Peralta Community College District
Planning and Budgeting Council Meeting Minutes
January 27, 2012
Present:
Rich Copenhagen, James Blake, Linda Berry, Tae-Soon Park, Fabian Banga, Bob Grill, Debbie Budd, Elnora Webb,
Matthew Goldstein, Rick Greenspan, Eric Gravenberg, Timothy Brice, Thuy Nguyen, Rebecca Kenney, and Pieter de
Haan.
Chair/Co-Chair: Ronald Gerhard and Karolyn van Putten
Guests:
Jim Grivich, Ann Elliott, Betty Inclan, Joe Doyle, Mike Orkin, Susan Rinne, Shirley Slaughter, Pieter de Haan, Laurie
Brion, and two student representatives.
Facilitator/Recorder: Linda Sanford and Joseph Bielanski
Absent:
Abigail Brewer, Jenny Lowood
Agenda Item
Discussion
Meeting Called to
Order
I. Agenda Review
9:02 AM
II. Review of
Minutes: Dec. 9
2012
III. Revised PBC
2011-12Timeline
Minutes: APPROVED
IV. Budget Update
VC Gerhard
Follow-up
Action
Agenda: APPROVED
Informational
Correction: College 2012-13 Annual Plans and Draft Budgets are
due on April 20th, not February 24th.
On Jan. 5, 2012, the Governor released the budget update early for
fiscal year 2012-13. Included within the budget are some
additional dollars for community colleges, but we won’t see it in
terms to augmentation of our budget or allocation from the State.
It will be used specifically to buy down the current $963 million in
deferrals that we as a system receive on an annual basis. It would
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Decisions
(Shared
Agreement/Resolved
or Unresolved?)
Peralta Community College District
Planning and Budgeting Council Meeting Minutes
January 27, 2012
buy down the amount of money borrowed from the bank on an
annual basis for cash flow and operational purposes. The
additional dollars would not materialize in funding any FTES,
growth, or COLA.
The Governor’s budget had affected course offerings. State
Finance Office argues for the Governor not to buy down the
deferrals but instead give us more budgetary dollars so we can
serve more students. The counterargument is the Governor is
trying to make a point with the rating agencies that he is making a
conscious effort to reduce the State’s overall debt burden.
The State is using a new model in dealing with budget issues. Last
year, they lowered the percentage needed to approve the State
budget from 2/3 to 50%. Based on this new model, they would
approve the expenditures by 50% but anything involving taxes or
additional revenue will still require a 2/3 vote.
Tax increases are going to the November election; an election that
is five months into the fiscal year. Peralta is budgeting for it right
now, but there are a lot of risks and more uncertainties involved in
this model. It puts us in the same situation as last year where we
are planning for the worst. We are going to go with the assumption
that the tax initiatives fail because it is always easier to add dollars
back into the budget than it is to cut. (If the initiatives were to
pass, Peralta would need to set priorities.)
Our contingency plan is to add more money into our budget via a
parcel tax. The Board of Trustees, on January 24, 2012, approved
the resolution authorizing the District in going forward and
placing on the ballot a parcel tax in the June election. In the last
polling done before the holiday break, around 71% of likely voters
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Planning and Budgeting Council Meeting Minutes
January 27, 2012
within the poll would support the colleges. The community
recognizes that the colleges need additional funding in order to
support instruction, classrooms, and course offerings for students.
If Peralta can renegotiate a deal with Morgan Stanley, PCCD
could save $1.3 million annually. The way the Swap agreement
was structured back in 2006 created a burden on the general fund.
$1.3 million equates to about 300 sections.
Susan Rinne
2012-13 Budget Assumptions
This is a living document and updates will be brought to the
Council as frequent as possible. The goal is to project three years
out.
Funded FTES will decrease to 16,692.37 for 2012-2013.
Peralta was recently informed that healthcare premiums will
increase significantly: Core Source by 13% and Kaiser by 18%.
There will be a Kaiser open forum and VC Gerhard was selected
as the moderator.
A request was made to use the same units of measurement
throughout the document, preferably in dollars.
Item #19, PERS increase is based on the PERS’s actuarial study.
Employer’s share will be 14% while employee’s contribution will
remain at 7%.
Motion to revise the budget assumption so that for years 201314 and 2014-15, we will use a five year average of combined
past increases per year and make projections for future
increases, including medical. APPROVED (unanimous)
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Ms. Rinne will
bring the
numbers back
at the next
meeting.
Peralta Community College District
Planning and Budgeting Council Meeting Minutes
January 27, 2012
Concern was expressed regarding the Governor’s proposal on the
$400 million block grant for categorical programs.
