Download Minutes - Sep. 16, 2003 - SMCCCD Public Sharepoint

District Committee on
Budget & Finance
September 16, 2003
2 p.m.
Sequoia Room, District Office
Attendees:
Lynn Pontacq, Chair, Rick Ambrose, Eloisa Briones, Patricia Dimond, Regina
Stanback-Stroud, Virgil Stanford, Terry Watson
Agenda topics
Approval of Minutes
Pontacq
Discussion:
The minutes of the August 19, 2003 meeting were approved with a correction. The minutes will be
posted on the District’s portal page. Lynn Pontacq agreed to notify all District staff that the minutes will
be made available on the website.
Statewide Budget Workshop
Stanford, Briones,
Dimond & Carrington
Discussion:
Concurrent Enrollment – Because the SMCCCD does not receive any State apportionment funding,
we are one of four districts not affected by the $25 million Statewide reduction for “non-compliant”
concurrent enrollment. Many of the districts represented at the workshop were opposed to the allocation
of the reduction, which will affect workload measures and ultimately base apportionment revenue.
Growth Funding – Growth revenue is available to districts whose funded workload equals or exceeds
their growth cap. Growth funding is not guaranteed but is provided based upon available State funding.
For 2003-04, only $57.9 million (1.5%) is available Statewide.
For Fall 2003, the SMCCCD is experiencing a decrease in enrollment. Unless enrollment increases for
Spring 2004, the enrollment decline will result in a smaller general revenue limit in for 2004-05. If the
District is able to increase its enrollment again in Fall 2004, its revenue limit would be adjusted as a P1
recalculation in February 2005. The three-year enrollment decline funding mechanism (stability funding)
will no longer be available; however, districts will still able to restore FTES to their pre-decline cap
within three years.
Regina Stanback-Stroud suggested that the District have a strategy to increase its FTES unless the
intent is to get to basic aid, which is another strategy. If the strategy is to go after FTES, decisions would
have to be made to reallocate funds. The County provides the District with property tax projections,
which are reviewed four times each year. The Committee on Budget & Finance will be provided with the
County property tax estimates as a forecasting tool. In response to discussion about District reserves, it
was decided to add the District’s 2002-03 Ending Balance to the agenda.
As part of the State Chancellor’s Office budget proposal for 2004-05, Partnership for Excellence (PFE)
may be rolled into base apportionments. Because the statutory authority for PFE “sunsets” on January 1,
2005, this proposal would keep PFE funding in the System budget and make it eligible for annual COLA
funding. For SMCCCD, the revenue limit would increase and ERAF funding would offset the difference
between the revenue limit and a combination of enrollment fees (98%) and property tax revenue. In
theory, depending upon circumstances, the District could bounce in and out of basic aid for many years.
Financial Aid Assistance – The State budget included $38 million to assist the campuses in informing
students of financial aid opportunities available to them. Of the $38 million, $34.2 is intended for
increasing financial aid staffing and enhancing financial aid service and capacity. The remaining $3.8
million will be spent on a Statewide public awareness and access campaign. A teleconference is taking
place today to answer questions, such as how the required maintenance of effort was determined. The
funds are intended to supplement but not to supplant existing college funding. Specific outcomes
measured by increased BOGG and PELL recipients will be reviewed. Colleges have been encouraged to
develop long-term strategic spending plans for these funds as soon as possible.
Economic Outlook for 2004-05 – Also included in the State Budget Workshop was an analysis
presented by a representative from the Legislative Analyst’s Office regarding the 2004-05 budget year. If
every assumption holds true, the State will still have a shortfall in 2004-05. Economic recovery is finally
underway, and revenue is projected to either meet or exceed estimates. The bad news is that growth is not
sufficient to diminish the projected 04-05 budget gap. There is still an operating shortfall of roughly $10
billion. The risks are that major State borrowings in the budget are subject to court challenges, the State’s
share of tribal gaming is still not certain, and the options to deal with past shortfalls are not as numerous.
One-time revenue sources once available were used in 2003-04 and repayments of bonds are coming due.
2002-03 District Ending Balance
Pontacq
Discussion:
Lynn Pontacq referred Committee members to Page 24 of the 2003-04 SMCCCD Final Budget report
for a review of the District’s ending balance. Each year the District develops an estimate of revenue and
expenditures combined with its net beginning balance. The beginning balance consists of prior-year
commitments, site ending balances, the contingency reserve, and the unrestricted balance. Of the $9.6
million ending balance, $5.5 million is devoted to site ending balances and other committed projects, such
as Professional Development Program, Program Development, etc. The contingency reserve is $3.5
million, which is an appropriation established by the Board of Trustees in 1988 to be 3.5% to 5% of
estimated revenue. For many years, the District has budgeted this reserve at 4%. The unrestricted
uncommitted balance from 2002-03 is $552,580, which will be held in reserve for uncertainties in
budgeting and/or mid-year adjustments, etc.
College/District Position Control Costs
Pontacq
Discussion:
Due to Jim Keller’s absence, a spreadsheet detailing 2003-04 budgeted administrative, faculty, and staff
FTE by function was distributed but not discussed.
Next Meeting
Pontacq
The Committee meets on the first and third Tuesdays at 2 p.m.. The next meeting will be on October 7
from 2 to 4 p.m. in the Sequoia Room at the District Office.