2008-2009 P B

P

2008-2009

RELIMINARY

B

UDGET

C

ABRILLO

C

OMMUNITY

C

OLLEGE

D

ISTRICT

June 16, 2008

C OM MUNITY C OLLEGE L EAGUE OF C ALIFORNIA

ON T HE WEB : WWW .

CCLEAGUE .

ORG / LEGINFO / BUDGET /

TATE

B

UDGET

U

PDATE

U PDATE #4

M AY 14, 2008

S

A status report on the actions, discussions, and rumors in Sacramento related to the community colleges' state budget for fis cal year 2008-09. This update is distributed to all chief executive officers for distribution to trustees, administrators, facu lty, classified, public/governmental relations officers and student leaders.

Governor Releases May Revise – Community College’s Budgets Adjusted in the Current Year and Budget Year

Governor Arnold Schwarzenegger released his revised budget today, which included current year augmentations for K-14 education, and, most significantly, a proposal to fully fund the Proposition 98 guarantee in the budget year. The Governor reversed his January proposal to suspend the Proposition 98 guarantee for 2008-09 – primarily because the deteriorating state revenue situation results in the minimum guarantee calculation increasing year to year by only $193 million.

The May Revise reflects the Governor’s ongoing commitment and support for community colleges and does not include a proposal to raise student fees. The May Revise contains the following proposals related to community colleges:

Current Year

The Administration proposes to backfill a portion of the estimated $92 million property tax shortfall in the current year. The proposal utilizes a portion of the resources captured last year as part of the $80 million apportionment reduction in the 2006-07 fiscal year, and an estimated portion of new Proposition 98 reversion funds for a total property tax backfill of $75 million. The Administration proposes the full $75 million will be made available in the 2008-09 budget year on a one-time basis.

Budget Year

The Administration proposes to fund an additional $35.5 million for growth in apportionments - bringing the proposed amount available to $95.5 million (1.67%). This is a welcome augmentation given that the current year FTES increase was 2.84 percent. The system anticipates natural demographic increases on the 2.6 million student base, potential student redirections from UC/CSU, and an increased number of students returning to community colleges due to the downturn in the state economy for short term training.

In addition, the Administration continues to support open access and proposes to keep fees at $20 per unit for

2008-09. The governor continues to propose categorical program cuts averaging 7% and does not includes a cost-of-living adjustment for either K-12 or community colleges.

In addition to the adjustment mentioned above, the following minor adjustments are also included:

•

An increase of $572,000 to restore the Foster Care Training reduction proposed in the January budget.

•

An increase of $138.7 million to offset the reduction in estimated property tax revenue for

2008-09.

•

A decrease of $1.8 million to reflect an increase in offsetting oil and mineral revenue.

•

An increase of $717,000 for the Board of Governor’s Fee Waiver program.

•

The addition of provisional language to provide colleges flexibility to transfer funds between categorical programs in two programmatic areas – part-time faculty programs and selected student services programs.

1121 L Street, Suite 805

♦

Sacramento, California

♦

95814

♦

916-441-0353

♦

www.ccleague.org

C OM MUNITY C OLLEGE L EAGUE OF C ALIFORNIA

ON T HE WEB : WWW .

CCLEAGUE .

ORG / LEGINFO / BUDGET /

TATE

B

UDGET

U

PDATE

U PDATE #5

M AY 30, 2008

S

A status report on the actions, discussions, and rumors in Sacramento related to the community colleges' state budget for fis cal year 2008-09. This update is distributed to all chief executive officers for distribution to trustees, administrators, facu lty, classified, public/governmental relations officers and student leaders.

Assembly Budget Sub-Committee “closes out” by augmenting Governor’s

May Revise by $2.3 billion for K-14 Education

On a strictly party line vote the Assembly Budget Sub-Committee augmented Governor Arnold Schwarzenegger’s May

Revise Proposition 98 proposal of $56.7 billion, by adding an additional $2.3 billion. Committee Chair

Assemblymember Julia Brownley indicated the education subcommittee was NOT the subcommittee in which overall statewide revenue enhancements would be discussed. However, she did indicate the total amount of revenue enhancements the Assembly budget was premised upon was roughly $6 billion – with roughly $2.3 billion of that increase directed to K-14 Proposition 98. Assemblymember Brownley indicated specific details related to the $6 billion of anticipated revenue enhancements will be released over the course of the next few days and the League will communicate the details as soon as they become available.

Current Year

The Assembly adopted the May Revise proposal to backfill the property tax shortfall in the current year. The Assembly proposal utilizes a portion of the resources captured last year as part of the $80 million apportionment reduction in the

2006-07 fiscal year, and an estimated portion of new Proposition 98 reversion funds for a total property tax backfill of

$75 million. These funds would be reappropriated in the 2008-09 Budget Act and would be made available during the

2008-09 fiscal year on a one-time basis.

Budget Year

The Assembly proposes to fund $113.5 million (2.0 percent) for enrollment growth – an additional $18 million over and above the amount proposed in the Governor’s May Revise. This is a welcome augmentation given that the current year

FTES increase was 2.84 percent. The system anticipates natural demographic increases on the 2.6 million student base, potential student redirections from UC/CSU, and an increased number of students returning to community colleges due to the downturn in the state economy for short term training.

Also, the Assembly proposes to fund a partial K-14 COLA of 1.60 percent. For community colleges this would translate into roughly a $93.5 million augmentation to fund a partial COLA.

In regards to student fees the Assembly does NOT propose a fee increase. Additionally, on Wednesday, May 28 th

the

Assembly rejected the Administration’s May Revise proposal to eliminate the Competitive Cal Grant program.

Finally, the Assembly subcommittee took action on the overall Proposition 98 package to reject ALL budget balancing reductions impacting the categorical programs. Specific line item detail amounts will be made available as soon as the detail is made available from the budget subcommittees. In addition, the Assembly rejected the Administration’s May

Revise proposal related to categorical flexibility.

Lastly, on the Capital Outlay front - the Assembly subcommittee took action similar to the Senate subcommittee action of last week – deleted from the 2008-09 budget bill all higher education capital outlay projects proposed for funding from the yet-to-be-enacted statewide 2008 Education General Obligation bond. The reason given was the same as expressed in the Senate last week – a desire to NOT “pre-fund” projects for which no legislation has yet been identified to enact a bond in 2008.

The actions taken by the Assembly today close out the work of the Education Budget Sub-Committee and the budget package now moves forward to the full Assembly and from there to conference committee.

1121 L Street, Suite 805

♦

Sacramento, California

♦

95814

♦

916-441-0353

♦

www.ccleague.org

2008-2009

PRELIMINARY BUDGET

I

T

ABLE OF

C

ONTENTS

P AGE

General Fund – Overview ................................................................................................. 1

B.

C.

D.

Mid-Year Reduction Reserve ............................................................................ 12

One-Time Sub-Fund........................................................................................... 13

Community Education........................................................................................ 14

F.

G.

General Restricted Fund..................................................................................... 18

Reserves (Ending Balance) ................................................................................ 22

H. Other Financing Sources (Outgo)....................................................................... 24 i

T ABLE OF C ONTENTS

( CONTINUED )

VI

II

IV

Retiree Benefit Fund ....................................................................................................... 26

Child Development Fund ................................................................................................ 32

A.

B.

C.

D.

Scheduled Maintenance & Capital Construction Projects.................................. 34

Transportation, Parking & Security.................................................................... 34

Certificates of Participation................................................................................ 34

Redevelopment Agency (RDA) Funds............................................................... 35

General Obligation Bond Fund ....................................................................................... 38

IX

X

Associated Students Fund ............................................................................................... 48

Trust & Agency Fund...................................................................................................... 50

XI Scholarship & Loan Trust Fund ...................................................................................... 52

XII Student Financial Assistance Fund.................................................................................. 54

XIII Student Representation Fee Trust Fund .......................................................................... 56

XIV Student Center Fee Fund ................................................................................................. 58

XV Staffing Summary – All Funds........................................................................................ 60

Attachments:

2007-08 Mid-Year and 2008-09 Budget Assumptions/Strategies............................... B1-9

2007-08 Mid-Year Budget Reductions and Planning for 2008-09.............................. C1-3

2008-09 Final Budget Reductions ...............................................................................D1-9

Budget Forum May 29, 2008 ..........................................................................................E1

2008-09 Proposed Final Base Budget Reductions Summary ..........................................F1 ii

2008-09 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, etcetera). Within the

General Fund, a number of sub-funds have been established: Base Budget, Restricted,

District Match, Community Education, Carry-Over, and One-Time Sub-Funds. The division of these sub-funds reflects the need to differentiate discretionary revenue from restricted revenue and ongoing funding from one-time funding.