Communication is needed on the methodology in order to avoid
disruptions to programs.
VC Gerhard explained that at the local level, the Board of Trustees
can allocate the funds with flexibility and discretion based on
students’ need and demographic. The same amount of funding is
still given to the District but without restrictions to a particular
program.
Motion: if the money comes in as a block grant (consolidated),
for budgeting purposes, we agree for the first year to
distribute as currently disbursed with some room for
renegotiation. APPROVED
In regards to Rick Greenspan’s email received on Wednesday, Jan.
25th, the District has done projections for the past five years. There
was a need for more time in order to include the retirements. In
every category other than 1101, the District has had a decrease.
The $1.5 million is a projection despite the fact that we are six
months away from the beginning of a new fiscal year. We can
bring back information but not on a granular level. 75% of
Classified employees are at the highest step (5). In contrast, 75%
of Faculty qualifies for a step and column increase. This does not
factor in Confidential and Administrators because their increase is
not automatic. If requested in the course of negotiations, we will
bring the information at the employee level. Such granular level of
data is not in the scope or charge of the PBC.
It was requested that the Finance Office provide data for the past
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five years and exact amount, omitting individual’s name, for each
constituency to help guide the budget and planning integration
process at the colleges.
VC Gerhard agreed to bring in the cost perspective. A report
showing all the budgeted positions were sent to SMT at this time
last year. In the past, we did not have positions budgeting.
Finance is working with HR and the College Presidents to come
up with an agreement in terms of what are the funded positions.
There are different lists of funded positions: College record, HR
record (positions control module), and Finance record (funded
positions). The prior model did not directly link or tie the funding
to the position.
If a college has a vacant position within their budget right now and
they need to access those dollars; they can, upon the Chancellor’s
approval on salary savings given our current financial position;
otherwise, the budget that supports the position will remain in the
1101 account. Going into 2012-13 budget development process,
all salary savings that occurred this fiscal year, come July 1st, will
go back to support the original positions. Therefore, the positions
will maintain their funding. It is up to the college to request the
transferring of funds through a PA form. We are making the
transition to budget on a positions level.
VC Gerhard explained that if a faculty retires, the District will pay
for their retiree benefits and the budget stays at the college level.
Retirees are not, under state guidelines, a cost to instruction so the
total cost cannot stay at the college. That would overstate the cost
of service provided to students at the college.
VC Budd added that this was part of the first step to implement the
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BAM. The goal was for students to have the same chance of
having a full time faculty as their instructor at each college.
Looking at the growth at BCC, BCC had so much less money
because they had so few full-time faculty members.
V. Finalize the
2012-13 Budget
Building
Calendar
Last year, a memo was sent to the Presidents and Vice Chancellors
in regards to a 5%, 10%, and 15% reduction on discretionary
budgets. The Office of Finance will send a similar memo out by
Friday, Feb 3rd, to each President and Vice Chancellor. It will then
go through the same shared governance process. The information
needs to get back to the District Office of Finance by April 20th.
Finance will make sure it fits the budget guidelines and then
upload it into PeopleSoft. Finance will then create reports for the
Colleges to review. The tentative budget will be ready for the PBC
to review in May 2012. If the parcel tax passes, the District would
have time to incorporate additional revenue in the Tentative
Budget at the June 2012 Board of Trustees’ meeting.
VI. Review/Update
the Budget
Allocation Model
In terms of position budgeting, a need for clarification was pointed
out that funds (savings from positions) will reside with the college
and they may be used at the college’s discretion to replace those
positions.
Given the current economic condition and circumstances, VC
Gerhard does not believe the Chancellor would object to such
language.
International Student Fees/ Out-of-State Student Fees (NonResident)
 Draft language to be inserted into the BAM regarding these
funds
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Planning and Budgeting Council Meeting Minutes
January 27, 2012
Note: Overseas online students are counted within
international student fees.
Motion to approve the International Student Fee
distribution with modification to include Out-of-State
students (Non-Resident Student Fees). APPROVED
(unanimous)
IT Planning and Budgeting
 Need for draft language to be inserted into the BAM
 Currently 99% of IT expenditures are out of one time
money, i.e. bond funds [such as Measure A).
 This language is an effort to put into our BAM a
mechanism to fund IT projects and multi-year IT projects.
 VC Gerhard suggests that after the District closes the
books (in Oct/Nov), to identify one-time dollars at the
District-level that he will recommend to the Chancellor to
be allocated to match the college’s dollars for IT budget.
Essentially, it would provide additional dollars for the
college that would be dollar-for-dollar match to help that
college fund IT needs on an ongoing basis. PCCD cannot
continue with the assumption that we will always have
bond funds.
