67
AGENDA ITEM BACKGROUND
TO: GOVERNING BOARD
DATE
FROM: PRESIDENT
December 5, 2011
SUBJECT:
2011-12 thru 2014-15 Budget Planning Parameters
REASON FOR BOARD CONSIDERATION
ACTION
ENCLOSURE(S)
ITEM NUMBER
Page 1 of 5
C.5
BACKGROUND:
The college has concluded the budget planning cycle for 2011-12 and is beginning the planning cycle for
2012-13.
The College Planning Council reviewed the updated budget calendar, the budget planning assumptions for
2012-13 through 2014-15, and the operating reserve balance. The budget calendar was updated after the
November Board meeting and reflects updates in the timing of budget planning activities. State revenues
are down significantly from the enacted state budget projects. Based on current projections, both triggers
in the budget will be enacted. The state is projecting a deficit of over $13 billion for the current year and
the 2012-13 fiscal year. The Governor’s Budget will be released January 10, 2012.
Budget reduction plans will be developed and presented to the college community in January. Reduction
plans will be presented for the Governing Board’s information in February, 2012.
An update on the use of carryover, one-time fund allocations will be provided to the Governing Board in
January, 2012.
FISCAL IMPACT:
Estimated reduction of $5.7 million to the unrestricted general fund for 2012-13. The college plans to use
$2.5 million of one-time reserves for 2012-13. The Base budget reduction target for 2012-13 is currently
$3.2 million.
RECOMMENDATION:
It is recommended that the Governing Board approve the 2011-12 thru 2014-15 budget planning
parameters.
Administrator Initiating Item:
Graciano Mendoza
Victoria Lewis
Academic and Professional Matter
If yes, Faculty Senate Agreement
Senate President Signature
 No
Final Disposition
Approved
CABRILLO COLLEGE
FY 2012-13 and 2013-14 Base/Categorical Budget Development Timeline Draft
December 5, 2011 Board Meeting
September 7, 2011
September 21 & 22
SANTA CRUZ COUNTY COMMITMENT KICK OFF
BUDGET TOWN HALL MEETINGS
CPC MEETING
- Budget Planning Kick Off For 2012-13
September - December, 2011 FACULTY SENATE- Program Review Task Force meets to develop recommendations
October 3, 2011
BOARD MEETING
October 4/5, 2011
October 25/19, 2011
Information Items:
- Budget Presentation 2012-13
- Review of 6/30/11 Ending Fund Balance
ADMINISTRATIVE COUNCIL/MANAGER'S MEETING/CPC MEETING
Information Items:
- Budget Planning Parameters for 2012-2014
- Budget Development Timeline
ADMINISTRATIVE COUNCIL/CPC MEETING
October 4-December 1, 2011 Carryover and One-Time Fund review by Components, Cabinet, Admin. Council and CPC
October/November
Faculty Prioritization Process/ Determine FON requirements for Fall 2012
November 7, 2011
November 8/2, 2011
November 22/16, 2011
December 5, 2011
December 6/7, 2011
December 20/21, 2011
January - June 2012
January 9, 2012
BOARD MEETING
Information Items:
- Budget Planning Parameters for 2012-2014
- Budget Development Timeline
ADMINISTRATIVE COUNCIL/MANAGER'S MEETING/
CPC MEETING
ADMINISTRATIVE COUNCIL/MANAGER'S MEETING/
CPC MEETING
BOARD MEETING
Action Items:
- Budget Planning Parameters for 2012-2014
- Budget Development Timeline
- Review Faculty Obligation number for 2012
ADMINISTRATIVE COUNCIL/MANAGER'S MEETING/
CPC MEETING
ADMINISTRATIVE COUNCIL/CPC
Negotiations- All groups
January 24/18, 2012
BOARD MEETING
Information Items:
- Budget Update
- Review Budget Reduction Targets for 2012-13- ALL Funds,
- Carryover and One-Time Fund review/Critical Needs
2012-13 GOVERNOR'S STATE BUDGET
STATE BUDGET WORKSHOP
ADMINISTRATIVE COUNCIL/MANAGER'S MEETING/
CPC MEETING
ADMINISTRATIVE COUNCIL/CPC
February 6, 2012
BOARD MEETING
January 10, 2012
January ?, 2011
January 10/4, 2012
Information Items:
- Update Budget Parameters FY2012-13 and FY 2013-14
- Update Budget Development Timeline- FY 2013-14
- FY 2011-12 Mid Year Cuts from the state
- FY 2011-12 Mid Year Report (Projected Ending Balance for 6/30/12)
- Program and Service Reduction Reviews for 2012-13- ALL Funds
68
CABRILLO COLLEGE
FY 2012-13 and 2013-14 Base/Categorical Budget Development Timeline Draft
December 5, 2011 Board Meeting
February-March 2012
February 7/1, 2012
February 21/15, 2012
March 5, 2012
March, 2012
March 6/7, 2012
March 20/21, 2012
April, 2012
April 2, 2012
April 3/4, 2012
April 24/18, 2012
May 2012
May 7, 2012
May 8/2, 2012
May 29/16, 2012
May 25, 2012
June 11, 2012
June 12/6, 2012
June 26/20, 2012
August 6, 2012
August 7/1, 2012
August 28/15, 2012
September 10, 2012
September 11/5, 2012
September 25/19, 2012
69
SPRAC Review of Program Reduction Plans for 2012-13
ADMINISTRATIVE COUNCIL/MANAGER'S MEETING/
CPC MEETING
ADMINISTRATIVE COUNCIL/CPC
BOARD MEETING
Action Items:
- Budget Parameters FY2012-13 and FY 2013-14
- Budget Development Timeline- FY 2013-14
- FY 2011-12 Mid Year Cuts from the State
- FY 2011-12 Mid Year Report (Projected Ending Balance for 6/30/12)
- Budget Reduction Goals (Base, Categorical Budgets & Other funds)
- Program and Service Reduction Reviews for 2012-13
- March 15 Notices to Faculty- Reduction or Discontinuance of Services
- First Round-Resolution-Reduction or Discontinuance of Classified/Confidential/Management Service
First Principal Apportionment 2011-12 Received
ADMINISTRATIVE COUNCIL/MANAGER'S MEETING/
CPC MEETING
ADMINISTRATIVE COUNCIL/CPC MEETING
Continue to evaluate/revise Planning Parameters
BOARD MEETING
Information Items:
- Budget Update
ADMINISTRATIVE COUNCIL/MANAGER'S MEETING/
CPC MEETING
ADMINISTRATIVE COUNCIL/CPC
Second Principal Apportionment 2011-12 Received
BOARD MEETING
Action Items:
- Final Notices to Faculty- Reduction or Discontinuance of Services
ADMINISTRATIVE COUNCIL/MANAGER'S MEETING/
CPC MEETING
ADMINISTRATIVE COUNCIL/CPC MEETING
Governor's May Revise for 2012-13 released
BOARD MEETING
Action Items:
- 2012-13 Preliminary Budget
ADMINISTRATIVE COUNCIL/MANAGER'S MEETING/
CPC MEETING
ADMINISTRATIVE COUNCIL/CPC MEETING
BOARD MEETING
Information Items:
- Update Budget Parameters FY2012-13 and FY 2013-14
ADMINISTRATIVE COUNCIL/MANAGER'S MEETING/
CPC MEETING
ADMINISTRATIVE COUNCIL/CPC MEETING
BOARD MEETING
Action Items:
- 2012-13 Final Budget
ADMINISTRATIVE COUNCIL/MANAGER'S MEETING/
CPC MEETING
ADMINISTRATIVE COUNCIL/CPC MEETING
Board Meeting
December 5, 2011
Difference between ongoing Revenues &
Expenses (Structural Deficit)
Increase in State Revenue Anticipated
General Apportionment adjustment
Part-time faculty compensation
Gen. Apportionment reduction- $400 million
net of student fee increase
Increase in Student Fees $110 mil to offset
apportionment reduction
2011-12 Student Fee Revenue Shortfall
Net change in revenue
70
2011-12 through 2014-15
Base Budget
Planning Parameters
2011-12 State
Enacted Budget
2012-13
Mid-Range Projected
2013-14
Projected
2014-15
Projected
(145,000)
(3,478,200)
(5,746,200)
(7,267,700)
(1,000,000)
(4,412,000)
1,097,000
(250,000)
(3,710,000)
(4,478,200)
0
0
150,000
(395,000)
0
(230,000)
0
(66,000)
200,000
(345,000)
(112,500)
(345,000)
(112,500)
(345,000)
(575,000)
?
(85,000)
(333,000)
?
(30,000)
?
(100,000)
(633,000)
?
(145,000)
(36,000)
?
?
?
(100,000)
(150,000)
(696,000)
?
(145,000)
(24,000)
?
?
?
(100,000)
(150,000)
?
?
?
?
?
?
(1,268,000)
?
(1,521,500)
?
(1,572,500)
?
(7,267,700)
(8,840,200)
Net Increases in Ongoing Expenses
Full-time Faculty Position changes (-3, -4, +3,
+3) (net of adjunct backfill)
Step, Column, Longevity Increases, etc.
Classified Positions
Medical Plan Rate Increase-- 4%, 10%, 10%, 10%
Management Positions
Retiree Benefit Increase
PERS Rate Increase
STRS Rate Increas
Worker's Comp, Unemployment Insurance
New Facilities Supplies & Operating, Staff
Utilities
Net Operating Increases
District Contribution- Bus Pass Program
Retiree Benefits- New Employees
Labor agreements
Reduction in Indirect Reimbursements from
grants
Total Expenditure Increases
Budget Reductions
Budget Reductions Phase I, Round I
Budget Reductions Phase I, Round II
Ongoing Shortfall*
730,500
97,653
(3,478,200)
(5,746,200)
Allocation of 66 2/3% of operating reserves
3,478,200
2,500,000
0
(3,246,200)
Deficit net of One-time funds
0
(194,353)
0
0
174,000
100,000
?
?
(135,000)
(596,353)
*Estimates will change as more information becomes available
71
CABRILLO COLLEGE
GENERAL FUND BALANCE
Board Meeting
December 5, 2011
Projected Operating Reserves
OPERATING RESERVES
Beginning Balance (Mid Year-Bridge Fund Reserves, Final Budget)
ADD:
Projected Ending balance
2012-13 Estimated One-Time Subfund Allocations
Projected
FY 2011-12
1,309,000
1,500,000
(500,000)
LESS:
66.67% Allocated to 2012-13 Deficit
Projected Ending Operating Reserves
= (2309000+1500000) *66.67%
Projected
@ 66.67%
FY 2012-13
2,309,000
1,500,000
(2,500,000)
2,309,000
1,309,000
3,809,000
2,539,460