1. BUDGET WORKSHOP 2010 1

2. STRATEGIC BUDGET PLANNING GOALS 5 YEAR OPERATIONAL BUDGETS 5 YEAR FUND BALANCE ANALYSIS 5 YEAR PHYSICAL PLANT/CAPITAL IMPROVEMENT SCHEDULE 2

3. FISCAL PLANNING 5 Year Budget Forecasting – National Fiscal Indicators – State Trends – Health of Local Economy/Tax District Commercial Development Appraisal Values 3

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15. LOCAL FISCAL DEVELOPMENTS CALLER TIMES-APRIL 28, 2010 – TAX ROLLS OF NUECES COUNTY DECREASED TO $18.5B FROM $19.4B IN 2009 – 56% OF RESIDENTIAL PROPERTY APPRAISED LOWER IN VALUE THAN IN 2009 15

16. FISCAL IMPACT ON BUDGET PRELIMINARY DISTRICT APPRAISAL VALUE -$713,013,474 APPLY 2009/2010 TAX RATE -$1,792,452 16

17. REVENUE BALANCING ACT STATE FORMULA FUNDING -Earned During the Base Year -Funded for the Biennium COLLEGE DISTRICT AD VALOREM TAXES Appraisal Established in Preceding Year Tax Rate Change Requires Board Action STUDENT CHARGES Set by Board in January/February 17

18. 2010/2011 Preliminary Budget Estimates New Dollars State Formula Funding $932,000 Collegiate H.S. Revenue 330,000 Dual Credit Revenue 180,000 Tax Revenues from Property Valuation decrease at Same Tax Rate 1,792,452 Increase in Tuition Revenue from Conservative 5% Enrollment Growth & $5 psh Increase 2,503,196 Adjustment in Course Fees to Comply with the TX Education Code 420,000 Total New Anticipated Revenues $131,256 18

19. New Expenses Increase to Budget for 10 Unbudgeted FT term faculty positions $500,000 Restore Dual Credit Faculty Salary 255,000 Increase for Faculty Education &Promotions 145,507 Salary Step Expense 482,942 Election Expenses 150,000 SACS Accreditation 25,000 Increase in Debt Service for 2008 Tuition Bond 279,279 QEP Expense 150,000 Property Insurance Estimated Increase 6,200 Northwest Center Operations 270,000 2% Increase to All Other Expense Categories 374,331 Remote back-up Datatel Server System 100,000 Total Minimum Expenditure Increases $2,738,259 Return of Contingency Budget Stipulated in Board Policy 1,000,000 Total Preliminary Budget Shortfall for 2010/2011 $3,607,003 2010/2011 Preliminary Budget Estimates 19

20. BUDGET STRATEGIES IMMEDIATELY FREEZE 2010 EXPENDITURES INCREASE USE OF PART-TIME WORKERS AND ADJUNCT FACULTY DECREASE 2010/2011 EXPENDITURES REQUEST THE BOARD TO WAIVE BUDGET CONTINGENCY REQUIREMENT CONSIDER FUND BALANCE AS ONE-TIME RESOURCE FREEZE SALARY STEP/EXPERIENCE PAY 20

21. 21 BIENNIUM FUNDING PROJECTION 2011-2012 2009-2010 CH X 1.05% = BASE YEAR CH FOR 2011-2012 5,313,184 CH X 1.05% = 5,578,843 CH Projected value for Average Contact Hour = $6.35 Projected 2011-2012 Biennium Funding = $35,425,654 $1,754,176 LESS than 2009-2010 Biennium or $877,088 LESS STATE REVENUES/FISCAL YEAR

22. 2011 – 2012 Preliminary Budget Estimate 22 New Dollars State Formula Funding ($877, 068) Collegiate High School Revenue 50,118 Increase in Tuition Revenue from Conservative 5% Enrollment Growth and $1 psh Increase 586,850 Dual Credit Revenue 0 Property Tax Revenue 0 Total New Anticipated Revenues ($240,100)

23. 23 New Expenses Decrease in Debt Service Requirement for General Obligation Bonds ($163,500) Increase in Debt Service for 2008 Tuition Revenue Bonds 279,158 Election Expense ($150,000) 2% Increase to All Other Expense Categories 381,818 Increase for Faculty Education and Promotions 145,507 Salary Step Expense 482,942 Achieving the Dream 35,000 Furniture and Equipment Estimate 200,000 Total New Anticipated Expenses $1,210,925 Total Preliminary Budget Shortfall for 2011- 2012 ($1,451,025) 2011 – 2012 Preliminary Budget Estimate