A brief description of each sub-fund is provided later in the report. It is anticipated that the college will transfer $1,160,000 from the One-Time sub-fund and 2007-08 Mid-year

Reserve to help balance the 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:

General Fund

Unrestricted

Base Restricted

Total Expenditures

Revenues less Expenditures

Net Other Sources and Outgo

Net Projected Change in Fund Balance

Beginning Fund Balance July 1, 2008

Net Fund Balance June 30, 2009

60,406,438 9,113,359

874,022 97,820

($870,039) (516,726)

3,983 (418,926)

3,353,339

$3,357,322

418,926

0

1



A. BASE

Base Budget is an unrestricted sub-fund, accounting for the ongoing operational expenditures of the College and is based on the Governor’s 2008-09 May Revise.

1.

ASE

B

UDGET

R

EVENUE

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 full-time equivalent students (FTES) from the state general apportionment, student enrollment fees, and property taxes. a.

General

2007-08 Estimated

Enrollment Fees: The enrollment fees for 2007-08 are $20 per unit.

COLA: 4.53% or $2,457,598 is estimated for 2007-08

Growth: No growth funds are anticipated for 2007-08.

In 2006-07 the college declined 1.44% in FTES. In reviewing this issue with college leadership, it was decided to report 481 FTES in census procedure summer 2007 courses in 2006-07 and not in

2007-08. The college reported full restoration and small growth in

2006-07, estimated at $1.25 million. This reduces the FTE available in 2007-08, however, the college will receive stability funds in 2007-

08. The increase in revenue for 2006-07 and 2007-08 is $1.25 million for each year; $2.5 million total based on the recalculation received in March, 2008. These funds have been placed in a special

FTES reserve in the one-time fund. A separate schedule for this reserve is included on page 13.

Part-time Faculty Compensation: Part-Time Faculty Compensation funds are estimated at $495,146 for 2007-08.

The Governor’s January 10, 2008 State Budget proposed $40 million in mid-year budget reductions for 2007-08. The reduction was covered by statewide unspent allocations. The 2007-08 state allocations to Cabrillo were not impacted by this reduction.

In mid-March the State Chancellor’s Office notified districts of a property tax shortfall for the current year that resulted in a projected loss of $92 million for the System and $920,000 for Cabrillo.

California Community Colleges do not receive backfill funds to cover shortfalls in property tax revenue. The projected shortfall estimate was revised several times and will not be known until March, 2009 when the recalculation for 2007-08 is finalized.

2



The Governor’s May Revise included a proposal to backfill $75 million of the $92 million property tax shortfall as part of the 2008-09 budget on a one-time basis. If this proposal is approved as part of the state enacted budget, the college will receive one-time funds of

$750,000 in March of 2009.

At this writing the net impact of the property tax shortfall for 2007-08 is estimated at $170,000.

The college set aside one-time funds of $1,160,000 for 2007-08 to cover the property tax shortfall. The mid-year reserve was established by identifying current year savings in salaries, benefits and other operating expenses. A separate schedule for the mid-year reserve is included on page 12.

2008-09 Preliminary Budget

Enrollment Fees: Student Enrollment fees are budgeted at $20 per unit.

Growth: Growth of 1% is projected for 2008-09; $500,000.

COLA: The Governor’s January budget and the subsequent May

Revise provides for no COLA. The legislative analyst estimates the loss of COLA at 5.66% or $ 3,300,000.

Part-Time Faculty Compensation: Funding for this program has been reduced by 10.9% as have most other state categorical program budgets.

The May Revise includes a provision for transferring up to 20% of the allocations for part-time faculty and student service programs to other related programs. No more than 20% of a program’s allocation can be transferred out and no more than 25% of a program’s allocation can be received. The status of this proposal is unknown at this time.

Other issues:

The Governor’s January budget proposed to delay July and August apportionment payments to September. This proposal has been rejected by the Legislature. The May Revise includes a proposal to shift apportionment payments for January, February and March of

2009 to April, May and June of 2009. In addition, Part-Time Faculty

Compensation payments would be delayed from July until March and

April. This proposal is independent of the existing requirement that

June apportionment payments be may in July. As in past years, in the absence of the approval of the state budget, community colleges will not receive monthly cash payments from the state.

3



It should be noted that in May the Board approved the College’s participation in the Tax and Revenue Anticipation Note (TRAN) program. The program will allow the District to borrow up to

$5,000,000 during 2008-09 to meet the cash flow needs.

This chart compares 2007-08 General Apportionment with the budget for 2008-09.

FTES Assumptions

BASE REVENUES

Restoration

Growth (1%)

FTES Decline

GENERAL APPORTIONMENT

2007-08

Budget

2007-08

Projected*

11,159

- 481

10,678

$50,037,955

(1,224,216)

11,159

- 481

10,678

$49,860,639

2008-09

Preliminary

Budget

10,678

+ 899

11,577

$52,353,839

500,000

Foundation Grant 4,000,000 4,000,000 4,000,000

Watsonville Center Revenue

COLA, Cost of Living Adjustment

COLA on Restoration and Growth

1,000,000

2,493,200

4.53%

1,000,000

2,493,200

4.53%

1,000,000

0

Budget Stability 1,224,216

GENERAL APPORTIONMENT 57,531,155

*Based on First Principal Apportionment received in March 2008.

4

$57,353,839 $57,853,839



b.

2007-08

Lottery estimates have continued to decrease. The Lottery Commission projected a rate of $143 per FTES for 2007-08. Lottery revenue is calculated based on the previous year’s reported FTES; 11,462. The funding rate for restricted lottery revenue is estimated at $22 per FTES and the funding rate for unrestricted lottery revenue is $121 per FTES.

2008-09 Budget

The lottery estimate for 2008-09 is based on total FTES of 11,159; the

2007-08 level. The Preliminary Budget assumes a rate of $143 per FTES.

The breakdown between restricted and unrestricted revenue per FTES remains the same as 2007-08. The rate and FTES assumptions will be updated for the Final Budget. c.

Non-Resident

2007-08

The 2007-08 budgeted revenue for non-resident tuition was $793,139.

This estimate was based on a fee of $174 per unit. Total revenue for

2007-08 is expected to be $790,256.

2008-09

Non-resident tuition for 2008-09 will increase to $181 per unit. Total revenue of $801,000 is projected for 2008-09.

5



2. B ASE B UDGET E XPENDITURES

The following assumptions were used in generating the base budget expenditures:

•

The Preliminary Budget includes budget reductions of $763,865 (see

Attachment F1 for a summary of reductions).

•

No salary increases for 2008-09 are included in the Preliminary

Budget.

•

Benefit stipend increases were estimated at 13%.

•

The PERS rate increased from 9.306% to 9.428%.

•

Column and step increases.

•

Funding for 50% of new classified positions approved in 2006-07 with a start date of January 1, 2007; $175,000.

•

Funding for 1.5 custodial positions in Fall 2008 and 2.0 custodial positions in Spring 2009 to maintain new and existing facilities;

$172,000.

•

The District increased the number of full-time faculty positions budgeted by eight. The District will fill a total of 15 positions; 7 of which are replacements of vacant, funded positions. Adjunct replacement units have been reduced to offset the increase in full-time positions budgeted.

•

The costs associated with growth revenue are included; $170,000 in adjunct teaching units and $51,000 in classified lab instructional assistant costs and supplies.

•

Energy costs are expected to increase in 2008-09 as new buildings are completed. Natural gas price fluctuations continue to make it difficult to accurately project these expenditures.

•

100% of the Scotts Valley operating budget is included in the

Preliminary Budget for 2008-09.

•

Operating expenses for the Visual and Performing Arts Complex and maintenance expenses for the new Parking Structure are included in the Preliminary Budget.

