2010­2011 PRELIMINARY BUDGET CABRILLO COMMUNITY COLLEGE DISTRICT June 14, 2010
Budget Update­­May 14,2010 May Revision Subject:Budget Update­­May 14, 2010 May Revision Date:Fri, 14 May 2010 13:54:57 ­0700 From:Skinner, Erik <eskinner@CCCCO.EDU> To:SO2CBO@LISTSERV.CCCNEXT.NET Dear Colleagues: This afternoon, Governor Schwarzenegger released his May Revision which offers adjustments to his January budget proposal. The updated budget plan, based on the Administration’s latest revenue and expenditure estimates, will frame the remainder of this year’s legislative budget process. With the basic parameters now in focus, the Capitol’s budget deliberations will begin in earnest. As expected, the size of the overall budget shortfall has not changed significantly from the magnitude identified in January. Whereas the January budget proposal contained an estimate of $19.9 billion, the May Revision identifies an estimated budget shortfall of $19.1 billion. What has changed is that many of the solutions proposed by the Governor in January are no longer available. Most significantly, $6.9 billion that the Governor planned on getting from the federal government did not fully materialize. To make up for these lost solutions, the Governor relies almost exclusively on deep budget cuts in health and human services program. Among these is the total elimination of CalWORKS welfare to work program ($1.1 billion) and deep cuts to In­Home­Supportive Services ($637 million). By anyone’s standards these are brutal cuts that, if enacted, would represent a drastic reduction in the safety net available to California’s most vulnerable citizens. Even the Governor’s spokesman referred to the proposed cuts as “terrible.” Protecting Higher Education As expected, funding for UC, CSU, and the California Community Colleges in the May Revision essentially mirrors the Governor’s Budget released in January. In late April, Governor Schwarzenegger made public statements emphasizing the need to maintain the state’s investment in higher education and threatening to veto any budget sent to him by the Legislature that provided less funding for higher education than proposed in his January budget. In the May Revision, the Governor upped the ante by retracting his January proposals to reduce funding for CalGrant student financial aid. For community college students, the most notable item in the Governor’s earlier proposal was the elimination of new Competitive CalGrant awards. The Governor now supports full funding for new Competitive CalGrant Awards in 2010­11 and has stated he will veto any budget that does not contain this funding. This change in position is a very positive development and reflects a willingness on the part of the Administration to engage with the higher education segments and student leaders. California Community Colleges For the California Community Colleges, the May Revision remains virtually unchanged from the Governor’s Budget released in January. Key features, consistent with the January proposal include: 2.2 percent enrollment growth ($126 million). This proposed augmentation would fund approximately 26,000 full­time equivalent students and help the colleges respond to the tremendous enrollment demand they are currently experiencing. ­ 0.38% COLA (­$22.9 million). While the economic factors used to calculate the COLA have changes slightly since January, the Administration chose not to update this figure.
Budget Update­­May 14,2010 May Revision Changes to the January budget proposal are as follows:
· A downward revision of $6 million in 2010­11 local property tax revenues. The Governor proposes an augmentation of $6 million in state funding to offset this reduction.
· A reduction of approximately $6 million in federal TANF funds as a result of his proposed elimination of the CalWORKs program. In addition, the Governor proposes that the $26.7 million in state funding previously provided for CCC CalWORKs be redirected to support any categorical expenditure through the Categorical Flexibility provision. Cash Shortfalls The May Revision notes that the state continues to face an extremely tight cash position. While no new proposals are made to address these challenges, the Governor does indicate that the Department of Finance, State Controller, and State Treasurer will continue to monitor the situation and present additional solutions as needed. This indicates a risk of additional funding deferrals being enacted. Need for Continued Advocacy While today’s budget announcement contains much bad news, there is no question that the Governor has done everything possible to protect higher education, including the California Community Colleges. For this we owe him our appreciation and support. I encourage you to communicate your appreciation to the Governor and also express support for the May Revision in your dealings with your local legislators and the media. We must be aware that the May Revision is not the finish line. As the budget process moves forward and the Legislature begins meaningful deliberation, state leaders will continue to wrestle with the tough choices before them. It is essential that we continue making our case that investment in the California Community Colleges will help to meet California’s most pressing education and training needs. Keeping our doors open for California’s unemployed, high school graduates, students displaced from UC and CSU, and returning veterans is the best bet for spurring a strong economic recovery and a brighter future for our state. Regards, Erik Skinner Vice Chancellor for Fiscal Policy California Community Colleges, Chancellor's Office 1102 Q Street Sacramento, CA 95811­6549 eskinner@cccco.edu direct line: 916­323­7007 fax: 916­323­8245 twitter: CCCBUDGETNEWS ********************************************************************
Budget Update­­June 1, 2010 Subject:Budget Update: June 1, 2010 Date:Tue, 1 Jun 2010 14:58:30 ­0700 From:Skinner, Erik <eskinner@CCCCO.EDU> To:SO2CBO@LISTSERV.CCCNEXT.NET Dear Colleagues: Since my last update, there has been a flurry of activity in the state budget process. I want to take a few minutes to bring you up to speed on the most significant developments. The bottom line is that several different budget proposals have been released, leading to renewed budget discussions and deliberations. It will likely take the next couple weeks for the dust to begin to settle. Legislative Analyst Responds to Governor’s May Revision On May 18, the Legislative Analyst’s Office released its analysis of the Governor’s May Revision. The LAO recommends rejection of two of the Governor’s more controversial proposals—the elimination of CalWORKs and drastic reduction in child care programs. Instead, they recommend alternative spending reductions as well as revenue increases in order to close the $19.1 billion budget gap. Highlights include: ∙ Due to a slightly more optimistic economic forecast, LAO estimates state revenues will be approximately $1.4 billion higher than estimated by the Administration ($400 million in 2009­ 10 and $1 billion in 2010­11). ∙ LAO recommends that the Legislature Suspend Proposition 98. This proposal is primarily intended to eliminate legal uncertainty about the Proposition 98 minimum funding guarantee, rather than to create state budget savings. LAO provides a number of options under which the Legislature could provide various levels of funding for K­12 schools and community colleges. ∙ For the community colleges, LAO recommends reducing funding for Physical Education courses. Rather than reduce the funding rate for PE courses, as they have proposed in the past, this time LAO proposes limiting the amount of PE instruction by imposing district­level caps on the amount of FTES that can be claimed in PE. As part of this proposal, community college apportionments would be reduced by $150 million. LAO estimates that this would result in a statewide reduction of 50 percent in PE instruction. In response to this proposal, we have argued that the $120 million in workload reduction that was included in the current year community college budget was aimed at reducing lower priority courses outside the areas of basic skills, CTE, and transfer and that is what the colleges are currently in the process of doing. It would thus be unfair and premature to cut the community colleges a second time, since it will not be until early fall that we have complete data on which course offerings were cut in 2009­10. While LAO’s new PE proposal has not gained much traction since its release, it reflects the continued scrutiny that we will face concerning how we use our FTES funding. If the Legislature is forced to cut Proposition 98 spending, it is possible this proposal could gain steam. ∙ In addition, LAO continues to recommend that community college student fees be increased to $40 per credit unit with the resulting revenues dedicated to: 1) funding 2.21 percent enrollment growth (thus saving the state $126 million in General Fund resources compared to the Governor’s budget); and 2) rejecting the Governor’s proposal for a negative 0.38 percent COLA (at a cost of $23 million). At this point, the fee increase proposal has not received much support in the Legislature. However, it is common for community college student fees to be a late hour negotiation as the overall community college budget package comes together.
Budget Update­­June 1, 2010 ∙ LAO recommends that the Legislature consider new revenue options, including: 1) extending temporary tax increases and delaying tax breaks adopted in February 2009; 2) eliminating certain tax credits, exemptions, and deductions; 3) increasing fees, including those paid by community college students; and 4) increasing targeted taxes (Vehicle Licensing Fee and alcohol tax). Assembly Speaker Unveils “California Jobs Budget” On May 25, Assembly Speaker John Perez unveiled a “California Jobs Budget” representing Assembly Democrats’ plan to close the budget gap while also promoting job growth. The centerpiece of the proposal is a complex $10.1 billion financing scheme that relies on borrowing against a future stream of oil severance tax revenues. The plan calls for using these funds to protect education and social services from deeper cuts while also making targeted investments to spur economic recovery. The single largest component is a proposed augmentation of $5.9 billion in Proposition 98 funding (key community college features are outlined in the Assembly Budget Actions, in the next section). The Speaker’s Office estimates that this plan would preserve and create over 465,000 jobs. Senate and Assembly Budget Actions Late last week, the Senate and Assembly budget committees each took actions to close out their respective budget packages. In both houses, budget packages were adopted on partisan votes. These budget plans will now proceed to the Conference Committee for further deliberation. For the community colleges, highlights include: Senate: ü $126 million for enrollment funding (2.21 percent) ü Rejected negative COLA ü Rejected Governor’s proposed $10 million cut to EOPS ü Rejected Governor’s proposed $10 million cut to Part­Time Faculty Compensation ü Rejected Governor’s proposed $20 million augmentation for SB 70 CTE programs ü Redirected $3.8 million in Basic Skills categorical funds to establish a pot of incentive funding for districts that increase completion rates in Basic Skills courses. ü Modified funding formula for Financial Aid Administration categorical dollars to be based on number of Pell Grant recipients rather than BOG Waiver recipients. Assembly: ü $129 million for enrollment funding (2.26 percent) ü $100 million augmentation for the Economic and Workforce Development program to support workforce training enrollments ü Rejected negative COLA ü $383 million in one­time funding to fully pay the backlog of community college mandate claims (an additional $983 million is provided for K­12 mandate claims) Conference Committee to Convene On Thursday, June 3, the Joint Legislative Budget Conference Committee will convene to begin its work of reconciling the Senate and Assembly budget proposals. In a process that will likely take the
Budget Update­­June 1, 2010 next two to four weeks, committee members (three Democrats and two Republicans from each house) will plod methodically through the budget, resolving each difference. Testimony is limited to staff from the Department of Finance and the Legislative Analyst’s Office. The work of advocates takes place behind the scenes in meetings with members and staff as well as through letter, email, and phone call campaigns. Today, Senate leader Darrell Steinberg announced the Senate Conferees: Senators Denise Ducheny; Mark Leno; Alan Lowenthal; Bob Dutton; and Bob Huff. The Assembly Speaker has not yet released the names of the Assembly conferees. If convention holds, the following Assemblymembers are likely to be among those named as conferees: Bob Blumenfield (Budget Committee Chair); Felipe Fuentes (Appropriations Committee Chair); Jim Nielson (Budget Committee Vice Chair); and Connie Conway (Appropriations Committee Vice Chair). More updates will follow as the situation develops. Regards, Erik Skinner Vice Chancellor for Fiscal Policy California Community Colleges, Chancellor's Office 1102 Q Street Sacramento, CA 95811­6549 eskinner@cccco.edu direct line: 916­323­7007 fax: 916­323­8245 ********************************************************************
