Administrator Initiating Item:

Victoria Lewis

Academic and Professional Matter Yes No Final Disposition If yes, Faculty Senate Agreement Yes No Senate President Signature

AGENDA ITEM BACKGROUND

TO: GOVERNING BOARD DATE

March 5, 2012

FROM: PRESIDENT

SUBJECT:

2011-12 through 2014-15 Budget Planning Parameters

ENCLOSURE(S)

Page 1 of 13 REASON FOR BOARD CONSIDERATION

ACTION

ITEM NUMBER C.3

BACKGROUND The Governing Board received a budget update on December 7, 2011. Updates have been received since then on the status, 2010-11, 2011-12 funding and the 2012-13 budget. Carryover and One-time funds allocated to departments were reviewed in fall 2011. Final 2010-11 revenue calculation became available in February. Growth funding was approximately $300,000 below the amount anticipated. The reduction impacts ongoing funding. Tier one and two reductions will be implemented for 2011-12. Tier one cuts are considered one-time reductions that apply to the current year; $315,000 for Cabrillo. Tier two reductions are permanent ongoing cuts that total $755,000 and come with a workload reduction of 165 credit FTES. The Chancellor’s Office notified districts in January that the student fee revenue shortfall anticipated for 2011-12 had grown significantly. The shortfall for Cabrillo was estimated at $250,000 in fall of 2011. The updated reduction for 2011-12 as of the first principal apportionment report is $1.9 million. The two changes will require the college to utilize additional one-time operating reserves of $2.2 million for the current year. FISCAL IMPACT: Estimated $5.6 million 2012-13 unrestricted general fund shortfall. The college plans to use $2.3 million of one-time reserves for 2012-13. The base budget reduction target for the 2012-13 Preliminary Budget is $2.5 million. The Preliminary Budget will be submitted to the Governing Board for approval in June. The college will continue with additional reductions in July and August to offset the remaining $3.2 million deficit for 2012-13. RECOMMENDATION: It is recommended that the Governing Board approve the 2011-12 through 2014-15 budget planning parameters.

57

Approved

Carryover and One-time funds allocated to departments were reviewed in fall 2011. As a result of the increase in the deficit for 2011-12, additional funds of $153,225 were returned to the operating reserve from Carryover and One-time funds. An updated summary of the Carryover, One-time (Critical Needs) funds is attached. The “give backs” to the reserve currently total $525,255. The bookstore is projected to have an ending balance of over $800,000 for 2011-12. The college will transfer $200,000 from the bookstore fund to the general operating reserve to reduce the impact of mid-year reduction on the base budget. The college’s budget planning information has been updated to reflect information discussed above. As is noted on the multi-year planning documents, the college is using the Governor’s budget to plan for the 2012-13 budget year. The following attachments were reviewed by the College Planning Council and are included for the Governing Board’s action:

A summary of the Carryover and One-Time/Critical Needs balances as of 2/21/12 Updated Base Budget Planning Parameters for 2011-12 through 2014-15 An updated estimate of Cabrillo Operating Reserves for 2011-12 Projected Operating Reserves for 2011-12 and 2012-13 Updated Budget Development Timeline

The planning assumptions for 2011-12 have been updated to include the ongoing Tier 2 permanent funding reduction of $755,000. The student fee revenue shortfall for 2011-12 is treated as a one-time reduction for state purposes. The assumptions going forward are that the shortfall will continue into 2012-13 with a minimum loss of funding of $500,000. The 2012-13 revenue is projected at the same level as 2011-12 with the exception of the student fee revenue shortfall. The 2013-14 and 2014-15 revenue estimates show an increase in revenue of 4%. Although this increase is highly unlikely, it is included in planning to demonstrate the continued structural deficit which exists even when increases in revenue are assumed. The ongoing structural deficit for 2012-13 is currently projected at $5.6 million. One of the major components of the structural deficit is the built in increases in expenses that the college must budget each year. It should be noted that Cabrillo reduced the number of full-time faculty positions in the budget to the minimum number required by the state; 196. The reduction of faculty positions has yielded significant savings in the budget to date. The college is planning to utilize $2.3 in operating funds to bridge the 2012-13 deficit leaving a deficit balance of $3.2 for 2012-13. The amount of reserves available for bridging the 2012-13 budget was reduced due to the unexpected student fee revenue shortfall for 2011-12. The college has set a budget reduction target of $2.5 million for the first phase of 2012-13 budget planning. The first phase of planning will be complete by May and all permanent reductions identified in the first phase will be included in the 2012-13 Preliminary Budget approved by the Governing Board in June 2012. The first phase of budget reduction plans is included as an Information Item. Phase I reduction plans will be presented to the Governing Board as Action Items in April. Built in expenditures continue to rise at levels that are not sustainable over the long term. Fiscal stability and student success are of the utmost importance to all constituents of the college community.

