2009-10
Budget Overview
12/17/2008
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1
State Budget
• Failing economy – less tax revenue
• Current shortfall projected to be $40 Billion for
2008-09 and 2009-10
• Political gridlock
– Democrats don’t want to close deficit solely by budget
cuts
– Republicans don’t want to raise taxes
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How this impacts Cabrillo
The State Budget and Cabrillo
• K-14 is approximately 50% of
the State budget
• Community colleges are
approximately 10% of the K-14
budget
• Cabrillo is approximately 1% of
the community college budget
or .05% of the state budget
• Current Cabrillo budget
reduction target is $5M
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3
Impacts on Cabrillo 2009-10
Equipment &
Lease Purchase
$0.8M
1%
Supplies &
Operating Exp
$7.4M
12%
Salaries &
Benefits
$53M
87%
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Base Budget
~$60M
4
$5,000,000 Reduction
• The college will continue to reevaluate the $5
million planning parameter as more State budget
information becomes available
• Reducing supplies and operating expenses will not
equal $5 million
• All programs and services will be reviewed to meet
the current goal of $5 million.
• The $60 million Base Budget includes approximately
$20 million in fixed costs such as utilities and
property and liability insurance.
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Q: Why move so fast?
A: March 15 requirement
• Ed Code requires that academic staff be
notified by March 15 if there is a possibility
that they will not be reemployed the following
year.
• Ed Code requires that classified staff receive
45 days notice.
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Transition to New Funding Level
3 Phase Process
Phase 1
Develop Personnel & Budget
Reduction Scenarios for all
departments and services
college-wide following criteria,
process commitments, and
strategies in 2009-10
Phase 2
Finalize Proposed
Personnel & Budget
Reductions Complete
Layoff Process
Phase 3: Reduce & Redesign Services to Match New Funding Levels
Dec
Jan
12/17/2008
Feb
Mar
Apr
May
Jun
DRAFT
Jul
Aug
Sep
Oct
Nov
Dec
7
Timeline Highlights
Jan 16
Feb 9
Feb 25
March 9
Ongoing
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Development of budget reduction scenarios at
Department/Division level
Review and integration of department plans at
component and college level. Continue to revise
and integrate based on feedback.
CPC review of draft plan for budget reductions.
Revise plan based on campus-wide review.
Board issues preliminary layoff notices for
classified and academic employees
Redesign of programs and services to match new
funding level
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Budget Reduction
Communication Loop
Use existing shared governance structure
with the addition of:
• Board Subcommittee
• Constituent leaders
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June 30, 2008 General Fund Ending Balances
(page 1 of 2008-09 Budget book)
General Fund Subfunds
5% General Reserve
Restricted Program balances (i.e., basic skills,
State Instructional Equipment, etc.)
Carryover Funds
One-Time Funds
(CPC/Board approved)
FTES Reserves/
2007-08 Mid-Year Reserves
Community Education
Total
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In millions
3.4
1.7
2.5
2.7
2.2
.2
$12.7
10
To review
2009-10 Budget Reduction Criteria,
Process Commitments,
Strategies,
and detailed timeline,
go to
http://cabrillo.edu/services/marketing/budget_center.html
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