1. 2010-11 FINAL BUDGET

2. OVERVIEW STATE BUDGET ENROLLMENT COLLEGE BUDGET REVENUE ADJUSTMENTS EXPENDITURE ADJUSTMENTS RESERVES PENDING ISSUES BUDGET FORECAST

3. 2010-11 STATE BUDGET

4. May Revise Highlights GCC No fee increase 2.2% Enrollment Growth $1.5M -.38% COLA ($277K) $39.9M Property Tax Backfill $10M shift from PT Parity to Career Tech Ed ($149K) Categorical program flexibility Suspension of Comp. Cal Grants

5. Conference Committee Proposal Crafted by Democrats Delays corporate tax breaks ($2B) Imposes an oil severance tax ($1.2B) Includes a tax swap ($1.8B)  Increases personal income tax  Increases vehicle license fees  Reduction in sales tax  Provides federal income tax relief for taxpayers

6. Effect on Community Colleges No fee increase 2.21% enrollment growth $1.5M Reject negative COLA $277K $35M ARRA backfill$549K $25M for Economic & Workforce Dev. Reject $10M cut to PT Parity$149K Establish JPA to accelerate mandated cost reimbursement.

7. State Budget Status State budget moving in right direction Currently being discussed in both the Assembly and the Senate Republicans have already rejected plan Hopefully agreement can be reached by end of summer

8. ENROLLMENT

9. Enrollment Trends Enrollment Categories2006-072007-082008-092009-10 Funded Credit FTEs11,96513,28013,27712,696 Funded Non-Credit FTEs680272321410 Funded Career Dev/College Prep2,0512,4702,5772,536 Total Funded FTEs14,69616,02216,17515,642 Unfunded Credit FTEs02771,0822,268 Unfunded Non-Credit FTEs0123735847 Unfunded Career Dev/College Prep0147620504 Total Unfunded FTEs05472,4373,619 Non-Resident897995975795 Total FTEs15,59317,56419,58720,056

10. Enrollment 650 FTEs over 2008-09  30% reduction in Winter intersession  College is more efficient Over 3,600 FTEs unfunded FTEs in 2009-10  3.37% reduction in workload  Excluding nonresidents almost 1 in 5 students are unfunded  2.2% growth target  Reduction for elimination of second summer  Absorb impact of block scheduling Enrollment currently not a problem at College

11. COLLEGE BUDGET

12. COLLEGE BUDGET DEVELOPMENT Unrestricted General Fund 2010-11 Budget Preparation Principles  Strive to reach growth enrollment FTEs  Strive to avoid reductions through layoffs of permanent employees  Establish a five percent (5%) General Reserve  Establish a $500K Contingency Reserve

13. COLLEGE BUDGET DEVELOPMENT Unrestricted General Fund Final Budget is based on May Revise 2009-10 Ending Balance was $5.81 million (7.16%)  Amount in excess of 5% used to balance Final Budget Includes 5% General Reserve $1.2M budget cut/new revenue still required  Final Budget balanced by eliminating Winter intersession

14. REVENUE ADJUSTMENTS

15. Revenue Adjustments CategoryTentativeFinal 2009-10 Growth$1,500,0000 Loss of federal funds($548,000)0 -0.38% COLA($277,000)0 2009-10 Apportionment Adjust.($328,000)0 Part Time Faculty Programs($159,000)0 Non-Resident Tuition($600,000)0 Blue Shield Rebate($215,000)0 Total Apport. Adjustment ($627,000)0

16. EXPENDITURE ADJUSTMENTS

17. Expenditure Adjustments AugmentationTentativeFinal Step & Column$838,000 Health Insurance$297,000 Utilities/Postage/Legal($300,000) PERS Retirement$100,000$50,000 Winter Intersession$225,000 State Unemployment Insur.$236,000 Categorical Support$380,000 Full Time Faculty$106,000 “Must Do’ Requests$170,000 Total Expenditure Adj.$1,160,000$942,000

18. “Must Do” Requests AugmentationTentativeFinal Oracle License0$55,000 Other software licenses0$75,000 Copier maintenance agree.0$ 6,000 Bank Fees0$ 6,000 Student Transportation0$14,000 Int. Student recruitment0$14,000 Total “Must Do”0$170,000

19. Budget Actions Taken Budget ActionTentativeFinal Vacant Positions$2.043M$0.126M Eliminate Second Summer$0.845M Over $10K account review$0.279M 2.2% growth revenues$1.500M Reserves over 5%$0.700M$0.918M 2009-10 credit from employee groups$0.126M 3% pay cut from managers$0.248M Total Budget Cuts$5.741M$1.044M

20. CategoryAmountPer Cent Certificated Salaries**$35,374,38443.07% Classified Salaries$19,045,83423.19% Benefits$15,925,80319.39% Total Employee Cost$70,346,02185.65% Supplies$620,8750.75% Services$6,525,9757.95% Equipment$137,0610.17% Inter-fund Transfers$3,685,0004.49% Reserves*$812,3370.99% Total$82,127,269100.00% *Does not include $4,200,000 General Reserve **Excludes Winter intersession 2010-11 Budget Summary

21. RESERVES

22. 2010-11 COLLEGE UNRESTRICTED GENERAL FUND RESERVES ReserveOn-GoingOne-TimeTotal General Reserve (5.11%)$4,200,000 Contingency Reserve (0.61%)$500,000500,000 Subtotal Mandatory (5.72%)$500,000$4,200,000$4,700,000 Senate PFE Grants295 Reallocation Reserve103,037 Unallocated Ending Balance (2009-10)209,005 Total Reserves$500,295$4,512,042$5,012,337

23. PENDING ISSUES

24. PENDING BUDGET ACTIONS Adoption of State Budget  2.2% Growth funding $1.2M Budget Cut Required 2011 Health Insurance Premium Increase  10% increase budgeted Blue Shield Rebate - $613,000 2010-11 Collective Bargaining

25. BUDGET FORECAST

26. Budget Forecast 2011-12 will be another budget challenge College used one time budget solutions  Use of reserves to balance budget  Positions must be left vacant College must continue to end year with significant excess reserves over 5% College will have to fund its inflationary cost increases with potentially little new discretionary revenue.