58

A DefiningMoment

Community College League of California

2017 O Street . Sacramento, California . 95811 . www.ccleague.org . 916.444.8641

Contacts:Theresa Tena, Dir., Fiscal Policy

(916) 849-5618 (cell)ttena@ccleague.org

Community Colleges Hit by February Surprise of Unexpected Additional $149 Million Budget Cut

Additional cut brings total 2011-12 reductions to $564 million; relief would maintain access

Already reeling from $313 million in cuts in the 2011-12 enacted budget and $102 million in “triggered cuts” in January, California’s 112 community colleges learned late Thursday that they will likely face an additional $149 million cut in the current fiscal year. The latest cuts amount to an additional reduction of $135 per student and threatens more class cuts.

Before the latest cuts, community college were operating with $996 million (23%) is less funding since 2008-09, and have reduced enrollment by nearly 284,000 students at a time when demographically they should have significantly increased enrollment. Even with the reduced enrollment, funding per student has dropped by $554, or 9.3%.

“It is unconscionable that the state continues to foreclose on educational opportunity at this time of record demand and high unemployment,” said Scott Lay, President and CEO of the Community College League of California. “These latest cuts threaten the elimination of even more classes and more faculty and staff layoffs.”

The surprise cut came when districts were provided the first state community college financial update of the year, which showed that revenue from state-determined student enrollment fees were $106 million below projections, and that prop-erty tax revenues included in the budget lagged state estimates. This resulted in insufficient resources for the state to meet its promised per-student funding and instead a determination that the funding should be deficited by 3.4%.

“We call on the Legislature to quickly pass legislation to address this unexpected cut,” said Theresa Tena, the League’s Director of Fiscal Policy. “By fulfilling this funding commitment by June, we can ensure that students will have access to summer school classes in many parts of the state where access is threatened and avoid further layoffs.”

“This latest development brings the one-year cut to California’s three segments of public higher education to over $2.1 billion, and demonstrates why it is essential to support the governor’s plan to ask taxpayers to support a balanced ap-proach that gets our state’s budget back on the right track,” said Lay.

The Community College League of California is a nonprofit association of California’s 72 community college districts,

serving the districts in governmental relations, leadership development and district services.

