2. Governor’s January Budget “Best Case Scenario” Budget Package Entire package assumes voters will approve a $12 billion tax package (measure on June ballot) Five year extension of temporary taxes: Personal Income Tax Dependent Care Exemption Sales & Use Tax Vehicle License Fee

3. Governor’s January Budget Overall, two-year budget shortfall is projected at $25.4 billion $8.2 billion for 2010-11 $17.2 billion for 2011-12 Total shortfall could grow by additional $1.2 billion (for a total of $26.6 billion) if sale of state-owned real estate does not occur. Proposal to address shortfall: $12.5 billion in spending reductions $12 billion in revenue extensions and modifications $1.9 billion in “other solutions” Provides $1 billion reserve

4. Governor’s January Budget Major proposed reductions include: $1.7 billion to Medi-Cal $1.5 billion to CalWorks $750 million to Department of Developmental Services $500 million to University of California $500 million to Cal State University $308 million for 10% pay reduction for State employees not covered under collective bargaining agreements $200 million through various actions including reorganizations, consolidations, and other efficiencies

5. Community Colleges No mid-year cuts (2010-11) $400 million cut for “Apportionment Reductions and Reforms” – Census date reforms Represents a 7% funding reduction Student fee increase of $10 per credit unit From $26 to $36 … 38% increase Expected to generate $110 million in revenues 1.9% Enrollment Growth (funded by the $110 million generated from student fee increase) 22,700 FTES

6. Community Colleges Additional $129 million deferral, for a total of $961 million No further cuts to categorical programs Categorical flexibility provisions extended through 2014-15 Full funding for Cal Grant program

7. Budget Uncertainties Voters Approving Tax Extensions Transfer of Redevelopment Funds Sale of Government Building Netting Growth with Cuts in CC Budget Removing Census Date Language Course Repeatability Issues Workload Measure Reductions THE LIST COULD GO ON AND ON….

8. NOCCCD Ongoing Budget PY Operating Deficit $ (2,348,619) Anticipated Changes: 10% Benefits Increase (765,880) PERS Rate Increase (10.7% to 11.2%) (263,553) Step and Column Increases ( 1,000,000) Total Operational Reductions Needed $ (4,378,052) Note: The PY Ongoing Operating Deficit excludes a contribution to the Retiree Benefit Fund ($1.5 million) and the Self Insurance Fund ($1.2 million)

9. Impact to NOCCCD

10. Impact on FTES

11. Full-Time Faculty Obligation Calculated Obligation – Fall 2010559.8 Diff Compliance Obligation529.8 30 Filled Positions507 Cushion Current Recruitments 241

12. Available Resources 2010-11 One-Time Board Discretionary Contingency$ 2,126,834 Growth Funds 3,500,000 Negative COLA Budgeted 573,000 Mandated Cost Revenue 673,000 Deficit ($2,500,000 - $1,500,000) 1,000,000 Faculty Vacancies 1,000,000 One-Time Funds$ 8,872,834

13. Available Resources 2011-12 On-going Funds On-going Growth$ 3,500,000 Negative COLA Budgeted 573,000 On-going Dollars that can be used to offset cuts$ 4,073,000 Budgeted Deficit $ 2,500,000

14. Budget Shortfall

15. Other Things to Consider Capping Medical Benefits Salary Rollbacks: FT Positions (1%) - $1,024,049 PT Faculty (1%) - $218,442 Furloughs 1 day/month for 12 months – 5% Increase Faculty Loads Layoffs Eliminating Release Time Eliminating Summer School and the related impacts Athletic Programs

16. Other NOCCCD Impacts Additional Deferrals – Estimated at $22 million Many uncertainties still remain Could be costly to districts Redevelopment Changes – Proposal is to phase-out RDA’s over time Approximately 59% of NOCCCD projected redevelopment payment revenues could be “at-risk” Hearing that most, if not all, of the proposal will not be implemented