1. Mt. San Jacinto Community College District
Adopted Budget
September 14, 2006
Board of Trustees
Eugene V. Kadow
Dorothy J. McGargill
Ann Motte
Gwendolyn Schlange
Joan F. Sparkman
Superintendent/President
Mark J. Zacovic, Ph. D.

2. 2006-07 State Budget for Community Colleges
Mt. San Jacinto College Adopted Budget
PRESENTATION OUTLINE
Economic Profile
State Budget for Community Colleges
MSJC Budget Planning Assumptions
Impact of State Budget, Trailer Bills
Enrollment trends
Major funding issues
Adopted Budget Recommendation
Business Services, September 14, 2006

3. Rapid growth is slowing from previous pace
Mt. San Jacinto College Adopted Budget
ECONOMIC PROFILE
Federal
Rapid growth is slowing from previous pace
Housing market continues to cool
Consumer spending and business investments have decelerated
Demand for labor moderated - hiring pace slowed
Price inflation in energy, shelter costs
U.S. International trade deficit widened
The impact of Federal Reserve Board interest rate increases is reflected in the slowdown in economic growth.
Business Services, September 14, 2006

4. Mt. San Jacinto College 2006-07 Adopted Budget
ECONOMIC PROFILE
State
At June 30, 2006, California reported an overall gain in jobs with unemployment down slightly.
Residential and commercial construction continued to slow from prior year increases.
State revenue collections exceeded budget projections in fiscal
Last year, the State economy continued to grow but at a slower pace than the previous year. State budget assumptions have held up but are highly vulnerable. Forecasts for fiscal 2007 and 2008 project continued deceleration.
Business Services, September 14, 2006

5. Mt. San Jacinto College 2006-07 Adopted Budget
ECONOMIC PROFILE
Local
Inland Empire economic growth was strong in fiscal 2006 but below 2004 and 2005 rates.
Population composition has changed since 2004 and reflects growing diversity.
Substantial differences in educational attainment levels have resulted with the change in population.
New and existing home prices show modest increases with sales volume off.
Projection for the Inland Empire housing markets suggest sales volume will continue to slow and price increases will be moderate.
Business Services, September 14, 2006

6. Increase to Proposition 98 Revenues
Mt. San Jacinto College Adopted Budget
STATE BUDGET FOR CALIFORNIA COMMUNITY COLLEGES
The California Budget Bill signed on June 30, 2006 continues to recognize the extraordinary role of the Community Colleges in addressing the economic well-being of California.
Increase to Proposition 98 Revenues
AB1802, the education trailer bill, provides for a fee reduction from the current $26 per credit unit to $20 per credit unit effective Spring 2007.
SB361 (Scott), which has been unanimously approved by the legislature, awaits the Governor’s approval and provides for changes to the existing funding formula for the system.
Business Services, September 14, 2006

7. 5.92% Cost-of-living Adjustment (COLA) 2% Enrollment Growth
Mt. San Jacinto College Adopted Budget
STATE BUDGET FOR CALIFORNIA COMMUNITY COLLEGES
On-going Revenue:
5.92% Cost-of-living Adjustment (COLA)
2% Enrollment Growth
$159M Equalization
$30M Non-credit Enhancement
$48M Categorical Restoration
$37.5M Economic/Workforce Development/ Career Technical Training
Total on-going augmentation to the system is approximately $666 million.
Business Services, September 14, 2006

8. One-time Revenue: (AB1802) $94.4M Instructional Equipment/Facilities
Mt. San Jacinto College Adopted Budget
STATE BUDGET FOR CALIFORNIA COMMUNITY COLLEGES
One-time Revenue: (AB1802)
$94.4M Instructional Equipment/Facilities
$40M Career Tech Equipment & Facilities
$100M General Purpose Block Grant
$40M Reimbursement of State Mandates
$3M Nursing Placement/Faculty Stipends
$30.7M Basic Skills Re-appropriation
$ 1.4M Internet Services to Centers
One-time appropriations are a result of AB1802 and also includes the fee reduction provision.
Business Services, September 14, 2006

9. CCC MSJC IMPACT OF STATE BUDGET ACTIONS
Mt. San Jacinto College Adopted Budget
IMPACT OF STATE BUDGET ACTIONS
CCC MSJC
Cost of Living Adjust (COLA) 5.92% $ 294,387, $ 2,139,811
Student Access (Growth) 2% ,508, ,570,515
Equalization ,438, ,885,719
Non-credit Enhancement ,000,000 TBD
Categorical Restoration ,000,000 TBD
Economic/Workforce Dev/Career Tech ,500, TBD
The State budget includes line item on-going appropriations detailed above with direct fiscal impact on MSJC. The allocation mechanism for certain budget line items have not been disclosed and are to be determined (TBD) with trailer bill language or system office notification. These will be treated as budget modifications during the fiscal year.
Business Services, September 14, 2006