February 21, 2012Scott Lay, President/CEO

(916) 213-2232 (cell) scottlay@ccleague.org

59

The February Surprise: Community Colleges Hit With $149 million Unexpected Cut

DistrictEnacted

Budget CutJanuary

“Trigger Cut”Expected Shortfall

February Surprise

Additional Cut

Total 2011-2012

CutsAllan Hancock -$2,673,000 -$615,000 -$259,000 -$1,289,000 -$4,836,000Antelope Valley -$3,222,000 -$741,000 -$306,000 -$1,522,000 -$5,791,000Barstow small district exemptionsmall district exemption -$83,000 -$414,000 -$497,000Butte -$3,186,000 -$733,000 -$303,000 -$1,507,000 -$5,729,000Cabrillo -$3,264,000 -$751,000 -$310,000 -$1,540,000 -$5,865,000Cerritos -$4,813,000 -$1,107,000 -$435,000 -$2,164,000 -$8,519,000Chabot-Las Positas -$4,866,000 -$1,119,000 -$455,000 -$2,265,000 -$8,705,000Chaffey -$4,072,000 -$937,000 -$385,000 -$1,913,000 -$7,307,000Citrus -$3,195,000 -$735,000 -$297,000 -$1,479,000 -$5,706,000Coast -$9,919,000 -$2,282,000 -$908,000 -$4,516,000 -$17,625,000Compton -$1,835,000 -$422,000 -$175,000 -$871,000 -$3,303,000Contra Costa -$8,514,000 -$1,958,000 -$791,000 -$3,936,000 -$15,199,000Copper Mt. small district exemptionsmall district exemption -$62,000 -$309,000 -$371,000Desert -$2,183,000 -$502,000 -$205,000 -$1,019,000 -$3,909,000El Camino -$5,508,000 -$1,267,000 -$526,000 -$2,616,000 -$9,917,000Feather River small district exemptionsmall district exemption -$64,000 -$319,000 -$383,000Foothill-DeAnza -$8,716,000 -$2,005,000 -$822,000 -$4,087,000 -$15,630,000Gavilan -$1,462,000 -$336,000 -$147,000 -$729,000 -$2,674,000Glendale -$4,287,000 -$986,000 -$397,000 -$1,973,000 -$7,643,000Grossmont-Cuyamaca -$5,149,000 -$1,185,000 -$480,000 -$2,385,000 -$9,199,000Hartnell -$1,981,000 -$456,000 -$189,000 -$941,000 -$3,567,000Imperial -$2,006,000 -$461,000 -$190,000 -$944,000 -$3,601,000Kern -$5,586,000 -$1,285,000 -$556,000 -$2,767,000 -$10,194,000Lake Tahoe small district exemptionsmall district exemption -$72,000 -$358,000 -$430,000Lassen small district exemptionsmall district exemption -$71,000 -$352,000 -$423,000Long Beach -$5,911,000 -$1,360,000 -$541,000 -$2,692,000 -$10,504,000Los Angeles -$28,900,000 -$6,648,000 -$2,651,000 -$13,183,000 -$51,382,000Los Rios -$14,780,000 -$3,400,000 -$1,366,000 -$6,795,000 -$26,341,000Marin excess local property taxexcess local property taxexcess local property taxexcess local property taxexcess local property taxMendocino-Lake small district exemptionsmall district exemption -$105,000 -$522,000 -$627,000Merced -$2,709,000 -$623,000 -$262,000 -$1,305,000 -$4,899,000Mira Costa excess local property taxexcess local property taxexcess local property taxexcess local property taxexcess local property taxMonterey Peninsula -$2,114,000 -$486,000 -$201,000 -$998,000 -$3,799,000Mt. San Antonio -$7,991,000 -$1,838,000 -$712,000 -$3,541,000 -$14,082,000Mt. San Jacinto -$2,931,000 -$674,000 -$281,000 -$1,399,000 -$5,285,000Napa Valley -$1,599,000 -$368,000 -$160,000 -$795,000 -$2,922,000North Orange County -$9,200,000 -$2,116,000 -$834,000 -$4,148,000 -$16,298,000Ohlone -$2,362,000 -$543,000 -$226,000 -$1,126,000 -$4,257,000Palo Verde small district exemptionsmall district exemption -$69,000 -$344,000 -$413,000Palomar -$5,530,000 -$1,272,000 -$509,000 -$2,531,000 -$9,842,000Pasadena Area -$6,220,000 -$1,431,000 -$568,000 -$2,823,000 -$11,042,000Peralta -$5,514,000 -$1,268,000 -$546,000 -$2,713,000 -$10,041,000Rancho Santiago -$7,964,000 -$1,832,000 -$735,000 -$3,656,000 -$14,187,000Redwoods -$1,476,000 -$340,000 -$153,000 -$759,000 -$2,728,000

