Budget Advisory Committee

BUDGET ADVISORY COMMITTEE

Tuesday, April 27, 1999

Senate Chambers, 3:00 P.M.

The meeting was called to order by John Roberts, Chair.

Members present: Maria Angel, Ed Buckley, Barbara Croteau (Co-Chair), Ken Fiori, Doug Garrison, Micca Gray, Steve Olson, Ben Partee, Ron Schuelke, Deborah Sweitzer, Sandi Tassano.

Members absent: Rosemary Darden, Paul Finn, Ricardo Navarrette, Erin Parr, Caroline Tice.

Also present: Robert Agrella

Staff to the Committee: K. Bradbury, E. Cichocki, R. Kyle.

Announcements:

Dr. John Roberts announced his retirement plans to be effective mid-to-late July of this year.

1. Approval of March 23, 1999 Minutes

It was M/S/C to approve the minutes of the March 23, 1999 meeting.

The IPC appointed a subgroup to develop budget planning parameter recommendations to send forward to BAC. IPC has chosen to emphasis three goals. The first two are important to the interests of BAC because they relate to enrollment, enrollment growth, and achieving enrollment targets. The subcommittee recommended three institutional goals selected for special emphasis with the knowledge that given what is known about the state budget for 1999-00, it is very likely BAC would probably not have resources for anything other than a status quo budget. There won't be opportunities for augmentations other than at the component (Vice President) level where reallocation and problems can be addressed. There is very little opportunity through the base general fund budget, except Partnership for Excellence, to address those problems. The parameters sent forward to BAC and attached to this agenda are the subgroup's recommendations to the full IPC who endorsed them with the knowledge that there is going to be very little opportunity for budgeting by addition. Dr. Roberts reviewed each of the ten items on the list with the committee explaining that IPC has transmitted to the BAC what they consider to be the things that need to be kept in mind, again stating that at this point there is not much opportunity to do any of it with what we know of the 1999-00 budget. Questions followed. Steve Olson asked if the state budget picture gets brighter whether there is a possibility that a small amount could be set aside to address passive increases that occur during the year, i.e., rental rate increases on facilities, printing costs, etc. Dr. Roberts said there will be some provision for passive cost increases, but that is not to say that every unanticipated cost will be covered as a passive cost. Management within the components will need to provide projections during budget development as much as possible.

There was a review and discussion of Partnership for Excellence (P4E) report on allocations of 1998-99 funds made to the Board. Dr. Roberts drew attention to the last page of the material to the box summarizing current balances. At the time the material was prepared $637,800 was still available for One-time Allocation now or for next year. Out of the $1.9 million there would be $422,000 available for On-going Allocation. This is NOT how the year will end, since it assumes that everyone will spend out all of what was allocated. Dr. Roberts anticipates the One-time balance will increase.

A handout, "Proposed Guidelines 1999-2000 Budget, Estimated Planning Figures for Tentative General Fund Budget" is a plan for proceeding with a Tentative Budget and contains items that may affect the general base budget. The May revise is scheduled to be released on May 14th. What appears to be bad news in ADA, K-12 is coming in low at $50-$60 million statewide. The priorities are: maintaining COLA and extending it to categorical programs; increasing the appropriations for statewide growth; funding equalization at $9+ million and increasing the $10 million P4E allocation by whatever is left over. Somewhere in the mix is new faculty allocation. Deborah Sweitzer noted that for the first time all segments at the consultation level agreed on the priorities for the budget. The extent to which this will make a difference is not known. While none of this is earth shaking news, Dr. Roberts suggested that these guidelines or any new ones be used to develop our tentative budget. Most of the new funding as it comes in will be dedicated for growth, P4E, and new faculty. Steve Olson warned that there could be a substantial decrease in Non credit matriculation funding as a result of a proposed change from allocation based on FTES (which has resulted in SRJC being a substantial beneficiary) to an allocation based on student head count. There is some work going on right now which will further study this item, and the District will continue to watch it.

Dr. Roberts explained that the handout summarizes how the District proposes to proceed, and the situation may get a little better as changes in State and local revenue, State allocations, and final 1998/99 budget closing become known. Deborah Sweitzer made a final note that the State budget may be approved earlier than in the past.

Meeting adjourned: 3:50 p.m.

Next Meeting: Thursday, May 20th, 3 pm, Maggini Conference Room.