BUDGET PLANNING COMMITTEE
MEETING AGENDA
May 11, 2011
3:30 p.m.
Eureka Campus – LRC 103
Minutes
PRESENT
Mary Grace Barrick, Bob Brown, Dan Calderwood, Michael Dennis,
Lee Lindsey, Tami Matsumoto, Susan Mindus, Michael Regan,
Carla Spalding, Steve Stratton and Cheryl Tucker.
CALL TO ORDER
The meeting was called to order by committee co-chair Dan Calderwood.
MEETING NOTES
The meeting notes from April 13, 2011 were approved as presented.
2.5 MILLION CUT
SCENARIO
Lee reported that there is a possibility of a 9 to 14 percent cut that could
come out of the governor’s May budget revise. K-12 is making a play to
get a portion of the funds if the cuts are less than anticipated. Once the
May budget revise is released we will know what to expect and will
know if the 9 percent cut planned on was adequate.
The 3 year scenario plan that went to the board in May did not include
possible unspent services and supplies funds at the year-end. As budgets
are being cut, amounts to be budgeted will get smaller. Vacant positions
will not be filled immediately to allow for additional cost savings. We
are holding off on requests to fill positions that are not in the restricted
general fund until after the May revise, which will help to determine
what will happen with these positions.
101 SITE LEASES
The 101 site lease agreements include language that may allow the
district to be released from them if a specific amount of funding does not
come through from the state. This is another instance in which the district
could be affected by the May revise.
There was also discussion regarding the following:
Foster Kinship lease
SIM Center lease
Culinary program & equipment
No cooking classes being offered during fall semester
Program revitalization and cancellation
JOB MARKET
STATUS
There was a brief discussion regarding the Job Market and Lee noted that
he has not had the opportunity to familiarize himself with the agreement.
This is something he will be checking into and will report back on at a
future date.
ADDITIONAL CUT
STRATEGY
There was discussion regarding an additional cut strategy if the May
revise is higher than the anticipated 9 percent. It was noted that at
College Council the Academic Senate co-chairs brought forth a
document for review that outlined an emergency program discontinuance
process. Additional discussions included:
The district should not budget below the 5 percent minimum
reserve.
How to make cuts and keep programs that will keep the campus
whole.
Timeline of committee for program discontinuance due to
adverse budget environment.
Continuance of programs started with one-time funds.
Furloughs
A worst case scenario would be an 18 percent cut from the state.
Special meeting of the BPC if higher than anticipated cuts in
May.
50 PERCENT LAW
Lee reported that the 50 percent law calculations have not been
completed, but are in progress. Rules and information from the
Chancellor’s office are being used to make the calculations.
TRAN
Lee explained that the district will participate in the 2011-12 Tax and
Revenue Anticipation Note (TRAN) Program sponsored by the
Community College League of California. This will assist the district
during the first couple of months of the fiscal year if the state budget has
not passed and there is a delay in funding. There is a fixed cost for
participating in the program. Then, interest changes accrue only if we
actually draw against the available funds to meet cash flow needs. The
district will always be able to meet payroll. If the 3 year budget forecast
holds we should be able to maintain our 5 percent reserve.
DEREGISTRATION
PROCESS
Lee stated that the district is accumulating receivables, due to students
who are not paying their fees. He noted that the business office and other
integral departments are working together to create a deregistration
process that functions well and meets the needs of the district, but does
not over-complicate the registration process for students. The following
solutions are being considered:
Student will need to clear any pre-existing balances before being
allowed to register.
Students who register will have a certain amount of time to make
payment arrangements before they are de-regged (dropped from
classes).
Short term payment plans are available.
Students with unpaid balances on August 1 will be de-regged, and
students on wait lists will move into open spots and be given a
specific amount of time to pay before they are de-regged.
Discussion took place regarding the balances that the district currently
has due to unpaid student fees. It was suggested that a threshold dollar
amount be determined so that students owing only a small amount are
not dropped from classes. There was also concern regarding the possibly
of being de-regged for the optional student activity fee. It was noted that
in Web Advisor the “Opt Out” for the student activity fee is currently
available and is being made more prominent. It was also suggested that
the new DE-REG process be widely advertised.
ADJOURNED
The meeting adjourned at 5:00 p.m.
SUBMITTED
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