EL CAMINO COLLEGE
Planning & Budgeting Committee
Minutes
Date: June 2, 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)
Turner, Gary – ECCE
Widman, Lance – Academic Senate
Vacant – ASO
OTHERS ATTENDING: Janice Ely, Katie Gleason, Alice Grigsby, Jo Ann Higdon, Ken Key,
Jeanie Nishime, Emily Rader, John Wagstaff
Handouts: Tentative Budget 2011-2012 (June 20, 2011); General Fund Unrestricted Fund 14
Draft Proposed Budget FY 11-12 (dated May 3, 2011) and General Fund Restricted Fund 15
Draft Proposed Budget FY 11-12 (dated May 2, 2011); ECC 2011-12 Tentative Budget (May 24,
2011)
The meeting was called to order at 1:00 p.m.
Approval of May 19, 2011 Minutes
1. Minutes were approved with no changes.
2011/12 Tentative Budget:
ECC 2011-12 Tentative Budget-May 24, 2011 (single page document)
1. Items listed are incorporated on the Tentative Budget 2011-2012. The Community College
League of California posted a projected State revenue reduction this week of $8.9 million.
ECC will use the League’s previous projected State revenue reduction figure of $8.575
million – this number will continue to change. Other than section reductions, numbers match
Option #2, but changes are expected over the summer. Section reductions changed slightly –
now at $750,000 compared to $1.85 million. Estimated $1.87 million projected to be used
from reserves.
2. $800,000 contribution to general fund from Fund 15 is not part of the $900,000 usually set
aside for GASB.
3. Statement made by Federation representative that negotiation-related items are not normally
on a tentative budget – ‘why publicize?’ Response: to be transparent, open, honest and
forthright.
Tentative Budget 2011-2012 (June 20, 2011)
1. Pages 3 & 4 – General Fund Unrestricted – Revenue
a. Revenue expected and projected. Footnote a) 2010-11 state revenue principal
apportionment of $68 million. For 2011-12, anticipating reduction of $8.575 million
for total principal apportionment of d) $59.508 million. $8.575 million reductions
match amount of reductions on single page document for a balanced budget. Growth
was included in 2010-11 and not 2011-12. Footnote b) indicates prior year (2009-10)
apportionment correction - ECC received another $1.2 million from recalculated
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FTES funded 2009-10. Lottery funds holding steady from year-to-year. $364,436 will
be last mandated cost claim until budget stabilizes. Correct footnote title on page 3 to
‘Notes to Projected Revenue 2010-11’ and delete the underline on footnote a). $8.857
million base revenue will remain stable and the amount of FTES funding will be
adjusted. Calculated revenue is the sum of object codes 8610, 8672, 8811, 8812,
8813, 8816, and 8874. Local revenue (page 4) can change.
b. Local revenue 8874 Enrollment Fees – projected revenue for 2010-11 dropped
compared to 2009-10 due to section reductions and increase in students applying for
board of governors’ grants. Decline in non-resident and non-resident foreign tuitions.
How are out-of-state fees determined? Choice between statewide average amount or
calculated amount by the State based on cost of living adjustments and consumer
price index changes. Predicting approximately $110 million in revenue at the end of
2010-11.
c. $800,000 in object code 8980 (Incoming Transfers) is the transfer from Fund 15 back
into the general fund.
2. Pages 5 & 6 – General Fund Unrestricted Expenditures (title correction: change Revenue to
Expenditures)
a. New object code TBD on page 5 – lump sum amount $975,000 negotiation-related
items shown on a separate line in the tentative budget.
b. Footnotes on page 5: k), l), m), n), o) indicate budget reductions tied to ECC 2011-12
Tentative Budget-dated May 24, 2011 (single page document). Why the increase in
actual salary expenditures in 2009-10 compared to projected salary expenditures in
2010-11 with restrictions in student/part-time help? Next two to three months of
payroll expenditures are estimates. Amounts could very well change for the final
budget. Part-time instructors are under object code 1300; special assignments/stipends
are under object code 1400; release time is under object code 1200. Proportionate
difference between salaries and benefits is huge. Projected amounts typically decrease
at the end of the year due to some adjustments to the general fund.
c. Footnote q) – budget contracts with fire and police agencies object code 5100: 201112 tentative budget amount is much higher than previous years because salaries are
budgeted slightly higher and at end of the year are added back into certificated
salaries under object code 1100. J. Ely will change $900,000 amount in footnote to
reflect actual amount (slightly over $1 million). Footnote p) includes liability claim
settled this year.
d. Why the increase in Object Code 5700 Legal, Elections and Audit Expense? Election
expense per unofficial estimates from the county almost doubled. Three board
member elections will take place next year. Election expenses include staffing,
balloting, mailings, etc.
3. Page 11- Compton Center related fund 14: 2011-12 tentative budget adjusted beginning
balance is $526,402 (does not show fund balance transfer into GASB). Next year’s balance
will be zero if $526,402 at the end of this year goes to GASB. Are we purposely trying to
come under budget in fund 14 for the purpose of putting more into GASB? No, ended with
excess for benefits and salaries the past few years because budgeted positions were not filled
(i.e. Enrollment Services position was vacant for six months).
4. Page 12 –Special Programs fund 15
a. 6400 Equipment – authorized from Plan Builder requests. $649,836 current
expenditure expected to increase to over $1 million, which would decrease fund 15
ending balance to potentially be transferred to GASB.
b. 5900 Special Programs and Services – $1.95 million is combined into one account
until programs determine how funds should be distributed to other object codes.
