nocccd townhall presentation november 13, 2012 presented by: fred williams – vice chancellor,...
TRANSCRIPT
NOCCCD Townhall Presentation
November 13, 2012
Presented by:Fred Williams – Vice Chancellor, Finance
& Facilities
Agenda
• Proposition 30 • Some Historical Information• Budget Plan– 2012-13– 2013-14– 2014-15
• Other News
Proposition 30
The Schools and Local Public Safety Protection Act of 2012
Proposition 30Temporary 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)
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
Historical Information
Revenues
Apportionment
FTES Trends
Employee Count
Budget Planning
2012-13Budget 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
2012-13Budget 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
2012-13Budget 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
2012-13Budget Plan
Deficit ReserveOn-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)
2013-14Budget 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
2013-14Budget 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
2013-14Budget Plan
Deficit ReserveOn-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 $ -
2014-15Budget Plan
• Adjust FTES Targets Accordingly• Hire Full-time Faculty to meet our Full-time
Faculty Obligation• Normal Adjustments for Budget Changes– Growth– COLA– Other
Other News
Other News• 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
Questions