2010­2011 PRELIMINARY BUDGET TABLE OF CONTENTS PAGE I General Fund – Overview ............................................................................................. 1 A. Base Budget .................................................................................................... 2 1. Base Budget Revenue .......................................................................... 2 a. b. c. 2. General Apportionment............................................................. 2 Lottery...................................................................................... 5 Non­Resident Tuition ............................................................... 5 Base Budget Expenditures ................................................................... 6 a. Benefits .................................................................................... 8 Base Budget Tables Base Budget Revenue ............................................................... 9 Base Budget Expenditures ...................................................... 10 B. Mid­Year Reserve .......................................................................................... 12 C. One­Time Sub­Fund ­ FTES Reserve ............................................................. 13 D. One­Time Sub­Fund ...................................................................................... 14 E. Community Education.................................................................................... 16 F. Carry­Over Sub­Fund..................................................................................... 18 G. General Restricted Fund ................................................................................. 20 H. Reserves (Ending Balance)............................................................................. 24 1. Base Budget Reserves........................................................................ 24 a. b. c. d. e. f. 2. I. General Reserves .................................................................... 24 Revolving Cash Fund.............................................................. 24 Clearing/Operational Fund...................................................... 24 CalPers Reserve...................................................................... 24 2009­10 Mid­Year Reserve..................................................... 24 FTES Reserve......................................................................... 24 Cash Flow: Ending Balance vs Cash Balance..................................... 26 Other Financing Sources (Outgo) ................................................................... 27 Inter­ and Intra­Fund Transfers .......................................................... 28
i TABLE OF CONTENTS (CONTINUED) II Retiree Benefit Fund................................................................................................... 30 III Debt Service Fund ...................................................................................................... 34 IV Child Development Fund ............................................................................................ 36 V Building Fund............................................................................................................. 38 A. Scheduled Maintenance & Capital Construction Projects................................ 38 B. Transportation, Parking & Security ................................................................ 38 C. Certificates of Participation ............................................................................ 38 D. Redevelopment Agency (RDA) Funds............................................................ 39 VI General Obligation Bond Fund ................................................................................... 42 VII Bookstore Fund .......................................................................................................... 48 VIII Cafeteria Special Revenue Fund ................................................................................. 50 IX Associated Students Fund ........................................................................................... 52 X Trust & Agency Fund ................................................................................................. 54 XI Scholarship & Loan Trust Fund .................................................................................. 56 XII Student Financial Assistance Fund.............................................................................. 58 XIII Student Representation Fee Trust Fund ....................................................................... 60 XIV Student Center Fee Fund............................................................................................. 62 XV Staffing Summary – All Funds.................................................................................... 64 Attachments: Budget and Benefits Town Hall Meeting May 26, 2010 .......................................... A1­6 2010­11 Budget Update, May 3, 2010......................................................................B1­3 2010­11 Budget Reduction Plan.............................................................................C1­10 2010­11 Budget Update, February 1, 2010.............................................................. D1­2 2010­11 Budget Development Documents ...............................................................E1­7 2010­11 Budget Planning Parameters....................................................................... F1­2
ii 2010­11 PRELIMINARY BUDGET GENERAL FUND ­ OVERVIEW I. GENERAL FUND ­ OVERVIEW The General Fund is maintained to account for those transactions that are for the overall College operation (Instruction, Student Services, Business Services, et cetera). Within the General Fund, a number of sub­funds have been established: Base Budget, Restricted, District Match, Community Education, Carry­Over, and One­Time Sub­Funds. The division of these sub­funds reflects the need to differentiate discretionary revenue from restricted revenue and ongoing funding from one­time funding. A brief description of each sub­fund is provided later in the report. It is anticipated that the college will transfer $2,342,000 from the One­Time sub­fund and the Mid­year Reserve to balance the preliminary budget. This transfer is shown in the net other sources of the unrestricted base budget presented here. The Preliminary Budgets for the Unrestricted Base Budget, including District Match, and the Restricted Fund are summarized as follows: Unrestricted Base Budget $59,050,586 Restricted Fund $9,892,100 Total Expenditures and Net Transfers 61,392,682 9,911,589 Excess Revenue Over (Under) Expenditures (2,342,096) (19,489) General Fund Overview Revenues One­time Bridge Funds 2,342,000 Net Projected Change in Fund Balance Beginning Fund Balance July 1, 2010 Cal PERS Reserve (96) (19,489) $3,375,718 (1,149,369) (166,000) Net Fund Balance June 30, 2011 $3,209,622 1 (1,168,858)
2010­11 PRELIMINARY BUDGET GENERAL FUND ­ OVERVIEW A. BASE BUDGET Base Budget is an unrestricted sub­fund, accounting for the ongoing operational expenditures of the College and is based on the Budget Planning Parameters presented to the Board on May 3, 2010. 1. BASE BUDGET REVENUE The Base Budget Revenue for community colleges is based on a formula that allocates a “basic allocation” based on the number of colleges and centers in the district. In addition to the basic allocation, each district receives equalized rates for its full­time equivalent students (FTES) from the state general apportionment, student enrollment fees, and property taxes. a. General Apportionment 2009­2010 Enrollment Fees: The enrollment fees for 2009­10 are $26 per unit. COLA: The state did not fund a COLA on apportionments. Growth: No growth funds are budgeted for 2009­10. The college is generating 10% more FTES than the number funded by the state. General Apportionment Shortfall: The state reduced the college’s funded FTES by 3.39%. This reduction is considered permanent. Property Tax Shortfall: A property tax shortfall was included in the 2009­10 reductions. The state continues to implement apportionment deferrals throughout the fiscal year (see page 26). Deferrals basically mean that the state does not submit monthly payments to the college when they are due. In addition, the state is not required to pay the college until the state budget passes. The budget is not likely to pass before September, 2010. The college will borrow from the County Investment Pool on a temporary basis until the state budget is passed. Payment deferrals adversely impact Cabrillo’s spending power and the college’s ability to meet its ongoing expenditure commitments. The deferrals have also necessitated continue spending freezes for non­essential expenditures.
2 2010­11 PRELIMINARY BUDGET GENERAL FUND ­ OVERVIEW 2010­11 Preliminary Budget Enrollment Fees: Student Enrollment fees continue to be budgeted at $26 per unit. A student enrollment fee increase is anticipated as a part of the state budget. The Legislative Analyst’s Office is recommending a $40 per unit fee structure for 2010­11. Note: The college does not set enrollment fees. The state offsets the college’s state funding by 98% of the enrollment fee revenues. When there is an enrollment fee shortfall, the state does not backfill the shortfall for the college. Growth: The Governor’s Budget includes 2.2% growth for community colleges; $1.2 million for Cabrillo. The 2010­11 Preliminary Budget does not include growth funds. COLA: The college is expecting a negative COLA of .38%, a reduction of $216,000. Other state funding reductions of $425,000 are assumed. Part­Time Faculty Compensation: We anticipate a further reduction of $20,000 to this allocation. Other issues: Downside risk and the contentious nature of the budget negotiations make 2010­11 mid­year budget reductions a strong possibility.
3 2010­11 PRELIMINARY BUDGET GENERAL FUND ­ OVERVIEW This chart compares the 2009­10 general apportionment with the budget for 2010­11. GENERAL APPORTIONMENT 2009­10 Final Budget BASE REVENUES 11,346 53,822,065 State Budget Reduction of Workload (base FTES) ­1,200,000 Funded Credit/Non­credit FTES Assumptions 2009­10 2010­11 First Principal Prelim Budget Apportionment 11,365 51,966,005 11,365 51,966,005 Federal Fund Shortfall ­175,000 Budget­ Downside Risk ­250,000 580,000 Growth funds eliminated Foundation Grant 4,000,000 4,000,000 4,000,000 Watsonville Center Revenue 1,000,000 1,000,000 1,000,000 Negative COLA ­.39% ­216,000 COLA­ Mid­Year Reduction General Apportionment­shortfall Property Tax Shortfall 2008­09 Deficit Coefficient .986 Deficit Coefficient .9967194672 (Property Tax Shortfall, Enroll Fee Subsidy) Property Tax Shortfall 2008­09 Property Tax Shortfall 2009­10 (based on $116.7 million), net of $63.3 mil. Backfill GENERAL APPORTIONMENT 4
­430,000 ­1,170,000 56,602,065 56,966,005 56,325,005 2010­11 PRELIMINARY BUDGET GENERAL FUND ­ OVERVIEW b. Lottery 2009­10 Estimated Lottery estimates have continued to decrease. The Lottery Commission is projecting a reduction to $125 per FTES. Lottery revenue is calculated based on the previous year’s reported FTES; 13,471. The funding rate for restricted lottery revenue is estimated at $11 per FTES and the funding rate for unrestricted lottery revenue is $114 per FTES. Although the rate of funding has declined, the total FTES used to calculate revenue has increased. 2010­11 Budget The lottery estimate for 2010­11 is based on total FTES of 13,000 at a reduced rate of $120 per FTES. Actual FTES is expected to decline by 471 due to course reductions. The restricted rate is estimated at $15 per FTES, and unrestricted revenue at $105 per FTES. The rate and FTES assumptions will be updated for the Final Budget. c. Non­Resident Tuition 2009­10 Estimated The 2009­10 budgeted revenue for non­resident tuition was $829,000. This estimate was based on a fee of $199 per unit. Total revenue for 2009­10 is expected to be $984,000. 2010­11 Budget Non­resident tuition for 2010­11 will be reduced to the statewide average rate of $183, plus $4 per unit for the capital outlay fee. The college has experienced increased enrollment from out­of­state and foreign students, and project the fees to be $904,000.
5 2010­11 PRELIMINARY BUDGET GENERAL FUND ­ OVERVIEW 2. BASE BUDGET EXPENDITURES The following assumptions were used in generating the base budget expenditures:
· The Preliminary Budget assumes the District will capture $300,000 in salary/benefit savings from vacant positions.
· No salary increases for 2010­11 are included in the Preliminary Budget.
· Benefit stipend increases were estimated at 17%.
· An increase in retiree benefits of $234,000 is budgeted.
· The PERS rate has increased from 9.7% to 10.2%. The District pays the employee contribution for classified and confidential employees, for a total of 17.2%.
· Column and step increases are funded for all units.
· The District plans to suspend wintersession in 2011. The adjunct budget was reduced by 200 teaching units. Operating reductions for the writing center and the library are also assumed.
· One full­time faculty replacement is included in the preliminary budget.
· 2.5 management positions were unfunded in the 2010­11 budget.
· Energy costs are expected to increase in 2010­11 as new buildings are completed. Natural gas price fluctuations continue to make it difficult to accurately project these expenditures.
· Maintenance and Operating expenses for the Allied Health building are included in the Preliminary Budget.
· The Preliminary Budget includes 1 new lead custodian and 2.5 new custodial positions.
· The expenditure budget was reduced by the $362,000. The balance of the technology lease was paid in March 2010.
6 2010­11 PRELIMINARY BUDGET GENERAL FUND ­ OVERVIEW · The operating budget was increased by $400,000 to backfill the loss of state funding for scheduled maintenance and instructional equipment funding.
· The transfer to the transportation fund was reduced by $100,000 for the Preliminary budget. Bus pass fees were increased to $75 in Spring 2010 and will increase to $100 in Fall 2010.
· The District is developing a plan to begin funding retiree benefit costs for new employees in the base budget. The proposed plan would be effective with employees hired on or after July 1, 2010. Funding for this plan will be included in the Final Budget.
· Total transfers from the 2009­10 Mid­Year Reserve and FTES reserve of $2,342,000 will be used to balance the 2010­11 Preliminary Budget.
7
2010­11 PRELIMINARY BUDGET GENERAL FUND ­ OVERVIEW a. Benefits Mandatory benefits have been funded based on the following rates: FY 08/09 FY 09/10 FY 10/11 9.428% 9.7% 10.2% 7% 7% 7% $9.33/mo/per employee $9.33/mo/per employee $9.33/mo/per employee STRS 8.25% 8.25% 8.25% SOCIAL SECURITY 6.20% 6.20% 6.20% MEDICARE 1.45% 1.45% 1.45% $1.63 $1.63 $1.749 .45% .45% .45% 15.00% 15.00% 15.00% $7,586, $14,442, $19,838 7,833, 15,000, 20,868 (est) 8,842, 17,105, 23,561
DISTRICT BENEFITS PERS (Employer Portion) PERS Employee (Paid by Employer for Confidential employees and for Classified bargaining­unit employees) PERS AB2177 WORKERS COMP Rate per $100 payroll UNEMPLOYMENT Rate per $100 payroll Local experience charge CAFETERIA PACKAGE/FTE All Employee Groups 8 2010­11 PRELIMINARY BUDGET GENERAL FUND ­ OVERVIEW UNRESTRICTED GENERAL FUND BASE BUDGET BASE BUDGET REVENUE FEDERAL 8150 Admin. Allowance 8160 Veterans Total Federal STATE 8612 8612 8612 8670 8612 8612 8699 8681 *General Apportionment P/T Faculty Comp *P/T Faculty Office & Insur *State Taxes *BOGG 2% Admin. Allow. Other State Revenues Lottery Total State LOCAL 8811 8840 8850 8860 8874 8874 8879 8880 8890 8890 8890 *Taxes Catalogs Facility Rental/Use Interest *Enrollment Fee 2% Adm. Allow. Transcripts Non­Resident Tuition Parking Citations Fingerprints Miscellaneous 2009­10 2008­09 ACTUALS ADOPTED At 6/30/09 $ BUDGET $ 2010­11 WORKING BUDGET % As of 3/30/10 $ PRELIMINARY BUDGET Datatel 38,773 35,346 35,346 1,197 1,100 1,100 1,100 36,446 36,446 39,970 36,446 0.1% 35,346 33,128,956 34,237,065 34,237,065 34,021,065 498,999 158,071 244,522 144,522 64,434 172,795 165,000 165,000 165,000 2,051,311 2,500,000 2,500,000 2,500,000 41,582 38,000 38,000 38,000 1,314,795 1,314,795 1,365,000 38,499,382 38,233,587 15,575,000 4,000 1,288,783 37,250,860 38,412,931 65% 19,158,907 16,000,000 16,000,000 98 200 200 200 98,349 71,000 71,000 71,000 186,449 100,000 75,000 50,000 3,426,536 3,700,000 4,063,940 4,063,940 72,948 71,429 71,429 81,278 24,304 30,000 30,000 30,000 791,917 829,000 984,885 904,135 35,000 35,000 5,000 140,756 130,467 26,970 Total Local 24,057,701 20,836,629 35% 21,331,454 20,780,553 Total Revenue 61,348,531 59,286,006 100% 59,867,282 59,050,586 * GENERAL APPORTIONMENT Base, Prior Year Foundation Grant Center Revenue Growth/Reallocation of Growth COLA Adjustments: Elimination of COLA General Apport. Shortfall Property Tax Shortfall Reduce Base FTES * TOTAL GENERAL APPORTIONMENT 52,902,912 53,822,065 51,966,005 51,966,005 4,000,000 4,000,000 4,000,000 4,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,077,666 580,000 393,824 (393,824) (430,000) (430,000) (216,000) (430,000) (1,170,000) (425,000) 0 (1,200,000) 58,120,578 9
56,602,065 0 56,966,005 56,325,005 2010­11 PRELIMINARY BUDGET GENERAL FUND ­ OVERVIEW UNRESTRICTED GENERAL FUND BASE BUDGET BASE BUDGET EXPENDITURES
CERTIFICATED SALARIES 1100 Teaching 1200 Non­Teaching 1300 Part­Time Teaching 1400 Part­Time Non­Teaching Total Certificated CLASSIFIED SALARIES 2100 Regular Contract 2200 Instr'l Aide Contract 2300 Part­Time Classified 2400 Part­Time Class Instr'l Aide Total Classified STAFF BENEFITS 2009­10 2008­09 ACTUALS At 6/30/09 $ ADOPTED BUDGET $ 13,094,906 5,189,875 8,497,368 584,010 27,366,159 9,920,810 1,514,997 555,781 265,459 13,830,274 4,214,187 8,434,608 240,764 26,719,833 45% 10,310,791 1,608,037 472,251 312,708 14,026,245 4,074,013 7,920,427 185,576 26,617,383 26,206,261 10,067,072 1,584,241 467,584 341,674 10,686,168 1,624,220 452,251 312,708 12,460,571 13,075,347 11,116,623 12,095,879 21% 11,765,408 12,618,602 8,000 444,807 484,229 8,000 473,674 615,195 937,036 1,096,869 719,729 117,189 80,819 488,706 1,881,796 22,487 769,653 272,549 300,000 75,075 138,626 247,540 82,280 24,550 121,944 180,801 43,056 58,760 225,000 0 399,242 113,966 73,926 481,623 2,100,563 22,150 830,614 195,818 170,000 76,000 138,626 197,500 99,039 24,550 118,791 334,956 52,878 61,908 215,000 0 5,850,560 5,707,150 20,626 267,820 1,020,837 0 21,950 463,368 1,309,283 485,318 58,940,241 59,189,547 8,000 473,228 597,547 Total Supplies 582,377 1,078,775 OPERATING EXPENDITURES 5100 Professional Services 5200 Travel & Mileage 5300 Dues & Memberships 5400 Insurance 5500 Utilities 5600 Rental Equip. & Facilities Maint. Serv. Agreements Repairs 5700 Legal Fees Audit Misc. Fees (Mchnt Bank) 5800 Postage Advertising Fingerprint & Testing Reqs Printing Program Support Component Other Fees Uncollectable Stdnt. Recv. Hold for Growth Adjustment 703,202 90,664 71,089 432,216 1,676,455 56,839 624,387 134,618 384,931 74,100 126,724 172,424 83,137 84,527 115,327 16,220 679 29,930 166,203 0 399,242 113,666 73,926 436,623 1,984,796 20,108 706,600 192,517 200,000 75,075 138,626 247,500 99,039 24,550 118,791 316,686 52,878 107,831 225,000 0 Total Operating 5,043,672 5,533,454 20,703 167,621 362,574 11,272 16,950 293,900 362,575 0 562,170 673,425 TOTAL EXPENDITURES 13,440,898 4,396,906 8,468,148 311,431 12,703,787 22% 8,000 296,508 277,869 Total Capital Outlay PRELIMINARY BUDGET Datatel 12,257,047 SUPPLIES 4200 Other Books 4300 Instructional Supplies 4500 Non­Instructional Supplies CAPITAL OUTLAY 6300 Books 6400 Equipment 6500 Lease/Purchase 6600 Building Remodels 2010­11 WORKING BUDGET As of 3/30/10 % $ 56,928,048 10 2% 9% 1% 58,805,153 100% 2010­11 PRELIMINARY BUDGET GENERAL FUND ­ OVERVIEW UNRESTRICTED GENERAL FUND BASE BUDGET BASE BUDGET EXPENDITURES TOTAL EXPENDITURES TOTAL REVENUE REVENUE OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (OUTGO) To Fin. Aid Fund Match To Gen. Fund, District Match Indirects­fr FD 12, 33, 71, 72 TRANSFERS From Student Center Fund From Bookstore Fund From Assoc. Students Fund From Trust & Agency Fund To Bldg FD­Transportation To Bldg FD­Sched Maint Match To Retiree Benefits Fund To Debt Service Fund Total Transfers TOTAL OTHER FINANCING SOURCE SOURCES (OUTGO) EXCESS REVENUE/TRANSFERS OVER (UNDER) EXPENDITURES MAINTAIN CONTINGENCY RESERVE AT 5% 2009­10
2008­09 ACTUALS At 6/30/09 $ ADOPTED BUDGET $ 2010­11 WORKING BUDGET As of 3/30/10 % $ PRELIMINARY BUDGET $ 56,928,048 61,348,531 58,805,153 59,286,006 58,940,241 59,867,282 59,189,547 59,050,586 4,420,483 480,853 927,041 (138,961) (49,143) (381,499) 191,082 (60,275) (516,703) 312,612 (60,275) (516,703) 312,612 (60,275) (490,046) 293,452 51,800 114,041 18,000 82,546 (85,000) (123,076) (1,045,000) (338,786) (1,635,475) 90,475 118,319 18,000 98,882 (435,000) (123,076) (997,000) (339,369) (1,568,769) 90,475 118,319 18,000 87,482 (435,000) (123,076) (997,000) (339,369) (1,580,169) 106,448 125,331 20,000 97,400 (335,000) (390,076) (1,231,000) (339,369) (1,946,266) (1,875,035) (1,833,135) (1,844,535) (2,203,135) 2,545,448 (1,352,282) (917,494) (2,342,096) (199,609) TO MID­YEAR BRIDGE FUND RESERVE TRANS FOR CARRYOVER DESIGNATIONS (1,366,861) FROM ONE­TIME TO ONE­TIME SUB­FUND 258,986 (1,237,964) NET INCREASE TO FUND BALANCE BALANCE ­ BEGINNING YEAR 1,353,000 1,353,000 0 718 435,506 (96) 3,375,000 3,375,000 3,375,000 3,375,718 (166,000) 3,375,000 3,375,718 3,810,506 3,209,622 3,154,000 30,000 25,000 3,154,000 30,000 25,000 718 166,000 3,154,000 30,000 25,000 ­ 3,154,000 30,000 25,000 622 Cal PERS Reserve YEAR END FUND BALANCE RESERVES
General Reserve Revolving Cash Fund Clearing/Operational Unallocated CalPers Budget Adjustments Bridge Fund Reserve TOTAL RESERVES 166,000 0 0 3,375,000 ========= 3,375,718 =========== 11 2,342,000 33,035 568,471 3,810,506 ========= 3,209,622 =========== 2010­11 PRELIMINARY BUDGET MID­YEAR RESERVE – GENERAL FUND B. MID­YEAR RESERVE MID­YEAR RESERVE One­time and Carryover Funds from 2009­10 Adopted budget, unallocated one­time Unused backfill to categoricals for 2009­10 Repurposed Base, One­time and Carryover Funds One­time $228,779 Carryover 143,285 Base 27,936 Medical Plan Savings 400,000 CalPERS Reserve 166,000 Other savings­Instruction 75,000 Subtotal $1,041,000 Technology Plan Lease Payout (1,040,000) Other Funds Identified in 2009­10 One­time apportionment adjustment, 2008­09 Recalc Apportionment adjustment 2009­10, ongoing One­time adjustment 2009­10 PT faculty compensation Lottery Non­Resident Tuition increase for 2009­10 Other Operating Savings $437,000 46,000 114,000 360,000 86,000 125,000 130,000 170,000 Transfer from One­time FTES Reserve 1,354,606 Accumulation of One­time Adjustments Available 2,823,606 * Allocate Remaining Balance to 2009­10 Deficit In Base Balance (2,342,000) 481,606
12 2010­11 PRELIMINARY BUDGET ONE­TIME SUB­FUND – GENERAL FUND C. ONE­TIME SUB­FUND – FTES RESERVE FTES RESERVE 1,854,606 Transfer to Unrestricted General Fund (1,354,606) Balance 13 $ 500,000
2010­11 PRELIMINARY BUDGET ONE­TIME SUB­FUND ­ GENERAL FUND D. ONE­TIME SUB­FUND Available balance 481,606 Commitments: Transfer to Retiree Benefit Fund 100,000 Board Elections 100,000 Balance to Bridge Fund 2011­12 281,606 14
2010­11 PRELIMINARY BUDGET ­This Page Intentionally Left Blank­
15 2010­11 PRELIMINARY BUDGET COMMUNITY EDUCATION – GENERAL FUND E. COMMUNITY EDUCATION This sub­fund accounts for the Community Education and the Contract Education programs. The Community Education program is primarily based upon revenue generated from class fees.
16 2010­11 PRELIMINARY BUDGET COMMUNITY EDUCATION ­ GENERAL FUND Cabrillo Community College District Preliminary Budget 2010­11 Community Education Actual 2008­09 Budget 2009­10 Budget 2010­11 Revenues 8800: Local Total Revenues 696,905 696,905 530,758 530,758 610,992 610,992 Expenditures 1000: Academic Salaries 2000: Non­Instructional Salaries 3000: Employee Benefits 4000: Supplies and Materials 5000: Other Operating Expenses 6000: Capital Outlay 7600: Grants/Donations/Scholarships Total Expenditures 51,839 155,431 38,824 17,222 343,181 301 218 607,016 4,605 193,552 51,946 21,459 210,865 1,000 17,000 298,198 111,302 8,300 294,840 500 483,427 730,140 89,889 47,331 (119,148) 0 0 89,889 47,331 (119,148) 235,927 325,816 373,147 325,816 373,147 253,999 Excess of Revenues Over Expenditures Other Financing Sources (Outgo) Interfund Transfers 8900: Transfers In 7300: Transfers Out Total Other Financing Sources (Outgo) Net Change to Fund Balance Beginning Fund Balance Fund Adjustment Ending Fund Balance 17
2010­11 PRELIMINARY BUDGET CARRY­OVER SUB­FUND – GENERAL FUND F. CARRY­OVER SUB­FUND The carry­over sub­fund accounts for self­sustaining funds, projects that are not completed within the same fiscal year, and available balance in line­item budgets authorized for carry­over. Self­sustaining funds depend on their ability to generate revenue to support their actual operating expenditures. Major projects that cross fiscal years are carried over in this sub­fund. Examples are major repairs, remodeling, and painting projects that are not state­funded. Examples of items authorized for carry­over are the year­end balances in supply budgets and the balance in the account established to fund the deductible for insurance claims. In order to prepare the budget for this sub­fund, the 2009­10 books must be closed. The budget will be presented as part of the 2010­11 Final Budget.
