GOVERNOR’S PROPOSED 2012-2013 BUDGETAs proposed in January 2012

The State’s Budget Problem

Low Economic Recovery Continues Uncertainty and Significant Risks

Remain Defining the Budget Gap Temporary Tax Protects Education

and Public Safety Alternative to Taxes is Even Deeper

Cuts

Higher Education Goals Affordability Student Success Stable Funding Sources Fiscal Incentives

Significant Adjustments for California Community Colleges

Apportionments• Increase of $218.3 million to partially restore

deferrals Categorical Program Consolidations

and Flexibility• Exceptions: DSPS, TTIP, and Foster Care

Mandate Reform Redevelopment Agency Elimination Possible Redesign of Funding

Mechanism

What does it Mean for Cuesta College

No COLA• No Growth • No Net Reductions……

No net reductions if the November 2012 Tax Incentive is supported by the voters

With the increased structural and inflationary expenses and the deficit covered by the contingency funds in 2011-2012, we will be looking at a deficit of $3,311,264.

What does it mean for Cuesta College?

Mid-year reduction of • 480 FTES• $2,178,928

Resulting in a deficit that includes the cuts, the increase in structural and inflationary expenses, and the deficit covered by contingency funds in 2011-2012, of $5,490,192.

FYI In 2009 EVERY county voted against

extending existing taxes 89% of voters believe that “there is a

lot or some waste in government.”

FY 2011-2012 FAILED

ELECTION TOTALSSUCCESSFUL

ELECTION TOTALS

Mid-year Reduction (2011-2012) 1,652,764$ 1,652,764$ Trigger 1 245,286$ 245,286$ Trigger 2 605,491$ 605,491$ Enrollment Fee Deficit 801,987$ 801,987$

Budget Adjustments 91,891$ 91,891$ Increase in Faculty Salaries for Summer School 187,110$ 187,110$ Increase in Faculty Benefits for Summer School 22,547$ 22,547$ Reduction of Required Reserve (99,166)$ (99,166)$ Executives' 5% Pay Cut (18,600)$ (18,600)$

TOTAL MID-YEAR ADJUSTMENTS 1,744,655$ 1,744,655$ Therefore Therefore

CONTINGENCY USED TO BALANCE 1,744,655$ 1,744,655$ Then Then

REMAINING CONTINGENCY ($3,094,988 - $1,744,655) 1,350,333$ 1,350,333$

FY 2012-2013 FAILED

ELECTION TOTALSSUCCESSFUL

ELECTION TOTALS

Inflationary Deficit 210,018$ 210,018$ Operating Expenses (Inflationary factor 3.258%) 210,018$ 210,018$

Structural Deficit 2,250,469$ 2,250,469$ New Faculty Costs (5) 150,000$ 150,000$ Faculty Step and Column 100,000$ 100,000$

Benefits 12,050$ 12,050$ Classified Step and Column 100,000$ 100,000$ Benefits 20,920$ 20,920$ Manager Step and Column 20,000$ 20,000$ Benefits 3,297$ 3,297$ Increase in COPS Payment 526,004$ 526,004$ Board Elections ($155,000 budgeted) -$ -$ Emergency Fund 150,000$ 150,000$ Hiring Budget 20,000$ 20,000$ Media Conversion 20,000$ 20,000$ FY 2011-2012 Budget GAP 1,128,198$ 1,128,198$

Carry Forward 2011-2012 Mid-year Reductions (Triggers 1 and 2) 850,777$ 850,777$

Mid-year Reduction 2012-2013 2,178,928$ If sales and income tax increases fail in November 2,178,928$ (Includes a workload decrease of 480.69 FTES (-5.56%))

TOTAL PROJECTED DEFICIT FOR 2012-2013 5,490,192$ 3,311,264$

FACULTY SAVINGS FAILED

ELECTION TOTALSSUCCESSFUL

ELECTION TOTALS

Faculty Savings Resulting from Decreases in Funded FTES 1,130,551$ 215,685$ Savings of Faculty from lower FTES funded CAP 192,490$ 192,490$ Savings of Faculty Salaries with 480 FTES workload decrease 816,480$ Savings of Faculty Benefits 121,581$ 23,195$

Reduction of Required Reserve resulting from Decreases in Revenues 130,736$

GAP FOR 2012-2013 4,228,905$ 3,095,579$

CONTINGENCY BALANCE

FAILED ELECTION TOTALS

SUCCESSFULELECTION TOTALS

CONTINGENCY BALANCE AVAILABLE 2,450,333$ 2,450,333$ Contingency Balance from 2011-2012 1,350,333$ 1,350,333$ New Stabilization Funds from 2012-2013 1,100,000$ 1,100,000$

NOTES

•Need to cut at least $1,130,551 from outside the classroom,

IF there is a 2012-2013 mid-year cut, if NOT then at least $215, 685 in order to preserve the 50% Rule

•More research is being done on what the factor should be for calculating this savings (calculated at $1701 per FTES)

•The impact of the change of the Census Date is not addressed