 The forum for discussion and requests for consideration
would be at the District Technology Committee (DTC).
Recommendations will then be forwarded to the PBC and
ultimately to the Chancellor.
 It was suggested that more explicit wording be used, such
as, “in order to ensure a robust investment in the IT
infrastructure of the District, deplore of the colleges, the
District Technology Committee will have the responsibility
for reviewing and recommending to the Chancellor for the
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Peralta Community College District
Planning and Budgeting Council Meeting Minutes
January 27, 2012
budget allocation on an annual basis. It will also need to go
through our district-wide shared governance process.”
It was suggested that the draft language begin with “The
colleges will identify and prioritize projects.”
Dr. Karolyn van Putten, Council Co-Chair, asked if there
was a regular budget line item for District IT expenses. VC
Gerhard confirmed that IT has its own cost center and
budget, but a majority of that is used for salary and annual
renewal of PeopleSoft software licenses. The IT
department has very little discretionary dollars to fund
requests from the colleges.
It was stated that there is a need for funds to be set aside
for instructional software for IT equipment purchased and
installed at the colleges.
It was further stated that there should be a regular IT line
item that includes all district and college IT needs
including but the limited to IT people, cost of equipment
on campus, and replacement cost for computers and
equipment on campus. It should be part of the regular
operating budget.
A question was raised as to when we can change the
organizational structure for IT so that we can have an idea
what everyone (within IT) is doing at each college.
It was stated that we should have a sound college
technology plan incorporated in a transparent way into the
District technology plan. The District should make
available some of the funding to the colleges. The colleges
should have the flexibility, by the use of their own
planning and budget integration model, to distribute and
allocate the IT funds without having to go to the DTC as to
how they should spend the money. It was stated that each
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Planning and Budgeting Council Meeting Minutes
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college has their own unique IT needs. Therefore, they
should have their own IT Team.
It was stated that Tony Tortorice is working on the IT
restructure. It is a very complicated process. For a District
this size and the technology that is needed, we are way
under budget. Just to compare the number of programmers
here and that to UC Berkeley, we don’t have 5% of the
programmers that UC Berkeley has, yet we have a larger
population.
Motion for the meeting minutes (in the form of a
memo) be given to the DTC. Specifically the draft
language for BAM regarding IT funding be sent to
DTC requesting DTC provide the PBC with DTC
approved language. APPROVED (the following was sent
to the DTC).
“Due to the current economic environment, the District has very little ongoing
discretionary funding to support the evolving needs of IT planning. It is the
intent and desire to provide flexibility and support to those colleges and central
office services that have multi-year planning mechanisms in place and that have
set aside funding within their Unrestricted General Fund discretionary
allocations to support these plans.
To support this effort the Chancellor will on an annual basis, no later than
November 1st, announce a restricted allocation of one-time funds within the
Unrestricted General Fund that will be used as a dollar for dollar match to fund
IT projects identified and partially funded.
The Colleges will identify and prioritize projects and forward their lists to the
District Technology Committee (DTC) for its review and consideration.
To the extent that there are one-time funds available, the DTC will review all
requests submitted for consideration of these matching funds and forward to the
PBC its recommendations no later than January 1.
The PBC will review and provide its recommendations to the Chancellor no
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January 27, 2012
later than February 1.”
VII. Benchmark
Survey
VIII. Strategic
Planning to
Resolve the
Impact of
Workload
Reductions
IX. Policies and
Administrative
Procedures
Jim Grivich

tabled

tabled
Motion to approve BP 4230, BP 3100, BP 3200, BP 3250, BP
3300, AP 3200, AP 3250 and AP 3300. APPROVED
BP 4230, Grading and Academic Record Symbols
BP 3100 Organizational Structure
BP 3200 Accreditation
AP 3200 Accreditation
BP 3250 Institutional Planning
AP 3250 Institutional Planning
BP 3300 Public Records
AP 3300 Public Records
Pull for discussion:
AP 2430 Delegation of Authority to the Chancellor’s Staff
AP 3100 Organizational Structure
BP 3720 Telephone, Computer, and Network Use
AP 3720 Telephone, Computer, and Network Use
X. Other Topics
Adjournment:
Next meeting:
12:00 PM
February 24, 2012 from 9:00am – 12:00pm
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Peralta Community College District
Planning and Budgeting Council Meeting Minutes
January 27, 2012
Minutes taken: Sui Song
Attachments: All handouts for this meeting can be found at
http://eperalta.org/wp/pbi/planning-and-budgeting-council/pbc-documents/
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