Question:
 What is meant by the term
‘structural deficit’?
Base Budget Expenditure & Revenue Trend
 Board Goal---Eliminate Deficit
Question:
 What are some of the revenue
assumptions included in the
College’s budget projections?
Revenue Assumptions
 2013-14- Restoration Revenue?
 2014-15:
COLA?
Deficit
Factor (revenue reduction) for
RDA, Prop. Tax Shortfall or Student
Fees?
Other?
Question:
 What are some of the expenditure
assumptions included in the College’s
budget projections?
Expenditure Assumptions
 Full-time faculty replacements- ?.
 Number of teaching units funded- to convert from one-






time to ongoing in order to support our base.
Column and step increases are funded.
Ongoing negotiated salary increases for 2013-14 are
included (not the one-time portion).
Increases to retiree benefits are included.
Increases to PERS rate (from 11.417% to 11.442%) are
included.
Increases in other operating expenses- utilities,
ongoing maintenance contracts, etc.
Other – Labor/negotiated agreements for 2014-15?
2014-15 Base Budget Planning Assumptions (Best, Mid, Worst Case)
Range
Worst
Mid-
Best
Case
Range
Case
(1,200,000)
(1,140,700)
(1,000,000)
?
?
855,000
A. Restoration/Growth
0
0
0
B. COLA ???%
?
?
?
C. Deficit factor for apportionment shortfalls (3%, 2%, 1%)
?
?
?
D. Other
?
?
?
0
0
855,000
?
?
?
2014-15 Funded FON positions
?
?
?
Fall 2013 frozen FON- 177.6 (Fall Actual 187.25 excluding Children's Center teachers)
?
?
?
2013-14 Structural Deficit
2013-14 Revenue Adjustments
A. Restoration/Growth @ 1.63%
2014-15 Revenue Adjustment
2014-15 Revenue adjustments
TOTAL Revenue Adjustment
2013-14 Expenditure Adjustments
Full-time Faculty Obligation -
Add Teaching Units to maintain enrollment cap (?,?,?)
?
?
?
Step, Column, Longevity, etc
(348,000)
(328,000)
(300,000)
Medical Benefit Increase- 8% (50%-50% cost share = 1/2)
(282,000)
(241,000)
(200,000)
Retiree Medical Benefit Increase
(50,000)
(50,000)
(50,000)
Utilities
(150,000)
(100,000)
(50,000)
Net Operating Increases
(200,000)
(150,000)
(100,000)
Other???
?
?
?
Labor/Negotiations agreeements
?
?
?
(1,030,000)
(869,000)
(700,000)
(2,230,000)
(2,009,700)
(845,000)
Total Expenditure Adjustments
Projected 2014-15 Structural Balance (Deficit) *
One-time Reserves used to bridge deficit
Net Deficit for 2013-14
* The ongoing deficit includes the ongoing salary increase for 2013-14, not the one-time increase. Does not include categorical program impacts on the general fund.
The salary/benefit budget includes a credit to the expense lines of $300k for salary/benefit savings.
Next Steps
 We still have a budget deficit, assumed some restoration
funding would be available to help with reductions in
deficit for 2013-14. Spring 2014 will help determine if we
meet our target.
 Continue to fill in question marks for 2013-14 and 201415 as information becomes available.
 Governor’s Budget for 2014-15 will be received by
January 10, 2014.
 Continue to hold the line on ongoing spending. Once
budget information is known determine if further budget
reductions are necessary; develop our budget for 2014-15
in Spring 2014.