August 20, 2014 Meeting

Agenda

BUDGET COMMITTEE AGENDA
August 20, 2014 – 3:10 p.m.
Human Resources Conference Room
1. Approval of minutes from the May 8, 2014 meeting
2. State Budget Update
3. Community College Budget update
4. Taft College Budget update
5. AB 2235 Facilities State Bond
6. Meeting schedule
7. Future items: Budget calendar, accreditation, etc.
8. Other

Minutes

BUDGET COMMITTEE MINUTES

August 20, 2014

3:10 P.M. – 4 P.M.

Members Present: Sonja Swenson, Brock McMurray, Laura Riss, Agnes J. Eguaras, Sharyn Eveland, Barbara Amerio, Bill Devine, Sheri Horn-Bunk and Debbie Hegeman, recorder.

APPROVAL OF MINUTES

The minutes of the meeting held May 8, 2014 were approved by consensus.

STATE BUDGET UPDATE

  • The State Budget was signed by the Governor June 20th which was the 4th year in a row it was passed on time.
  • The budget is based on the Governor’s more conservative forecast.
  • Protection against boom and bust.
  • New money focus is on education.
  • The general fund expenditures are $108 billion which is 12 billion higher than it was in 2013.
  • Includes a reserve of 1.4 billion.
  • Eliminates $10 billion in debt, deferrals, recovery bonds, etc.
  • Rainy day fund will be on the November ballot (money to be used during bad economic times).
  • CalSTRS (30 year obligation for $74 billion unfunded)
    • State contribution will go from 3% to 6.3% as of 16/17.
    • Employee contribution will go from 8% to 10.25% as of 16/17 (current increase will be from 8% to 8.15%).
    • Employer contribution will go from 8.25% to 19.1% as of 2021 (current increase is from 8.25% to 8.88%).
  • There doesn’t seem to be a threat of trigger cuts for this year.

 

COMMUNITY C OLLEGE BUDGET UPDATE

  • Access – (aka growth money) $140 million. Brock reminded the committee Taft College likely won’t benefit from this for a couple of years since we were one of the schools who took the small school exemption. Also a note the funding formula is scheduled to change during 2015/2016.
  • COLA – $47.3 million – Taft College employees will receive .85% for this year.
  • Categorical funds
    • $100 million for Student Success
    • $70 million for Student Equity
    • $30 million for DSPS which would bring them back up to the level they were during 2009/2010.
  • $148 million for deferred maintenance/instructional equipment. We already know our allocation will be $335,000 which restored $109,000 back in Adrian’s budget for instructional equipment and $225,000 to maintenance. We have already received a list of items from Kanoe to be considered for the deferred maintenance money.

AP 6250 Budget Management
Reference:
Title 5 Sections 58305, 58307 and 58308
Title 5 requires that budget management conforms to the following minimum standards:
∗ Total amounts budgeted as the proposed expenditure for each major classification of expenditures shall be the maximum expended for that classification for the academic year, except as specifically authorized by the Board of Trustees.
∗ Transfers may be made from the reserve for contingencies to any expenditure classification by written resolution of the Board of Trustees, and must be approved by a two-thirds vote of the members of the Board of Trustees.
∗ Transfers may be made between expenditure classifications by written resolution of the Board of Trustees, and may be approved by a majority of the members of the Board of Trustees.
∗ Excess funds must be added to the general reserve of the College, and are not available for appropriation except by resolution of the Board of Trustees setting forth the need according to major classification.
Appropriation Transfer Procedures
Request for Budget Transfers and Revisions will be forwarded to the Administration Services office. Requests will be submitted to the Board of Trustee’s as pursuant to the California Code of Regulations, Title 5, Section 58308.

Supporting Docs