BUDGET PLANNING COMMITTEE
Monday, July 2, 2012
3:00 p.m.
L107
Summary Notes
MEMBERS
PRESENT
Bob Brown, Solomon DeCamp, Tami Engman, Tim Flanagan, Pat Girczyc, Dave
Gonsalves (phone), Utpal Goswami, Anita Janis (phone), Sharrie King, Lee
Lindsey, Tami Matsumoto, Keith Snow-Flamer, Carla Spalding
CALL TO ORDER
The meeting was called to order by committee co-chair
Bob Brown.
SUMMARY
NOTES
The summary notes from May 9, 2012 were approved and will be posted on the
BPC website.
REVIEW
DEVELOPMENT
OF 2012-13
BUDGET
SHORTFALL
DISCUSSION
STATE PAYMENT
DEFERRALS/
TRAN
Lee presented a detailed synopsis of today’s meeting agenda which he reviewed
with the committee. He noted that there is a budget shortfall of $550K due to
recent legislative action and an additional $472K due to unresolved pay
concessions within the district. He asked for suggestions from the committee on
how to close the approximately $1M budget gap.
The following suggestions were discussed:
 Hold vacant positions open
 More pay concessions
o Should we rely on savings that are contingent on successful
negotiations?
 Reduce services
Lee reported that recent news from the Chancellor’s Office indicates cash
payments to the district from July 2012 to January 2013 will be 44 percent less
than last year. The district will participate in a Tax Revenue Anticipation Note
(TRAN) and will also do another TRAN mid-year. There was discussion regarding
tax measures on the November ballot and what impact there will be on the District
once the outcome of the election is determined. Concern was expressed about
having a plan in place in the event that the tax measure fails and how it will look to
the accrediting commission if there is a $1M budget deficit. If the measures do
pass cash payments will not improve until June 2013.
LATE
REIMBURSEMENT
It was noted that reimbursements for bond projects from the state are running late
and it was necessary to notify the general contractor of the new academic building
that the project may receive a “stop work notice”.
STATE
MANDATED
COSTS
There are costs associated with certain things that the district is required to do by
state law, these costs are considered mandated. The state actually reimburses the
district for some mandated costs i.e., costs related to collective bargaining, and
complying with the Brown Act such as publishing meeting agendas. The district is
currently owed approximately $1M from the claims dating back to 98-99 fiscal
year. There is currently a bill at the legislature that, if signed, would provide a flat
rate for reimbursement of mandated costs based on district FTES.
LOCAL BOND
ISSUANCE DRAW
CLOSING THE
LOOP
ADJOURNED
SUBMITTED
The district will issue the remaining $7M of measure Q bond funds. With all bond
funds allocated and projects in progress it is time to draw down the remaining
funds.
Lee will send out a reminder on the BPC assessment and collate ideas. The
committee will meet again before the end of the month in order to provide
guidance at the August Board of Trustees meeting.
The meeting adjourned at 4:25 p.m.
lw