18 2010­11 PRELIMINARY BUDGET ­This Page Intentionally Left Blank­
19 2010­11 PRELIMINARY BUDGET GENERAL RESTRICTED FUND G. GENERAL RESTRICTED FUND The Restricted General Fund programs are established for the purpose of providing specialized services. These services are funded by revenues collected from program participants or from revenues provided by a Federal, State or local agency. As the name implies, restricted funds may only be used to pay for the costs of providing specific services. Federal, State and local agencies frequently require that a district receiving special funding provide general fund dollars to the restricted program. This “match” varies by funding agency and may be in the form of a cash contribution to pay for specific expenditures, or it may be an “in­kind” contribution that is made through allocation of existing district resources such as use of a facility, use of equipment, utilities or personnel. Required match is often expensed in the unrestricted general fund. The college continues to evaluate match requirements and commitments to determine the appropriate level of match for each program. The severe cuts that some restricted programs implemented in 2009­10 have become permanent. In 2009­10, the college received federal stimulus funds (ARRA); to backfill for some of these cuts. The college also contributed one­time funds to the programs to allow planning time for the 2010­11 permanent reductions. No backfill funds are included in the 2010­11 Preliminary Budget. The state has given Districts the authority to transfer funds between twelve restricted programs, without affecting future allocations. The College will continue to discuss potential transfers. The flexibility provisions are in effect for fiscal years 2009­10 through 2012­13. Page 21 shows a summary of the 2010­11 Preliminary Restricted General Fund revenues and expenditures. Pages 22­23 show the listing of programs included in the Restricted General Fund budget.
20 2010-11 PRELIMINARY BUDGET
RESTRICTED - GENERAL FUND
Cabrillo Community College District
Preliminary Budget 2010-11
Restricted Fund
Actual
2008-09
Revenues
8100: Federal
8600: State
8800: Local
Total Revenues
Expenditures
1000: Academic Salaries
2000: Non-Instructional Salaries
3000: Employee Benefits
4000: Supplies and Materials
5000: Other Operating Expenses
6000: Capital Outlay
Total Expenditures
Excess of Revenues Over Expenditures
Budget
2009-10
1,884,325
6,432,838
2,407,319
10,724,482
2,094,844
5,553,075
2,058,431
9,706,350
2,968,117
3,610,250
3,313,733
9,892,100
2,353,231
2,498,255
1,361,118
337,172
2,906,966
459,021
9,915,763
2,247,909
2,254,402
1,693,609
499,490
4,244,515
523,577
11,463,502
1,839,048
2,094,129
1,525,783
139,697
3,286,108
215,552
9,100,317
808,719
Other Financing Sources (Outgo)
7600: Grants/Donations/Scholarships
7320: Indirects
Interfund Transfers
8900: Transfers In
7300: Transfers Out
Total Other Financing Sources (Outgo)
Net Change to Fund Balance
Project Reserves
Beginning Fund Balance
Increase to Fund Balance
Ending Fund Balance
21
Budget
2010-11
(1,757,152)
791,783
(174,238)
(169,105)
(288,604)
(268,419)
(140,066)
(250,906)
(693,052)
(336,700)
(420,300)
(1,036,395)
(893,723)
(811,272)
(227,676)
(2,650,875)
(19,489)
0
0
1,729,182
1,501,506
(1,149,369)
1,501,506
(1,149,369)
(1,168,858)
2010­11 PRELIMINARY BUDGET RESTRICTED ­ GENERAL FUND Cabrillo Community College District Preliminary Budget 2010­11 Restricted ­ General Fund Detailed Program Listing Project 000 023 100 103 104 107 110 111 112 122 125 126 130 134 136 137 138 139 140 141 150 153 165 175 181 190 194 204 205 217 218 230 292 305 318 330 331 352 357 358 361 365 367 Description Federal Revenue 8100 Transportation CAP Lottery Student Representation Child Care Fees Foundation­10­11Backfill Health Services 18,000 DSPS Human Care Alliance Tutorials­Griffith CARE EOPS NSF MESA/STEEP 09­10 54,000 ACCESS 09­10 3,048 NSF MESA/STEEP 10­11 206,279 NSF Chemistry Bridges 102,425 ACCESS 22,687 NSF MPICT 6,217 WIA­Adult Wkr­FTTW 60,000 WIA­Dislocated Wkr­FTTW 140,000 Federal College Wk Stdy 216,775 SFAA ­ BFAP Foster Kinship Care MESA Math Sci Teacher Init Matriculation­non credit Matriculation­credit TANF (FTTW) 26,195 Calworks (FTTW) TTIP 06­07 TTIP 07­08 AMATYC Calworks (FTTW) MBUAPCD­Bike Loans&Racks MBUAPCD­Transp Dem Mgmt CTE Nursing Growth RN Enrollment Growth Title V­Hisp Serv Inst 10­11 565,759 Nursing Foundation Health Projects Ctr/AHEC 12,054 Basic Skills 10­11 SA/HIV (Formerly OFR) STAP State Revenue 8600 Local Revenue 8800­8900 Certificated Salaries 1000 620,000 73,973 Classified Salaries 2000 47,288 195,000 32,000 210 155,623 640,408 1,037,365 78,810 241,544 531,102 28,721 65,955 186,048 46,267 45,761 4,000 11,655 1,006 38,574 1,720 6,008 62,908 5,534 1,890 45,933 2,292 15,698 3,600 10,799 11,446 47,712 216,775 246,800 15,314 32,862 1,595 6,910 140,261 19,298 84,619 56,628 73,557 43,587 127,835 393,833 118,067 48,623 14,000 9,604 355,887 26,195 171,396 53,420 6,500 101,086 7,199 7,199 Other Supplies & Operating Materials Expenses & 4000 Services 5000 500 360,400 4,835 1,000 20,850 195,000 2,000 10 48,092 119,795 11,000 161,134 320,215 10,361 26,296 1,000 500 1,300 28,470 3,365 14,353 1,605 4,500 15,001 152 16,228 6,723 26,660 242 10,504 80,883 981 2,126 3,661 11,108 1,039 32,807 39,252 3,815 38,422 Employee Benefits 3000 131,533 23,731 5,474 28 3,102 109,010 17,726 37,820 2,500 1,106 2,718 2,127 10,000 20,150 811 300 Capital Outlay 6000 Student Aid 7000 Transfer Out 7300 Indirect 7310 259,100 30,000 200 2,000 5,000 56,980 42,287 14,739 6,040 60,000 4,665 12,161 6,784 430 5,500 12,000 2,952 1,870 77 2,812 8,167 39,631 10,261 8,820 6,647 85,136 7,199 33,533 28,280 1,472 42,500 146,687 25,327 55,595 151,926 37,802 8,298 28,077 28,460 24,960 4,835 39,433 35,465 6,158 36,142 116,631 12,481 2,740 27,004 16,239 9,210 2,420 2,541 7,500 54,909 90,000 204,922 167,466 30,295 15,314 4,177 22
5,000 5,000 6,647 14,652 2,125 7,334 254,237 2,514 552 4,624 115,318 104,023 1,635 5,642 2,112 464 24,591 20,096 Total Expenses 620,000 73,973 195,000 32,000 210 155,623 658,408 1,037,365 56,628 73,557 43,587 127,835 54,000 3,048 206,279 102,425 22,687 6,217 60,000 140,000 216,775 393,833 118,067 48,623 14,000 10,012 355,887 52,390 171,396 10,261 8,820 6,647 85,136 0 0 42,500 146,687 565,759 54,909 12,054 90,000 204,922 167,466 2010­11 PRELIMINARY BUDGET RESTRICTED ­ GENERAL FUND Cabrillo Community College District Preliminary Budget 2010­11 Restricted ­ General Fund Detailed Program Listing Project Description 368 390 391 393 399 507 620 670 708 713 714 816 819 822 847 859 863 APS­Adopt,Prom & Supprt SBDC­Monterey WIB SBDC­SBA July­Dec SBDC­SBA Jan­June SBDC­Santa Cruz WIB Student Body Center Fee Rad Tech Foundation Foundation­Horticulture DBA ­ NSF Sci & Math DBA Hewlett DBA Gates VTEA 1C Tech Prep VTEA II CTE Teacher Pipeln 08­09 Green Pre­Apprentice BACCC VTEA 1B CTE Comm Coll Proj 2a 000 Estimated Indirects Total Federal Revenue 8100 State Revenue 8600 Local Revenue 8800­8900 Certificated Salaries 1000 Classified Salaries 2000 33,687 70,846 21,484 35,332 35,332 12,926 70,000 70,000 49,974 137,550 15,950 59,199 301,745 13,593 89,500 274,672 991,587 462,100 67,750 91,910 45,660 34,106 39,505 247,083 316,000 18,731 13,167 60,515 258,955 2,968,117 3,610,250 3,313,733 1,839,048 10,941 61,764 132,641 36,182 137,956 4,500 27,378 26,170 10,584 2,094,129 23
Other Supplies & Operating Materials Expenses & 4000 Services 5000 300 24,345 4,672 38,250 18,940 197 12,839 18,940 197 12,839 2,000 32,774 6,550 2,357 179 16,596 10,000 38,933 9,200 85,268 65,291 64,631 17,735 8,623 798,482 94,565 5,170 158,535 13,296 256 12,987 8,799 1,809 12,327 14,802 72,553 3,161 3,000 271,935 15,647 100 136,733 Employee Benefits 3000 1,525,783 139,697 3,286,108 Capital Outlay 6000 Student Aid 7000 Transfer Out 7300 5,000 Indirect 7310 4,042 6,440 2,692 2,692 2,274 12,153 10,960 33,687 70,846 70,000 70,000 49,974 137,550 15,950 59,199 301,745 274,672 991,587 462,100 67,750 39,505 247,083 316,000 258,955 250,906 9,911,589 131,000 21,483 17,080 12,109 35,881 2,774 20,214 2,605 1,519 102,500 2,000 35,000 215,552 140,066 420,300 Total Expenses 2010­11 PRELIMINARY BUDGET RESERVES – GENERAL FUND H. RESERVES (ENDING BALANCE) 1. BASE BUDGET RESERVES The General Reserves, Revolving Fund, Revolving Stores, and Clearing/Operational Fund are accounted for in the Base Budget in the amount of $3,209,000. These funds are not designated for allocation during the fiscal year. a. General Reserves An account to record the reserve budgeted to provide operating cash in the succeeding fiscal year until taxes and state funds become available. The California Community Colleges Chancellor’s Office guideline is a minimum of 5% of the total General Fund Reserve. The Final Budget includes a 5% general reserve; $3,154,000. b. Revolving Cash Fund A $30,000 account to be used for emergency or small sundry disbursements. c. Clearing/Operational Fund A $25,000 account to be used for District deposits and subsequent withdrawal into appropriate County treasury accounts. d. CalPers Reserve A CalPers reserve was included in the budget until 2009­10. The reserve was reallocated to the bridge fund reserve for 2010­11. e. 2009­10 Mid­Year Reserve – Bridge Fund The District retains a mid­year reserve to provide one­time assistance and planning time for addressing ongoing reductions in state revenues. A large part of the reserve will be used to reduce the 2010­11 base budget deficit. f. FTES Reserve The FTES reserve balance is included on page 13. The FTES reserve will be reduced to $500,000 for 2010­11. The remainder of the funds; $1.3 million will be used to bridge the 2010­11 deficit.
24 2010­11 PRELIMINARY BUDGET RESERVES ­ GENERAL FUND 2010­11 Preliminary Budget Reserves of the General Fund RESERVES Preliminary Budget Base Budget General Reserve 3,154,000 Revolving Cash Fund 30,000 Clearing/Operational 25,000 Unallocated Reserve 622 Total Reserves $3,209,622 25
2010-11 PRELIMINARY BUDGET
FUND BALANCE VS CASH
2.
ENDING FUND BALANCE vs CASH BALANCE
Ending Balance
6/30/2008
6/30/2009
Projected
6/30/2010
Unrestricted Funds
5% General Reserve - Fund 11
Carry Over - Fund 14
One-Time - Fund 17
FTES Reserve - Fund 17
Community Ed - Fund 15
Total Unrestricted Funds
$3,376,000
2,462,000
2,104,000
2,803,000
236,000
$10,981,000
$3,375,000
3,530,000
3,746,000
1,855,000
326,000
$12,832,000
$3,209,000
2,930,000
3,000,000
1,855,000
370,000
$11,364,000
$3,209,000
2,000,000
1,000,000
500,000
270,000
$6,979,000
1,729,000
1,501,000
1,400,000
1,200,000
$12,710,000
$14,333,000
$12,764,000
$8,179,000
6,476,000
7,564,000
5,568,430
Restricted Funds
Total General Fund Ending Balance
Cash Balance
Apportionment Allocation Deferrals
2008-09 @ $5,500,000
2009-10 @ $7,000,000
2010-11 @ $8,000,000 (est)
26
Budget
6/30/2011
179,000
2010-11 PRELIMINARY BUDGET
OTHER FINANCING SOURCES (OUTGO)
I.
OTHER FINANCING SOURCES (OUTGO)
Other financing sources include proceeds from long-term debt, sale of fixed
assets, and incoming transfers.
Other outgo includes debt retirement, student aid and transfers to other funds.
Inter-fund transfers are made to move appropriations and dollars from one fund to
another fund for the purpose of paying for expenditures using the structure
required by generally accepted accounting principles applied to governmental
entities. The transfer of funds allows money to be moved from one fund to a
second fund with the second fund then being responsible for paying all operating
costs of that program. This practice allows all program expenditures related to the
operation of the program, regardless of funding sources, to be accounted for in a
single fund. This treatment provides readers with a full understanding of the
scope of the program as a whole.
Intra-fund transfers are made within a fund of a district. An example of an intrafund transfer would be moving funds from the unrestricted general fund to the
restricted general fund.
A schedule of Inter- and Intra-fund Transfers is included on the following page.
27
2010-11 PRELIMINARY BUDGET
TRANSFERS
INTER- AND INTRA-FUND TRANSFERS
Transfer in
Unrestricted General Fund 11
From One-Time Sub Fund 17
From Bookstore Fund 51
From ASCC Fund 71
From Stu Ctr Fund 73
From Trust & Agency Fund 79
To Debt Service Fund 22
To Retiree Benefit Fund 23
To Building Fund 41 (Transportation)
To Building Fund 46 (Scheduled Maintenance)
Transfer Out
2,342,000
125,331
20,000
106,448
97,400
339,369
1,231,000
335,000
390,076
Restricted General Fund 12
To Child Development Fund 33 (Fees)
To Building Fund 41 (Transportation)
To Student Rep Fund 72 (Fees)
To Student Ctr Trust Fund 73 (Fees)
200
