1. Victor Valley Community College District 2013-14 Budget Workshop June 11, 2013

2. Agenda 2013 /14 Budget Assumptions
Redevelopment Agency Pass Through Funds (RDA)
Other Post Employment Benefits (OPEB)
GIC
Growth Split
Ending Balances
Tentative Budget

3. General Fund Budget Assumptions
For Fiscal-Year
General Assumptions:
The District shall maintain legal compliance with the 50% law
The District will develop a balanced budget with a minimum 5% ending fund balance (reserve)
The District will not access long-term reserves for balancing the budget
The Program Review, Planning, and Budget Development Process will guide the allocation of all resources
Vacancies due to retirement or resignation will not automatically be filled
Board of Trustee Resolution #12-07, approved at their meeting in July, 2012, authorizes and directs the Superintendent/President to establish a policy goal of balancing the District’s budget by Fiscal Year 2015/16 in accordance with Title 5 of the California Code of Regulations
Finance, Budget, and Planning Committee recommends incorporating the April 3, 2013 FCMAT recommendations in developing updated business processes and balancing the District budget

4. Revenue Assumptions:
General fund reserve funds (Bridge) will be utilized to offset revenue shortfall
The State recommends 1.57% Cost of Living Adjustments (COLA) funding
The State recommends 1.63% Growth funding
The State recommends $16.9 million for “online initiatives” is recommended for distribution among 72 districts

5. Expense Assumptions:
12. Employer mandatory payroll cost will increase proportionately to the COLA, since by contract the legislated COLA must be applied to the salary schedule
13. Budget augmentations will initially be considered for mandatory and compliance related requests
Budget augmentations for non-mandated or compliance issues may be considered through reallocation of existing resources or one-time external non-general fund revenue
The budgets for object code 5000 expenditures will be reset to either the highest amounts expended during the past two years or the current fiscal year
District health benefit premiums will increase by approximately 10%
Employer contribution to PERS will increase from % to ___ (the PERS Board will meet in Mid-June 2013 to update the rate)
State Unemployment Insurance rates will decrease from 1.1% to .05%

6. Redevelopment Agency Pass Through Funds (RDA) Revenue
47.5% To General
Fund
52.5% To
Infrastructure &
Maintenance
Total
2008/09
1,153,933 $
1,275,399
2,429,332
2009/10
617,333
682,316
1,299,649
2010/11
440,445
486,808
927,253
2011/12
332,980
368,031
701,011
2012/13 *
313,920
1,195,625
1,509,545
* as of 6/11/13
Revenue

8. Special Reserve Fund (GIC)
Beginning Bal
Interest
Outgoing
Prior Yr Adj.
Balance
(GIC)
(County)
(Draw)
$ ,022,430
$ ,923,016
$ ,322
$ (8,350,000) $
$ ,598,768
$ ,691,509
$ ,951
$ ,115
$ ,300,343
$ ,000
$ ,993,852
$ ,728,616
$ ,724,468 *
$ ,834,295 $
$ ,560,762
*Projected

9. YTD Budget Expansion Proposal (Community College League of California)
As of 6/11/13
Enrollment restoration: 1.63%
Cost-of-living adjustment: 1.57%
Student Success: $50 million
Proposition 39: $48 million
Deferred Maintenance: $30 million
Online education: $16.9 million
EOPS: $15 million
DSPS: $15 million
CalWORKs: $8 million
Academic Senate: $150,000

10. Growth Split Total District Growth (1.63%) 666,446 $
Instructional (50% Law)
333,223
Cost of Growth
150,000
Discretionary
183,223
Non-Instructional
333,233
Student Services
166,617
Admin. Services

11. Ending Balances Million 2012-2013 Projected Ending Fund Balance $ 4.4$
OPEB/Vacation Liability Budget: Liquidated
Prop 30 Passed
Projected Unspent Budget in 5000 Object Code (Services/Operations)
Projected Beginning Fund Balance for $

13. Discussion