Oxnard College Campus Budget Forum Presented by: Richard Duran, President John al-Amin, VP Business Services Scott Corbett, President Academic Senate April 14 & 15, 2009

State Budget Overview On February 20, 2009, the Governor signed into law the 2009 Budget Act. This budget, signed almost five months ahead of the July 1 st constitutional deadline, was promoted as representing a “comprehensive solution to the state’s $41.6 billion budget shortfall; the most challenging budget shortfall in the state’s history.”

Solutions proposed to address the Budget Gap The 2009 Budget Act adopted a balanced approach to solve the budget gap. This budget includes spending cuts, tax increases, borrowing and also proposes the use of federal stimulus funds to close the state budget deficit which is projected to total over $41 million.

Solutions proposed to address the Budget Gap (cont.) (Dollars in millions) Budget Gap as of Governor's Budget -$41, Expenditure Solutions $6,724 $9,004 15,728 38% Revenue Increases 1,533 10,980 12,513 30% Federal Stimulus Funds 2,825 5,191 8,016 19% Borrowing 268 5,135 5,403 13% Total $11,350 $30,310 $41, %

2009 Budget Act General Fund adjustments for CCC’s A decrease of $230 million to college apportionments to reflect an ongoing deferral of a portion of payments due in January and February of the current fiscal year. These payments would not be provided until July This deferral lowers the Proposition 98 guarantee in the current year, but does not reduce program spending. A decrease of $39.8 million to eliminate the partial 0.68 ‑ percent COLA authorized in legislation enacted to implement the budget in 2008.

Things still to consider… Budget Act relies on several revenue and cost saving ballot measures to be passed in May These measures are estimated to address up to $6 billion of the projected budget shortfall for CCC’s were “spared” from program cuts implemented for K-12, UC, and the CSU systems in the 2009 Budget Act. If additional state budget cuts are needed, it is highly unlikely that the CCC’s will not experience budget cuts.

May 19 th Ballot Measures Prop 1A- Restrains state spending; establishes budget stabilization “rainy day” fund; would extend tax hikes authorized in February 2009 up to Prop 1B – Supplements payments to local school districts and community colleges to address recent budget cuts. Payments would not begin however until and would be funded from the Budget Stabilization fund. Prop 1C – Would modernize state lottery and permit borrowing of $5 billion against future lottery revenues.

May 19 th Ballot Measures Prop 1D – Would temporarily redirect $608 million in tobacco taxes. Money would go to services for children, including foster care children and those with developmental disabilities. Prop 1E – Would temporarily move $226.7 million from mental health programs to provide healthcare for children. Prop 1F – Would bar pay raises for legislators and statewide officers, including the Governor, when the state runs a deficit.

Process used for Budget Development Departments have submitted their proposed supply and equipment requests for the next fiscal year to the college Business Office. College fiscal staff will review the requests to ensure that funding is available to meet baseline budget requests. Requests for new funding will be forwarded to the college Planning & Budget Council for their review and discussion.

Process used for Budget Development (cont.) The college Planning & Budget Council will utilize program review processes for the respective divisions to make budget allocation recommendations to the college President. This recommendation will be based upon campus priorities, our strategic plan and the level of any new funding that is available for distribution. In May 2009, the Planning & Budget Council will also make a recommendation to the college President regarding the implementation of campus budget reductions which may occur as a result of any budget changes during the May Revise which is scheduled for June 2009.

Budget Development Summary The college’s Tentative Budget must be acted upon by the Governing Board at its June meeting. The proposed tentative budget would provide the college with essentially the same level of funding which we received for the fiscal year. Given the uncertainty of State funding, college budget reductions are planned for the coming year. The college P&BC will review the reduction plans recommended by the respective college Divisions and make additional recommendations, if necessary. The college will consolidate services where feasible, and evaluate all funding sources, and utilize them where appropriate, to meet campus budget needs. As final budget information is released by the State, we will update the college as things change.

Questions?