60

The February Surprise: Community Colleges Hit With $149 million Unexpected Cut

DistrictEnacted

Budget CutJanuary

“Trigger Cut”Expected Shortfall

February Surprise

Additional Cut

Total 2011-2012

CutsRio Hondo -$3,690,000 -$849,000 -$340,000 -$1,689,000 -$6,568,000Riverside -$7,612,000 -$1,751,000 -$708,000 -$3,523,000 -$13,594,000San Bernardino -$4,009,000 -$922,000 -$383,000 -$1,902,000 -$7,216,000San Diego -$11,063,000 -$2,545,000 -$1,037,000 -$5,158,000 -$19,803,000San Francisco -$9,562,000 -$2,200,000 -$884,000 -$4,396,000 -$17,042,000San Joaquin Delta -$4,590,000 -$1,056,000 -$422,000 -$2,101,000 -$8,169,000San Jose-Evergreen -$4,271,000 -$983,000 -$402,000 -$1,998,000 -$7,654,000San Luis Obispo -$2,632,000 -$605,000 -$256,000 -$1,272,000 -$4,765,000San Mateo -$6,112,000 -$1,406,000 -$577,000 -$2,872,000 -$10,967,000Santa Barbara -$4,261,000 -$980,000 -$401,000 -$1,993,000 -$7,635,000Santa Clarita -$4,274,000 -$983,000 -$396,000 -$1,968,000 -$7,621,000Santa Monica -$6,283,000 -$1,445,000 -$573,000 -$2,850,000 -$11,151,000Sequoias -$2,512,000 -$578,000 -$246,000 -$1,221,000 -$4,557,000Shasta-Tehama-Trinity -$2,175,000 -$500,000 -$204,000 -$1,016,000 -$3,895,000Sierra -$4,375,000 -$1,006,000 -$405,000 -$2,014,000 -$7,800,000Siskiyou small district exemptionsmall district exemption -$80,000 -$399,000 -$479,000Solano -$2,609,000 -$600,000 -$254,000 -$1,262,000 -$4,725,000Sonoma -$5,583,000 -$1,284,000 -$521,000 -$2,593,000 -$9,981,000South Orange excess local property taxexcess local property taxexcess local property taxexcess local property taxexcess local property taxSouthwestern -$4,447,000 -$1,023,000 -$410,000 -$2,040,000 -$7,920,000State Center -$7,700,000 -$1,771,000 -$719,000 -$3,576,000 -$13,766,000Ventura -$7,463,000 -$1,717,000 -$699,000 -$3,475,000 -$13,354,000Victor Valley -$2,716,000 -$625,000 -$257,000 -$1,276,000 -$4,874,000West Hills -$1,403,000 -$323,000 -$159,000 -$791,000 -$2,676,000West Kern small district exemptionsmall district exemption -$111,000 -$552,000 -$663,000West Valley-Mission -$4,880,000 -$1,123,000 -$457,000 -$2,271,000 -$8,731,000Yosemite -$4,878,000 -$1,122,000 -$457,000 -$2,270,000 -$8,727,000Yuba -$2,263,000 -$521,000 -$237,000 -$1,179,000 -$4,200,000

-$313,000,000 -$72,000,000 -$30,000,000 -$149,000,000 -$564,000,000Notes:“Enacted Budget Cut”: In the state’s enacted budget, the state general fund appropriation was cut by $400 million, and the state raised fees from $26 to $36/unit to mitigate the cuts. Along with other state shortfalls, this resulted in a $313 million cut, which districts were told to accommodate by reducing “workload,” or classes to students.

“January Trigger Cut”: As part of the state’s budget deal, certain cuts were automatically made in January, including this $72 million leading to reduced “workload,” or course sections, and an additional $30 million as an “Expected Shortfall.”

“February Surprise”: Due to the fee increase and course reductions, fewer students are enrolling and paying the $36/unit fee (as more qualify for the state-required fee waiver). This has resulted in a $106 million reduction in state-projected student fee revenue that, combined with a $43 million shortfall in property tax revenue and other state calculations, results in an additional mid-year, surprise cut of over 3%.

“Excess Local Property Tax” districts are funded entirely by local revenues and thus are not affected by apportionment deficits, and “Small district exemption” districts did not have their workload reduced in the current year and, in turn, forfeit enrollment restoration funds in future years.

