Victor Valley Community College District 2013-14 Budget Workshop June 11, 2013

Agenda 2013 /14 Budget Assumptions Redevelopment Agency Pass Through Funds (RDA) Other Post Employment Benefits (OPEB) GIC Growth Split Ending Balances Tentative Budget

General Fund Budget Assumptions For Fiscal-Year 2013-2014   General Assumptions:   The District shall maintain legal compliance with the 50% law The District will develop a balanced budget with a minimum 5% ending fund balance (reserve) The District will not access long-term reserves for balancing the budget The Program Review, Planning, and Budget Development Process will guide the allocation of all resources Vacancies due to retirement or resignation will not automatically be filled Board of Trustee Resolution #12-07, approved at their meeting in July, 2012, authorizes and directs the Superintendent/President to establish a policy goal of balancing the District’s budget by Fiscal Year 2015/16 in accordance with Title 5 of the California Code of Regulations Finance, Budget, and Planning Committee recommends incorporating the April 3, 2013 FCMAT recommendations in developing updated business processes and balancing the District budget

Revenue Assumptions: General fund reserve funds (Bridge) will be utilized to offset revenue shortfall The State recommends 1.57% Cost of Living Adjustments (COLA) funding The State recommends 1.63% Growth funding The State recommends $16.9 million for “online initiatives” is recommended for distribution among 72 districts  

Expense Assumptions:   12. Employer mandatory payroll cost will increase proportionately to the COLA, since by contract the legislated COLA must be applied to the salary schedule 13. Budget augmentations will initially be considered for mandatory and compliance related requests Budget augmentations for non-mandated or compliance issues may be considered through reallocation of existing resources or one-time external non-general fund revenue The budgets for object code 5000 expenditures will be reset to either the highest amounts expended during the past two years or the current fiscal year District health benefit premiums will increase by approximately 10% Employer contribution to PERS will increase from 11.417% to ___ (the PERS Board will meet in Mid-June 2013 to update the rate) State Unemployment Insurance rates will decrease from 1.1% to .05%

Redevelopment Agency Pass Through Funds (RDA) Revenue 47.5% To General Fund 52.5% To Infrastructure & Maintenance Total 2008/09 1,153,933 $ 1,275,399 2,429,332 2009/10 617,333 682,316 1,299,649 2010/11 440,445 486,808 927,253 2011/12 332,980 368,031 701,011 2012/13 * 313,920 1,195,625 1,509,545 * as of 6/11/13 Revenue

Special Reserve Fund (GIC) Beginning Bal Interest Outgoing Prior Yr Adj. Balance (GIC) (County) (Draw) 2009-10 $ 28,022,430 $ 1,923,016 $ 3,322 $ (8,350,000) $ - $ 21,598,768 2010-11 $ 1,691,509 $ 1,951 $ 8,115 $ 23,300,343 2011-12 $ 2,000 $ 24,993,852 2012-13 $ 1,728,616 $ 26,724,468 2013-14 * $ 1,834,295 $ - $ 28,560,762 *Projected

YTD Budget Expansion Proposal (Community College League of California) As of 6/11/13 Enrollment restoration: 1.63% Cost-of-living adjustment: 1.57% Student Success: $50 million Proposition 39: $48 million Deferred Maintenance: $30 million Online education: $16.9 million EOPS: $15 million DSPS: $15 million CalWORKs: $8 million Academic Senate: $150,000

Growth Split Total District Growth (1.63%) 666,446 $ Instructional (50% Law) 333,223 Cost of Growth 150,000 Discretionary 183,223 Non-Instructional 333,233 Student Services 166,617 Admin. Services

Ending Balances Million 2012-2013 Projected Ending Fund Balance $ 4.4 $ 4.4 OPEB/Vacation Liability Budget: Liquidated + 2.8 Prop 30 Passed + 3.0 Projected Unspent Budget in 5000 Object Code (Services/Operations) + 2.0 Projected Beginning Fund Balance for 2013-2014 $ 12.2

Discussion