BUDGET PLANNING COMMITTEE (BPC)
Wednesday, September 19, 2012
3:00 p.m.
SS 109 (downstairs classroom in new building)
Agenda
1. Call Meeting to Order – 3:00 p.m.
ACTION
2. Approve summary notes from 8/29 & 9/6/12
3. Review AP 2512 that was sent back by council for revisions.
4. Committee Organization – roles, responsibilities and committee works
DISCUSSION
5. Fifty Percent Law Exemption Application
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BUDGET PLANNING COMMITTEE
Monday, August 29, 2012
3:30 p.m.
L107
Summary Notes
MEMBERS
PRESENT
Bob Brown, Solomon DeCamp, Michael Dennis, Tami Engman, Tim Flanagan,
Dave Gonsalves (phone), Utpal Goswami, Anita Janis (phone), Lee Lindsey,
Tami Matsumoto, MaryGrace McGovern, Carla Spalding, Steve Stratton
CALL TO ORDER
ACTION
SUMMARY
NOTES
The meeting was called to order by committee co-chair Bob Brown.
COMPLETED
RESULTS OF
LATEST BUDGET
RECOMMENDATIONS
There was discussion regarding the results of the rankings of the latest budget
recommendations. It was noted that this list will go to cabinet for review. There was also
discussion regarding the tax initiative on the November ballot and the effect there will be
on this district whether it passes or fails. Solomon stated that the $10,000 listed for clerical
support to the ASCR is almost 20 percent of their budget and Ed Code only allows for 7
percent. Mr. Lindsey noted that he would remove the dollar amount from that item of the
list of recommendations. The committee expressed concern regarding the probability that
the final budget will have a deficit balance and that the district will not have the 5 percent
fund balance required by the chancellor’s office. Concern was also expressed regarding
the ACCJC’s perception of our fiscal crisis and how it may affect the district’s
accreditation.
DISCUSSION
REVIEW AP 2512
FINALIZE
MEETING
SCHEDULE
BUDGET UPDATE
$790,000 BAD
DEBT WRITE OFF
BUDGET CUT
OPTIONS TO THE
BOARD
The summary notes from July 26, 2012 were approved with recommended
changes and will be posted on the BPC website.
Mr. Brown and Mr. Lindsey will work together on the appropriate language to
further update AP 2512, “Financial Advisory Committee” and bring it back to the
committee for review before forwarding to cabinet.
The committee agreed to meet the 3rd Wednesday of each month. Additional
meetings will be scheduled when necessary.
Vice President Lindsey reported that the district will be writing off approximately
$790,000 in bad debts that have accrued from uncollected student accounts. He
stated that several years ago the district used a more relaxed accounting method to
write off these accounts. We now need to use more conservative methods which
means that the district will not meet the required 5 percent fund reserve. Students
will still be held responsible for the debts and will be required to pay before
enrolling or receiving a transcript.
Mr. Lindsey also reported that the comprehensive list of expenditures is going to
the Board of Trustees on September 10. Most items have been to BPC in one form
or another. Items that BPC may not have seen until today are contracting out the
services of various departments and changes to medical and dental benefit plans.
Discussion also took place on the following topics:
 Eleven month employee contracts



More furlough days
Voluntary unpaid leave
Require all potential retirees to give 6 months advance notice
STABILITY AND
2012-13
ENROLLMENTS
For the 2011/12 academic year the district did not meet its enrollment target and as
a result were placed on enrollment stability by the Chancellors’ office for one year.
If the enrollment target is not reached during the 2012/13 year funding will be
reduced. Some FTES from summer 11/12 can be counted towards the 12/13 year
to help reach the target. Currently the fall enrollment numbers appear to be lower
than expected. It was also noted that the auditors discovered a problem with how
the lab hours for English 150 were being counted and it may jeopardize
approximately 300 FTES for 11/12.
2012-13 FINAL
BUDGET
The 2012-13 Final Budget is going to show a deficit balance which is different
from what the Tentative Budget showed. The difference is due to taking the
recommended more conservative accounting approach which does not count any
saving until they are actually booked. Preliminary counts on the 50 percent law
requirements have been done and it looks like we’re on target to meet them, but
will not know for sure until October 10.
ADJOURNED
The meeting was adjourned at 4:00 p.m.
SUBMITTED
lw
BUDGET PLANNING COMMITTEE
Thursday, September 6, 2012
11:00 a.m.
SS 109
Summary Notes
MEMBERS
PRESENT
Bob Brown, Tim Flanagan, Pat Girczyc (phone), Dave Gonsalves (phone), Anita
Janis (phone), Sharrie King, Lee Lindsey, Tami Matsumoto, MaryGrace
McGovern, Keith Snow-Flamer, Carla Spalding, Steve Stratton
ALSO PRESENT
Robert Ekholdt, Joe Hash, Kintay Johnson
CALL TO ORDER
DISCUSSION
The meeting was called to order by committee co-chair Lee Lindsey.
Mr. Lindsey reviewed the comprehensive list of budget savings options that will
be presented to the Board of Trustees at their meeting on September 10, this list
will also be discussed at today’s All-College Forum. This is the same list that BPC
reviewed at their last meeting with a few changes which included: change to the
language in item #8, removal of the listing of departments on item #18, and the
dollar amount for clerical support was removed from item #25.