6



•

The funding for year 1 of the technology lease is included; $373,000.

•

The Preliminary Budget anticipates increases in general liability insurance, maintenance service expenditures, and other operating.

•

The transfer to the Retiree Benefit fund has been increased by

$195,000 to cover the increase in the cost of retiree benefit coverage.

•

The Preliminary Budget assumes the District will capture $200,000 in salary/benefit savings from vacant positions.

•

The 5% general reserve was recalculated. The reserve will be augmented by $173,943 for 2008-09.

•

Total transfers from the 2007-08 Mid-Year Reserve and FTES reserve to balance the base budget equal $1,160,000.

•

The Preliminary Budget includes an unallocated contingency reserve of $3,132,339.

7


GENERAL FUND - OVERVIEW a. Benefits

Mandatory benefits have been funded based on the following rates:

DISTRICT BENEFITS FY 06/07 FY 07/08 FY 08/09

PERS (Employer Portion) 9.116% 9.306% 9.428%

PERS Employee (Paid by Employer for

Confidential employees and for Classified bargaining-unit employees)

PERS AB2177

7% 7% 7%

$9.33/mo/per employee



SOCIAL SECURITY 6.20% 6.20%

WORKERS COMP

Rate per $100 payroll

UNEMPLOYMENT

Rate per $100 payroll

Local experience charge

CAFETERIA PACKAGE/FTE

Certificated, Administrative, Confidential

Classified

$1.63

.45%

15.00%

$5,894, $11,168,

$15,361

$5,894, $11,168,

$15,361

$1.63

.45%

15.00%

$6,755, $12,849,

$17,680

$6,755, $12,849,

$17,680

$7,586, $14,442,

$19,838

$7,586, $14,442,

$19,838

6.20%

$1.63

.45%

15.00%

8



BASE

BUDGET

REVENUE

2006-07

ACTUALS

At 6/30/07

$

UNRESTRICTED GENERAL FUND BASE BUDGET

ADOPTED

BUDGET

$

2007-08

WORKING BUDGET

%

As of 3/31/08

$

2008-09

PRELIMINARY

BUDGET

$

FEDERAL

8150 Admin. Allowance

8160 Veterans

Total Federal

STATE

8612 *General Apportionment

8612 P/T Faculty Comp

8612 P/T Faculty Office & Insur

8670 *State Taxes

8613 *BOGG

2% Admin. Allow.

8621 Disabled Student Programs

8699 Other State Revenues

8681 Lottery

Total State

LOCAL

8811 *Taxes

8840 Catalogs

8850 Facility Rental/Use

8860 Interest

8874 *Enrollment Fee

2% Adm. Allow.

8879 Transcripts

8880 Non-Resident Tuition

8890 Parking Citations

8890 Fingerprints

8890 Miscellaneous

Total Local

Total Revenue

* GENERAL APPORTIONMENT

Base, Prior Year

Add:

FTES Decline

COLA, 4.23%, 5.92%, 3.75%

Credit/Non-Credit Revenue

Foundation Grant

Center Revenue

Budget Stability

Restoration, Growth

* TOTAL GENERAL APPORTIONMENT

36,353

1,141

37,494

31,353,685

495,146

46,060

179,298

1,891,923

47,209

2,118

5,000

1,377,362

35,397,801

18,099,814

186

89,915

415,862

3,514,281

76,887

27,685

783,852

102,726

133,167

54,957

23,299,332

58,734,627

2,997,806

45,638,615

4,000,000

1,000,000

1,401,534

55,037,955

37,239

1,100

38,339 0.1

33,861,155

495,146

180,000

1,900,000

38,000

1,386,902

37,861,203 62

18,090,000

200

80,000

385,000

3,500,000

71,429

30,000

793,139

117,000

100,000

35,000

23,201,768 38

61,101,310 100

(3,578,960)

2,493,200

50,037,955

4,000,000

1,000,000

3,578,960

57,531,155

37,239

1,100

38,339

33,861,155

495,146

180,000

1,900,000

38,000

3,900

1,386,902

37,865,103

18,090,000

200

80,000

350,000

3,500,000

71,429

30,000

793,139

117,000

100,000

35,000

23,166,768

61,070,210

(3,578,960)

2,493,200

50,037,955

4,000,000

1,000,000

3,578,960

57,531,155

35,346

1,100

36,446

33,813,000

441,146

165,000

1,900,000

38,000

1,350,239

37,707,385

18,275,000

200

82,000

325,000

3,700,000

71,429

30,000

801,000

117,000

100,000

35,000

23,536,629

61,280,460

0

52,353,839

4,000,000

1,000,000

500,000

57,853,839

9



BASE

BUDGET

EXPENDITURES

CERTIFICATED SALARIES

1100 Teaching

1200 Non-Teaching

1300 Part-Time Teaching

1400 P/T Non-Teaching

Total Certificated

CLASSIFIED SALARIES

2100 Regular Contract

2200 Instr'l Aide Contract

2300 P/T Classified

2400 P/T Class Inst Aide

Total Classified

STAFF BENEFITS

SUPPLIES

4200 Other Books

4300 Instr'l Supplies

4500 Non-Instr'l Supplies

Total Supplies

OPERATING EXPENDITURES

5100 Profess'l Services

5200 Travel, Mileage

5300 Dues & Memberships

5400 Insurance

5500 Utilities

5600 Rental Equip & Fac

Maint. Serv. Agrmts

Repairs

5700 Legal Fees

Audit

Misc. Fees (Mchnt Bank)

5800 Postage

Advertising

Fingerpt & Testing Reqs

Printing

Program Support

Component

Other Fees

Uncollectable Stdnt Recv

Hold for Growth Adjustmen

Total Operating

CAPITAL OUTLAY

6200 Building Remodels

6300 Books

6400 Equipment

6500 Lease/Purchase

Total Capital Outlay

TOTAL EXPENDITURES


2006-07 2007-08 2008-09

ACTUALS

At 6/30/07

$

ADOPTED

BUDGET

$ %

WORKING BUDGET

As of 3/31/08

$

PRELIMINARY

BUDGET

$

12,638,855

4,699,417

7,850,306

432,188

25,620,766

8,848,644

1,476,106

518,696

195,519

11,038,965

9,566,025

6,001

316,537

282,594

605,132

903,290

92,295

72,402

406,228

1,555,823

56,901

539,506

147,965

80,671

68,263

105,397

207,227

123,735

99,427

153,258

15,672

484

18,469

252,828

0

4,899,841

13,834,688

4,359,618

8,693,825

165,475

27,053,606 47

9,944,992

1,488,109

517,514

285,371

12,235,986 21

10,760,338 19

8,000

477,132

487,404

972,536 2

669,163

130,966

74,106

473,710

1,886,559

54,889

723,264

181,247

125,000

67,000

128,776

230,000

122,539

95,050

185,567

318,036

67,878

38,628

250,000

0

5,822,378 10

13,862,855

4,365,272

8,399,004

249,883

26,877,014

9,923,623

1,506,356

689,160

286,886

12,406,025

10,923,799

8,000

430,472

408,160

846,632

952,276

149,652

79,450

473,710

1,806,064

58,368

714,764

199,266

125,000

70,100

128,776

230,000

116,564

93,750

180,877

223,786

28,044

40,329

200,000

0

5,870,776

14,416,429

4,520,883

8,579,417

172,350

27,689,079

10,571,367

1,591,831

466,305

287,336

12,916,839

11,767,272

8,000

468,633

450,924

927,557

698,254

126,066

74,006

498,710

2,019,266

54,089

790,847

149,131

125,000

76,600

122,626

237,500

124,039

95,050

184,491

330,956

52,878

51,908

220,000

51,000

6,082,417

15,888

191,077

13,225

220,190

51,950,919

31,950

241,609

28,500

302,059 1

57,146,903 100

2,240

21,350

266,930

11,500

302,020

57,226,266

16,950

633,324

373,000

1,023,274

60,406,438

10



BASE

BUDGET

EXPENDITURES

TOTAL EXPENDITURES

TOTAL REVENUE

REVENUE OVER (UNDER)

EXPENDITURES

OTHER FINANCING SOURCES (OUTGO)

To Fin. Aid Fund Match

To Gen Fund, Dist. Match

Restricted Indirect

TRANSFERS

From Student Center Fund

From Bookstore Fund

From ASCC

From Trust & Agency

To Bldg Fund/Transp

To Bldg FD / Sched Maint Match

To Child Development Fd

To Retiree Benefits Fund

To Debt Service

Total Transfers

TOTAL OTHER FINANCING SOURCE

SOURCES (OUTGO)

EXCESS REVENUE/TRANSFERS

OVER (UNDER) EXPENDITURES

MAINTAIN CONTINGENCY RESERVE AT 5%

TRANS FOR CARRYOVER DESIGNATIONS

FROM ONE-TIME

TO ONE-TIME SUB-FUND

NET INCREASE TO FUND BALANCE

BALANCE - BEGINNING YEAR

YEAR END FUND BALANCE

RESERVES

General Reserve

Revolving Cash Fund

Clearing/Operationa

Unallocated

CalPers

Budget Adjustments

Mid-year Reductions

FTES Reserve

TOTAL RESERVES


2006-07

ACTUALS ADOPTED

2007-08

WORKING BUDGET

2008-09

PRELIMINARY

At 6/30/07

$

BUDGET

$ %

As of 3/31/08

$

BUDGET

$

51,950,919

58,734,627

57,146,903

61,101,310

57,226,266

61,070,210

60,406,438

61,280,460

6,783,708

(46,357)

(381,500)

117,231

21,773

73,386

75,926

(145,154)

(492,733)

(920,000)

(335,834)

(1,722,636)

(2,033,262)

4,750,446

(126,062)

(976,102)

1,000,000

(3,648,282)

1,000,000

2,014,802

3,014,802

2,293,802

30,000

25,000

166,000

3,954,407

(63,480)

(381,500)

129,067

50,500

73,386

15,000

82,523

(127,000)

(522,156)

(850,000)

(342,054)

(1,619,801)

(1,935,714)

2,018,693

(70,000)

99,550

(1,401,534)

646,709

3,084,802

3,731,511

2,363,802

30,000

25,000

646,709

166,000

500,000 500,000

3,014,802 3,731,511

========== ===========

3,843,944

(63,480)

(381,500)

129,067

50,500

73,386

15,000

82,523

(111,496)

(472,156)

(850,000)

(342,054)

(1,554,297)

(1,870,210)

1,973,734

190,139

(1,401,534)

762,339

3,084,802

3,847,141

2,954,391

30,000

25,000

4,005

166,000

1,345

595,376

0

3,776,117

=========

874,022

3,983

3,353,339

3,357,322

3,132,339

30,000

25,000

3,983

166,000

0

3,357,322

===========

(60,275)

(381,500)

126,827

49,300

112,526

15,000

92,080

(113,000)

(310,000)

(1,045,000)

(342,054)

(1,541,148)

(1,856,096)

(982,074)

(173,943)

1,160,000

11


2007-08 MID-YEAR REDUCTION RESERVE – GENERAL FUND

B. 2007-08 MID-YEAR REDUCTION RESERVE

M

ID

-Y

EAR

R

ESERVE

1,160,600

Adjustments:

2007-08 Net Property Tax Shortfall

($920,000 - $750,000)

Establish 3 month reserve for classified/faculty layoffs

* Maintain General Reserve at 5% - Final Budget

(170,000)

(110,000)

(173,943)

Board Elections – 4 seats

Retiree Benefit Transfer

* Allocate Remaining Balance to 2008-09 Deficit

Total Allocation

Available Balance

(200,000)

(50,000)

(456,657)

(1,160,600)

$ 0

* Transfer to Base Budget

12


ONE-TIME SUB-FUND – GENERAL FUND

FTES R

ESERVE

2,803,068

Adjustments:

2006-07 Recalculation

2007-08 Adjustment for Recalculation

Classroom Remodel/Furniture to generate FTES

(Bookstore/Horticulture)

* Allocate funds for growth

100 TU’s/Support for 08-09

* Allocate one-time funds to bridge 2008-09 budget deficit

(177,318)

(177,318)

(200,000)

(221,000)

(308,400)

Total Allocation

Available Balance

(1,084,036)

$ 1,719,032

* Transfer to Base Budget

13


COMMUNITY EDUCATION – GENERAL FUND

D. COMMUNITY EDUCATION

This sub-fund accounts for the Community Education and the Contract Education programs.

The Community Education program is primarily based upon revenue generated from class fees.

14


COMMUNITY EDUCATION - GENERAL FUND

Cabrillo Community College District

Preliminary Budget 2008-09

Community Education

Actual

2006-07

Revenues

8800: Local

Total Revenues

416,375

416,375

Expenditures

1000: Academic Salaries

2000: Non-Instructional Salaries

3000: Employee Benefits

4000: Supplies and Materials

5000: Other Operating Expenses

6000: Capital Outlay

Total Expenditures

49,551

117,915

37,484

10,816

210,826

3,587

430,179

(13,804) Excess of Revenues Over Expenditures

Other Financing Sources (Outgo)

7600: Grants/Donations/Scholarships

Interfund Transfers

8900: Transfers In

7300: Transfers Out

Total Other Financing Sources (Outgo)

Net Change to Fund Balance

8,400

8,400

(5,404)

Beginning Fund Balance

Fund Adjustment

Ending Fund Balance

132,516

127,112

Budget

2007-08

330,000

330,000

34,674

118,107

36,417

6,100

256,913

452,211

(122,211)

(122,211)

127,112

4,901

Budget

2008-09

375,000

375,000

74,179

118,444

46,601

6,100

123,770

1,000

370,094

4,906

4,906

4,901

9,807

15


CARRY-OVER SUB-FUND – GENERAL FUND

The carry-over sub-fund accounts for self-sustaining funds, projects that are not completed within the same fiscal year, and available balance in line-item budgets authorized for carry-over.

Self-sustaining 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 sub-fund. Examples are major repairs, remodeling, and painting projects that are not state-funded.

Examples of items authorized for carry-over are the year-end balances in supply budgets and the balance in the account established to fund the deductible for insurance claims.

To prepare the budget for this sub-fund, the 2007-08 books must be closed. The budget will be presented as part of the 2008-09 Final Budget.

16


GENERAL RESTRICTED FUND

F. 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 “in-kind” 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 state is projecting severe cuts, up to 10.9

% in some restricted programs. The

Preliminary Budget includes estimates for about one-half of the District’s grants and categorically funded programs. The remaining grant and categorical program budgets, including carryovers of unspent funds from previous years, will be included in the Final

Budget.

Page 19 shows a summary of the Restricted General Fund revenues and expenditures.

Page 20-21 shows the listing of programs included in the Restricted General Fund budget.

18


RESTRICTED - GENERAL FUND



Restricted Fund

Actual

2006-07

Revenues

8100: Federal

8600: State

8800: Local

Total Revenues

1,191,114

7,178,768

2,047,942

10,417,824

Expenditures








2,091,873

1,996,698

990,307

303,865

2,001,303

1,546,962

8,931,008

Excess of Revenues Over Expenditures 1,486,816

Budget

2007-08

1,078,707

6,432,986

1,702,339

9,214,032

2,137,281

2,077,691

1,136,062

548,008

2,957,111

629,760

9,485,913

(271,881)



7320: Indirects

Interfund Transfers

8900: Transfers In

7300: Transfers Out



(133,792)

(94,983)

(324,792)

(553,567)

933,249

(67,424)

(110,618)

(789,910)

(967,952)

(1,239,833)

Project Reserves


Increase to Fund Balance


306,584

1,239,833

0

1,239,833

418,906

418,906

Budget

2008-09

1,328,468

5,634,572

2,248,139

9,211,179

1,964,915

2,117,182

1,371,426

222,804

3,086,485

350,547

9,113,359

97,820

(129,235)

(116,861)

(270,630)

(516,726)

(418,906)

0

418,906

0

19



Project Description

000 Transportation

023 CAP

047 CA Wellness

049 Nursing Expansion

063 WDBA-Irvine

067 WDBA - Packard Year 2

068 WDBA-NSF Year 2

100 Lottery

103 Student Representation

104 Child Care Fees

103 Student Rep Fee

104 Child Care Dev Fees

110 Health Services

111 DSPS

112 Human Care Alliance

122 Tutorials-Griffith

125 CARE

126 EOPS

128 P.V. Summer Migrant Ed

129 P.V. Summer Migrant Ed

134 ACCESS

137 NSF Chemistry Bridges

138 ACCESS

140 WIA-FTTW

141 WIA-FTTW

153 SFAA - BFAP

162 First Five Santa Cruz Cty

163 Child Care Trng Consort

165 Foster Parent

172 MESA

175 MESA

190 Matriculation-noncredit

194 Matriculation-credit

200 Faculty Staff Development

204 TANF (FTTW)

205 Calworks (FTTW)

211 State Instruct Equip 08-09



215 TTIP 06-07

216 TTIP 08-09

217 TTIP 07-08

229 State Instruct Equip transfer

230 AMATYC

Federal

Revenue

8100

State

Revenue

8600

Local

Revenue

8800-8900

515,000

72,839

24,616



Restricted - General Fund Detailed Program Listing

Certificated

Salaries 1000

14,197

Classified

Salaries

2000

63,686

45,005

3,400

Employee

Benefits

3000

31,718

4,516

4,287

Supplies &

Materials

4000

Other

Operating

Expenses &

Services

5000

283,966

5,200 18,118

2,732

Capital

Outlay

6000

Student

Aid 7000

Transfer

Out 7300

Indirect

7310

135,630

25,000

6,000

4,000

190,682

16,000

65,077

34,923

25,554

245,498

1,742,650

93,467

358,709

334,984

53,019

21,000

115,443

6,000

73,350

12,344

683,734

50,474

25,554

227,408

108,934

0

32,403

0

31,206

4,300

584,175

89,310

51,640

5,300

227,436

853,789

38,393

122,996

12,000

2,000

8,008

5,992

4,253

2,127

30,639

6,498

52,010

5,357

20,000

11,082

125,072

6,380

51,499

314,938

76,474

33,534

108,674

2,200

1,000

3,936

6,000

9,000

37,886

19,930

248,221

250

12,908

36,567

225,635

38,246

93,906

106,000

422,260

9,012

16,606

10,344

74,980

1,500

245

64

1,105

830

21,097

11,067

79,848

4,880

740

18,778

643

10,746

1,262

157,852

10,536

47,189

11,000

13,400

1,000

1,530

1,000

1,300

2,755

11,742

178

551

403

15,500

100

2,600

1,000

62,053

1,000

1,565

625

32,403

245,498

2,206

300

183,740

94,400

3,824

500

1,200

11,059

149,817

1,290

1,396

6,915

2,000

1,000

26,261

2,216

78,122

49,474

761

79,308

5,300

4,500

43,863

35,000

108,934

11,299

10,261

42,000

40,000

8,000

12,162

29,000

4,000

14,010

250

2,886

2,821

Total

Expenses

51,640

93,467

358,709

25,000

6,000

4,000

190,682

16,000

65,077

34,923

334,984

53,019

21,000

115,443

6,000

73,350

515,000

72,839

24,616

0

0

245,498

0

0

31,206

4,300

0

0

584,175

1,742,650

89,310

12,344

683,734

50,474

51,108

227,408

108,934

0

11,299

32,403

10,261

0

5,300

20



Project Description

Federal

Revenue

8100

State

Revenue

8600

236 Tech Prep Hartnell

242 Intnl Student Cap Surcharge

259 Bay ITC

276 Migrant Head Start

292 Calworks (FTTW)

330 CTE Nursing Growth

332 Nursing Expansion

333 RN Capacity 113

334 RN Capacity 114

336 RN Capacity Econ Dev

337 AHEC

338 Grove Scholars

340 TANF/CDC

342 CTE Nursing Equipment

344 Calif Parks & Rec

345 Bureau of Land Mgmt

350 MESA

361 Basic Skills 06-07



365 OFR Foster Parent

367 STAP

49,999

45,575

5,500

391 SBDC-SBA (2007)

392 SBDC Wells Fargo

393 SBDC-SBA

395 SBDC Youth Entrepreneur

398 SBDC Econ Dev


507 Student Body Center Fee

620 Rad Tech Foundation

654 Foundation Faculty Grants

670 Horticulture Foundation

711 WDBA Walter S. Johnson

712 WDBA Irvine

816 VTEA 1C

819 Tech Prep VTEA 1B

850 Bridge

851 Industrial Tech

852 Teacher Prep

853 Resp Trng Econ Dev

70,000

70,000

40,000

150,000

448,753

81,405

854 Strengthen Career Tech Ed

855 Career Expl 7th & 8th graders

000 Estimated Indirects

Total 1,328,468

85,136

221,000

84,097

95,625

19,999

0

0

210,059

111,323

149,212

0

40,000

27,083

200,000

127,541

78,526

5,634,572

Local

Revenue

8800-8900

9,841



Restricted - General Fund Detailed Program Listing

Certificated

Salaries 1000

Classified

Salaries

2000

Employee

Benefits

3000

Supplies &

Materials

4000

Other

Operating

Expenses &

Services

5000

9,841

Capital

Outlay

6000

Student

Aid 7000

Transfer

Out 7300

Indirect

7310

16,586

6,000

32,532

108,727

2,351

2,660

22,825

73,906

594,325

2,248,139

34,710

108,852

47,773

3,440

1,720

27,725

24,285

10,190

22,725

24,000

43,681

7,280

25,949

16,707

17,649

1,964,915

1,600

55,910

36,594

8,574

14,783

30,870

38,969

12,908

34,222

34,222

842

82,989

2,111

6,080

151,162

110,000

7,337

2,500

1,000

51,614

4,461

29,226

30,656

6,466

5,946

2,882

392

196

2,870

14,799

7,191

13,260

13,260

1,824

30,977

240

1,260

70,794

44,721

9,147

41

1,555

25,117

2,612

3,428

2,117,182 1,371,426

100

17,411

558

1,430

686

224

5,000

5,000

250

250

1,333

500

16

250

5,000

12,000

1,439

1,200

1,228

1,053

971

222,804

15,466

2,480

15,717

18,049

6,000

9,245

6,718

1,000

72,572

235,717

210,059

41,985

100,799

19,575

19,575

34,463

29,765

47,218

6,727

2,329

56,126

311,708

253,279

16,670

34,721

16,206

86,900

102,264

51,908

3,086,485

3,270

2,000

94,227

315

22,825

7,000

4,753

1,500

800

350,547

6,648

3,675

14,000

2,000

750

129,235

102,000

270,630

1,120

8,500

3,235

1,398

1,481

360

8,906

11,937

2,693

2,693

1,538

5,769

25,936

3,131

1,538

1,042

7,692

4,905

3,020

116,861

Total

Expenses

9,630,085

73,906

594,325

448,753

81,405

40,000

27,083

200,000

0

127,541

78,526

70,000

0

70,000

40,000

150,000

47,218

108,727

2,351

2,660

22,825

9,841

0

16,586

49,999

85,136

221,000

0

84,097

0

0

6,000

32,532

45,575

95,625

19,999

5,500

0

114,411

235,717

210,059

111,323

149,212

21


RESERVES – GENERAL FUND

G. RESERVES (ENDING BALANCE)

1.

ASE

B

UDGET

R

ESERVES

The General Reserves, Revolving Fund, Revolving Stores,

Clearing/Operational Fund and CalPers Reserve are accounted for in the Base

Budget in the amount of $ 3,353,339. 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 Preliminary Budget includes a 5% general reserve; $3,132,339. 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 e.

A CalPers reserve is included in the 2008-09 Preliminary Budget.

The reserve will be used to help smooth recent fluctuations that have occurred in the CalPers employer contribution rate.

2007-08 Mid-Year Reserve

The District established a mid-year reserve to address the property tax shortfall identified by the state in March 2008. The mid-year reserve balance in not included in the balance below (See page 12).

Unallocated Reserve f.

The unallocated reserve will be allocated at a later date.

22


RESERVES – GENERAL FUND

2008-09 P RELIMINARY B UDGET

R

ESERVES OF THE

G

ENERAL

F

UND

RESERVES

Final Budget

Base

Budget

General Reserve

Revolving Cash Fund

3,132,339

30,000

Clearing/Operational 25,000

Unallocated Reserve 3,983

CalPers 166,000

Total Reserves $3,357,322

23


OTHER FINANCING SOURCES (OUTGO)

H. 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.

24


TRANSFERS

INTER- AND INTRA-FUND TRANSFERS

Transfer in

Unrestricted General Fund 11

From One-Time Sub Fund 17

From ASCC Fund 71

From Stu Ctr Fund 73

From Trust & Agency Fund 79

From Bookstore Fund 51

To Building Fund 46

To Child Development Fund 33

To Debt Service Fund 22

To Retiree Benefit Fund 23

Restricted General Fund 12

To Building Fund 41 (Transportation)

To Child Development Fund 33 (Fees)

To Student Ctr Trust Fund 73 (Fees)

To Student Rep Fund 72 (Fees)

One-Time Sub Fund 17

To Unrestricted General Fund 11

To Retiree Benefit Fund 23

Debt Service Fund 22

From Unrestricted General Fund 11

Retiree Benefit Fund 23


From One-Time Sub Fund 17

Child Devel Fund 33


From Restricted General Fund 12 (Child Care Fees)

Building Funds 41-47

From Unrestricted General Fund 11 (Scheduled Maint. Match)

From Restricted General Fund 12 (Transportation)

Bookstore Fund 51

To ASCC Fund 71


ASCC Fund 71

From Bookstore Fund 51


Student Representation Fund 72

From Restricted General Fund 12 (Fees)

Student Center Trust Fund 73

From Restricted General Fund 12 (Fees)


Trust & Agency Fund 79

Pino Alto/Sesnon to Unrestricted General Fund 11

1,160,000

15,000

49,300

92,080

112,526

342,054

1,045,000

50,000

310,000

4,000

113,000

135,630

15,000

29,000

102,000

3,574,590 Total Inter- and Intra-fund Transfers

Indirects collected in the Unrestricted General Fund

From Child Development Fund 33

From Restricted General Fund 12

Total Indirects Reimbursed to Fund 11

9,966

116,861

126,827

Transfer Out

113,000

310,000

342,054

1,045,000

135,630

4,000

102,000

29,000

1,160,000

50,000

15,000

112,526

15,000

49,300

92,080

3,574,590

25


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: $100,000 ($50,000 each) in 2008-09, $200,000 ($100,000 each) in 2009-10 and 2010-11, $250,000 ($150,000 from base, $100,000 from one-time) for

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.

26


RETIREE BENEFIT FUND



Retiree Benefit Fund

Revenues

8100: Federal

8600: State

8800: Local

Total Revenues

Expenditures








Excess of Revenues Over Expenditures


Interfund Transfers

8900: Transfers In

7300: Transfers Out


Net Change to Fund Balance t Actual

9 2006-07

0

1,020,000

1,020,000

1,020,000

0

0


Fund Adjustment


0

0

1,020,000

Budget

2007-08

51,981

51,981

872,507

872,507

(820,526)

925,000

925,000

104,474

1,020,000

1,124,474

Budget

2008-09

77,974

77,974

917,041

917,041

(839,067)

1,095,000

1,095,000

255,933

1,124,474

1,380,407

Reserve - For Future Retiree Benefits 1,124,474 1,380,407

27

2006-07

Actuals

Retiree Benefit Reserves Projection 2006/07 through 2012/13

2007-08

Budgeted

872,507

2008-09

Projected

917,041

2009-10

Projected

994,537

2010-11

Projected

1,124,385

2011-12

Projected

1,239,559

2012-13

Projected

1,367,963

Funding for

Future Benefits

$ 6,515,992

Estimated Annual Costs per Actuarial Study

FUNDING for Yearly Expense:

Beginning Balance

Base Budget Allocation to Cover Annual Cost for subsequent year

Less actual costs

Ending Balance

-

920,000

-

920,000

800,000 995,000 1,125,000

920,000

- 872,507

847,493

847,493

- 917,041

925,452

925,452

- 994,537

1,055,915

1,055,915 1,171,530 1,299,971

1,240,000 1,368,000 1,492,000

- 1,124,385

1,171,530

- 1,239,559

1,299,971

- 1,367,963

1,424,008

$ 7,940,000

- 6,515,992

$ 1,424,008

FUNDING for Future Benefits:

Beginning Balance

Base Budget Allocation for Reserves

One-Time Funds Allocation for Reserves

Interest Income - 5%

Ending Balance

-

-

100,000

-

100,000

*

100,000

50,000

75,000

51,981

276,981

276,981

50,000

50,000

77,974

454,955

454,955

100,000

100,000

98,037

752,992

752,992

100,000

100,000

121,328

1,074,320

1,074,320

150,000

100,000

147,793

1,472,113

1,472,113

150,000

100,000

176,461

1,898,574

Annual Ending Fund Balance 1,020,000 1,124,474 1,380,407 1,808,907 2,245,850 2,772,084 3,322,582

Notes:

*Funds transferred 6/18/07. No interest accrued

Interest Income estimates for 08-09 based on transfer of funds during October of each year

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

A new actuarial study is forthcoming

$ 600,000

$ 625,000

$ 673,574

$ 1,898,574

$ 3,322,582

28


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.

30


DEBT SERVICE FUND



Debt Service Fund

Revenues

8100: Federal

8600: State

8800: Local

Total Revenues

Expenditures







7000: Debt Reduction




Interfund Transfers

8900: Transfers In

7300: Transfers Out


Net Change to Fund Balance t

9

Actual

2006-07

50,289

50,289

503

416,103

49,065

465,671

(415,382)

416,739

416,739

1,357


Fund Adjustment


351,844

0

353,201

Budget

2007-08

50,265

50,265

343,254

49,065

392,319

(342,054)

342,054

342,054

0

353,201

0

353,201

Budget

2008-09

49,065

49,065

3,025

339,029

49,065

391,119

(342,054)

342,054

342,054

0

353,201

353,201

31


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 District budgets a transfer from the General Fund for labor costs. The Children

Center, which functions primarily as a demonstration lab for the Early Childhood

Education program while providing child care services to students and staff, is being restructured into a more fiscally sustainable Center. The current Child Development Fund end-of-year balance will also offset any funding uncertainties resulting from the state reimbursement of children eligible for state aid from Child Development Division (CDD) of the California Department of Education. The budgeted transfer for the 2008-09

Preliminary Budget is $310,000. There is a budgeted transfer in from the General

Restricted Fund of $4,000 for the net proceeds of the Child Care Fees.

32


CHILD DEVELOPMENT FUND



Child Development Fund

Revenues

810: Federal

860: State

880: Local

Total Revenues

Expenditures








Total Expenditures t

9

Actual

2006-07

62,629

642,286

173,621

878,536

486,678

250,029

248,490

43,770

197,565

2,123

0

1,228,655

(350,119) Excess of Revenues Over Expenditures

Interfund Transfers

Transfers In

Transfers Out



Fund Adjustment


496,089

(21,404)

124,566

55,506

0

180,072

Budget

2007-08

69,800

678,520

130,500

878,820

537,506

283,748

275,381

40,400

209,075

24,100

0

1,370,210

(491,390)

526,156

(18,449)

16,318

180,072

(50,000)

146,390

Budget

2008-09

69,800

596,906

133,512

800,218

393,307

229,097

218,895

42,494

231,400

2,500

0

1,117,693

(317,475)

314,000

(9,966)

(13,441)

146,390

132,949

33


BUILDING FUND

This fund accounts for federal, state, and local funding for scheduled maintenance and 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 for hazardous materials removal, scheduled maintenance, and capital outlay projects. The Building Fund also includes funding from Redevelopment Agencies. The College has been awarded an allocation from State Proposition 55 of $20,357,000 for construction and

$1,135,000 for equipment for the Arts Education Complex.

On October, 25, 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. On

May 20, 2008, the District received State approval to encumber funds against the construction portion of the allocation.

Specific projects include:

Capital Construction

Arts Education Complex, Third Year 5,420,570

Allied Health Complex Building Project 5,769,500

Stadium ADA Seating (06-07) Fund Year 68,634

Repair/Replace HVAC and controls S.W. Campus 108,000

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.

34


BUILDING FUND

D.

REDEVELOPMENT AGENCY (RDA) FUNDS

The budget for 2008-09 projects $400,000 in RDA funds and continues to support the new Scotts Valley center in the amount of $171,450 for the facilities lease agreement and $5,000 for miscellaneous Maintenance & Operations work.

Unallocated RDA funds in the 2008-09 Budget are estimated at $223,550.

35


BUILDING FUND



Building Fund

Actual

2006-07

Budget

2007-08

Revenues

8100: Federal

8600: State

8800: Local

Total Revenues

0 0

Budget

2008-09

0

5,908,074 12,193,010 11,299,004

578,422 681,000 515,000

6,486,496 12,874,010 11,814,004

Expenditures









0

200,543

50,868

10,363

0

53,252

23,675

13,501

0

57,482

4,881

10,125

857,079 1,547,835 614,834

6,308,513 12,086,182 11,190,070

0 265,750

7,427,366 13,990,195 11,877,392

(940,870) (1,116,185) (63,388) Excess of Revenues Over Expenditures

Interfund Transfers

Transfers In

Transfers Out


269,161

0

(671,709)

898,010

0

(218,175)

135,630

0

72,242


Fund Adjustment


Reserve - Parking Lot

Reserve - Future COPs Projects

Reserve - For Contingency

Reserve - Redevelopment

Reserve - Future Sched. Maint. Projects

1,967,848

0

1,296,139

1,296,139

0

1,077,964

1,077,964

1,150,206

325,246

0

207,204

433,128

330,561

27

172,072

242,004

663,861

0

(163,656)

169,447

257,004

887,411

0

37


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

2nd Issue (Series B) 1999-00

- $12 million

- $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 2008-09:

•

Construction 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.

•

Completion of the Construction of the Student Services Complex project

•

Construction of the Allied Health Complex

•

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 2.1 Million in State Capital Outlay construction funding and

931,000 in Equipment Funding

•

Watsonville ITEC o Includes 2.5 million in an Economic Development Agency (EDA)

Funding

The following key projects were completed in 2007-08:

•

Numerous building improvement projects throughout campus (building painting, classroom renovation, etc.)

•

Opening Allied Health Parking Structure

•

Opening of Student Services Center

•

Completion of the Allied Health Building Sitework

The Measure C Fund Balance will be held in Reserve to develop a long term solution for the

North County Site.

The 2008-09 Preliminary Budget shows expenditures for newly funded projects only.

38




1998 & 2004 General Obligation Bonds

Bond Funds (Combined)

Actual

2006-07

Revenues

8100: Federal

8600: State

8800: Local

Total Revenues

2,495,048

2,495,048

Budget

2007-08

2,748,000

2,748,000

Expenditures










8800: Sale of Bonds

Interfund Transfers

8900: Transfers In

7300: Transfers Out



0

4,585

428

22,694

979,171

26,933,803

27,940,681

(25,445,632)

58,498,505

59,993

58,558,498

33,112,866

0

0

0

10,500

(32,456,320)

0

0

0

Budget

2008-09

1,400,000

1,400,000

0

0

0

6,250

1,511,901 650,000

33,681,920 24,550,312

35,204,320 25,206,562

(23,806,562)

0

0

0

(32,456,320) (23,806,562)


Fund Adjustment


41,377,603

74,490,469

74,490,468 42,034,148

42,034,148 18,227,586

39





1998 General Obligation Bonds

Bond Fund - Measure C

Actual

2006-07

Revenues

8100: Federal

8600: State

8800: Local

Total Revenues

462,933

462,933

Budget

2007-08

108,000

108,000

Expenditures








4435

414

12,146

392,347

306,774

716,116

236,000

236,000

(253,183) (128,000) Excess of Revenues Over Expenditures


8800: Sale of Bonds

Interfund Transfers

8900: Transfers In

7300: Transfers Out

Budget

2008-09

100,000

100,000

250

20,000

50,000

70,250

29,750




Fund Adjustment


0

(253,183)

3,029,678

2,776,495

0

(128,000)

2,776,495

2,648,495

0

29,750

2,648,495

2,678,245

40





2004 General Obligation

Bond Fund - Measure D Series A

Actual

2006-07

Revenues

8100: Federal

8600: State

8800: Local

Total Revenues

1,465,280

1,465,280

Expenditures








0

150

14

10,548

586,824

26,627,029

27,224,565

(25,759,285) Excess of Revenues Over Expenditures


8800: Sale of Bonds

Interfund Transfers

8900: Transfers In

7300: Transfers Out 59,993




Fund Adjustment


59,993

(25,699,292)

38,347,925

12,648,633

Budget

2007-08

1,200,000

1,200,000

0

0

0

10,500

1,275,901

7,438,905

8,725,306

(7,525,306) (4,032,000)

0

12,648,633

5,123,327

Budget

2008-09

100,000

100,000

2,000

130,000

4,000,000

4,132,000

0

(7,525,306) (4,032,000)

5,123,327

1,091,327

41





2004 General Obligation

Bond Fund - Measure D Series B

Actual

2006-07

Revenues

8100: Federal

8600: State

8800: Local

Total Revenues

566,835

566,835

Expenditures










8800: Sale of Bonds

Interfund Transfers

8900: Transfers In

7300: Transfers Out

58,498,505

0

0

0

0

0

0

0

566,835




Fund Adjustment


58,498,505

59,065,340

0

59,065,340

Budget

2007-08

1,440,000

1,440,000

Budget

2008-09

1,200,000

1,200,000

0

0

0

0 4,000

500,000

26,243,015 20,500,312

26,243,015 21,004,312

(24,803,015) (19,804,312)

0 0

(24,803,015) (19,804,312)

59,065,340 34,262,325

34,262,325 14,458,013

42


-This Page Intentionally Left Blank-

43

2008–09 PRELIMINARY BUDGET

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 increase in both sales and expenses reflects the change in operations associated with the first full year of operation in the new Student Activity Center. The new HawkShop

Bookstore opened in November 2007.

The fund accounts for the total operation of the Bookstore, in addition to payments to the

District of $203,184 in occupancy and administrative fees.

Incorporated into the Preliminary Budget is a two percent discount on new textbooks priced $100 and over and a $15,000 transfer to the Student Senate library reserve book fund. These are both ongoing programs to increase affordability and improve access to textbooks for students.

44


BOOKSTORE FUND

Total Income

Cost of Sales



Bookstore Fund

Enterprise Fund t Actual

9 2006-07

Budget

2007-08

Gross Profit or (Loss)

Expenditures










Interfund Transfers

8900: Transfers In

7300: Transfers Out




Fund Adjustment


3,431,688

2,412,870

1,018,818

409,800

155,375

7,809

239,189

812,173

206,645

(88,386)

(88,386)

118,259

1,434,365

1,552,624

3,874,431

2,737,345

1,137,086

475,402

219,164

15,000

394,312

1,103,878

33,208

(88,386)

(88,386)

(55,178)

1,552,624

1,497,446

Budget

2008-09

4,042,800

2,842,975

1,199,825

538,902

244,397

15,000

361,657

1,159,956

39,869

(127,526)

(127,526)

(87,657)

1,497,446

1,409,789

45


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 each one year options to renew. Their contractual arrangement with the College is as follows:

•

Pay a flat commission of $32,500 per year.

•

Pay the College $25,000 to cover a portion of the salary of the one District classified employee remaining with food service if the District elects to retain that position.

•

Provide $15,000 in capital improvements to current serving lines in the main cafeteria.

•

Provide $15,000 in capital improvements to the Student Activities Center.

•

Provide $1,000 in co-sponsored catered events to student and College faculty/staff events.

46


CAFETERIA SPECIAL REVENUE FUND



Cafeteria Special Revenue Fund

Revenues

8100: Federal

8600: State

8800: Local

Total Revenues

Expenditures










Interfund Transfers

8900: Transfers In

7300: Transfers Out


Net Change to Fund Balance t Actual

9 2006-07

59,844

59,844

44,495

16,131

1,025

61,651

(1,807)

1,900

1,900

93


Fund Adjustment

Ending Fund Balance 93

Budget

2007-08

57,500

57,500

44,131

18,008

11,722

73,861

(16,361)

16,268

16,268

(93)

93

0

Budget

2008-09

57,500

57,500

34,446

13,899

9,155

57,500

0

0

0

0

0

0

47


ASSOCIATED STUDENTS FUND

IX. ASSOCIATED STUDENTS FUND

The Associated Students Fund is money held in trust by the District for organized student body association activities. The District has fiduciary responsibility for these funds.

