg)