Governor’s January Budget “Best Case Scenario” Budget Package Entire package assumes voters will approve a $12 billion tax package (measure on June ballot)

Governor’s January Budget

“Best Case Scenario” Budget Package

Entire package assumes voters will approve a $12 billion tax package (measure on June ballot) Five year extension of temporary taxes:

Personal Income Tax Dependent Care ExemptionSales & Use TaxVehicle License Fee


Overall, two-year budget shortfall is projected at $25.4 billion$8.2 billion for 2010-11$17.2 billion for 2011-12

Total shortfall could grow by additional $1.2 billion (for a total of $26.6 billion) if sale of state-owned real estate does not occur.

Proposal to address shortfall:$12.5 billion in spending reductions$12 billion in revenue extensions and modifications$1.9 billion in “other solutions”Provides $1 billion reserve


Major proposed reductions include:$1.7 billion to Medi-Cal$1.5 billion to CalWorks$750 million to Department of Developmental

Services$500 million to University of California$500 million to Cal State University$308 million for 10% pay reduction for State

employees not covered under collective bargaining agreements

$200 million through various actions including reorganizations, consolidations, and other efficiencies

Community CollegesNo mid-year cuts (2010-11)$400 million cut for “Apportionment

Reductions and Reforms” – Census date reformsRepresents a 7% funding reduction

Student fee increase of $10 per credit unitFrom $26 to $36 … 38% increaseExpected to generate $110 million in revenues

1.9% Enrollment Growth (funded by the $110 million generated from student fee increase)22,700 FTES

Community Colleges

Additional $129 million deferral, for a total of $961 million

No further cuts to categorical programsCategorical flexibility provisions extended

through 2014-15Full funding for Cal Grant program

Budget UncertaintiesVoters Approving Tax ExtensionsTransfer of Redevelopment FundsSale of Government BuildingNetting Growth with Cuts in CC BudgetRemoving Census Date LanguageCourse Repeatability IssuesWorkload Measure Reductions

THE LIST COULD GO ON AND ON….

NOCCCD Ongoing Budget

PY Operating Deficit $ (2,348,619)

Anticipated Changes:10% Benefits Increase (765,880)PERS Rate Increase (10.7% to 11.2%) (263,553)Step and Column Increases (1,000,000)

Total Operational Reductions Needed $ (4,378,052)

Note: The PY Ongoing Operating Deficit excludes a contribution to the Retiree Benefit Fund ($1.5 million) and the Self Insurance Fund ($1.2 million)

Impact to NOCCCDBudget Cuts $400 million $600 million $900 million

Budget Reduction ($10,738,000) (16,644,000)$ (24,161,000)$

$10 Student Fee Increase 2,953,000 2,953,000 2,953,000

Net Reduction ($7,785,000) ($13,691,000) ($21,208,000)

Operational Reductions (4,378,052) (4,378,052) (4,378,052)

Total Cuts ($12,163,052) ($18,069,052) ($25,586,052)

Impact on FTESWorkload Measure Reductions:

FTES % $ FTES % $ FTES % $

Credit FTES @ $1,286 1,705 5.15% 2,192,630$ 2,999 9.06% 3,856,714$ 4,646 14.03% 5,974,756$

Non-Credit FTES @ $863 2,836 8.57% 2,447,468$ 4,988 15.06% 4,304,644$ 7,726 23.33% 6,667,538$

CDCP FTES @ $863 2,409 7.28% 2,078,967$ 4,236 12.79% 3,655,668$ 6,562 19.82% 5,663,006$

FTES Over Cap: Credit @ $1,286 Non-Credit @ $863

3,705 4,764,630$ 3,197,415$

$7,785,000 $13,691,000 $21,208,000

Full-Time Faculty ObligationCalculated Obligation – Fall 2010 559.8 Diff

Compliance Obligation 529.8 30

Filled Positions 507 Cushion

Current Recruitments 241

$400 m $600 m $900 m

Calculated Obligation 559.8 559.8 559.8

Workload Reduction 5.15% 9.06% 14.03%

Revised Obligation 530.97 509.08 481.26

Available Resources2010-11 One-Time Board Discretionary Contingency $ 2,126,834

Growth Funds 3,500,000

Negative COLA Budgeted 573,000

Mandated Cost Revenue 673,000

Deficit ($2,500,000 - $1,500,000) 1,000,000

Faculty Vacancies 1,000,000

One-Time Funds $ 8,872,834

Available Resources2011-12 On-going Funds On-going Growth $ 3,500,000 Negative COLA Budgeted 573,000 On-going Dollars that can be used to offset cuts $ 4,073,000

Budgeted Deficit $ 2,500,000

Budget Shortfall$400 m $600 m $900 m

Target Cuts 12,163,052$ 18,069,052$ 25,586,052$

On-going Dollars Avail. (4,073,000) (4,073,000) (4,073,000)

Budgeted Deficit (2,500,000) (2,500,000) (2,500,000)

Extended Day Reductions (Over Cap FTES) (3,500,000) (3,500,000) (3,500,000)

Workload Measure Reduction (2,000,000) (4,000,000) (6,000,000)

Subtotal 90,052$ 3,996,052$ 9,513,052$

Faculty Vacancies (1,500,000) (2,880,000)

Classified Vacancies (2,000,000) (2,000,000)

Other Things to ConsiderCapping Medical BenefitsSalary Rollbacks:

FT Positions (1%) - $1,024,049PT Faculty (1%) - $218,442

Furloughs1 day/month for 12 months – 5%

Increase Faculty LoadsLayoffsEliminating Release TimeEliminating Summer School and the related

impactsAthletic Programs

Other NOCCCD ImpactsAdditional Deferrals – Estimated at $22 million

Many uncertainties still remainCould be costly to districts

Redevelopment Changes – Proposal is to phase-out RDA’s over timeApproximately 59% of NOCCCD projected

redevelopment payment revenues could be “at-risk”

Hearing that most, if not all, of the proposal will not be implemented

Documents

Governor’s January Budget “Best Case Scenario” Budget Package Entire package assumes voters will approve a $12 billion tax package (measure on June ballot)