Budget Advisory Committee

SANTA ROSA JUNIOR COLLEGE

BUDGET ADVISORY COMMITTEE

Thursday, May 20, 1999

Maggini Conference Room, 1:30 P.M.

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

Members present: Maria Angel, Rosemary Darden, Paul Finn, Ken Fiori, Ricardo Navarrette, Steve Olson, Erin Parr, Sandi Tassano.

Members absent: Ed Buckley, Barbara Croteau (Co-Chair), Doug Garrison, Micca Gray, Ben Partee, Ron Schuelke, Deborah Sweitzer, Caroline Tice.

Staff to the Committee: E. Cichocki, R. Kyle, Lamont Royer.

1. Approval of April 27, 1999 Minutes

It was M/S/C to approve the minutes of the April 27, 1999 meeting.

Dr. Roberts reported on the May revise and what he learned from the Chancellor's Office representative at the Chief Business Officers Association conference last week. The May revise was not good to the community colleges at all. The percentage of the Proposition 98 dollars in the Governor's proposed budget dropped from 10.4% to 10.32%. While the Proposition 98 revenues grew from the January forecast, the community colleges got very little of it. Probably the most disappointing thing about the budget is the lack of recognition that the community college system is entitled to a certain portion of the Proposition 98 dollars. 10.8% is the unwritten agreement with K-12. There is a $1 student fee reduction from $12 to $11 per unit which results in about $12 million revenue reduction to the system but will be backfilled by the general fund or property taxes.

There is a downward revision of COLA from 1.83% to 1.41%. It is uncertain how that translates in terms of lost revenue, but the task to make the budget work becomes more difficult. There is no equalization in the Governor's budget.

There is no change in Partnership for Excellence on the May revise, and the second year appropriation remains at $10 million. CTA and FAAC co-sponsored legislation to appropriate 40% of P4E funds for hiring full-time faculty.

Finally, the only system priority that increased with the May revise was the growth appropriation. Growth funds are to be targeted for enrollment in core curriculum courses and transfers. SRJC has a better chance of getting growth in this way than by increasing FTES. These are exactly the kinds of outcomes the system is looking for under P4E. In response to a question from Ricardo Navarrette, one percent represents approximately $30-$35 million to the system statewide.

The K-12 system is overfunded by $130 million due to an over-estimate of growth, and there appears to be some hope for an increase for colleges from these funds.

Work needs to be done between now and the time the budget is finalized. The Assembly will vote on its version of the budget and once that happens the two houses will meet to reconcile their differences.

Dr. Roberts feels there will probably be some movement on full time faculty issues. There will be an emphasis to retain position with respect to Proposition 98 funding. Dr. Roberts and Dr. Agrella have lobbied State senators and Assembly representatives in that regard. Further, Dr. Roberts indicated there may be a $100,000 special category of deferred maintenance for energy type projects that may work for our retrofitting for lighting project. There is still a possibility for a 2-to-1 match for scheduled maintenance as well.

Paul Finn asked about the anticipated reserve balance on July 1st. Dr. Roberts gave a very ballpark figure at $8.5 million. At the beginning of the fiscal year just under $3 million was budgeted for projects that include purchasing software, HP 3000 upgrade, mid-year cash for the current year salary program, etc.

Regarding non credit matriculation, there is a major task force effort to study these issues, and Dr. Roberts encourages keeping a very close eye on the allocation mechanisms for this funding.

There is no one-time money to be found anywhere in the budget, which is very disappointing news. The tentative budget will be presented at the June board meeting, basically a "roll forward budget." No policy direction can be found in the budget until more is known from the State.

Meeting adjourned: 2:20 p.m.