North Orange County Community College District

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North Orange County Community College District

• 2009-2010
• Proposed Budget

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Introduction

• Worldwide Economic Struggles Contribute to
  States Budget Turmoil
• States Structural Deficit Continues
• Budget passed in February 2009 revised in July
  2009
• Imposes Deep Cuts to California Community
  Colleges
• Job losses and cuts to other segments of Higher
  Education have impacted California Community
  Colleges

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Introduction

• NOCCCD Priorities
• Expect mid-year budget reductions
• Backfill for significant categorical budget cuts
• Increased Enrollment Demand
• Negotiations
• Completion of Construction Projects
• Retiree Benefits

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Full-Time Equivalent Students (FTES)

• AB X4 1 adjusted base workload measures equal
  to general apportionment revenue reductions
• Resulted in 3.39 reduction to all Districts
• 5.4 million revenue reduction for NOCCCD 1,320
  FTES

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Full-Time Equivalent Students (FTES)

• 2008-09 Actual FTES 38,552.15
• 5.5 increase over prior year actual
• 2008-09 Funded FTES 35,543.26
• Resulted in 3,008.89 7.8 of Actual FTES
  Unfunded
• 2009-10 FTES Target - 34,697.17 10 reduction
• Reduction considers over-cap amount and Workload
  Measure Reduction

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Full-Time Equivalent Students (FTES)

• 2009-10 Target projects 1.37 unfunded FTES
• Generating FTES above Target is IdealWithout
  additional costs
• Shift of Non-Credit Lab course FTES
• SCE - (1,170)
• CC - 324
• FC - 846

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FTES Trends
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Full-time Faculty Obligation

• 2009-10 Estimated Obligation 518.6
• Reflects reduction of 18.2
• Previously, 557 positions counted toward
  obligation 38 of which were eliminated from
  budget as of Fall 2009
• Projected to be right at obligation for 2009-10
• If fiscal situation continues to deteriorate,
  obligation is expected to decrease further for
  2010-11
• No plans to fill these vacancies

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Ending Balances June 30, 2009
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Ending BalanceBoard Policy Contingency

• Board Policy 6200 requires that unrestricted
  general reserves shall be no less than 5 of
  unrestricted general fund expenditures
• Unrestricted General Fund
• Expenditures 178,350,134
• Contingency level
  5
• Board Policy Contingency 8,917,507

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Ending BalanceBoard Discretionary Contingency

• Board Discretionary Contingency of 7,176,981.
  Primarily consisting of
• 3 million unspent from prior year
• 1 million Medicare Part D Subsidy
• 1.5 million suspended Retiree Benefit
  Contribution
• 1.2 million Utility Savings (actual below
  budget)

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Ending BalanceDistrictwide Carryovers

• Districtwide carryovers of 1,320,748
• Master Plan - 420,000
• Facility emergency - 130,000
• Safety supplies budget - 162,004
• Information Services infrastructure budget - 538
• Staff development - 200,000
• Election expense - 225,000
• Supplemental Retirement Plan - 183,206

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Budget Center Carryovers
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Apportionment Revenue SB 361
The 2009-10 Proposed Budget contains no
provisions for Growth or a cost of living
adjustment (COLA)
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Revenues Other

• Lottery - 3,851,386
• 7 per FTES decrease from prior year
• Part-time Faculty Comp. - 697,978
• 62 reduction from prior year
• Fee Waiver Enrollment Fee - 281,299
• Non-resident Tuition - 1,000,000
• Interest - 500,000
• Rates estimated at 1.35 (1.65 decrease from
  prior year)
• Miscellaneous Income - 10,000

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Expenditures

• Salaries - 1.8 million decrease
• Step and Column increases
• New Vice Chancellor, Instruction created
• 40 vacant full-time faculty positions eliminated
• Medical Costs 2.9 increase
• Retiree Benefits 2.9 increase
• Extended Day Budgets reduced by 4.2 million
• Workload Measure Reduction
• Shift of Non-Credit Lab FTES
• Backfill for full-time faculty vacancies

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Expenditures

• Energy Costs - budget reduced by 10
• Child Care Program Contribution
• Suspension of on-going contributions
• Retiree Benefits Fund - 1.5 million
• Self Insurance Fund - 1.2 million
• No budget for Scheduled Maintenance

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Ongoing Revenues Expenditures
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Outstanding Issues

• Salary Negotiations
• Each 1 increase for Unrestricted General Fund
  positions is estimated at 1,002,034
• Each 1 increase for Extended Day positions is
  estimated at 221,730
• No assumptions made for furloughs or salary
  roll-backs for 2009-10
• Temporary Suspension of 1.5 million Retiree
  Benefits Fund Contribution
• 12 million remaining to be repaid

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Outstanding Issues

• GASB 45 - Unfunded Retiree Liability
• 158 million unfunded liability
• 12.3 million Annual Required Contribution (ARC)
• 49 million set aside in Retiree Benefits Fund
• 4.8 million budgeted pay-as-you-go cost
• General Apportionment Deferrals
• Cash Flow Concerns
• Interest Income directly impacted
• Deep on-going Categorical Program Cuts
• Uncertainty of federal stimulus one-time backfill
• 1 million encroachment currently estimated

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Outstanding Issues

• 2009-10 Mid-year cuts
• States structural imbalance remains
• Budget concerns will likely continue beyond
  2009-10
• LAO estimates structural shortfall will reach 20
  billion by 2012-13 and 26 billion by 2013-14.
• 50 Law concerns
• Elimination of FT Faculty Positions
• Reduction in Instructional Salaries (Extended
  Day)
• Categorical Contributions

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Current Reserves

• Board Policy Contingency - 8,917,507
• Board Discretionary Ongoing resources - 347,897
• Board Discretionary Contingency - 6,127,726

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Questions?
2009-2010 Proposed Budget