NOCCCD Townhall Presentation November 13, 2012 Presented by: Fred Williams – Vice Chancellor, Finance & Facilities

Agenda Proposition 30 Some Historical Information Budget Plan – – – Other News

Proposition 30 The Schools and Local Public Safety Protection Act of 2012

Proposition 30 Temporary Tax Increase Increases Sales Tax by ¼ percent for 4 years Increases Income Taxes for those earning over $250,000 per year ($500,000 for married couples) for 7 years Would raise an estimated $6 billion per year Different estimates from Department of Finance (DOF) and Legislative Analyst Office (LAO)

Proposition 30 No Base Reductions $50 million in growth/restoration $159.9 in Deferral Buy downs – From $961 million to $801.1 million Puts restrictions on funding Potential for growth and COLA in future years

Historical Information

Revenues

Apportionment

FTES Trends

Employee Count

Budget Planning

Budget Plan Add in the $11.1 million in revenues to the budget Add FTES to make sure we capture growth Allocate $3.8 million in one-time reductions to budget centers to balance the budget Return $8.5 million to budget centers that contributed to the Deficit Reserve Allow budget centers to fill non-faculty positions after they indentify the on-going reductions for

Budget Plan Add 330 FTES and $400,692 to extended day budgets Allocate one-time cuts to budget centers to balance the budget $3,830,609

Budget Plan Return $8.5 million to budget centers for their contribution to the deficit reserve Allow budget centers to fill non-faculty positions after they have identified their portion of the on- going reductions

Budget Plan Deficit Reserve On-Going Deficit Beginning Balances $ 15,000,000 $ (14,629,917) Growth Funds 1,245,304 Cost of Growth (Ext. Day) (400,692) Apportionment Increase 9,954,696 Return PY Contributions (8,500,000) Ending Balance $ 6,500,000 $ (3,830,609)

Budget Plan Keep the FTES base as including the additional 330 FTES Make adjustments for FTES if growth funds are available Offer summer session Hire faculty to meet our Full-time Faculty Obligation Make on-going reductions of $5 million to correct our structural deficit – this will be adjusted if additional on-going funds are available

Budget Plan Full-time Faculty Obligations – Assume the Board of Governors will continue the freeze, adjusted for growth – Estimated that we will need to hire at least 14 On-going reductions of $5 million – Cypress College - $1,515,673 – District Services - $861,180 – Fullerton College - $2,029,603 – School of Continuing Ed - $593,544 Above amount can be reduce by the on-going operating allocation given for eliminated vacancies that totaled $2.1 millions

Budget Plan Deficit Reserve On-Going Deficit Beginning Balances $ 6,500,000 $ (3,830,609) Salaries/Benefits Roll-up Cost (1,169,391) Allocation of Reductions 5,000,000 Ending Balance $ 6,500,000 $ -

Budget Plan Adjust FTES Targets Accordingly Hire Full-time Faculty to meet our Full-time Faculty Obligation Normal Adjustments for Budget Changes – Growth – COLA – Other

Other News

Big gains for Democrats in both Houses Potential for a Super Majority in both the Senate and Assembly Senate – 40 seats – 27 needed for a super majority – Looks like the number could be 28 or 29 Assembly – 80 seats – 54 needed for a super majority – Right on the number Won’t need support of Republicans to pass tax increases, constitutional amendments and urgency legislation

Questions