61

Colleagues,

As you know, the P1 apportionment identifies a significant current year deficit in system funding. The

total shortfall identified is $179M (3.29% statewide, but effectively a 3.42% deficit for non-basic aid

districts) and consists of the following elements:

$107M due to a fee revenue shortage

$41M in property taxes

$30M due to the Tier 1 trigger reduction

$1M due to other miscellaneous adjustments

As the $30M trigger cut was anticipated, we should not expect any relief for that portion of the deficit.

That, however, still leaves a hole of $149M that districts had no reason to expect. Given the major

reductions the system has experienced in recent years, an unanticipated deficit is unacceptable.

Addressing this shortfall will be a major focus of this year’s budget advocacy. Chancellor Scott and I

have already met with Finance Director Matosantos to communicate the severity of the problem, and I

have similarly been informing key legislative staff. These are just the first steps in what I expect will be a

unified system push to have the deficit resolved. We believe this shortfall also highlights the problem

with not having statutory protection from revenue shortfalls, as K-12 does, and we will be pressing that

point, as well.

As one who follows the budget situation in Sacramento closely, though, I do need to caution that there

is no guarantee that the deficit will be backfilled. The state has a current year budget deficit identified

by the Department of Finance of over $4B and a cash flow situation difficult enough to require new

statutory payment flexibility for the Department of Finance. Reportedly, the Treasurer is going to the

market to borrow an additional $1B to help cover payouts over the next two months. Given the state’s

financial distress, districts will need to take a close look at their current year budgets to determine

whether any adjustments are needed to make it through the fiscal year in the event the shortfall goes

unaddressed.

Similarly, with the prospect of more midyear trigger cuts on the horizon in November (the Department

of Finance now estimates the CCCs will be in line for a trigger reduction of $292M if the Governor’s

ballot initiative fails), districts need to have a plan in place to address the possibility of another difficult

year in 2012-13. An economic recovery appears to be underway, but, without voter approval of

increased revenues this fall, the recovery does not appear to be fast enough to help turn the negative

tide until the 2013-14 fiscal year.

Regards, Dan Troy Vice Chancellor for Fiscal Policy Chancellor’s Office of the California Community Colleges

62

Board

March 5, 201211-12 Carryover and One Time Balances as of 2/17/2012

Carryover - Fund 14Budget Expenditures Encumbrances Give Backs Balance

Admin Services 1,122,788 475,439 159,563 71,489 416,297 Contract Commitments * 638,123 146,177 - - 491,946 Districtwide 555,130 (23,259) 1,196 24,194 552,999 Instruction 637,715 76,814 11,562 70,751 478,588 President 53,755 3,733 1,535 9,000 39,486 Special Programs** 326,871 29,920 63,540 233,411 Student Services 408,956 56,007 4,398 21,992 326,559 Total 3,743,338 764,831 241,794 197,426 2,539,287 Less Contract Commitments, Reserves & Special Programs (689,372)

Total Fund 14 1,849,914

One Time - Fund 17Budget Expenditures Encumbrances Give Backs Balance

Admin Services 175,570 95,373 4,816 4,530 70,852 Districtwide 4,620,944 265,977 12,825 307,966 4,034,176 Instruction 59,822 702 1 - 59,119 President 61,015 4,478 - 15,333 41,204 Reserves 3,378,895 1,000 - - 3,377,895 Student Services 296,949 35,000 - - 261,949 Total 8,593,195 402,530 17,641 327,829 7,845,195 Less Reserves and Less $3,478,192 Transfer to Base Budget (6,856,087)

Total Fund 17 989,108

Grand Total Carryover & One-time 525,255 2,839,022

* Contract Commitments:CCFT Conference Stipends Critical Needs- (Examples)

Classified & Confidential Staff Development Classroom RemodelsPublic Safety In-Service Funds CCFT-conference funds

Accreditation

** Special Programs: Green Technology Center-start up

Dental Hygiene Clinic (4160) Health Services- Bldg Remodel

Horticulture Center (4110) DSPS/Matric- shortfall

Sesnon House (2119) Retirement Incentives- faculty/classifiedStudent Printing Program (#188) College Emergency Fund

