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DESERT COMMUNITY COLLEGE DISTRICT

8/20/09. DESERT COMMUNITY COLLEGE DISTRICT. The Background to the 2009/10 Budgets where the problems came from how the solutions were found. A Tale of Two Attempts to Solve the State Deficit. February 2009 $36 billion in solutions to the State deficit

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DESERT COMMUNITY COLLEGE DISTRICT

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  1. 8/20/09 DESERT COMMUNITY COLLEGE DISTRICT The Background to the 2009/10 Budgets where the problems came from how the solutions were found

  2. A Tale of Two Attempts to Solve the State Deficit February 2009 $36 billion in solutions to the State deficit FY08/09 FY09/10 No impact on Community Colleges except Apportionment Deferral No impact on COD

  3. July 2009 $24 billion in solutions to the State deficit FY08/09 FY09/10 $83.1m cuts $340.8m cuts in General to Fund and $343m cuts in Community Colleges Categorical Funds $576,000 for COD $1.15m General Fund and $1.4m Categorical Funds for COD

  4. Further Impacts on COD • Workload reduction (FTES) – 3.39% • Tuition increase $20 to $26 per unit • Cuts to Categorical Funds have been tentatively backfilled by Federal Stimulus Funds for FY09/10 Net Cuts: Student Affairs 16 to 32% Academic Affairs 16 to 32% Other 20 to 100% • General Fund Budget Projection State Cuts $1.15m Other State Reductions 0.6m Local Revenue Reductions 62,000 Additional Costs (insurance + steps) 0.9m Adjustments made FY08/09 <0.9m> Total Potential Shortfall $1.85m

  5. Balancing the General Fund 15% to 50% Reduction to all discretionary, non-payroll budgets (e.g. supplies, travel, services)  saves  $ 681,000 Reduction to classes (Fall ‘09, Spring ’10 and Summer ‘10)  saves  1,070,000 Further Savings or Use of Reserves 99,000 $1,850,000

  6. Balancing the Categorical Funds Reduced expenditure plan within each Fund to reflect the reduced level of funding.

  7. Projections for FY10-11 through 2013-14 Assumptions: • No COLA funding, no COLA salary increases throughout the period. • No FTES Growth funding, no growth in program or services expenditures throughout the period. • 5% inflation on non-salary expenditures per year. • Step increases each year. • 10% inflation on insurance premiums per year. • Provision for board elections when requested.

  8. Projections for 2010-11 through 2013-14 (thousands of dollars)2010-112011-122012-132013-14 Total Reserves at beginning $5,387 $ 2,610 $(1,564) $(7,432) Projected Cost Drivers 2,777 4,174 5,868 7,614 Total Reserves at end $2,610 $(1,564) $(7,432) $(15,046) Conclusion: Without some form of intervention, COD will move into an overall deficit in 2011-12 which will only worsen for the balance of the period.

  9. The End

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