State Budget Update & Governor’s 2012-2013 Budget
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Transcript of State Budget Update & Governor’s 2012-2013 Budget
STATE BUDGET UPDATE &
GOVERNOR’S 2012-2013 BUDGET
Mt. San Jacinto Community CollegeBoard of Trustees Meeting
January 19, 2012
Presentation Topics
2011-2012 Budget Update Governor’s January Budget Proposal Potential Impact to:
Higher Education
California Community Colleges
Mt. San Jacinto College
Board of Trustees—January 19, 2012
*Budget Information provided by the Community College League of California & the Chancellor’s Office during the Budget Webinar on January 11, 2012
Budget Update 2011-2012 Budget
At Budget Enactment:$400 million ongoing general fund cutFee increase to $36 per unit effective Fall 2011
January Mid-Year Actions Additional Cuts totaling $102 million Fee increase to $46, effective Summer 2012Effective ongoing cut of $385 million
Board of Trustees—January 19, 2012
Threats:• More students applying for Board of Governors
fee waivers, leading to lower fee revenues
• Governor proposes cutting $146.9 million in general fund apportionments, with expected increased property taxes from the end of redevelopment
• Deficit coefficient due to property tax shortfalls
Board of Trustees—January 19, 2012
Budget Update 2011-2012 Budget
Board of Trustees—January 19, 2012
Budget Update 2011-2012 Budget “Trigger” Cuts
Series1
-$4
-$3
-$2
-$1
$0
Tier 1
Tier 2
Bill
ions
Tier 0 No Additional Cuts
$30 million Reduction to Community CollegesEnrollment Fee Increase of $10 (to $46)$23 million cut to Child Care$548 million reduction to UC, CSU & Other State Programs
Additional $72 million reduction to Community Colleges $248 million to K-12 Transportation Up to $1.5 billion cut to K-12 Revenue Limits (This would be prorated based on the level of reduced
revenue projections)
2011-12 Adopted Budget built on this assumption!
Tier 2 Trigger Pulled December 2011
• Additional $700K reduction in apportionment revenue
• Equivalent to 150 FTES
Board of Trustees—January 19, 2012
Budget Update 2012-2013 Budget
Board of Trustees—January 19, 2012
Budget Update 2012-2013 Budget
Governor plans to collect signatures for an initiative to temporarily increase taxes:
• November 6, 2012 ballot• Simple majority required• Raises sales tax by 0.5% from January
1, 2013 through December 31, 2016• Raises personal income taxes on
individuals > $250,000 from 2012 through 2016 tax years
Board of Trustees—January 19, 2012
Budget Update 2012-2013 Budget
Board of Trustees—January 19, 2012
Budget Update 2012-2013 BudgetNew Budget Triggers
If the revenue targets associated with the governor’s tax plan are not met, triggered cuts would be made:
Board of Trustees—January 19, 2012
Budget Update 2012-2013 Budget
Board of Trustees—January 19, 2012
Budget Update 2012-2013 BudgetCommunity College Scenarios
$218 million “deferral buy-back”
$12.5 million mandates block grant
$264 million base cut, workload reduction of around 5.56%
No Scenario A Augmentations
Categorical Consolidation Both Scenarios $411.6 million
Scenario A Scenario B
Board of Trustees—January 19, 2012
Budget Update 2012-2013 BudgetDeferral “Buyback”
Maneuver “spends money,” “reducing debt,” without a program benefit.
2012-13 Proposed2011-12
“Flexible” Programs
• Basic Skills• Student Financial Aid Admin.• EOPS• Cal Works• Matriculation • Academic Senate• Equal Employment Opportunity • Part Time Faculty Compensation • Fund for Student Success• Economic Development• Transfer Education & Articulation • Child Care Bailout• Nursing
“Restricted” Programs
• Disabled Students • Foster Care Education • Telecommunication & Technology
Board of Trustees—January 19, 2012
Budget Update 2012-2013 BudgetCategorical Flexibility
Tax measure is politically uncertain and costly.
