1. Board budget workshop February 21, 2012
Prepared by Edralin J. Maduli

2. Current Year Budget Adopted budget balanced
Mid-year “triggers” covered

3. 2011-12 Mid-Year Budget Actions
Tier 1 implemented
$30 million reduction, but not backfilled
$437,917 reduction to District (on-going)
Tier 2 implemented
Additional $72 million workload reduction
$1,122,555 reduction to District (on-going)

4. 2011-12 Deficit Factor January 13th State Budget Workshop
State Chancellor's Office announced anticipated additional enrollment fee shortfall of $100 million
P1 Report released February 16th
Enrollment fee shortfall: $107 million
Property tax shortfall: $41 million
League aggressively seeking a backfill

5. 2012-13 State Budget Governor releases State Budget on January 5, 2012
$9.2 billion shortfall ($4.1 billion from )
Close the gap with budget cuts and new revenues

6. Governor’s Tax Proposal
November 6th ballot
Increase sales tax by 0.5% from January 1, 2013 to December 31, 2016
Increase personal income taxes on higher income earners from 2012 to 2016
Tax increase would generate $6.9 billion in

7. Community College Budget
$218.3 million to “buy back” a portion of $961 million deferral
$12.5 million block grant for State reimbursable mandates
No COLA (estimated to be 3.17%)
No enrollment growth funding
Includes apportionment reduction of $146.9 million to balance an identical increase in property taxes
Consolidate categorical programs into one block grant of $411.6 million

8. 2012-2013 Triggers What happens if Governor’s Tax Initiative fails
Budget augmentations go away
Additionally, $264 million apportionment cut (5.56% reduction)
Impact to the District
Additional $4 million workload reduction (about 900 FTES)

9. District Impact Planning for 2012-13 is difficult and challenging.
Unknowns and risks.

10. District Budget Development
$6 million shortfall without trigger implementation
Additional $4 million shortfall if tax proposal fails

11. Tentative Budget Development without Trigger
Total anticipated shortfall -- $6 million
Starting Point
$4 million carryover from
Additional expenditures for
$1 million (Step/Column, ACE PG&D, PERS)
Mid-year reduction
$ 1 million

12. Budget Reduction Strategies
Land Corporation funding support
$1.5 million
Bargaining concessions
To be determined
District/College budget reduction
$3 million

13. What happens if Governor’s proposal fails
Additional $4 million shortfall for District
Budget strategy to mitigate shortfall
Land Corporation funding support of $2.9 million (one-time)
Associate faculty funding reduction -- $1.1 million savings (on-going)

14. Planning for 2013-14 District Budget
If Governor’s tax initiative passes, District’s budget will be balanced.
If Governor’s tax initiative fails, District will need to plan for at least a $2.5 million budget reduction.

15. District/College Budget Reduction Plan for FY 2012-13
District Services: $540,000
Mission College: $1,156,200
West Valley College: $1,303,800

16. District Services Budget Reduction Plan
Savings from vacant positions (4.5 FTE)
Anticipated layoff (1.0 FTE)
Operating budget reduction

17. Mission College Budget Reduction Plan
Areas where reductions were made:
Salary savings: $897,811
College reorganization: $167,379
Line item budget cuts: $91,010
Total Reduction: $1,156,200

18. WVC’s Goals for the Budget Reduction Plan
Meet the WVC budget reduction target of $1.3M
Ensure the college’s long-term fiscal stability
Align shrinking fiscal resources with expenditures
Deploy limited resources to high need areas
Limit impact to the instructional program to the extent possible
Align programs and services to address high demand areas
Align programs and services to meet the state’s priorities for community colleges

19. WVC’s Budget Reduction Plan: Seven Facets
Savings from vacant positions
Shifting position expenses to alternate funding sources
Reduction/elimination of positions
New position
Reclassifications due to reorganization of essential functions and duties
Reassignment of existing staff to high-need areas
Operations of CDC

20. Statutory Requirements
Full-time Faculty Obligation
Fall 2012 > 68.23%
Fall %
50 % Law
> 50.0% %