NOCCCD Townhall Presentation

1. NOCCCD Townhall Presentation November 13, 2012 Presented by: Fred Williams – Vice Chancellor, Finance & Facilities

2. Agenda • Proposition 30 • Some Historical Information • Budget Plan • 2012-13 • 2013-14 • 2014-15 • Other News

3. Proposition 30 The Schools and Local Public Safety Protection Act of 2012

4. Proposition 30Temporary Tax Increase • Increases Sales Tax by ¼ percent for 4 years • Increases Income Taxes for those earning over $250,000 per year ($500,000 for married couples) for 7 years • Would raise an estimated $6 billion per year • Different estimates from Department of Finance (DOF) and Legislative Analyst Office (LAO)

5. Proposition 30 • No Base Reductions • $50 million in growth/restoration • $159.9 in Deferral Buy downs • From $961 million to $801.1 million • Puts restrictions on funding • Potential for growth and COLA in future years

6. Historical Information

7. Revenues

8. Apportionment

9. FTES Trends

10. Employee Count

11. Budget Planning

12. 2012-13Budget Plan • Add in the $11.1 million in revenues to the budget • Add FTES to make sure we capture growth • Allocate $3.8 million in one-time reductions to budget centers to balance the budget • Return $8.5 million to budget centers that contributed to the Deficit Reserve • Allow budget centers to fill non-faculty positions after they indentify the on-going reductions for 2013-14

13. 2012-13Budget Plan • Add 330 FTES and $400,692 to extended day budgets • Allocate one-time cuts to budget centers to balance the budget $3,830,609

14. 2012-13Budget Plan • Return $8.5 million to budget centers for their contribution to the deficit reserve • Allow budget centers to fill non-faculty positions after they have identified their portion of the on-going reductions

15. 2012-13Budget Plan

16. 2013-14Budget Plan • Keep the FTES base as 2012-13 including the additional 330 FTES • Make adjustments for FTES if growth funds are available • Offer summer session • Hire faculty to meet our Full-time Faculty Obligation • Make on-going reductions of $5 million to correct our structural deficit – this will be adjusted if additional on-going funds are available

17. 2013-14Budget Plan • Full-time Faculty Obligations • Assume the Board of Governors will continue the freeze, adjusted for growth • Estimated that we will need to hire at least 14 • On-going reductions of $5 million • Cypress College - $1,515,673 • District Services - $861,180 • Fullerton College - $2,029,603 • School of Continuing Ed - $593,544 • Above amount can be reduce by the on-going operating allocation given for eliminated vacancies that totaled $2.1 millions

18. 2013-14Budget Plan

19. 2014-15Budget Plan • Adjust FTES Targets Accordingly • Hire Full-time Faculty to meet our Full-time Faculty Obligation • Normal Adjustments for Budget Changes • Growth • COLA • Other

20. Other News

21. Other News • Big gains for Democrats in both Houses • Potential for a Super Majority in both the Senate and Assembly • Senate – 40 seats • 27 needed for a super majority • Looks like the number could be 28 or 29 • Assembly – 80 seats • 54 needed for a super majority • Right on the number • Won’t need support of Republicans to pass tax increases, constitutional amendments and urgency legislation

22. Questions