63

Bookstore 2011-12 Actuals 2011-12 Projection (Based on Working Budget)

July August September October November December January February March April May June

Beginning Fund Balance 1,546,676.22 1,480,989.83 1,671,721.40 1,723,966.44 1,669,121.36 1,612,487.36 1,539,134.66 1,523,145.36 1,694,638.77 1,623,310.12 1,584,401.44 1,535,828.98

Total Expenditures 71,159.62 70,866.77 124,617.68 73,488.65 67,267.58 80,678.77 60,075.63 66,402.50 77,406.11 57,711.81 60,843.17 92,457.12

Total Revenues (5,473.23) (261,598.34) (176,862.72) (18,643.57) (10,633.58) (7,326.07) (44,086.33) (237,895.91) (6,077.46) (18,803.13) (12,270.71) (51,802.87)

Change in Fund Balance (65,686.39) 190,731.57 52,245.04 (54,845.08) (56,634.00) (73,352.70) (15,989.30) 171,493.41 (71,328.65) (38,908.68) (48,572.46) (40,654.25)

Ending Fund Balance 1,480,989.83 1,671,721.40 1,723,966.44 1,669,121.36 1,612,487.36 1,539,134.66 1,523,145.36 1,694,638.77 1,623,310.12 1,584,401.44 1,535,828.98 1,495,174.73

Ending Cash Balance 804,049.13 1,507,763.73 1,375,930.01 928,418.37 902,491.65 870,057.04 854,067.74 1,025,561.15 954,232.50 915,323.82 866,751.36 826,097.11

64

Board

March 5, 2012

OPERATING RESERVE 2011-12 Update

8,593,195$

(500,000)

(3,478,200)

(1,070,000)

(1,051,600)

(1,184,395)

(1,200,000)

525,255

200,000

834,255$

* Does not include FTES reserve of $1,000,000 or the 5% general reserve of $3,209,000

Beginning Balance 7/1/11

Allocation to 2011-12 Mid-Year Reductions

Allocation for 'One Time' Sub-Fund for FY 2011-12

Projected Ending Operating Reserve Balance 6/30/12*

Less:

Allocation to 2011-12 February surprise/P1

FTES Reserves

Allocation for 2011-12 Deficit

'One Time' Allocation Carryover Balance from FY 2010-11

2011-12 Give Backs from Carryover/One-Time Funds

One-time transfer from Bookstore Fund

65

BoardMarch 5, 2012

2011-12 Mid-Year 2012-13 2013-14 2014-15Trigger Cuts Mid-Range Projected Projected Projected

Difference between ongoing Revenues & Expenses (Structural Deficit) (145,000) (4,233,200) (5,560,200) (4,981,700)

Increase in State Revenue AnticipatedGeneral Apportionment adjustment 2011-12 Tier 2 Permanent Reductions (755,000)Gen. Apportionment reduction- $400 million net of student fee increase (4,412,000)Increase in Student Fees $110 mil to offset apportionment reduction 1,097,0002011-12/ 2012-13 Student Fee Revenue Shortfall (250,000) (250,000)Possible 4% Increase in CCC Prop 98 allocation- if tax proposals pass 2,100,000 2,200,000Net change in revenue (4,465,000) (4,483,200) (3,460,200) (2,781,700)

