1. NOCCCD Townhall Presentation November 13, 2012 Presented by: Fred Williams – Vice Chancellor, Finance & Facilities

2. Agenda Proposition 30 Some Historical Information Budget Plan – 2012-13 – 2013-14 – 2014-15 Other News

3. Proposition 30 The Schools and Local Public Safety Protection Act of 2012

4. Proposition 30 Temporary Tax Increase Increases Sales Tax by ¼ percent for 4 years Increases Income Taxes for those earning over $250,000 per year ($500,000 for married couples) for 7 years Would raise an estimated $6 billion per year Different estimates from Department of Finance (DOF) and Legislative Analyst Office (LAO)

5. Proposition 30 No Base Reductions $50 million in growth/restoration $159.9 in Deferral Buy downs – From $961 million to $801.1 million Puts restrictions on funding Potential for growth and COLA in future years

6. Historical Information

7. Revenues

8. Apportionment

9. FTES Trends

10. Employee Count

11. Budget Planning

12. 2012-13 Budget Plan Add in the $11.1 million in revenues to the budget Add FTES to make sure we capture growth Allocate $3.8 million in one-time reductions to budget centers to balance the budget Return $8.5 million to budget centers that contributed to the Deficit Reserve Allow budget centers to fill non-faculty positions after they indentify the on-going reductions for 2013-14

13. 2012-13 Budget Plan Add 330 FTES and $400,692 to extended day budgets Allocate one-time cuts to budget centers to balance the budget $3,830,609

14. 2012-13 Budget Plan Return $8.5 million to budget centers for their contribution to the deficit reserve Allow budget centers to fill non-faculty positions after they have identified their portion of the on- going reductions

15. 2012-13 Budget Plan Deficit Reserve On-Going Deficit Beginning Balances $ 15,000,000 $ (14,629,917) Growth Funds 1,245,304 Cost of Growth (Ext. Day) (400,692) Apportionment Increase 9,954,696 Return PY Contributions (8,500,000) Ending Balance $ 6,500,000 $ (3,830,609)

16. 2013-14 Budget Plan Keep the FTES base as 2012-13 including the additional 330 FTES Make adjustments for FTES if growth funds are available Offer summer session Hire faculty to meet our Full-time Faculty Obligation Make on-going reductions of $5 million to correct our structural deficit – this will be adjusted if additional on-going funds are available

17. 2013-14 Budget Plan Full-time Faculty Obligations – Assume the Board of Governors will continue the freeze, adjusted for growth – Estimated that we will need to hire at least 14 On-going reductions of $5 million – Cypress College - $1,515,673 – District Services - $861,180 – Fullerton College - $2,029,603 – School of Continuing Ed - $593,544 Above amount can be reduce by the on-going operating allocation given for eliminated vacancies that totaled $2.1 millions

18. 2013-14 Budget Plan Deficit Reserve On-Going Deficit Beginning Balances $ 6,500,000 $ (3,830,609) Salaries/Benefits Roll-up Cost (1,169,391) Allocation of Reductions 5,000,000 Ending Balance $ 6,500,000 $ -

19. 2014-15 Budget Plan Adjust FTES Targets Accordingly Hire Full-time Faculty to meet our Full-time Faculty Obligation Normal Adjustments for Budget Changes – Growth – COLA – Other

20. Other News

21. Big gains for Democrats in both Houses Potential for a Super Majority in both the Senate and Assembly Senate – 40 seats – 27 needed for a super majority – Looks like the number could be 28 or 29 Assembly – 80 seats – 54 needed for a super majority – Right on the number Won’t need support of Republicans to pass tax increases, constitutional amendments and urgency legislation

22. Questions