Mr. Lindsey noted as previously discussed there will be a budget shortfall for the
2012/13 year. Special Trustee Henry suggested removal of savings place holders
from the budget and temporary savings have also been removed as these would be
estimated savings. He also noted that as the fund balance gets lower we must be
very conservative and not count any savings until they are actually on the books. It
is not only the current year activities that are causing the shortfall, this has been
happening over the course of several years.
He stated that several years ago the district began using a more relaxed accounting
method to write off student accounts. We now need to return to a more
conservative method of accounting. Students will still be held responsible for the
debts and will be required to pay before enrolling or receiving a transcript. He also
stated that during this last year we have tried to slow down the loss to accounts
receivables We have updated the language in correspondence to students notifying
them that collection costs will be added to account balances. The District also
participated in the Chancellor’s Tax Offset Program (COTOP) which allows debts
to be collected from the student’s state tax refund.
Mr. Lindsey went on to say that the District cannot have a negative fund balance
because it would then be considered insolvent. He noted that we do have some
resources available one of which will be to take a $1.4 Million emergency transfer
from the employee benefit trust fund. This will need to be paid back in the next
couple of years and is a one-time fix. He stated that it is unrealistic to think that we
will get our fund balance up to 5 percent in one year. It is more realistic to say that
we have a plan to bring the balance back up over the next couple of years. He also
stated that there is not enough money in the employee trust to do this again next
year and the money must be paid.
There was also discussion regarding the District being on enrollment stability with
the chancellor’s office. If we don’t meet the enrollment cap this year we will lose
funding. Fall enrollment numbers are currently soft and if the November ballot
measure passes we may not be able to meet the enrollment cap required. If it
doesn’t pass we may be OK with the current cap. Even if the ballot measure passes
and we are able to meet the enrollment cap we will be very tight on our budget.
There was also discussion regarding the possibility of the loss of approximately
300 FTES due to an audit finding regarding how the lab hours of English 150 were
counted and the effect on apportionment.
It was suggested that consideration be given to the possibility of running a winter
3-week inter-session in bring in additional FTES.
ADJOURNED
The meeting was adjourned at 11:45 a.m.
SUBMITTED
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DRAFT-for discussion only
REDWOODS COMMUNITY COLLEGE DISTRICT AP 2512
Administrative Procedure
BUDGET PLANNING COMMITTEE
The Budget Planning Committee (BPC) is a forum for sharing of financial information. The
BPC provides an opportunity for representatives of campus constituencies to make
recommendations through the integrated planning process to the Chief Business Officer and the
President/Superintendent about budget development and other financial issues likely to have
significant financial impact on the District.
The BPC shall meet on a regular schedule, but not less than four (4) times each year. The BPC
shall operate with the Chief Business Officer or designee as the administrative co-chair and a
faculty co-chair appointed by the Academic Senate. Other membership shall be determined by
the President/Superintendent and include representation across divisions, employee groups, and
student representation. A member shall be appointed, if possible, to a two year term.
Membership period among the representatives shall be staggered in order to have some level of
continuity among committee members each fiscal year.
The BPC shall provide recommendations in a timely manner so as not to impede District
obligations. Agendas and meeting handouts shall be posted to a publicly accessible location,
such as the BPC webpage. BPC recommendations will be by a majority vote of the committee
and will be used as an advisory to the Chief Business Officer and the President/Superintendent.
An annual Charge and Budget Calendar will be developed that will provide guidance to
committee members regarding timelines for meaningful input. At a minimum, the annual budget
calendar shall include:
1. Review the impact of the Governor’s budgets and legislatively adopted budgets on the
District’s financial condition.
2. Review a multiyear (minimum three years) student enrollment and budget forecast to
maintain a minimum fund balance percentage as determined by the Board of Trustees.
3. Review integrated planning budget proposals from program review and other appropriate
sources to make recommendations.
4. Consider the impact of recommendations on future commitments and the Total Cost of
Ownership (TCO).
5. Review budget policies, procedures, and related accreditation requirements.
6. Close the loop on previous resource allocations as to effectiveness in meeting District
goals.
7. Evaluate the effectiveness of the Committee’s charge and make recommendations for the
next year.
Members shall consider the following as the primary and overriding factors for all BPC
recommendations:
1. Compliance with Accreditation Standard 3, specifically:
a. Financial resources are sufficient to support student learning programs and
services and to improve institutional effectiveness.
b. District planning reflects realistic assessment of financial resource availability,
development of financial resources, partnerships, and expenditure requirements.
c. When making short-range plans, the District considers its long-range financial
priorities to assure financial stability.
2.
3.
4.
5.
d. The District clearly identifies, plans, and allocates resources for payment of
liabilities and future obligations.
e. The District has sufficient cash flow and reserves to maintain stability.
f. The District plans for and allocates appropriate resources for the payment of
liabilities and future obligations.
Compliance with legal mandates and other accreditation requirements.
Compliance with State Chancellor’s Office deadlines and rules.
The maintenance of the minimum fund balance percentage as determined by the Board fo
Trustees.
Additional factors related to the Mission, Strategic Plan, Education Master Plan and the
Annual Institution Plan may also be considered.
BPC members shall communicate with their constituencies prior to the time the committee
makes recommendations to the Chief Business Officer and the President/Superintendent. BPC
members are to communicate recommendations back to their constituents so that those groups
will be informed and able to provide input to the College Council and the Board.
Reviewed by BPC: 9-19-2012
Adopted by Board of Trustees:
Former Administrative Regulation #202.03: “Budget Planning Committee,” Amended 10/18/96