Net Increases in Ongoing ExpensesFull-time Faculty Position changes (-3, -4, +3, +3) (net of adjunct backfill) 150,000 200,000 (112,500) (112,500)Step, Column, Longevity Increases, etc. (395,000) (320,000) (345,000) (345,000)Classified PositionsMedical Plan Rate Increase-- 4%, 10%, 10%, 10% (230,000) (575,000) (633,000) (696,000)Management Positions ? ?Retiree Benefit Increase (66,000) (85,000) (145,000) (145,000)PERS Rate Increase (62,000) (36,000) (24,000)STRS Rate Increase 0 ? ? ?Worker's Comp, Unemployment Insurance (194,353) (50,000) ? ?New Facilities Supplies & Operating, Staff ? ?TRAN Interest Expense (60,000)Utilities (100,000) (10,000)Net Operating Increases 174,000 (125,000) (150,000) (150,000)District Contribution- Bus Pass Program 100,000Retiree Benefits- New Employees ? ? ? ?Labor agreements ? ? ? ?Reduction in Indirect Reimbursements from grants (135,000)Total Expenditure Increases (596,353) (1,077,000) (1,521,500) (1,482,500)Budget Reductions ? ? ?Budget Reductions Phase I, Round I 730,500Budget Reductions Phase I, Round II 97,653Ongoing Shortfall* (4,233,200) (5,560,200) (4,981,700) (4,264,200)

Allocation of 66 2/3% of operating reserves 3,478,200 2,300,000

Deficit net of One-time funds (755,000) (3,260,200)

Estimates will change as more information becomes availableThe 2012-13 Preliminary Budget Reduction target for the June Board meeting is $2.5 millionIf Tax Increases on the ballot do not pass, the deficit will increase by another $2.7 million (5.56%). This increase is not reflected above.

2011-12 through 2014-15Base Budget

Planning Parameters

66

CABRILLO COLLEGEGENERAL FUND BALANCEBoardMarch 5, 2012

Projected Operating Reserves

OPERATING RESERVES Projected

Projected @ 66.67%FY 2011-12 FY 2012-13

Beginning Balance (Mid Year-Bridge Fund Reserves, Final Budget) 1,309,000 1,834,255 ADD:

Carryover and One-time Fund Give Backs 525,255 One-time transfer from Bookstore Fund 200,000 Projected Ending balance 1,500,000 1,500,000 2012-13 Estimated One-Time Subfund Allocations (500,000)

LESS:2011-12 Increase in Student Fee Revenue Shortfall (February 2012) (1,200,000)

66.67% Allocated to 2012-13 Deficit (2,300,000)

Projected Ending Operating Reserves 1,834,255 1,034,255

3,334,255 2,222,948

= (1,834,255+1,500,000) *66.67%

67

CABRILLO COLLEGEFY 2012-13 Base Budget/Categorical Budget Development Timeline DraftBoardMarch 5, 2012

September 7, 2011 SANTA CRUZ COUNTY COMMITMENT KICK OFFSeptember 21 & 22 BUDGET TOWN HALL MEETINGS

CPC MEETING - Budget Planning Kick Off For 2012-13

September - December, 2011 FACULTY SENATE- Program Review Task Force meets to develop recommendations

October 3, 2011 BOARD MEETINGInformation Items: - Budget Presentation 2012-13 - Review of 6/30/11 Ending Fund Balance

October 4/5, 2011 ADMINISTRATIVE COUNCIL/MANAGER'S MEETING/CPC MEETINGInformation Items: - Budget Planning Parameters for 2012-2014

- Budget Development TimelineOctober 25/19, 2011 ADMINISTRATIVE COUNCIL/CPC MEETING

October 4-December 1, 2011 Carryover and One-Time Fund review by Components, Cabinet, Admin. Council and CPCOctober/November Faculty Prioritization Process/ Determine FON requirements for Fall 2012

November 7, 2011 BOARD MEETINGInformation Items: - Budget Planning Parameters for 2012-2014 - Budget Development Timeline

November 8/2, 2011 ADMINISTRATIVE COUNCIL/MANAGER'S MEETING/CPC MEETING

November 22/16, 2011 ADMINISTRATIVE COUNCIL/MANAGER'S MEETING/CPC MEETING

December 5, 2011 BOARD MEETINGAction Items: - Budget Planning Parameters for 2012-2014 - Budget Development Timeline - Review Faculty Obligation number for 2012