259,100
30,000
131,000
One-Time Sub Fund 17
From Unrestricted General Fund 11
To Unrestricted General Fund 11
To Retiree Benefit Fund 23
To Cafeteria Fund 52
2,342,000
100,000
Debt Service Fund 22
From Unrestricted General Fund 11
339,369
Retiree Benefit Fund 23
From Unrestricted General Fund 11
From One-Time Sub Fund 17
1,231,000
100,000
Child Devel Fund 33
From Restricted General Fund 12 (Child Care Fees)
200
Building Funds 41-47
From Unrestricted General Fund 11 (41-Transportation)
From Unrestricted General Fund 11 (46-Scheduled Maintenance)
From Restricted General Fund 12 (41-Transportation)
335,000
390,076
259,100
Bookstore Fund 51
To Unrestricted General Fund 11
To ASCC Fund 71
125,331
15,000
Cafeteria Fund 52
From One-Time Sub Fund 17
Associated Students CC Fund 71
From Bookstore Fund 51
To Unrestricted General Fund 11
15,000
20,000
Student Representation Fund 72
From Restricted General Fund 12 (Fees)
30,000
Student Center Trust Fund 73
From Restricted General Fund 12 (Fees)
To Unrestricted General Fund 11
131,000
106,448
Trust & Agency Fund 79
Pino Alto/Sesnon to Unrestricted General Fund 11
97,400
Total Inter- and Intra-fund Transfers
5,521,924
Indirects collected in the Unrestricted General Fund
From Restricted General Fund 12
From Child Development Fund 33
From Associated Students Fund 71
From Student Representation Fund 72
Total Indirects Reimbursed to Fund 11
28
250,906
24,014
17,150
2,100
294,170
5,521,924
2010-11 PRELIMINARY BUDGET
-This Page Intentionally Left Blank-
29
2010-11 PRELIMINARY BUDGET
RETIREE BENEFIT FUND
II.
RETIREE BENEFIT FUND
Pursuant to the Governmental Fund Group descriptions contained in the California
Community Colleges Budget and Accounting Manual, the District has established a
Retiree Benefit Fund that is contained within the debt service fund group. The fund is
used for the sole purpose of funding retiree health benefits.
The District pays retiree benefits directly out of the Retiree Benefit Fund. During the
year, a transfer is processed from the general fund to cover the estimated annual cost of
retiree benefits.
Additional allocations for funding the future cost of retiree benefits from the base budget
and one-time funds are: $200,000 ($100,000 from each) in 2010-11, $250,000 ($150,000
from base, $100,000 from one-time) in 2011-12 and 2012-13.
Funds held in the Retiree Benefit Fund will accumulate interest income that will be held
toward the cost of future benefits.
Next Steps – GASB 45 Implementation
Effective July, 2009 the District was required to account for the costs of retiree health
benefits on an accrual basis, i.e., over the working lifetime of eligible employees. The
entity-wide financial statements will recognize the annual required contribution (ARC).
The ARC includes future other post employment benefits (OPEB) costs of active eligible
employees + amortized unfunded liability of retirees.
Although GASB 45 does not require funding the ARC, districts are encouraged to
consider OPEB commitments and the district’s ability to finance when they assess their
fiscal health in preparation for Accreditation, future Bond measures, etc.
The Chancellor’s Office is in the final stages of drafting an Accounting Advisory on the
subject which will help guide districts on reporting requirements including how to
allocate components of the ARC equally amongst all regular programs.
The focus of next steps for funding the District’s liability involves the development of a
strategy to assign the cost of retiree health benefits for current employees across all
programs equally.
30
2010-11 PRELIMINARY BUDGET
RETIREE BENEFEFIT FUND
Cabrillo Community College District
Preliminary Budget 2010-2011
Retiree Benefit Fund
Actual
2008-09
Revenues
8100: Federal
8600: State
8800: Local
Total Revenues
Expenditures
1000: Academic Salaries
2000: Non-Instructional Salaries
3000: Employee Benefits
4000: Supplies and Materials
5000: Other Operating Expenses
6000: Capital Outlay
Total Expenditures
Excess of Revenues Over Expenditures
Budget
2009-10
Budget
2010-11
19,973
19,973
21,000
21,000
10,759
10,759
862,049
898,393
996,860
862,049
898,393
996,860
(842,076)
(877,393)
(986,101)
Other Financing Sources (Outgo)
Interfund Transfers
8900: Transfers In
7300: Transfers Out
1,095,000
1,097,000
1,331,000
Total Other Financing Sources (Outgo)
1,095,000
1,097,000
1,331,000
252,924
219,607
344,899
Beginning Fund Balance
Fund Adjustment
Ending Fund Balance
1,159,994
1,412,918
1,632,525
1,412,918
1,632,525
1,977,424
Reserve - For Future Retiree Benefits
1,412,918
1,632,525
1,977,424
Net Change to Fund Balance
31
Retiree Benefit Reserves Projection 2006/07 through 2012/13
2006-07
Actuals
Estimated Annual Costs
per Actuarial Study
2007-08
Actuals
2008-09
Actuals
2009-10
Projected
2010-11
Projected
2011-12
Projected
2012-13
Projected
Funding for
Future Benefits
872,507
841,543
898,393
996,860
1,130,460
1,146,855
$ 5,886,618
920,000
884,676
1,017,627
1,016,234
1,150,374
1,166,914
FUNDING for Yearly Expense:
Beginning Balance
Base Budget Allocation
to Cover Annual Cost for
subsequent year
Less actual costs
Ending Balance
920,000
800,000
995,000
897,000
1,131,000
1,147,000
1,168,000
$ 7,058,000
-
- 835,324
- 862,049
- 898,393
- 996,860
- 1,130,460
- 1,146,855
- 5,869,941
884,676 *
1,017,627 *
1,016,234 *
1,150,374 *
1,166,914 *
1,188,059 *
395,291
616,291
827,050
1,090,245
920,000 *
$ 1,188,059
FUNDING for Future Benefits:
Beginning Balance
-
100,000
275,318
Base Budget Allocation
for Reserves
-
50,000
50,000
100,000
100,000
150,000
150,000
$ 600,000
100,000
75,000
50,000
100,000
100,000
100,000
100,000
$ 625,000
-
50,318
19,973
21,000
10,759
13,195
15,503
$ 130,748
1,090,245 *
1,355,748 *
$ 1,355,748
*
$ 2,543,807
One-Time Funds Allocation
for Reserves
Interest Income
Ending Balance
Annual Ending Fund Balance
100,000 *
1,020,000
*
275,318 *
1,159,994
*
395,291 *
1,412,918
616,291 *
*
1,632,525
Notes:
06-07 Funds transferred 6/18/07. No interest accrued
During 2008-09, updated Annual Costs with new actuarial study projections (rev 9/3/2008)
Current process
Annual costs for the subsequent fiscal year are transferred during current year to maximize interest earnings
Monthly benefits are paid directly from the retiree benefit fund
32
*
827,050 *
1,977,424
*
2,257,159
*
2,543,807
2010­11 PRELIMINARY BUDGET ­This Page Intentionally Left Blank­
33 2010-11 PRELIMINARY BUDGET
DEBT SERVICE FUND
III.
DEBT SERVICE FUND
The District uses the Debt Service Fund to account for the payment of the Certificates of
Participation (COP) authorized by the Board of Trustees in 1997-98. COPs are a form of
debt used by governmental agencies that does not require voter approval.
A transfer from the General Fund is made to cover annual COP commitments.
The Debt Service Fund also includes loan payments for Delta School capital
improvements made in 2007 and a corresponding reimbursement from Delta School for
annual loan payments.
34
2010-11 PRELIMINARY BUDGET
DEBT SERVICE FUND
Cabrillo Community College District
Preliminary Budget 2010-11
Debt Service Fund
t
9
Revenues
8100: Federal
8600: State
8800: Local
Total Revenues
Actual
2008-09
Budget
2009-10
Budget
2010-11
51,610
51,610
49,065
49,065
49,065
49,065
3,245
339,029
49,065
391,339
339,369
49,065
388,434
339,249
49,065
388,314
(339,729)
(339,369)
(339,249)
Interfund Transfers
8900: Transfers In
7300: Transfers Out
338,785
339,369
339,369
Total Other Financing Sources (Outgo)
338,785
339,369
339,369
0
120
361,840
360,896
360,896
360,896
360,896
0
361,016
Expenditures
1000: Academic Salaries
2000: Non-Instructional Salaries
3000: Employee Benefits
4000: Supplies and Materials
5000: Other Operating Expenses
6000: Capital Outlay
7000: Debt Reduction
Total Expenditures
Excess of Revenues Over Expenditures
Other Financing Sources (Outgo)
Net Change to Fund Balance
(944)
Beginning Fund Balance
Fund Adjustment
Ending Fund Balance
35
2010-11 PRELIMINARY BUDGET
CHILD DEVELOPMENT FUND
IV.
CHILD DEVELOPMENT FUND
The Child Development Fund is designated as a special revenue fund. This fund
accounts for legally restricted revenue sources such as the Child Care Premium Tax
Bailout, the California Department of Education, and the U.S. Department of Education.
The Children Center functions primarily as a demonstration lab for the Early Childhood
Education instructional program while providing child care services to students and staff.
In 2009-10, Cabrillo partnered with the Santa Cruz County Community Counseling
Center and leased the Baskin Center for a Head Start program. The receipt of this new
local revenue represents the continual efforts being made to become a more fiscally
sustainable Center. The current Child Development Fund end-of-year balance estimated
at $32,406 will offset any additional reduced funding from the reimbursement of state aid
from the Child Development Division (CDD) of the California Department of Education.
36
2010-11 PRELIMINARY BUDGET
CHILD DEVELOPMENT FUND
Cabrillo Community College District
Preliminary Budget 2010-11
Child Development Fund
Actual
2008-09
Revenues
8100: Federal
8600: State
8800: Local
Total Revenues
Budget
2009-10
Budget
2010-11
68,943
700,239
66,501
835,683
75,239
654,812
46,000
776,051
78,785
656,608
117,139
852,532
433,120
251,213
225,418
33,401
215,534
1,033
271,245
185,221
185,371
29,500
206,191
1,100
267,952
184,918
183,926
26,500
184,950
1,100
1,159,719
878,628
849,346
Expenditures
1000: Academic Salaries
2000: Non-Instructional Salaries
3000: Employee Benefits
4000: Supplies and Materials
5000: Other Operating Expenses
6000: Capital Outlay
7000: Grants/Donations/Scholarships
Total Expenditures
Excess of Revenues Over Expenditures
(324,036)
(102,577)
3,186
Interfund Transfers
8900: Transfers In
7300: Transfers Out
310,253
(18,685)
500
(23,893)
200
(24,014)
Net Change to Fund Balance
(32,468)
(125,970)
(20,628)
Beginning Fund Balance
Fund Adjustment
Ending Fund Balance
190,844
158,376
32,406
158,376
32,406
11,778
37
2010-11 PRELIMINARY BUDGET
BUILDING FUND
V.
BUILDING FUND
This fund accounts for federal, state and local funding for scheduled maintenance, capital
outlay projects, and student transportation fees. The Preliminary Budget includes projected
expenses for new projects only.
A.
SCHEDULED MAINTENANCE & CAPITAL OUTLAY PROJECTS
The State provides funds capital outlay projects. The State will not provide
Scheduled Maintenance funding for 2010-11. However, the District will fund
$390,076 from the base budget. The Building Fund also includes funding from
Redevelopment Agencies.
In October 2005 the College was awarded an allocation from State Proposition
55, which the voters passed in November, 2006, of $10,490,000 for construction
and $1,185,000 for equipment for the Allied Health Buildings. Due to an error at
the state level, the equipment allocation will not be available until Fall 2010.
In March 2008, the College was awarded an allocation from State Proposition 55,
which the voters passed in November 2006, of $2,167,000 for construction and
$931,000 for equipment for the Building 300 Renovation Project. The State
allocation for construction was reduced to $1,051,000 because the bids came in
below budget. The equipment allocation remains $931,000.
In November 2007, the College was awarded a Financial Assistance Award of
$2.5 million from the Economic Development Agency for construction of a
Pajaro Valley Regional Training Center at the Watsonville Center. In May 2009
the amount was augmented by EDA in the amount of $840,000 in order to assist
the project in achieving LEED Platinum status. The project was renamed the
Watsonville Green Technology Center.
B.
TRANSPORTATION, PARKING & SECURITY
After payment is made to the Santa Cruz County Transit District, the net
collections from the bus passes and parking permit fees are transferred into the
Building Fund. These funds are designated for parking lot security, maintenance,
and repairs.
C.
CERTIFICATES OF PARTICIPATION (COPS)
Certificates of Participation (COPS) were sold in 1997-98. The proceeds have
been used for deferred maintenance, upgrading of infrastructure, and purchase and
installation of the Datatel software system.
38
2009-10 PRELIMINARY BUDGET
BUILDING FUND
D.
REDEVELOPMENT AGENCY (RDA) FUNDS
The budget for 2010-11 projects $450,000 in RDA funds and continues to support
the Scotts Valley center in the amount of $162,900 for the facilities lease
agreement and $5,000 for miscellaneous Maintenance & Operations work.
Unallocated RDA funds in the 2010-11 Budget are estimated at $282,100.
39
2010-11 PRELIMINARY BUDGET
BUILDING FUND
Cabrillo Community College District
Preliminary Budget 2010-11
Building Fund
Actual
2008-09
Revenues
8100: Federal
8600: State
8800: Local
Total Revenues
Budget
2009-10
Budget
2010-11
0
8,027,589
618,072
8,645,661
0
11,185,000
845,000
12,030,000
0
3,167,000
855,000
4,022,000
0
116,025
33,031
12,200
1,137,845
11,195,000
199,616
12,693,718
0
122,620
31,111
15,169
1,338,176
3,217,000
