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AGENDA ITEM BACKGROUND
TO: GOVERNING BOARD
DATE
FROM: PRESIDENT
October 4, 2010
SUBJECT:
2010-11 and 2011-12 Budget Update
REASON FOR BOARD CONSIDERATION
INFORMATION
ENCLOSURE(S)
Page 1 of 1
ITEM NUMBER
E.1
BACKGROUND:
2010-11 Budget Update:
It is anticipated that state legislators will vote on the 2010-11 state budget this Thursday. The Governor and
legislative leaders will meet early this week to work through the details of how the $19 billion deficit will be
addressed. Possible solutions include:
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$7.5 billion in spending cuts
Delayed implementation of the tax breaks
Optimistic revenue estimates- an increase of $1.4 billion
Increased funding of $5 billion from the federal government; up from the $3.4 billion projected.
$1.2 billion from the sale of state properties that will be leased back to the state.
There are no details yet of how the budget will impact community colleges.
The Board approved the college’s 2010-11 Final Budget on September 13, 2010. The 2010-11 Final Budget
is out of balance by $1.9 million. One-time reserves will be used to balance the budget. The College did
not budget 2% growth funds included in the governor’s budget. The college is assuming other reductions of
$641,000 for general apportionment and property tax shortfalls. In addition, one-time reserves of
$1,250,000 of reserves have been set aside for 2010-11 mid year budget reductions.
The College is anticipating the release of some portion of state apportionment funds that have accrued since
July.
2011-12 Budget Update:
The College is moving forward with budget planning for the 2011-12 fiscal year. The College is projecting
a $2.4 million deficit for 2011-12; net of one-time reserves of $1,250,000. This week Administrative
Council, the College Planning Council and the Managers will meet to discuss the following:
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Budget Reduction Goals (Base Budget, Categorical Programs & other funds)
Review Budget Reduction Process Commitments, Criteria and Strategies
Budget Development Timeline
Budget Reduction Timeline (Base Budget, Categorical Programs & other funds)
The Board will review budget planning information again in November.
Administrator Initiating Item:
Victoria Lewis
Academic and Professional Matter
If yes, Faculty Senate Agreement
Senate President Signature
 Yes  No
 Yes  No
Final Disposition