GLENDALE COMMUNITY COLLEGE DISTRICT

BUDGET COMMITTEE MEETING

MINUTES

March 24, 2009

12:00 – 1:30 pm

The Budget Committee Meeting was called to order at 12:00 p.m. with Ron Nakasone chairing.

Present:Amir Nour (Resource),Sarkis Ghazarian (Guild), Dr. Rick Perez (Admin), Paul Buehler (CSEA), Vicki Nicholson (Resource), Poorna Pal (Resource),Hoover Zariani (CSEA), Marion Mikhail (ASGCC),Paul Mayer (Senate), Peggy Renner (Resource), Dr. Dawn Lindsay (Admin)

Absent: Arnel Pascua (Admin), Ovsanna Khachikian (ASGCC)

MSC the Minutes of the March 12, 2009 meeting were approvedas presented.

EXEMPT COSTS:
Ron distributed spreadsheets for the Projected Revenues and Exempt Costs for 2009-10:
  • Projected revenues for next year are flat; PDC transfer for $500k in 2008-09 was a one-time revenue source which is not available again. The College should reach its .68% growth cap in 2008-09 which will provide $450k of new revenue. The P1 Report shows that we are 500FTES over cap. There were some conflicting enrollment numbers presented at the Academic Affairs meeting. The committee agreed to request an update on the report from Sharon Combs.
  • Two major exempt cost categories will need augmentation: $250k will be needed for Utilities and an estimated $650k for Step and Column; Ron will provide an actual cost increase for Step and Column at a future meeting;
  • The College did not have a rate increase for the Blue Shield PPO and Kaiser plans for 2009. The College will benefit for six months of 2009-10 from this. The number of employees covered with health plans has decreased due to not filling all of the retirees. Assuming a 10% increase in premiums for 2010, the College should be able to reduce its budget $100k for health benefits. State unemployment insurance can also be reduced $100k for 2009-10. Augmentations will be needed for PERS ($138K), Medicare ($13K), OSDHI ($42K) and retiree benefits ($60K).
  • Overall almost $1 million of augmentations for exempt costs will be needed for 2009-10.
2009-10 OPERATING BUDGET STATUS:
  • Projected revenues will be down $108k from last year;
  • In 2007-08 and 2008-09, the College realized a $1 million reduction in revenue from a property tax shortfall. Although the shortfall was backfilled in 2007-08, there is no word that the 2008-09 shortfall will be backfilled. Ron will include an estimated $1 million property tax shortfall in developing the 2009-10 budget.
  • The estimate for exempt cost augmentations is about $1 million for 2009-10;
  • There will be “Must Do” items such as accreditation ($25K) that must be funded next year;
  • Overall the college is looking at about a $2.1 million deficit for next year;
  • Not filling retiree positions will address about half of the deficit and the ending fund balance in excess of 5% will also be available for the deficit. But these may not be enough to balance next year’s budget.
  • There was discussion on whether the Board will need to declare a fiscal emergency.
  • When Garfield construction is finished, additional support services will be needed. Peggy Renner questioned who would determine that budget.
STATE BUDGET:
The Legislative Analyst Office is projecting an $8 billion deficit for next year and a $3.6 billion deficit in Prop 98 funds; they are recommending the State reduce Prop 98 funding by $3 billion and backfill with federal funds and increase the student enrollment fee to $40 per unit.
There are five ballot measures for the Special election on May 19th:
  • 1A puts a cap on state spending, establishes a rainy day fund and increases to two years the time period in which tax increases are effective;
  • 1B increases Prop 98funding to $9.3 billion over five years;
  • 1C would enable the state to borrow funds from future lottery revenues;
  • 1D would allow the redirection of childhood development funds to support existing childhood development programs;
  • 1E would allow the direction of mental health funding to support existing mental health programs;
  • The Federal Economic stimulus money would provide $31 billion to California, and $7.9 billion estimated for K-12 and higher education;
  • The May revise will be released on June 8th after the election.
The meeting was adjourned at 1:10 pm.
The next meeting will be held on April 9, 2009.
Minutes submitted by:
Mark Darcourt
Administrative Services / Outcome:
There was a discussion on CSEA’s interest in repeating the shortened workweek for the summer; Hoover Zariani will report back to the committee.
Ron will look at retiree savings and determine if we can end the year with half a million over 5% to address the deficit.