1. Budgets 101

2. What are budgets? Authorization to spend Approved by Board of Trustees Estimate of expenditures Salaries & benefits estimated Other expenses Allocation of resources

3. How is a budget developed? Fund 1 (Unrestricted General Fund) Revenues based on projected enrollment and state budget Interest income based on cash flow projections Salaries & benefits based on assignments, step increases and current and estimated benefit rates Fixed costs (utilities, insurance, etc.) based on best estimates Site allocations based on previous year plus step and column adjustments and, if applicable, COLA.

4. How is a budget developed? Fund 3 (Grants & Categorical Funds) Requirements from funding source Salaries & benefits estimated like Fund 1 Indirect costs Matching requirements

5. How is a budget developed? Fund 4 (Capital Outlay) Architects & Swinerton develop plans and budgets State funding restrictions Bond funding restrictions Matching requirements

6. How is a budget developed? Fund 5 (Bookstore/Cafeteria) Revenues based on past history as adjusted by enrollment predictions and any changes to operations Salaries & benefits estimated like Fund 1 Other wages estimated based on hourly schedules of person-hours needed Other expenses based on history Fixed costs based on best estimate

7. How is a budget developed? Fund 6 (Child Development) Estimates of revenue based on number of children served State contract limits Salaries & benefits estimated like Fund 1 Other wages based on number of children served Other costs based on number of children served plus some fixed costs

8. How does the budget get changed? Carryover budget gets added to base People are hired or leave Compensation settlements change salary & benefit budgets Budget transfers Mid-year cuts or (rarely) augmentations Projections change and budget is revised

9. How does the budget get changed? Transfers and revisions go to board quarterly All must be approved by the board Final revisions go to board in July

10. What if my budget isn’t enough? Fund 1 Ask your Dean or VP Each campus has its own process for budget augmentations if funds are available. Write a grant Grants usually can only supplement, not supplant 6-10 months lead time Strict deadlines

11. What if my budget isn’t enough? Fund 3 (Grants) Revise your budget with the funding source to eliminate some planned activities Must be done in advance! Confer with your Dean to determine if Fund 1 budget can cover overages Don’t wait until the end of the year to announce that your budget isn’t enough. Over expenditures will impact the site’s general fund budget.

12. What if my budget isn’t enough? Fund 4 (Capital Outlay) Revisit program plan Redesign project Rebid Eliminate features Fundraise

13. What if my budget isn’t enough? Fund 5 (Bookstore/Cafeteria) Are revenues covering your expenses? If so, just revise budget Are revenues coming in under budget? Must cut back on expenses Are revenues at budget but expenses over? Must cut back on expenses

14. What if my budget isn’t enough? Fund 6 (Child Development) Is it lack of revenues or too many expenses? Increase enrollments or cut back on expenses Need to stay within license requirements

15. How do I monitor my budget? Review financial statements regularly (at least monthly) Websmart in Banner Banner reports Meet regularly with the folks who spend the money and keep them updated Keep on top of other indicators (enrollment, compensation settlements)

16. How do I find out more? At your college: Budget committee meetings and posted minutes Open forums with Jim &/or Kathy For SMCCD: District Committee on Budget & Finance agendas and minutes posted Chancellor’s letters

17. How do I find out more? Statewide: Subscribe to email alerts at www.ccleague.org/leginfo www.ccleague.org/leginfo Check state chancellor’s news at www.cccco.edu www.cccco.edu

18. Upcoming important dates Governor’s 2004-05 budget released Jan. 10, 2005 LAO analysis due about a month later May Revise due mid-May Board adopts Tentative Budget in June State adopts Budget in July Fiscal Year end close in August Board adopts Final Budget in September

19. Any Questions?