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Budget Update Welcome Back

Budget Update Welcome Back. Diana Keelen August 17, 2012. “While the California budget is uncertain, there is one thing that is certain, it will change.”. California State Budget. Deficit is $14.7 billion Assumes the passage of Proposition 30: Schools and Public Safety Act in November

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Budget Update Welcome Back

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  1. Budget UpdateWelcome Back Diana Keelen August 17, 2012 • “While the California budget is uncertain, there is one thing that is certain, it will change.”

  2. California State Budget • Deficit is $14.7 billion • Assumes the passage of Proposition 30: Schools and Public Safety Act in November • Temporary sales tax increase of 0.25% and progressive 1-3% income tax increase for those making over $250K per year. • Polling is at 52-56% • Competing with Molly Munger tax geared towards K-12 only

  3. California Community College Budget • Tax package would bring 4% additional funding each year or $3 billion to community colleges over the next 7 years • It would provide $548.5 million alone in 2012-2013, including $50 million in growth-Timing may be a challenge • Includes $28 per FTES in Mandated Cost Reimbursement • RDA hold harmless agreement • Deferrals are at $961 million-$159 million would be “bought down” • If the tax package fails, college enrollment would drop by 85,000 FTES • If the tax package fails, CC budgets would be reduced by $338.6 million • If it fails, deferrals would be on-going

  4. Antelope Valley College Budget

  5. General Fund Make Up of Revenue

  6. General Fund Make Up of Expenditures

  7. Deficit Co-Efficient Trend

  8. Deferrals • California Community College Deferrals now at $961 million • AVC impact: Deferral total of $14,165,447 or roughly 32% of our apportionment. • For 2012-2013, we will only receive 40% of what we received in the first 5 months of 2011-2012

  9. What happened in 2011-2012?

  10. 2012-2013 Draft Adopted Budget Assumptions • No COLA • No Growth, although if tax package passes, there is about $50 million in growth or ~$400K-$450K to AVC • Scenario B with tax package not passing • Continued deferrals of over $14 million • No deficit co-efficient • Continued deficit spending reserve-Need a plan • Risk of falling below 8% reserve next year

  11. Budget Changes from 11-12 to 12-13

  12. 2012-2013 Draft Adopted Budget & Projections Preliminary Figures/Unaudited Actuals As of 8/13/2012 2013-2014 and beyond assumes 4% increase if tax package passes will most likely go to deferral buy down

  13. Questions?

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