Tax measure may not yield full $6.9B(LAO suggests perhaps only $4.8B)
Planning will be difficult. Workload reduction of 5.56% will be decided in November
Student fee shortfall with more BOG waivers. Property tax shortfall, particularly in light of
redevelopment projections/uncertainty.
Board of Trustees—January 19, 2012
Budget Update 2012-2013 Budget Budget Risks
Board of Trustees—January 19, 2012
Budget Update Redevelopment Successor Agency Oversight Boards
Budget Bill ABXI 26 included as part of the fiscal year 2011-12 State budget dissolves more than 400 Redevelopment Agencies (RDA’s) in the State. Supreme Court decided RDA’s may be abolished Successor Agencies will be established to pay the on-
going obligations of RDA’s. Each oversight board will be comprised of seven members
appointed by the County Board of Supervisors, the County Superintendent of Education and others.
The legislation stipulates that each oversight board will include a community college representative appointed by the State Chancellor of the California Community Colleges
Redevelopment Agencies (RDA’s) in the MSJC district include: Banning Redevelopment Agency Beaumont Redevelopment Agency Calimesa Redevelopment Agency County of Riverside Redevelopment Agency Hemet Redevelopment Agency Lake Elsinore Redevelopment Agency Murrieta Redevelopment Agency Perris Redevelopment Agency San Jacinto Redevelopment Agency Temecula Redevelopment Agency
Board of Trustees—January 19, 2012
Budget Update Redevelopment Successor Agency Oversight Boards
2012-2013 Base Revenue (Before reductions) $49,131,469Number & percent credit FTES 9,309
(96.08%)Number & percent noncredit FTES 258 (2.66%)Number & Percent CDCP FTES 122 (1.26%)
Board of Trustees—January 19, 2012
Budget Update 2012-13 Budget Simulation for MSJC
Scenario A: Governor’s Budget & Tax Package
Scenario B: Governor’s Budget, with Failure of Tax Package
Net Apportionment Cut:
$0 $-2,425,942
Workload reduction percent:
0% 5.56%
Total FTES Reduced 0 -539.14
Board of Trustees—January 19, 2012
Budget Update Ten Year Revenue Analysis
FY02-03 FY03-04 FY04-05 FY05-06 FY06-07 FY07-08 FY0809 FY0910 EST1011
PROJ1112
0
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
PROPERTY TAXES STATE APPORTIONMENT ENROLLMENT FEES OTHERFEDERAL
November Initiative Passes
Board of Trustees—January 19, 2012
Budget Update Credit FTES –Actual vs. Funded
2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 Projected
2012-2013 Projected
8,4589,373 9,730
10,212 9,835 10,079 9,8679,309
9,847
11,160
12,401
10,96110,335 10,400
Funded FTES Actual FTES
Board of Trustees—January 19, 2012
Budget Update Timeline
JANUARY1 2 3 4 5 6 78 9 10 11 12 13 1415 16 17 18 19 20 2122 23 24 25 26 27 2829 30 31
APRIL 1 2 3 4 5 6 78 9 10 11 12 13 1415 16 17 18 19 20 2122 23 24 25 26 27 2829 30
FEBRUARY 1 2 3 4
5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29
MARCH 1 2 3
4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
MAY 1 2 3 4 5
6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
JUNE 1 2
3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
June 15—Constitutional deadline for Legislature
to send budget to Governor
May 14—Governor releases May
Revise
Legislative Budget Hearings & Proposals
Governor’s January Budget
Proposal
Questions?
Board of Trustees—January 19, 2012
State Budget Update & Governor’s 2012-2013 Budget
Budget Development CommitteeBecky Elam, VP Business Services Dr. William Vincent, VP Student ServicesDr. Dennis Anderson, VP Instruction Irma Ramos, VP Human Resources Beth Gomez, Dean Business Services Michael Welden, Faculty Member, Math Ted Blake, Learning Center Elias Escamilla, Counselor Elisabeth Anghel, Librarian Gail Jensen, Business Services Jennifer Pickens , Instructional Aid Karen Connell, Business ServicesFred Frontino, DSPS Bruce Brady, Procurement Ana Moreno, Student Government Steven Sanchez, Student Government