1. BOARD OF TRUSTEES MEETING JUNE 22, 2009

2. General Fund (GF): $216.8 Million, Including: Unrestricted GF: $198.6 Million Restricted GF: $18.2 Million Other Funds*: $196.8 Million Total All Funds: $413.6 Million *Other Funds Include: Community Education, Child Development, Capital Outlay (Including Basic Aid Projects), Debt Service, Self-Insurance, & Retiree Benefit Funds

3. Revenue Additions $130M = Stimulus Money $80M = Student Fee Increase (current rate is $20/unit proposed rate is $26/unit) Revenue Applications $140M to Reduce Categorical Program Cuts $70M to Reduce General Apportionments Cuts The effect of the Additions and Applications shown above are reflected in the following slides

4. Rejects Funding Physical Education and Recreational Classes at the Non Credit Rate Credit =$4,565/FTES Non-Credit =$2,745/FTES No Growth Funding or Cola Possible Reduction to Base Funding

5. $193M Reduction to Categorical Programs 0% Cut - Financial Aid Admin and Foster Care Education 15% Cut – Cal WORKS - $33,247 16% Cuts – Have No Flexibility 19% Cuts -Telecommunication/Technology - $13,694 Basic Skills$41,360 Disabled Students (DSP&S)$358,731 EOPS$252,614 CARE$20,974 Nursing$44,797

6. 32% Cuts – Allows Flexibility Economic Development (CACT)$65,600 Equal Employment Opportunity$7,476 Transfer Education and Articulation$2,560 Matriculation - Credit$479,339 Matriculation – Non Credit$30,201 Part-time Faculty Compensation$321,635 Part-time Faculty Health InsuranceNominal Amount Applied to P/T Health Insurance Expenses

7. 100% Cuts Instructional Equipment - $255,941 Scheduled Maintenance - $255,964 Total Amount of Categorical Reductions $2,184,133

8. SB361 Revenue Increase of $13.6 Million Ongoing - $6.8M Increase to 2009-2010 base resulting from 2008-2009 growth One Time - $6.8M 2008-2009 Growth Not Funded in 2008/2009 DRAC Model SB361 COLA - 0.0% Growth Funding - 0.0% General Fund Unrestricted Ending Balance from 2008-2009 Carried Forward - $20.3M

9. $7.5% Reserve for Economic Uncertainties 8.0% Estimated Increase for Health & Welfare Benefits - to be updated at Final after renewal amounts are known 0% Property and Liability Insurance – to be updated at Final after renewal amounts are known Salary Increases: Faculty and CSEA – 1% in accordance with the contracts Administrators, Managers, and POA – 0%

10. * Estimated (exact amounts will not be available until the end of the fiscal year). Per OC Tax Assessor, secured property taxes were estimated to remain constant in 2009-2010 and decrease 7% in 2010-2011. ** Decline due to increased SB361 revenue resulting from enrollment growth. 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009* 2009-2010 ** $ 5,676,800 $ 9,192,300 $13,719,277 $18,419,919 $27,356,952 $40,162,878 $46,899,203 $52,896,017 $50,692,873 $47,398,334 $37,385,193

11. $2.5M OPEB (Retiree Benefit Expenses) $2.4M ATEP Operating Budget $2.0M ATEP Negotiations $1.0M ATEP Development $60K for Legislative Advocacy for Basic Aid issues $29.77M Funding for Future Capital Projects Additional projects (not shown above) for Scheduled Maintenance and Technology that total $13.65M will be presented as an agenda item for the July 2009 Board Meeting