Total Expenditures
0
140,584
28,936
6,937
711,170
12,013,705
0
12,901,332
Excess of Revenues Over Expenditures
(4,255,670)
Expenditures
1000: Academic Salaries
2000: Non-Instructional Salaries
3000: Employee Benefits
4000: Supplies and Materials
5000: Other Operating Expenses
6000: Capital Outlay
7000: Reserves
Interfund Transfers
Transfers In
966,210
Transfers Out
Net Change to Fund Balance
Beginning Fund Balance
Fund Adjustment
Ending Fund Balance
Reserve - Parking Lot
Reserve - Future COPs Projects
Reserve - For Contingency
Reserve - Redevelopment
Reserve - Sched. Maint. Projects
(3,289,459)
1,174,663
4,724,076
(663,718)
(702,076)
743,276
984,176
0
0
79,558
282,100
1,566,880
(2,114,796)
(2,114,796)
3,602,118
1,566,880
455
202,241
55,833
(2,785,694)
412,368
455
0
70,833
1,083,224
412,368
455
0
70,833
1,365,324
412,368
41
1,848,980
2010-11 PRELIMINARY BUDGET
GENERAL OBLIGATION BOND FUND
VI.
GENERAL OBLIGATION BOND FUND
In June 1998 the voters approved an $85 million General Obligation Bond
(Measure C) on behalf of Cabrillo College.
Sales of Measure C bonds have taken place in increments as funds were needed:
1st Issue (Series A) 1998-99
- $12 million
2nd Issue (Series B) 1999-00
- $30 million
3rd Issue (Series C) 2000-01
- $20 million
Final Issue (Series D) 2001-02
- $23 million
In March 2004 the voters approved a $118.5 million General Obligation Bond
(Measure D) on behalf of Cabrillo College.
Sales of Measure D bonds occurred as follows:
1st Issue (Series A) May 2004
- $60 million
Final Issue (Series B) April 2007 - $58.5 million
The following key projects are included in the Bond Fund for 2010-11:
• Closeout of the Arts Education Classroom (AEC) Project:
o Project also receives $20,357,000 State Capital Outlay
Construction funding and $1,136,000.00 Equipment funding.
• Closeout of the Student Services Complex project
• Closeout of the Allied Health Complex
o Project also receives $10,248,000 in State Capital Outlay
Construction funding and $1,185,000 in Equipment funding.
• Building Improvements (as approved throughout the year)
• ADA access improvements (as approved throughout the year)
• Reallocation of space made available by opening of new facilities.
• Building 300 Remodel
o Includes $1,051,000 in State Capital Outlay construction funding
and $931,000 in Equipment Funding
• Watsonville Green Technology Center
o Includes a minimum of $3.365 million in an Economic
Development Agency (EDA) Funding
The following key projects were completed in 2009-10:
• Health & Wellness Center
• Completion and opening of VAPA 4000 (Theater) and VAPA 5000
(Music)
• Watsonville demolition and construction plans to DSA
• Numerous building improvement projects throughout campus (building
painting, classroom renovation, etc.)
• Aptos campus-wide signage project
A portion of the Measure C Fund Balance is being held in Reserve to develop a long term
solution for the North County Site.
42
2010-11 PRELIMINARY BUDGET
GENERAL OBLIGATION BOND FUND
Cabrillo Community College District
Preliminary Budget 2010-11
1998 & 2004 General Obligation Bonds
Bond Funds (Combined)
Actual
2008-09
Revenues
8100: Federal
8600: State
8800: Local
Total Revenues
Budget
2010-11
0
0
888,439
888,439
0
0
330,000
330,000
0
0
320,000
320,000
0
0
0
2,698
166,902
23,437,206
23,606,806
0
0
0
4,000
30,000
18,726,263
18,760,262
0
0
0
4,000
30,000
8,000,000
8,034,000
(22,718,366)
(18,430,262)
(7,714,000)
Expenditures
1000: Academic Salaries
2000: Non-Instructional Salaries
3000: Employee Benefits
4000: Supplies and Materials
5000: Other Operating Expenses
6000: Capital Outlay
Total Expenditures
Excess of Revenues Over Expenditures
Budget
2009-10
Other Financing Sources (Outgo)
8800: Sale of Bonds
Interfund Transfers
8900: Transfers In
7300: Transfers Out
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Total Other Financing Sources (Outgo)
0
0
0
Net Change to Fund Balance
(22,718,366)
(18,430,262)
(7,714,000)
56,449,998
33,731,631
15,301,368
33,731,631
15,301,368
7,587,368
Beginning Fund Balance
Fund Adjustment
Ending Fund Balance
43
2010-11 PRELIMINARY BUDGET
GENERAL OBLIGATION BOND FUND
Cabrillo Community College District
Preliminary Budget 2010-11
1998 General Obligation Bonds
Bond Fund - Measure C
Actual
2008-09
Revenues
8100: Federal
8600: State
8800: Local
Total Revenues
Expenditures
1000: Academic Salaries
2000: Non-Instructional Salaries
3000: Employee Benefits
4000: Supplies and Materials
5000: Other Operating Expenses
6000: Capital Outlay
Total Expenditures
Excess of Revenues Over Expenditures
Budget
2009-10
Budget
2010-11
51,946
51,946
15,000
15,000
10,000
10,000
0
17,103
184,905
202,008
931,559
931,559
0
0
(150,062)
(916,559)
10,000
Other Financing Sources (Outgo)
8800: Sale of Bonds
Interfund Transfers
8900: Transfers In
7300: Transfers Out
Total Other Financing Sources (Outgo)
0
Net Change to Fund Balance
(150,062)
Beginning Fund Balance
Fund Adjustment
Ending Fund Balance
44
0
(916,559)
0
10,000
2,761,072
2,611,010
1,694,451
2,611,010
1,694,451
1,704,451
2010-11 PRELIMINARY BUDGET
GENERAL OBLIGATION BOND FUND
Cabrillo Community College District
Preliminary Budget 2010-2011
2004 General Obligation
Bond Fund - Measure D Series A
Actual
2008-09
Revenues
8100: Federal
8600: State
8800: Local
Total Revenues
Budget
2010-11
60,739
60,739
15,000
15,000
10,000
10,000
2,684
116,730
956,758
1,076,172
0
0
1,794,704
1,794,704
2,000,000
2,000,000
(1,015,433)
(1,779,704)
(1,990,000)
Expenditures
1000: Academic Salaries
2000: Non-Instructional Salaries
3000: Employee Benefits
4000: Supplies and Materials
5000: Other Operating Expenses
6000: Capital Outlay
Total Expenditures
Excess of Revenues Over Expenditures
Budget
2009-10
Other Financing Sources (Outgo)
8800: Sale of Bonds
Interfund Transfers
8900: Transfers In
7300: Transfers Out
Total Other Financing Sources (Outgo)
Net Change to Fund Balance
0
0
0
(1,015,433)
(1,779,704)
(1,990,000)
5,092,242
4,076,809
2,297,105
4,076,809
2,297,105
307,105
Beginning Fund Balance
Fund Adjustment
Ending Fund Balance
45
2010-11 PRELIMINARY BUDGET
GENERAL OBLIGATION BOND FUND
Cabrillo Community College District
Preliminary Budget 2010-11
2004 General Obligation
Bond Fund - Measure D Series B
Actual
2008-09
Revenues
8100: Federal
8600: State
8800: Local
Total Revenues
Expenditures
1000: Academic Salaries
2000: Non-Instructional Salaries
3000: Employee Benefits
4000: Supplies and Materials
5000: Other Operating Expenses
6000: Capital Outlay
Total Expenditures
Excess of Revenues Over Expenditures
Budget
2009-10
Budget
2010-11
775,754
775,754
300,000
300,000
300,000
300,000
14
33,069
22,295,543
22,328,626
4,000
30,000
16,000,000
16,034,000
4,000
30,000
6,000,000
6,034,000
(21,552,872)
(15,734,000)
(5,734,000)
Other Financing Sources (Outgo)
8800: Sale of Bonds
Interfund Transfers
8900: Transfers In
7300: Transfers Out
Total Other Financing Sources (Outgo)
0
Net Change to Fund Balance
Beginning Fund Balance
Fund Adjustment
Ending Fund Balance
46
0
0
(21,552,872)
(15,734,000)
(5,734,000)
48,596,684
27,043,812
11,309,812
27,043,812
11,309,812
5,575,812
2010­11 PRELIMINARY BUDGET ­This Page Intentionally Left Blank­
47 2010-11 PRELIMINARY BUDGET
BOOKSTORE FUND
VII. BOOKSTORE FUND
The Bookstore Fund is an enterprise fund. An enterprise fund accounts for the total costs
of providing goods and services on a continuing basis to students and staff and is
financed through user charges or earned income.
The bookstore generates revenue to cover all the expenses of the operation including
$250,000 to the District as a reimbursement for staff, rent and other operating expenses
associated with bookstore support. This contribution includes a donation to the Student
Senate Library Reserve Book Fund and various occupancy and administrative fees.
Bookstore operations are focused on having the right books, at the right time, at the right
price available on-campus to all our students. Recent economic forces and the volatile
textbook market have made this objective more difficult to achieve, but textbook
affordability remains our primary focus.
One especially effective program to increase textbook affordability has been our textbook
rental program. This program has strong support from students, faculty and
administration and has expanded every term since its inception in Spring 2009. Student
Senate, Faculty Senate and FIPSE grant funding have contributed to program expansion.
In the second year of FIPSE grant funding, the rental program will reach out to over
1,800 students with a reduction in textbook costs of 60%.
48
2010-11 PRELIMINARY BUDGET
BOOKSTORE FUND
Cabrillo Community College District
Preliminary Budget 2010-2011
Bookstore Fund
Enterprise Fund
t
9
Actual
2008-09
Budget
2009-10
Budget
2010-11
Total Income
Cost of Sales
4,124,083
2,869,933
4,109,500
2,843,579
3,838,114
2,448,128
Gross Profit or (Loss)
1,254,150
1,265,921
1,389,986
519,840
215,789
11,604
370,965
546,949
270,440
15,000
382,358
546,571
246,658
15,000
473,402
1,118,198
1,214,747
1,281,631
135,952
51,174
108,355
Other Financing Sources (Outgo)
Interfund Transfers
8900: Transfers In
7300: Transfers Out
(129,041)
(133,319)
(140,331)
Total Other Financing Sources (Outgo)
(129,041)
(133,319)
(140,331)
(82,145)
(31,976)
Expenditures
1000: Academic Salaries
2000: Non-Instructional Salaries
3000: Employee Benefits
4000: Supplies and Materials
5000: Other Operating Expenses
6000: Capital Outlay
Total Expenditures
Excess of Revenues Over Expenditures
Net Change to Fund Balance
6,911
Beginning Fund Balance
Fund Adjustment
Ending Fund Balance
49
1,728,700
1,735,611
1,653,466
1,735,611
1,653,466
1,621,490
2010-11 PRELIMINARY BUDGET
CAFETERIA SPECIAL REVENUE FUND
VIII. CAFETERIA SPECIAL REVENUE FUND
On April 9, 2007, the Governing Board approved awarding a contract to Taher, Inc. of
Minnetonka, NM for the operation of the food services for two years, with three one-year
options to renew. Their contractual arrangement with the College is as follows:
•
Pay a flat commission of $32,500 per year.
•
Provide $25,000 in capital improvements (Architectural and Construction
Management) to the Student Activities Center cafeteria remodel and expansion.
•
Provide $1,000 in co-sponsored catered events to student and College faculty/staff
events.
•
Effective July 1, 2009 the contract was amended to lower the commission from
$32,500 per year to $10,000 per year due to the fact Taher was losing significant
money.
•
The food operation has operated successfully for three years and the program has
generated a positive contribution each year. The current contract has been extended
for one year commencing July 1, 2010. This would leave one option year remaining
for 2011-12 upon mutual consent of the District and Taher.
•
The Capital improvement and operating expenses were budgeted in a previous fiscal
year and will carry-over to 2010-11. Only the increases to the 2010-11 Preliminary
Budget are reflected. The 2010-11 Final Budget will reflect the entire budget for all
Capital improvement and operating expenses.
50
2010-11 PRELIMINARY BUDGET
CAFETERIA SPECIAL REVENUE FUND
Cabrillo Community College District
Preliminary Budget 2010-11
Cafeteria Special Revenue Fund
t
Actual
9 2008-09
Revenues
8100: Federal
8600: State
8800: Local
Total Revenues
Expenditures
1000: Academic Salaries
2000: Non-Instructional Salaries
3000: Employee Benefits
4000: Supplies and Materials
5000: Other Operating Expenses
6000: Capital Outlay
Total Expenditures
Budget
2009-10
32,505
32,505
10,000
10,000
10,000
10,000
0
0
0
0
0
0
10,000
25,000
35,000
5,000
0
5,000
(25,000)
5,000
0
0
Excess of Revenues Over Expenditures
Budget
2010-11
32,505
Other Financing Sources (Outgo)
Interfund Transfers
8900: Transfers In
7300: Transfers Out
0
0
0
Total Other Financing Sources (Outgo)
0
0
0
Net Change to Fund Balance
32,505
Beginning Fund Balance
Fund Adjustment
Ending Fund Balance
51
(25,000)
5,000
94
32,599
7,599
32,599
7,599
12,599
2010-11 PRELIMINARY BUDGET
ASSOCIATED STUDENTS FUND
IX.
ASSOCIATED STUDENTS OF CABRILLO COLLEGE (ASCC)
OPERATING FUND
The ASCC Operating Fund is money held in trust by the District for organized student
body association activities. The District has fiduciary responsibility for these funds.
Revenues to the ASCC Operating fund are mostly generated by the sale of student
activity cards (SAC), student bus passes, vending machine commissions, and
contributions from the bookstore.
The revenue supports student services, clubs, cultural events, speakers, college wide
support grants, scholarships, textbook support programs and many other services.
In the area of textbook support the following programs are supported:
• Textbooks on Reserve (2-hour check-out, managed through the Library and ILC)
• Textbook Rental Program (managed by the Hawkshop)
• Borrow-A-Book Program - textbooks on loan for the semester (managed by a
committee of staff volunteers)
52
2010-11 PRELIMINARY BUDGET
ASSOCIATED STUDENTS FUND
Cabrillo Community College District
Preliminary Budget 2010-11