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Object code 5900 will decrease by $800,000 (from $1.95 million to $1.15 million)
and object code 7300 (interfund transfer) will increase by $800,000 (from $900,000
to $1.7 million) to be transferred to general fund 11.
c. Comment was made by the Federation rep that the PBC recommendation to the
President not to include the $900,000 transfer to GASB was rejected. J. Higdon
responded that the President thanked the committee for their recommendation, but the
tentative budget will move forward to include the contribution to GASB.
5. Handouts:
General Fund Unrestricted Fund 14 Draft Proposed Budget FY 11-12 (dated May 3, 2011)
a. Compton-related refers to people based in Compton and/or based at El Camino doing
Compton work. #12 - Administrative stipends are for administrative oversight at
Compton; #13 - classified stipends are for Compton-related work performed by
classified staff. #4 - SSP-Enrollment Services (50%) for Compton-related planning;
50% funding for SSP-Enrollment Services comes from fund 11.
b. Still may be slight changes to this handout to overtime, stipends, and oversight for
Compton Infrastructure Project amounts before going to the Board.
General Fund Restricted Fund 15 Draft Proposed Budget FY 11-12 (dated May 2, 2011)
a. Backfill shortages in fund 12 reduced to $1 million compared to $1.15 million the
previous year. Student Retention Projects cut in half (from $300,000 to $150,000). No
funding for unit plans one-time funding requests. Library books decreased from
$100,000 to $50,000. For other programs, no funds for computer hardware and
emergency repairs/replacement equipment remain at $100,000. GASB reduced from
$1.4 million last year to $900,000 in 2011-12. $800,000 projected to be transferred to
fund 11. No funds for contingencies.
6. Page 13 – Student Financial Aid Fund: Federal income includes Compton students. ECC is
in charge of all federal revenue until Compton regains their accreditation to participate in
federal programs directly. Direct loans – students no longer go through banks to receive
financial aid funds. Through the Foundation and Scholarships, more Nursing scholarships
and grants were awarded this year. Delete ‘b’ footnote on page 13.
7. Page 14 – Workers’ Compensation Fund: ECC will pay $1.28 million (most current figure)
from the general fund.
8. Page 17 & 18 – Capital Outlay Projects Fund
a. Amounts paid out for Humanities building, Library addition, and Social Science
remodel (major project).
b. Object code 8885 Capital Outlay Fee Non-Residents: disparity in actual and projected
income due to fees that were included in 2009-10 totals when normally set aside for
2010-11; will balance out at the end of this year. State now requires fees charged to
all non-California students, not just foreign students.
c. Why is object code 5100 Consulting Services 2011-12 tentative budget so high?
Don’t have particulars but may be due to consulting with DSA, environmental
reports, etc.
9. Page 21 – Property and Liability Self-Insurance Fund: Object code 8899 Contribution from
General Fund – $833,333 interfund transfer for legal settlements.
10. Page 22 – Dental Self-Insurance Fund: is the $900,000 contribution from general fund
needed if there is a healthy $893,000 fund balance? Capital Outlay also has a healthy ending
balance of $4 million.
11. Page 23 – Retiree Health Benefits Fund is now called Post Employment Benefits Fund (fund
17).
a. Projecting ending balance of $8.3 million. $1.4 million from general fund already
transferred to 2010-11 budget. 2011-12 Tentative Budget will include $900,000 from
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fund 15 and 2010-11 fund balances in funds 14 and 15. Request was made to show
the percentage of the obligation met based on the actuarial study. More appropriate to
show on the supplemental page at the back of the budget book (page 67). Another
actuarial study is required this year. The percentage will be calculated and reported at
a PBC meeting.
b. $8.3 million in tentative budget is amount in ECC’s GASB fund established with
LACOE. ECC’s original investment of $3.784 million is with SCCCD. Fund total is
both accounts combined plus interest. Both accounts will be combined and converted
to an irrevocable fund.
12. Funds not presented today: Fund 12, Bond Fund, Child Development Center Fund, and
Bookstore Fund.
a. The Child Development Center deficits continue to increase and supplemented each
year. State funds have greatly decreased. Child Development Center was subsidized
an additional $150,000 this year (normally $75,000) for a total of $225,000 from fund
11. Projecting the Center will be $100,000 short. If subsidized next year $75,000, the
Center will be in the red about $80,000. Many cuts have been made. Discussion took
place about continuation of subsidizing the Child Development Center from fund 11.
b. Fund 12 – funding categorical programs will receive is not yet known.
c. Bond fund will be ready by Monday.
13. Fund 11 is still up-in-the-air with the State budget. 2011-12 tentative budget assumes
targeted FTES is around 18,000. Decreases in State budget could mean additional cuts in
reductions and sections, FTES, etc.
14. Completed tentative budget must be ready by the Wednesday before the Board meeting (June
15th). PBC is not ready to make recommendations without the complete tentative budget.
Suggestion was made for PBC to meet on June 14th. Comment was made that past tentative
budgets have been adopted with or without PBC recommendations. Will Board members be
made aware of PBC’s recommendations about GASB funding? Only through meeting
minutes. PBC recommendations are made to the President, not the Board.
15. Members were asked their preference for the next meeting date (either June 14 or June 16).
A. Spor will send email confirmation of the next meeting date after checking with members
not present today.
The meeting ended at 2:35p.m.
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