EL CAMINO COLLEGE
Planning & Budgeting Committee
Minutes
Date: October 6, 2011
MEMBERS PRESENT
Ott, Jonathan – Campus Police
Natividad, Rory – Mgmt/Supervisors
Patel, Dipte – Academic Affairs
Quinones-Perez, Margaret – ECCFT
Reid, Dawn – Student & Community Adv.
Shenefield, Cheryl – Administrative Svcs.
Spor, Arvid – Chair (non-voting)
Tomoda, Kenji – ASO
Turner, Gary – ECCE
Widman, Lance – Academic Senate
OTHERS ATTENDING: Francisco Arce, Jo Ann Higdon, Ken Key, Jeanie Nishime, Emily Rader
Handouts: School Services of California Trigger Reductions, Inter-Year Deferrals for El Camino
Community College District
The meeting was called to order at 1:00 p.m.
Approval of September 15, 2011 Minutes
Clarification/Comments:
1. Page 1, #1: minutes should reflect content of what was discussed and will not focus on what
individuals say. Good minutes will give understanding of what occurred at a meeting to nonattendees.
2. Page 1, #3a: reasons letter from President Fallo was not known earlier: decision to send letter to
Chancellor Scott would have been a distraction for graduation; flex day was opportune time to
make announcement to a large venue and it was close to Chancellor’s decision date; matter was
kept to a small group to work out issues (Barbara Beno and Tom Henry were also involved in
discussions to resolve issues early on); personnel issues prevented total transparency.
3. Page 1, #3c – $975,000 negotiable item question may be premature to discuss when negotiations
are still taking place. This was just a statement that the budget was changed at the Board
meeting.
Minutes were approved with no changes.
Mid-year Trigger:
1. Document prepared by School Services of California. Trigger mechanism tiers:
 No cuts – if revenue assumptions not met were $1 billion or less
 Trigger I – if revenue assumptions not met were between $1 billion and $2 billion
 Trigger II – if revenue assumptions not met were between $2 billion and $4 billion
2. Trigger determination date is December 15th. Actual trigger date is February 1, 2012.
3. $10 enrollment fee increase will go into effect in summer 2012.
4. J. Higdon’s “Invisible Trigger” – amounts not included in triggers.
 Additional enrollment fee problem at the State level. Department of Finance is over
projecting $25-$30 million in enrollment fees community colleges will charge based on
what should have been collected. Did not take into account enough of the increased
number of BOG fee waivers in their analysis.
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
Department of Finance overestimated property taxes collected this year by $25-$30
million.
 In general, ECC’s general apportionment would be cut by 1.75% - 1.785%.
5. “Unforeseeable event” as a risk to the State budget may include natural disasters, political
conflicts, volatility of the stock market etc., but also could pertain to the shortfall.
Cash Flow:
1. Statewide in the Community College system, $21.5 million of January apportionment will not be
received until October 2012. $136.5 million normally received in January 2011 will be deferred
to October 2012. Disbursements deferred until October are counted as income in the current
year. But according to CPAs, cannot count funds in the current year unless it is received within
period window of 60-90 days after the end of the fiscal year (June 30th). But, a directive from the
State may allow flexibility to count revenue received after the window in the current fiscal year.
Colleges want to count as income in current year but the State wants to count as expense the
following year.
2. Creates cash flow problems and affects the District’s ability to make payments and sell TRANs.
3. Numbers on School Services deferrals graph did not appear to add up to $961 million – J.
Higdon will review, confirm totals and notify committee by email.
4. The transition from cash basis to modified/full accrual accounting in the community college
system was explained.
5. Inter-Year Deferrals for El Camino College shows ECC’s estimated percentage (1.75%) of State
cash deferral of $16.82 million; this is money usually received by July but will now be delayed
until October. Estimates could be as high as $18 million and is subject to change.
6. Discussion took place about impact of decision to count deferred funds in either the current year
or next.
Changes to Final Budget:
1. $975,000 budget item will be removed and reduce the $16,298,768 ending balance by $975,000.
2. $2.05 million contingent liabilities will be moved from the unrestricted general fund to the
Property/Liability Fund. How the college mechanically establishes contingent liability will be
done differently but this does not change balances in unrestricted fund nor liability fund. Already
booked as contingent liability, but should have been booked against the property/liability fund
and not the unrestricted general fund. Line item for contingent liabilities (page 6 of blue book),
account number 5900 Miscellaneous: $2,361,556 will be reduced by $2.05 million and placed
under Property/Liability (page 21) under account number 5900 (to be added) or added to number
5400 Insurance.
3. $459,000 was not cleared appropriately from liability account and a ‘prepared by client journal
entry’ will be submitted to auditors which will decrease expenditures and increase ending
balance by $459,000.
4. The ending balance for June 30, 2012 will not change.
PBC evaluations will be discussed at the next meeting.
The next meeting is scheduled on October 20, 2011.
The meeting ended at 2:20 p.m.
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