10. CCC MSJC IMPACT OF STATE BUDGET ACTIONS
Mt. San Jacinto College Adopted Budget
IMPACT OF STATE BUDGET ACTIONS
CCC MSJC
Instructional Equipment Trailer Bill $ 47,200, $ 365,925
Scheduled Maintenance Trailer Bill ,200, ,925
Career Tech Trailer Bill ,000, ,954
General Purpose Block Grant ,000, ,416
Basic Skills Re-appropriation ,700, ,770
General Purpose Re-appropriation ,300, ,054
Transfer and Articulation , ,000
The State budget includes one-time appropriations detailed above with direct fiscal impact on MSJC. These allocations are the result of AB1802 as signed by the Governor. The bill provides one-time appropriation of unexpended growth funds allocated in previous budget acts.
Business Services, September 14, 2006

11. BUDGETING PROCESS PLANNING ASSUMPTIONS
Mt. San Jacinto College Adopted Budget
Fiscal Stability is Highest Priority
Prudent Reserve of 5.83%, or $2.7 million
Resource Allocation Linked to Formal Planning:
Education Plan, Master Plan, Facility Master Plan
Budget Committee Recommendations
Compliance to 50% Law and Full-time Faculty Obligation
Hire 7 FT faculty; 2 FT classified support staff
Fund for enrollment growth and efficiency
Increase materials, service and equipment budgets by five percent
Provide technology upgrades for stability, quality
Continue with physical plant maintenance and repair projects for deteriorating infrastructure systems
Business Services, September 14, 2006

12. 2005-06 at P2 – a difficult year:
Mt. San Jacinto College Adopted Budget
ENROLLMENT – STATEWIDE SUMMARY
at P2 – a difficult year:
All districts were funded to actual enrollment
No unfunded enrollment in the System
39 Districts received stability
13 of 39 Districts were in the second year of decline
Source: Chancellor’s Office Budget Workshop 7/31/2006
Business Services, September 14, 2006

13. Chancellor’s Office 2006-07 calculated growth rate for MSJC is 6.4%.
Mt. San Jacinto College Adopted Budget
ENROLLMENT TREND
At P2, MSJC credit enrollment growth was funded at %. The 320 Attendance Report filed in July shows credit enrollment growth at 2.6%. (Actual certification will be received in February 2007.)
Chancellor’s Office calculated growth rate for MSJC is 6.4%.
MSJC Fall 2006 credit enrollments are up 10 percent at census compared to Fall 2005.
The schedule for Spring and Summer provides the access needed to achieve target enrollments.
Business Services, September 14, 2006

14. Mt. San Jacinto College District Ten-Year Revenue Analysis
8,960
8,453
8,245
7,630
7,478
6,959
6,537
5,998
5,294
4,820
COLA
FTES % of Increase
State FTES % of Increase
*Enrollment Target = 8,960 FTES
Dollar Values are in Millions
Credit Full Time Equivalent Student (FTES)
Business Services September 14, 2006

15. Ten-Year FTES Comparison
Mt. San Jacinto College Adopted Budget
ENROLLMENT TREND
Mt. San Jacinto College
Ten-Year FTES Comparison
Business Services, September 14, 2006

16. Mt. San Jacinto College 2006-07 Adopted Budget
MAJOR FUNDING ISSUES
Menifee Valley Technology Center will require District matching funds greater than projected:
State Funds $ 8,785,000
District match ,625,926
The bid results exceeded the construction budget. The Adopted Budget includes $1.8 million District match.
Reserves for GASB 43/45 and GASB 16 are reflected in the proposed adopted budget. Full reserve is required in fiscal
Technology upgrade, repair and expansion is required to provide stability and quality for students and staff.
Maintaining the physical plant will require resources. Many systems continue to fail and require replacement or repair.
Business Services, September 14, 2006

17. MAJOR FUNDING ISSUES State Budget Act Augmentations:
Mt. San Jacinto College Adopted Budget
MAJOR FUNDING ISSUES
State Budget Act Augmentations:
On-going revenue $ 6,751,313
One-time revenue ,053,000
Total State Augmentations $ 8,804,313*
District Budget Requests
Certificated, Classified Positions $ 1,249,644*
Technology Center Match (100%) ,625,926
Emergency Repairs ,000*
Technology Upgrade, Support ,000*
Budget Change Proposals ,939,000
Total District Requests $ 14,214,570
* Included in the Adopted Budget.
Business Services, September 14, 2006

