Planning and Budget Forum February 27 and March 2, 2007

Strategic Planning Workshop Outcomes - Draft Themes Igniting passion through collaboration Student Centeredness Resulting in Access to Success Valuing a Culture of Learning Enhancing an Innovative, Flexible, Responsive and Accountable Culture Modeling Sustainability

Process to Review Strategic Planning Workshop Outcomes Release Draft Report campus wide – Done Give constituency groups, areas, leadership teams, Student Learning Council until March 30 to review – Working Review by President’s staff in late February – Done Review at Forums – Feb 27 and March 2 Strategic Planning Workshop Reunion – April 6, 12:00-3:00 pm, Chico Center. Deliverables: Catchy name Rework on themes based on input received Development of organizational structure to make final recommendation on themes – would morph this into steering committee for strategic planning Review at a second set of Forums – April 19 and 20 Review with strategic planning steering committee – late April Presidents Staff final review – May 2 Board approval – May

2007-08 Budget Outlook February 27 and March 2, 2007

Integrating Budget with Planning Inclusive strategic planning Regular planning cycle via unit plans Establish college priorities that support strategic goals (student success & financial health) Integrate the planning process to drive resource allocation

Governor’s 2007-08 State Budget Proposal Expenses increase by 1% Smallest increase in 5 years Revenues increase by 7% Relies on stable housing market Relies on several untested revenue sources Relies on an increase in personal income tax Optimistic and somewhat risky

Governor’s 2007-08 State Budget Proposal Included in Budget: State COLA 4.04% - may change slightly Growth 2% and Restoration 2% COLA and growth for major categoricals Several Initiatives: Student Success - $33 mil. redirected to Matriculation and support services Nursing - $9 mil. one-time $9 mil. ongoing CTE - $52 mil. to expand CTE programs

Governor’s 2007-08 State Budget Proposal For Community Colleges – “status quo”, “maintenance budget”, “a good starting point” Community College share of Prop 98 approximately 11.06% This level only attained once before Current “banner” year – 10.74% Deficit Factor

Local Issues and Opportunities Declining enrollment in excess of planned decline Students need for alternative delivery of instruction (distance education) Unfunded liabilities (retiree health benefits) Center Status Approval Ongoing need for full-time faculty

Full-time Faculty Obligation District has managed to the obligation Decline in Credit FTES results in a reduction to the full-time faculty obligation (FTFO) 2006-07 Credit FTES decline = -565 (5.55%) FTFO from 181.4 to 171 (reduced by 10) Reduce PT faculty budget to hire 9 FT faculty Calculated risk to help enrollment May decline further in 2007-08

Butte’s 2006-07 Budget Revisited Base Decline 06-07 State COLA Total Decline 07-08 Deficit Factor Total Budget 06-07 Budget $49,063,747 (1,447,800) 2,904,574 $50,520,521 (1,530,000) $48,990,521 06-07 Projected $49,063,286 (1,956,553) 2,788,720 $49,895,453 (2,103,607) $47,791,846

Butte’s 2007-08 Budget Outlook Base Decline 06-07 State COLA Total Decline 07-08 Deficit Factor Total Budget 06-07 Budget $49,063,747 (1,447,800) 2,904,574 $50,520,521 (1,530,000) $48,990,521 07-08 Outlook $49,895,453 1,930,799 $51,826,252 (2,103,607) (497,226) $49,225,419

Butte’s 2007-08 Budget Outlook Est. New Ongoing Apportionment 234,898 Restored Matriculation 163,556 EST. NEW REVENUE $398,454

Butte’s 2007-08 Budget Outlook Estimated Fixed Cost Increases: Step/Column/Longevity $630,000 Health Premium Increase 500,000 Other Fixed Costs 200,000 EST. FIXED COSTS INCREASES $1,330,000

Butte’s 2007-08 Budget Outlook Est. New Revenue $398,454 Est. Fixed Costs Increases 1,330,000 Est. Deficit* ($931,546) * Includes 182 faculty

Butte’s 2007-08 Budget Outlook Est. New Revenue $398,454 Est. Fixed Costs Increases 1,330,000 Est. Deficit (931,546) Reduced PT Faculty Budget 800,000 Other District Reductions 900,000 Est. Funds Avail.* $768,454 * To convert Tier II ongoing items and allow for additional decline.

QUESTIONS?