The Associated Students Fund is funded by the sale of student activity cards, student bus passes, vending machine commissions, and contributions from the Bookstore. The revenue supports student services, clubs, the textbook loan program (managed through the library), textbook loans, cultural events, speakers, instructional grants, scholarships, and other College programs.

The Associated Students Fund budget for fiscal year 08/09 is augmented due to an increase of revenue. The increase in revenue is a result of a successful Benefits Check-off system for Student Activity Cards for Spring 2008.

48


ASSOCIATED STUDENTS FUND



Associated Students Fund

Revenues

8100: Federal

8600: State

8800: Local

Total Revenues

Expenditures










Interfund Transfers

8900: Transfers In

7300: Transfers Out



9

Actual

2006-07

50,004

50,004

11,382

50,663

62,045

(12,041)

15,000

(15,000)

0

(12,041)


Fund Adjustment


88,853

76,812

Budget

2007-08

88,500

88,500

10,000

78,500

0

88,500

15,000

(15,000)

0

0

76,812

76,812

Budget

2008-09

201,500

201,500

15,500

182,000

4,000

201,500

15,000

(15,000)

0

0

76,812

76,812

49


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.

Effective 08/09 fiscal year the Budget for Trust and Agency Fund is increased to include

California Community College Student Advisory Association (CCCSAA) for which

Cabrillo College acts as a Treasurer.

50


TRUST AND AGENCY FUND



Trust and Agency Fund

Revenues

8100: Federal

8600: State

8800: Local

Total Revenues

Expenditures








Excess of Revenues Over Expenditures t

9

Actual

2006-07

1,039,507

1,039,507

160,941

796,319

6,148

963,408

76,099


Interfund Transfers

8900: Transfers In

7300: Transfers Out




Fund Adjustment


(77,064)

(77,064)

(965)

733,721

732,756

Budget

2007-08

1,034,735

1,034,735

174,422

754,130

928,552 1,153,640

106,183

(82,523)

(82,523)

23,660

732,756

756,416

Budget

2008-09

1,191,420

1,191,420

151,670

999,470

2,500

37,780

(92,080)

(92,080)

(54,300)

756,416

702,116

51


SCHOLARSHIP & LOAN TRUST FUND

XI. SCHOLARSHIP & LOAN TRUST FUND

The Scholarship and Loan Trust Fund accounts 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.

52


SCHOLARHIP AND LOAN TRUST FUND



Scholarship and Loan Trust Fund

Actual

2006-07

Revenues

8100: Federal

8600: State

8800: Local

Total Revenues

336,283

336,283

Expenditures








Budget

2007-08

383,100

383,100

Budget

2008-09

420,100

420,100

336,283 383,100 420,100 Excess of Revenues Over Expenditures



Interfund Transfers

8900: Transfers In

7300: Transfers Out




Fund Adjustment


(339,671)

(339,671)

(3,388)

20,074

16,686

(383,100)

(383,100)

0

16,686

16,686

(420,100)

(420,100)

0

16,686

16,686

53

2008-09 FINAL 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 on at least a half-time basis (six or more units). The amount of the grant is determined by the student's index number. The beginning budget reflects the amount of the initial award letter. 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, 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 full-time in a college degree program in their first or second academic year and be a Federal Pell Grant recipient.

54


STUDENT FINANCIAL ASSISTANCE FUND



Student Financial Assistance Fund

Actual

2006-07

Revenues

8100: Federal

8600: State

8800: Local

Total Revenues

4,868,173

743,083

132

5,611,388

Expenditures








5,611,388 Excess of Revenues Over Expenditures



Interfund Transfers

8900: Transfers In

7300: Transfers Out



(5,610,679)

(5,610,679)

709


Fund Adjustment


29,795

0

30,504

Budget

2007-08

5,076,220

780,000

144

5,856,364

5,856,364

(5,856,364)

(5,856,364)

0

30,504

30,504

Budget

2008-09

6,239,756

768,000

144

7,007,900

7,007,900

(7,007,900)

(7,007,900)

0

30,504

30,504

55


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.

56


STUDENT REPRESENTATION FEE FUND



Student Representation Fee Fund

Revenues

8100: Federal

8600: State

8800: Local

Total Revenues

Expenditures










Interfund Transfers

8900: Transfers In

7300: Transfers Out



9

Actual

2006-07

21,845

21,845

(21,845)

28,720

28,720

6,875


Fund Adjustment


48,209

55,084

Budget

2007-08

28,000

28,000

(28,000) (29,000)

29,300

29,300

1,300

55,084

56,384

Budget

2008-09

29,000

29,000

29,000

29,000

0

56,384

56,384

57


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, remodeling the new Student Center. 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.

58


STUDENT CENTER FEE FUND



Student Center Fee Fund

Actual

2006-07

Revenues

8100: Federal

8600: State

8800: Local

Total Revenues

36,598

36,598

Expenditures








18,158

18,158

Budget

2007-08

13,000

13,000

25,000

57,500

360,000

442,500

Budget

2008-09

13,000

13,000

10,000

20,000

35,700

65,700

18,440 (429,500) (52,700) Excess of Revenues Over Expenditures


Interfund Transfers

8900: Transfers In

7300: Transfers Out



112,716

(21,773)

90,943

109,383

100,800

(50,500)

50,300

(379,200)

102,000

(49,300)

52,700

0


Fund Adjustment


899,225

1,008,608

1,008,608

629,408

629,408

629,408

59


STAFFING SUMMARY - ALL FUNDS

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(prior to position reductions)

Reductions

2008 (after position reductions)

13,604

14,871

15,231

14,867

14,623

15,157

15,056

16,012

47

44

43

37

37

36

36

38

39

0

227

235

234

227

211

230

226

225

234

4

356

364

405

372

376

367

368

411

436 *

234

253

238

217

220

223

233

249

256

8

^

12.00

13.75

13.75

12.63

12.63

12.63

12.63

13.50

14

0.50

632

39 230 248 13.50

Information on this chart is based on the Business Office count of FTE positions for the 08-09 Preliminary

Budget. This includes position changes approved through the April 2008 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.

**

570

574

402

382

386

393

440

405

Student count based on information published in the Cabrillo College Fact Book

* Adjunct count based on active assignments Spring 2008 semester

** The hourly number is higher as the snapshot is being taken at the end of the academic year. The 2007 number was taken at the beginning of the academic year (when the student headcount is much lower).

^ Classified Staff figure includes 1FTE (increase to existing LIA positions) categorically funded by the

Basic Skills Initiative, as well as 4 FTE base budget positions funded in the 08-09 Preliminary Budget

(Hold for Growth Adjustment)

Updated 06/08/08

60

ATTACHMENTS

2008-2009 P B

RELIMINARY

UDGET

ABRILLO

OMMUNITY

OLLEGE

ISTRICT

TATE

UDGET

PDATE

Governor Releases May Revise – Community College’s Budgets Adjusted in the Current Year and Budget Year

Current Year

Budget Year

•

TATE

UDGET

PDATE

Assembly Budget Sub-Committee “closes out” by augmenting Governor’s

May Revise by $2.3 billion for K-14 Education

Current Year

Budget Year

I. GENERAL FUND - OVERVIEW

III. DEBT SERVICE FUND

IV. CHILD DEVELOPMENT FUND

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

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

VI. GENERAL OBLIGATION BOND FUND

-This Page Intentionally Left Blank-

Total Income

Cost of Sales

VIII. CAFETERIA SPECIAL REVENUE FUND

IX. ASSOCIATED STUDENTS FUND

X. TRUST & AGENCY FUND

XI. SCHOLARSHIP & LOAN TRUST FUND

XII. STUDENT FINANCIAL ASSISTANCE FUND

XIII. STUDENT REPRESENTATION FEE FUND

XIV. STUDENT CENTER FEE FUND

XV. STAFFING SUMMARY - ALL FUNDS

ATTACHMENTS

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