18. Mt. San Jacinto College 2006-07 Adopted Budget
MAJOR FUNDING ISSUES
As in every cycle, the budget requests exceed resources available. The budget prioritization process will determine final distribution of budget augmentations.
Formal planning documents such as the Master Plan, Facility Master Plan, Education Plan and program review will be used to determine funded requests.
Safety, program stability and compliance will be determining factors for final allocations. Also, Chancellor’s Office expenditure criteria will be followed for all appropriations.
Business Services, September 14, 2006

19. APPROPRIATIONS CAPITAL OUTLAY MVC Technology Center Match $ 1,800,000
Mt. San Jacinto College Adopted Budget
APPROPRIATIONS
CAPITAL OUTLAY
MVC Technology Center Match $ 1,800,000
SJC Cooling Tower Replacement ,000
SJC Electrical Upgrade 70,000
MVC Boiler Replacement 325,000
Sched. Maint. & Match Carryover ,242
Hazardous Materials Removal 117,406
Facility Improvements 206,000
Xerox Lease 550,000
Equipment Replacement 50,000
Lease Revenue Bond Pmt 467,498
MVC Modular Lease ,709
Business Services, September 14, 2006

20. APPROPRIATIONS CAPITAL OUTLAY RESERVE
Mt. San Jacinto College Adopted Budget
APPROPRIATIONS
CAPITAL OUTLAY RESERVE
Funds on deposit with State Treasurer for land acquisition, MVC: $1,789,000
The Board authorized funds on deposit with the State Treasurer for land acquisition, MVC.
These funds are held with the State Treasurer.
Accounting rules require disclosure of these funds on District statements. For clarity, these funds will be accounted for in one fund and in one line item.
Although disclosed on District statements, funds are physically held with State Treasurer.
Business Services, September 14, 2006

21. LEASE REVENUE BOND LEASE REVENUE BOND $8,000,000
Mt. San Jacinto College Adopted Budget
LEASE REVENUE BOND
LEASE REVENUE BOND $8,000,000
First Draw (April 27, 2004) 2,975,072
Second Draw (June 23, 2004) 600,089
Total 3,575,161
Interest Earned (thru June 30, 2006) 141,891
First Payment FY0304 (Funds 12 & 41) 467,498
Second Payment FY0405 (Funds 12 & 41) 462,509
Third Payment FY0506 (Fund 41 only) 452,377
Fourth Payment FY0607 (Fund 41 only) 467,498
Business Services, September 14, 2006

22. MSJC 2006-07 Adopted Budget REVENUE AND EXPENSE SUMMARY-ALL FUNDS
FUND NAME
FUND#
BEGINNING
BALANCE
REVENUE
EXPENSE
INTERFUND TRANSFER
RESERVE/ CARRYOVER
GENERAL FUND 11
$219,001
$46,380,536
$43,587,986
($2,705,333)
$306,218
SPECIAL RESERVE
2,200,000
-0-
200,000
2,400,000
INSTR EQUIPMENT 12
1,436
465,925
500,694
33,333
PARKING FUND
167,629
448,000
600,372
15,257
RESTRICTED FUND
6,075,924
CHILD DEVELOMENT 33
67,320
1,660,967
1,728,287
CAPITAL OUTLAY 41
7,049,561
12,455,982
15,473,620
2,412,000
6,443,923
SELF INSURANCE 61
130,629
104,043
191,161
60,000
103,511
ASSOC STUDENT BODY 71
23,879
60,560
61,646
1,000
23,793
STUDENT FINANCIAL AID 74
51,227
7,127,104
7,128,710
49,621
STUDENT REP FEE 72
2,324
815
1,002
2,137
FOUNDATION 79
3,252,672
1,143,836
1,150,921
(1,000)
3,244,587
BOOKSTORE 51
1,346,465
4,301,000
4,231,000
(70,000)
CAFETERIA 52
520,100
590,100
70,000
GRAND TOTAL
$14,512,143
$80,744,792
$81,321,423
13,935,512
Business Services, September 14, 2006

23. RECOMMENDATION Enrollment target set at 8,960 credit and
Mt. San Jacinto College Adopted Budget
RECOMMENDATION
The Adopted Budget for fiscal year is recommended with the following:
Enrollment target set at 8,960 credit and
269 non-credit FTES, or 6% growth
Adopted Budget based on 8,700 credit and
262 non-credit FTES, or 3% growth
Budget Base/Revenue Limit = $42.6 million
Compliance with statutory requirements of the 50 Percent Law and FT Faculty Obligation
5.83% Contingency & Reserve = $2,700,000
Business Services, September 14, 2006

24. QUESTIONS Mt. San Jacinto College 2006-07 Adopted Budget
Business Services, September 14, 2006