December 6/7, 2011 ADMINISTRATIVE COUNCIL/MANAGER'S MEETING/CPC MEETING

December 20/21, 2011 ADMINISTRATIVE COUNCIL/CPCJanuary 9, 2012 BOARD MEETING

Information Items: - Budget Update

January 10, 2012 2012-13 GOVERNOR'S STATE BUDGET13-Jan-11 STATE BUDGET WORKSHOP

January 10/4, 2012 ADMINISTRATIVE COUNCIL/MANAGER'S MEETING/CPC MEETING

January 24/18, 2012 ADMINISTRATIVE COUNCIL/CPC

February 6, 2012 BOARD MEETING

Information Items:

- Update Budget Parameters FY2012-13 and FY 2013-14

- Update Budget Development Timeline- FY 2013-14 - Review Budget Reduction Target for 2012-13- ALL Funds, $2.5 million for Base Budget - Carryover and One-Time Fund review/Critical Needs

February 7/1, 2012 ADMINISTRATIVE COUNCIL/MANAGER'S MEETING/CPC MEETING

February 21/15, 2012 ADMINISTRATIVE COUNCIL/CPC

68

CABRILLO COLLEGEFY 2012-13 Base Budget/Categorical Budget Development Timeline DraftBoardMarch 5, 2012

March- April 2012 SPRAC Review of Program Reduction Plans for 2012-13April - June 2012 2012-13 Negotiations- All groupsMarch 5, 2012 BOARD MEETING

Information Items: - FY 2011-12 Mid Year Cuts from the state - Budget Reduction Plans (Base, Categorical Budgets & Other funds) - Projected General Fund Ending balance as of June 30,2012Action Items: - March 15 Notices to Faculty- Reduction or Discontinuance of Services - Resolution-Reduction or Discontinuance of Classified/Confidential/Management Service

March, 2012 First Principal Apportionment 2011-12 ReceivedMarch 6/7, 2012 ADMINISTRATIVE COUNCIL/MANAGER'S MEETING/

CPC MEETINGMarch 20/21, 2012 ADMINISTRATIVE COUNCIL/CPC MEETINGApril, 2012 Continue to evaluate/revise Planning ParametersApril 2, 2012 BOARD MEETING

Action Items: - Budget Reduction Goals (Base, Categorical Budgets & Other funds) - Update Budget Development Timeline- FY 2013-14 - FY 2011-12 Mid Year Cuts from the state - Budget Reduction Plans (Base, Categorical Budgets & Other funds)Action Items: - Resolution-Reduction or Discontinuance of Classified/Confidential/Management Service

April 3/4, 2012 ADMINISTRATIVE COUNCIL/MANAGER'S MEETING/CPC MEETING

April 24/18, 2012 ADMINISTRATIVE COUNCIL/CPCMay 2012 Second Principal Apportionment 2011-12 ReceivedMay 7, 2012 BOARD MEETING

Action Items: - Final Notices to Faculty- Reduction or Discontinuance of Services - Resolution-Reduction or Discontinuance of Classified/Confidential/Management Service

May 8/2, 2012 ADMINISTRATIVE COUNCIL/MANAGER'S MEETING/CPC MEETING

May 29/16, 2012 ADMINISTRATIVE COUNCIL/CPC MEETINGMay 25, 2012 Governor's May Revise for 2012-13 releasedJune 11, 2012 BOARD MEETING

Action Items: - 2012-13 Preliminary Budget

June 12/6, 2012 ADMINISTRATIVE COUNCIL/MANAGER'S MEETING/CPC MEETING

June 26/20, 2012 ADMINISTRATIVE COUNCIL/CPC MEETINGAugust 6, 2012 BOARD MEETING

Information Items: - Update Budget Parameters FY2012-13 and FY 2013-14

August 7/1, 2012 ADMINISTRATIVE COUNCIL/MANAGER'S MEETING/CPC MEETING

August 28/15, 2012 ADMINISTRATIVE COUNCIL/CPC MEETINGSeptember 10, 2012 BOARD MEETING

Action Items: - 2012-13 Final Budget

September 11/5, 2012 ADMINISTRATIVE COUNCIL/MANAGER'S MEETING/CPC MEETING

September 25/19, 2012 ADMINISTRATIVE COUNCIL/CPC MEETING

69