EL CAMINO COLLEGE
Planning & Budgeting Committee
Minutes
Date: August 16, 2012
MEMBERS PRESENT
DeSanto, Michael – Campus Police
Vacant – Mgmt/Supervisors
Patel, Dipte – Academic Affairs
Quinones-Perez, Margaret – ECCFT
Reid, Dawn – Student & Community Adv.
Shenefield, Cheryl – Administrative Svcs.
Natividad, Rory – Chair (non-voting)
Moon, Derrick – ASO
Turner, Gary – ECCE
Widman, Lance – Academic Senate
OTHERS ATTENDING: Babatunde Atane (support), Janice Ely (support), Connie Fitzsimons
(Alt. Ac. Affairs), Gleason, Katie (Alt. SCA), Alice Grigsby (Alt. Mgmt/Sup), Higdon, Jo Ann
(support), Key, Ken (alt. ECCFT), Jeanie Nishime (support), Emily Rader (Alt. Acad. Sen.), John
Wagstaff (support), Will Warren (support)
Handouts: ECC Estimated Ending Balance (4 pages), ACCJC July 19 letter.
The meeting was called to order at 1:05 p.m.
Approval of August 2, 2012, Minutes
1. Page 1, #1, third sentence – “So many schools are on the brink of danger due to fiscal issues”
changed to “Fiscal issues are impacting many campuses.”
2. Page 1, #1 – When did the Accreditation Commission purview expand beyond accreditation to
now being a fiscal audit agency of District spending and budgeting? On what legal basis is the
accrediting Commission authorized to determine that if the Center falls short meeting certain
standards (which is likely will), that that will adversely impact EC’s accreditation status?
ACCJC does not evaluate the Compton Center separately from El Camino, there is one college
(ECC) and it has a Center. Reports combine data for both locations. Legal authority for ACCJC
comes from the Department of Education. ACCJC letter dated July 19, 2012 was provided.
3. Page 2, #6 – removal of the words “community colleges” from the end of the sentence.
4. Page 3, #1 (CCC system Budget Request) – “deferral buy down” changed to “reduction in
deferrals”.
Budget Update - (J. Higdon)
1. Presentation of the ECC Estimated Ending Balance (four-page handout provided).
A. Adjusted Estimated Ending Balance as of August 14 for 2011-12 = $20,334,590
which included adjustments remaining to be made in fire tech, student accounts
receivable, parking fund and insurance fund totaling $180,000
1. Fire Tech: adjustment of $450,000 for one-year adjustment to 2009-10.
2. Student Accounts Receivable: increase of $370,000 - an estimate of 60%
3. Parking Fund Balance: tickets and live scan revenue has decreased for
various reasons. Examine adjustment to daily permits and ticket fees.
4. Property Liability: a large transfer was previously made leaving some
monies in the account but releasing $930,000 back into the ending balance of
June 30, 2012.
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5. There was an incorrect posting by the county to our budget which could result
in an increase of approximately $771,000. This facilitated some further
review to the state apportionment and county postings – these are positive
assumptions.
6. Budgeted revenues were reduced by $7.3 million pending the November
election. The RDA (redevelopment allocation) issue remains to be the most
troublesome. (Page 1).
7. The insurance fund is a combined number that will be discussed in the blue
book.
B. Items for placement into the blue book that are not currently in the tentative budget is
as follows:
1. A potential increase of state apportionment of approximately $2 million.
2. Potential for a large mid-year TRAN (Tax Revenue Anticipation Notes). This
might provide potential income if interest rates remain low.
3. A transfer for Bookstore employees - due to various reasons including
decreased sales.
4. The parking fund and possible changes to cover undetermined expenses of
$288,458.
5. An added $240,000 expense due to increased insurance costs in January.
6. An additional transfer of $225,000 may be needed in support of the Child
Development Center.
7. Previous election costs came in much higher than estimated. The county has
estimated that the November election costs will be $458,000.
8. A community information (public relations-fund 12) transfer of $50,000.
9. These added changes (Page 2) will positively impact the 2012-13 final budget
by approximately $988,542.
10. Discussions – Bookstore employees are an expense since they would be
moving into the unrestricted budget. Bookstore costs are commonly in a
restricted fund. The estimate included salary and benefits for those
employees. Ten months refers to ten months of activity. Discussions
regarding details of the employees are still ongoing. A transfer of $50,000
will be made for the general public relations fund.
C. Continued impact on the 2012-13 tentative budget. The June 30 tentative budget
book should be used in the current review of the budget reflecting an ending balance
of $14,648,000. Items under negotiation ($2,560.000) will be removed from the 201213 final budget. The President will be making a recommendation to the board that
proposals for the reductions in salaries and furloughs will be removed from the 201213 year. This removal will have a negative impact on the ending balance for that
amount. This is in effect regardless of what happens in the November election. The
tentative ending balance for 2012-13 year as listed on page 3 is $14,799,695.
D. Including the negotiated items the district’s unrestricted general fund ending balance
will have a reduction of $690,000. There is also an additional reduction of $837,571
due to a final adjustment of the ending balance – disclosed changes and dissolution of
the contingency language. If an additional $771,000 comes in from the county, then
that would offset a majority of the $837,571. This would leave the district with a
reduction of approximately $50,000 plus the $690,000.
2.
Standard and Poor’s has downgraded their view of El Camino College bonds but kept the bond
rating. El Camino College is preparing to sell the next series of bonds - $180 millionRefunding/Refinancing Series B of $64 million.
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3. Planning for the 2013-14 budget year is approaching. Divisions should allow faculty enough
time to give their input to division program plans prior to leaving for winter 2013. There might
be a possible change in the timeline for completion of program and unit plans to allow faculty a
greater opportunity to make contributions to the plans.
The next meeting is scheduled on August 23, 2012.
The meeting ended at 2:10 p.m.
The next meeting is scheduled on August 23, 2012.
The meeting ended at 2:10 p.m.
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