Associated Students Fund
t
9
Revenues
8100: Federal
8600: State
8800: Local
Total Revenues
Expenditures
1000: Academic Salaries
2000: Non-Instructional Salaries
3000: Employee Benefits
4000: Supplies and Materials
5000: Other Operating Expenses
6000: Capital Outlay
Total Expenditures
Excess of Revenues Over Expenditures
Actual
2008-09
Budget
2009-10
Budget
2010-11
269,602
269,602
245,000
245,000
230,000
230,000
17,476
175,365
15,000
208,800
13,000
148,800
192,841
223,800
161,800
76,761
21,200
68,200
15,000
(18,000)
(3,000)
15,000
(36,200)
(21,200)
15,000
(37,150)
(46,050)
(68,200)
73,761
-
-
Other Financing Sources (Outgo)
Interfund Transfers
8900: Transfers In
7300: Transfers Out
7900: Contingency Reserve
Total Other Financing Sources (Outgo)
Net Change to Fund Balance
Beginning Fund Balance
Fund Adjustment
Ending Fund Balance
53
101,689
175,450
175,450
175,450
175,450
175,450
2010-11 PRELIMINARY BUDGET
TRUST & AGENCY FUND
X.
TRUST & AGENCY FUND
The Trust and Agency Fund was established to account for monies held in a trustee
capacity by the College for individuals, student organizations or clubs. Money is
expended in accordance with procedures established by the entity for which the money is
held in trust.
The Trust and Agency Fund contains accounts where the District is the agent for the
funds. These accounts are not funded from the General Fund. Examples include student
clubs and organizations, Cabrillo Stage, Distinguished Artists, Cabrillo Chorus, pottery
fund, athletic ancillary funds and numerous others. The fund balance is an accumulated
balance of the entities, and is not available to the General Fund.
The College is no longer acting as Treasurer for the CCCSAA (California Community
College Student Advisory Association) funds.
The transfer out represents the support of the Pino Alto and Catering classified positions
on the College payroll.
54
2010-11 PRELIMINARY BUDGET
TRUST AND AGENCY FUND
Cabrillo Community College District
Preliminary Budget 2010-11
Trust and Agency Fund
t
Actual
9 2008-09
Budget
2009-10
Budget
2010-11
Revenues
8100: Federal
8600: State
8800: Local
Total Revenues
1,302,959
1,302,959
1,135,000
1,135,000
1,410,000
1,410,000
Expenditures
1000: Academic Salaries
2000: Non-Instructional Salaries
3000: Employee Benefits
4000: Supplies and Materials
5000: Other Operating Expenses
6000: Capital Outlay
Total Expenditures
166,273
1,022,712
3,614
1,192,599
165,000
855,000
3,500
1,023,500
204,000
1,092,000
6,300
1,302,300
110,360
111,500
107,700
Excess of Revenues Over Expenditures
Other Financing Sources (Outgo)
7000: Student Registration Fees
(1,666)
-
(1,600)
Interfund Transfers
8900: Transfers In
7300: Transfers Out
(93,946)
(98,882)
(97,400)
Total Other Financing Sources (Outgo)
(95,612)
(98,882)
(99,000)
14,748
12,618
8,700
845,230
859,978
872,596
859,978
872,596
881,296
Net Change to Fund Balance
Beginning Fund Balance
Fund Adjustment
Ending Fund Balance
55
2010-11 PRELIMINARY BUDGET
SCHOLARSHIP & LOAN TRUST FUND
XI.
SCHOLARSHIP & LOAN TRUST FUND
The Scholarship and Loan Trust Fund accounts are for gifts, donations and bequests that
are used for scholarships, grants or loans to students. The majority of income for this
fund comes from the Cabrillo Foundation; the remainder is received from other sources.
The Grove Scholarships were received in the 2008-09 fiscal year. Only the carryover
balance was budgeted for the 2010-11 preliminary budget.
56
2010-11 PRELIMINARY BUDGET
SCHOLARSHIP AND LOAN TRUST FUND
Cabrillo Community College District
Preliminary Budget 2010-11
Scholarship and Loan Trust Fund
Actual
2008-09
Revenues
8100: Federal
8600: State
8800: Local
Total Revenues
Final Budget
2009-10
Budget
2010-11
722,892
722,892
683,034
683,034
589,100
589,100
722,892
683,034
589,100
(568,875)
(683,034)
(589,100)
(568,875)
(683,034)
(589,100)
Expenditures
1000: Academic Salaries
2000: Non-Instructional Salaries
3000: Employee Benefits
4000: Supplies and Materials
5000: Other Operating Expenses
6000: Capital Outlay
Total Expenditures
Excess of Revenues Over Expenditures
Other Financing Sources (Outgo)
7000: Grants/Donations/Scholarships
Interfund Transfers
8900: Transfers In
7300: Transfers Out
Total Other Financing Sources (Outgo)
Net Change to Fund Balance
Beginning Fund Balance
Fund Adjustment
Ending Fund Balance
57
154,017
0
0
10,372
164,389
164,389
164,389
164,389
164,389
2010-11 PRELIMINARY BUDGET
STUDENT FINANCIAL ASSISTANCE FUND
XII. STUDENT FINANCIAL ASSISTANCE FUND
Student Financial Assistance Funds are designated to account for receiving and
disbursing federal and state-funded student financial aid.
PELL GRANTS - A federal program available to undergraduate students who are
participating in an eligible program and enrolled in three or more units. The amount of
the grant is determined by the student's index number. The 2010-11 preliminary budget
reflects the 2009-10 amount authorized by the Department of Education. Augmentations
are received throughout the year.
SEOG - Supplemental Educational Opportunity Grant is a federal program that enables
students with verified exceptional financial needs to pursue their studies at institutions of
higher education. The student must be enrolled on at least a half-time basis, (six or more
units), show evidence of academic progress, and be capable of maintaining good
standing.
EOPS - Extended Opportunity Program and Services is a state grant that is awarded
through the Financial Aid Office to students with verified exceptional need who qualify
under the program guidelines.
CARE - Cooperative Agencies Resources for Education is a state program awarded
through the Financial Aid Office for welfare-dependent single heads of households with
preschool age children.
CAL GRANTS A, B, C – A State funded grant given to students to help pay for college
expenses.
ACADEMIC COMPETITIVE GRANT – A Federal funded grant for first and second
year college students. Students must be enrolled on at least half-time basis in a college
degree program or certificate of achievement in their first or second academic year and be
a Federal Pell Grant recipient.
The 2010-2011 preliminary budget for the Student Financial Assistance Fund includes
estimated revenue and expenses for the entire 2010-2011 fiscal year. The 2009-2010
final budget reflects the awards approved for the Fall 2009 semester only. The 2009-2010
budget was augmented throughout the 2009-2010 fiscal year. This results in a significant
increase to the 2010-2011 preliminary budget, but is more reflective of the actual activity.
58
2010-11 PRELIMINARY BUDGET
STUDENT FINANCIAL ASSISTANCE FUND
Cabrillo Community College District
Preliminary Budget 2010-11
Student Financial Assistance Fund
Actual
2008-09
Revenues
8100: Federal
8600: State
8800: Local
Total Revenues
Budget
2009-10
Budget
2010-11
8,239,353
733,155
132
8,972,640
5,878,852
768,000
144
6,646,996
11,618,922
701,393
120
12,320,435
8,972,640
6,646,996
12,320,435
(8,886,743)
(6,646,996)
(12,320,435)
(8,886,743)
(6,646,996)
(12,320,435)
Expenditures
1000: Academic Salaries
2000: Non-Instructional Salaries
3000: Employee Benefits
4000: Supplies and Materials
5000: Other Operating Expenses
6000: Capital Outlay
Total Expenditures
Excess of Revenues Over Expenditures
Other Financing Sources (Outgo)
7000: Grants/Donations/Scholarships
Interfund Transfers
8900: Transfers In
7300: Transfers Out
Total Other Financing Sources (Outgo)
Net Change to Fund Balance
85,897
Beginning Fund Balance
Fund Adjustment
Ending Fund Balance
(55,812)
0
30,085
59
0
0
30,085
30,085
30,085
30,085
2010-11 PRELIMINARY BUDGET
STUDENT REPRESENTATION FEE FUND
XIII. STUDENT REPRESENTATION FEE FUND
California Legislation authorized a one-dollar fee to be collected from students to support
Student Senate representatives in lobbying for student rights before city, state and federal
agencies.
60
2010-11 PRELIMINARY BUDGET
STUDENT REPRESENTATION FEE FUND
Cabrillo Community College District
Preliminary Budget 2010-11
Student Representation Fee Fund
t
9
Actual
2008-09
Budget
2009-10
Budget
2010-11
Revenues
8100: Federal
8600: State
8800: Local
Total Revenues
Expenditures
1000: Academic Salaries
2000: Non-Instructional Salaries
3000: Employee Benefits
4000: Supplies and Materials
5000: Other Operating Expenses
6000: Capital Outlay
Total Expenditures
22,982
27,900
30,000
22,982
27,900
30,000
(22,982)
(27,900)
(30,000)
Interfund Transfers
8900: Transfers In
7300: Transfers Out
32,325
30,000
(2,100)
30,000
(2,100)
Total Other Financing Sources (Outgo)
32,325
27,900
27,900
9,343
0
64,806
74,149
74,149
74,149
74,149
72,049
Excess of Revenues Over Expenditures
Other Financing Sources (Outgo)
Net Change to Fund Balance
Beginning Fund Balance
Fund Adjustment
Ending Fund Balance
61
(2,100)
2010-11 PRELIMINARY BUDGET
STUDENT CENTER FEE FUND
XIV. STUDENT CENTER FEE FUND
The Student Center Fee is required of all students and is designated solely for the purpose
of maintaining and remodeling student activity centers throughout the District. In the last
few years, the majority of expenditures from this fund have been used to furnish and
maintain the new Student Activity Center (SAC) East. The fee is $1 per unit for a
maximum of $5 per semester, and cannot exceed $10 per academic year. Some students
receiving financial assistance may have the fee waived.
In 2009-10, the Student Senate set aside funds for capital improvements in SAC West.
These funds will be carried over for capital outlay in the Final Budget.
The 2010-11 Final Budget includes continued support of the transfer out to the General
Fund. This support is to help fund the cost of the Student Activities Coordinator position.
This support was approved by the Student Senate for the 2009-10 fiscal year only.
Continued support for this transfer out, past the 2009-10 academic year, was contingent
upon the District implementing procedures to collect the full $10 fee per student per
academic year as allowed by the California Education Code. Although the District has
not implemented this new procedure, and therefore is not collecting all funds possible for
this source of revenue, the ASCC Senate is providing one more year of support.
In order to provide continued support for the Student Activities Coordinator, the ASCC
Senate is requesting the District implement procedures to collect the full amount of
revenue allowed by the California Education Code as soon as possible.
62
2010-11 PRELIMINARY BUDGET
STUDENT CENTER FEE FUND
Cabrillo Community College District
Preliminary Budget 2010-11
Student Center Fee Fund
t
9
Revenues
8100: Federal
8600: State
8800: Local
Total Revenues
Actual
2008-09
Budget
2009-10
Budget
2010-11
9,393
9,393
11,500
11,500
1,500
1,500
97
96,356
96,453
10,000
2,000
528,000
540,000
-
(87,060)
(528,500)
1,500
128,340
(51,800)
121,000
(90,475)
131,000
(106,448)
76,540
30,525
24,552
Net Change to Fund Balance
(10,520)
(497,975)
26,052
Beginning Fund Balance
Fund Adjustment
Ending Fund Balance
894,001
883,481
385,506
883,481
385,506
411,558
Expenditures
1000: Academic Salaries
2000: Non-Instructional Salaries
3000: Employee Benefits
4000: Supplies and Materials
5000: Other Operating Expenses
6000: Capital Outlay
Total Expenditures
Excess of Revenues Over Expenditures
Other Financing Sources (Outgo)
Interfund Transfers
8900: Transfers In
7300: Transfers Out
Total Other Financing Sources (Outgo)
63
2010-11 PRELIMINARY BUDGET
STAFFING SUMMARY
XV. STAFFING SUMMARY - ALL FUNDS
FULL-TIME EQUIVALENT EMPLOYEES
Fall Sem.
Students
Mgrs/Admin
Contract
Faculty
Adjunct
Faculty
Classified
Staff
Confidential
Staff
Hourly
Employees
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
13,604
14,871
15,231
14,867
14,623
15,157
15,056
16,012
16,900
16,467
N/A
47
44
43
37
37
36
36
38
39
38.5
35
227
235
234
227
211
230
226
225
228
216.5
220
356
364
405
372
376
367
368
411
436
419*
404*
234
253
238
217
220
223
233
249
246
241
236
12.00
13.75
13.75
12.63
12.63
12.63
12.63
13.50
13.50
12.50
12.50
570
574
402
382
386
393
440
405
632
283♦
341♦
Information on this chart is based on the Business Office count of FTE positions for the 2010-11 Preliminary
Budget. This includes position changes approved through the March 2010 Board meeting.
It should also be noted that the numbers for adjunct faculty and hourly employees are not FTE, but a
headcount of all employees in those categories.
Student count based on information published in the Cabrillo College Fact Book
*Adjunct count based on active assignments Spring 2010 semester
♦ Temporary/hourly and students actually working through March 19, 2010
Updated 05/05/10
64
ATTACHMENTS
Budget and Benefits Town Hall Meeting Wednesday, May 26, 2010 Noon to 1:30 pm Sesnon House I. May Revise—Base Budget and Categoricals II. Multi­Year Projection: 2010­13 III. Ending Balance Overview and Funding Deferrals IV. Next Steps V. Benefits Overview VI. Questions
A1 Health Care System: Rate of Increase in Health Care Costs
The Facts About Health Insurer Profits –

