MAY 4, 2012 MARK YEAGER, CO-CHAIR, BUDGET AND PLANNING COMMITTEE MYESHIA ARMSTRONG, INTERIM CO-CHAIR, BUDGET AND PLANNING COMMITTEE; DIRECTOR OF FISCAL SERVICES FRANCISCO RODRIGUEZ, SUPERINTENDENT/PRESIDENT FY2013 Budget Forum

Agenda Welcome - Mark Yeager State Budget Status – Myeshia Armstrong Implications for MiraCosta – Myeshia Armstrong Budget Process – Mark Yeager FY13 Budget Assumptions and Reduction Strategies – Myeshia Armstrong, Mark Yeager Comments from President Rodriguez Discussion and Q&A – Myeshia Armstrong, Mark Yeager, Dr. Rodriguez

Status of the State Budget

State Budget Gap Reduced the budget deficit by $9.2 billion Slow economic recovery persists State Revenues far less than expected Governor’s May Revised Budget (May 14) Governor’s Tax Initiative Proposal (Nov 2012)

The State and MiraCosta The dire state budget situation has a profound impact on apportionment districts (69/72) “Basic Aid” status  Local property tax revenues currently greater than formula allocation by approximately $30M  “Fair Share” exposure = $4.3M Indirect impacts on MiraCosta  Perceptions  Expectations

Implications for MiraCosta $10 per unit enrollment fee increase from $36-$46, effective Summer 2012 Potential mid-year impacts CBO (chief business officers)Funding Task Force reconvened, Jim Austin - participant

FY Revenue Sources (General Fund)

FY Expense Categories (General Fund)

Revenues & Expenses

Budget Process Role of BPC Preliminary Budget (Feb 2012) Tentative Budget (June 2012) Final Budget Adoption (Sept 2012)

MiraCosta FY13 Budget Assumptions The goal for FY12-13 is to adopt a balanced budget 1% increase in property tax revenue 0% Funded FTE growth Actual FY10-11 expenditures reviewed against budgeted FY11-12 to determine a target for reductions Identified $3 million in one-time reduction strategies

Program Review to Resource Allocation Process “Frost” on District Hiring Divisional Reductions PARS (2010 & 2011) Sabbatical Reductions Health & Benefit Allowance Budget Reduction Strategies: Highlights

District’s Guiding Philosophy & Next Steps Institutional Goal 4: MCCD will maintain high standards of stewardship and fiscal prudence Now what?

MARK YEAGER, CO-CHAIR, BUDGET AND PLANNING COMMITTEE MYESHIA ARMSTRONG, INTERIM CO-CHAIR, BUDGET AND PLANNING COMMITTEE; DIRECTOR OF FISCAL SERVICES FRANCISCO RODRIGUEZ, SUPERINTENDENT/PRESIDENT Discussion and Questions