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Mission College Budget Update Prop 30 Passes with 54% of vote

Mission College Budget Update Prop 30 Passes with 54% of vote. Nov 20, 2012 Mission College Presented by : Rick Bennett, VP Admin Services. Rocky Ground--National Perspective. Dec 2007 Great Recession Most severe economic decline-Great Depression Downgraded US debt

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Mission College Budget Update Prop 30 Passes with 54% of vote

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  1. Mission CollegeBudget UpdateProp 30 Passes with 54% of vote Nov 20, 2012 Mission College Presented by: Rick Bennett, VP Admin Services

  2. Rocky Ground--National Perspective • Dec 2007 Great Recession • Most severe economic decline-Great Depression • Downgraded US debt • Officially over July 2009-hard times keep coming • Economy slow to recovery- 1st Qtr. Growth • 2010 3.9% 2011 0.4% 2012 1.9% • Public sector continues to shrink • Economy needs private sector employment to rebound;tax revenues will lag

  3. State 2012/13 Budget… • Assumes approval of Nov 6 Prop 30 tax initiative to raise new revenues • 0.25% increase in Sales tax for 4 years • Increase in personal income tax for wage earnings in excess of $250K for 7 years • Total State Budget will still be $11B below 2007-08

  4. 2012/13 Budget Assumptions • SB 361 still in place…for now • Hold harmless from shortages in Redevelopment Authority (RDA) Revenues • Meet FON and 50% Law • Funding for 310 FTEF • Cash flow is a trickle in 2012/13 FY • No COLA (last COLA was 2007-8) • No policy changes to categorical programs • Mandate Block Grant ($28 per FTES in lieu of claims)

  5. District 2012/13 budget • Part of a 3 year recovery plan from 11/12 cuts • Shortfall--revenues $6M less than Budget • Ongoing 3 year recovery plan • $3M reduction plan • $1.5M new revenues Land Corp • Reductions in Associate Faculty • Mission’s component is $600,000. • 3.5% salary concessions and furloughs from all MC staff—Faculty in negotiations

  6. With Prop 30 Passage • Ca. Community College System • Gains $50 M to restore portion of FTES lost in last 4 years • $160M in deferral repayments from the state • Decrease obligation from $961M to $801M • District Workload Increases 141 FTES ($640K) • Mission 65 FTES

  7. 2013/14 Shortfall PlanningStill in the woods even with Prop 30 • Tax Passes • Minimum$2.5M shortfall earlier cuts • $1.5M to restore bargaining concession • $1.0M for salary, benefits & operational cost increases • Recovery Plan • $1.0 Budget Reductions • $1.5M Continuing WVM LandCorpFunding

  8. Risky Budget for 12/13 and 13/14 • Snakes in the Grass • Redevelopment Authority (RDA) shortfall • $340M owed to the System • Potential delays and litigation • Potential 2013 mid year cuts if state doesn’t increase tax revenues

  9. Positive News • LAO report of 11/12/12 • showed decrease in State’s budget deficit from $13B to $1.9B • Potential relief for community colleges in 13/14 and 14/15 when combined with Prop 30 revenues

  10. Prop 39 passed by 60% margin • Tax Treatment for Multistate Businesses. Clean Energy and Energy Efficiency Funding. Education. • Potential additional State Revenue for CCC’s • May mean $25-50m per year for the CCC system over 4 years and $100m or more per year after 4 years

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