Threedriving
Majorhealth
Factors
Increases in Medical Costs
What’s
really
careDriving
cost trends?
 General Inflation
 Health Care Price increases greater than inflation
 Cost shifting
 Higher priced technologies
 Reduced provider competition
25%
45%
 Increased Utilization




Aging
Lifestyle
New treatments
More intensive diagnostic testing/defensive
medicine
 Increased consumer demand
30%
Increased Utilization
General Inflation
Healthcare Price Increases Above Inflation
Cabrillo College – May 26, 2010
Copyright © 2010 Alliant Insurance Services, Inc. Confidential; not for distribution
A5
Health Care System: Cost Drivers
California HealthCare Foundation 2006
Uncontrollable Factors
Controllable Factors


Age of the workforce


Benefit design


Life expectancy
Health care inflation

Increases in charges by providers

Drugs (specialty drugs, e.g. Avastin)

Services (e.g. lab, x-ray, etc.)

New technology (e.g. transplants, PET
scans, etc.



Underpayment of charges by CMS for
Medicare

Cost of claims for:

Accidents and injuries (non-occupational)

Genetic disorders
Eligibility







Co-pays, coinsurance, deductibles
Coverage for disease management,
prevention and health promotion
Network adjustments; directing members to
less costly providers
Contribution policies
Coverage after age 65
Dependent coverage
Medicare assignment requirements
Retirement age
Years of service to vest
Unhealthy behavior (lifestyle choices)

Smoking, weight gain, substance abuse,
lack of exercise, etc
Source: National Business Group on Health
Cabrillo College – May 26, 2010
Copyright © 2010 Alliant Insurance Services, Inc. Confidential; not for distribution
A6