General Fund Budget Assumptions For Fiscal-Year 2010-2011 09/29/10

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09/29/10

General Fund Budget Assumptions

For Fiscal-Year 2010-2011

General Assumptions:

1. The District shall maintain legal compliance of the 50% law.

2. The District will develop a balanced budget with a minimum 5% ending fund balance (reserve).

3. The Program Review, Planning, and Budget Development Process will guide the allocation of resources.

4. The District will strive to maintain course offerings at 2009/10 levels.

5. Since the State budget has not been passed, the District will apply the Governor’s May Revise

2010 proposed budget in developing the 2010/11 budget.

Revenue Assumptions:

6. The State enrollment growth is proposed at 2.21%.

7. State proposed categorical funding may be adjusted as follows:

Reduction in EOPS by $5 million

Reduction in Part-time faculty compensation by $5 million

Increase in career-technical education (CTE) by $10 million

Elimination of funding for CalWORKS

Elimination of State Child Care services by $1.2 billion

8. The State proposes that the apportionment will include an adjustment of -0.38% for COLA.

9. The State proposes to backfill any decline in property tax revenues from the 2009/10 level.

10. The solar field will generate approximately $620,000 in new revenue from renewable solar energy credits (REC).

11. Local revenue will increase by approximately $485,000 (rentals, leases, Head Start, etc.).

12. Reserve funds will be utilized to offset revenue shortfall.

13. The base allocation increase of approximately $1 million will be maintained for medium college status that was attained in fiscal year 2008/09 (10,001 FTES).

Expense Assumptions:

14. District health benefits will increase by approximately $630,000.

15. State Unemployment Insurance rate will increase from .30% to .72%.

16. Employer contribution to PERS will increase from 9.428% to 10.2%.

17. Vacancies due to retirement or resignation may not automatically be filled.

18. The District will save approximately $400,000 by implementing energy efficiency measures.

Victor Valley Community College District

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