Budget Advisory Committee

SANTA ROSA JUNIOR COLLEGE

BUDGET ADVISORY COMMITTEE

Tuesday, December 7, 1999

Senate Chambers, 3 p.m.

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

Members present: Barbara Croteau (Co-Chair), Rosemary Darden, Micca Gray, Ben Partee, Ron Schuelke, Deborah Sweitzer.

Members absent: Ed Buckley, LuAnn Campbell, Marty Carpenter (Ex Officio), Christopher Crystal, Danielle Edwards, Paul Finn, Doug Garrison, Curt Groninga, M. Lee, Ricardo Navarrette, Ed Sikes, Sandi Tassano.

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

Approval of the minutes of the November 2, 1999 meeting was deferred to the next meeting.

A major budget events listing was distributed. Dr. Roberts explained that while other things may intervene, this is a general idea of how budget development proceeds. In regard to the ACCCA Workshop on the Governor's Proposed Budget, Deborah Sweitzer proposed holding either that meeting or the annual FACA meeting in the future in Santa Rosa. Dr. Roberts will pass along that suggestion to his successor via the minutes.

The tentative meeting schedule for the Spring Semester is shown on the agenda. These dates will be listed on all successive agendas as well.

Ron Root has a great deal of experience in the political arena of higher education finance and may add a new perspective to the position of Vice President for Business Services. He comes to us from Henry Ford Community College where he has been Vice President/Controller for the past four years. Prior to that he was Director of the Office of Higher Education in Michigan. He was instrumental and the key person in writing the funding formula for community colleges in Michigan. He will probably have the same kind of reaction as others coming from outside California to the increasingly central control of community colleges and decreasing role of our local board. Most of the revenues to community colleges in Michigan come from local property tax revenue where the local board has control and the state fills in the rest. Everything Dr. Roberts has heard and been told about him is that he is a quick learner.

California's state economy is very positive, and tax revenues are in the neighborhood of $600 million higher than anticipated for June 1998. It is anticipated that the revenues will exceed by $2 billion for the current budget year. There is no reason now to believe that the community college budget will be negatively affected by the state economy. Three major items in the 00-01 budget proposal are: (1) COLA plus 1%; (2) growth; and (3) P4E $155 million which is the system's request for $100 million and backfill for the $45 million allocation received for Year 2. They are the major augmentations that the system has put forward. The Chancellor's Office presented these to the Board of Governors for submission to the Governor. There has not been a consensus of support for that proposal. The faculty believes that the plus 1% should be earmarked for equity for part-timer's. The P4E request is too big and will crowd out what they believe are higher priorities. Further, the question of whether P4E is categorical or non-categorical comes up. They think there should be restrictions on how those dollars should be spent and that the Academic Senate President at each campus should sign off on P4E expenditures. After the Christmas break the Governor will announce his proposal. It is believed that the Governor will include only COLA and growth when he announces his budget in January. There will be a lot of lobbying to try to get some of the other proposals back in. Dr. Roberts considers the part-time faculty group to be of growing interest in California. It is very likely that their agenda will probably be addressed in a significant way. He believes one of the biggest issues in the next three or four years will be part-timer's equity. He also believes there will be "hooks" on P4E funding. The biggest positive is that the COLA will come in at 2.6%. If the +1% can be used for staffing needs some of the classified staffing needs that have long been discussed here may be addressed.

In next three months a lot will be said about a ballot proposal reducing school ballot issues from 66 2/3% of the vote to a simple majority. There is serious consideration being given to a bond issue for this college. The preliminary timing is to do that in November. Dr. Roberts advises that we be prepared, especially if the March proposal passes, to go forward with a general obligation bond issue for projects like acquisition, deferred maintenance, remodeling, add a building or two to replace the portables, new library, Petaluma campus Phase II, North County facility analysis. The typical way that the projects are funded is apply to the state and wait. Deferred maintenance funding is 50-50. Capital projects are allegedly 100% state funded, but usually come in at 90% or less.

The Board will consider using a consultant for advice on gaining voter approval. There is a perception of wealth that the people in this community have of this college. A plan is needed to present to the community of how we plan to do use these dollars. It relieves the general fund of having to come up with the match or whatever any given project is short. Ben Partee asked what is the time line, and Dr. Roberts said the November 2000 election is being considered. The importance of timing the proposal during the current strong economic period was mentioned.

Meeting adjourned 3:50 p.m.

Next Meeting: Tuesday, January 25, 2000 - 3 p.m. - Senate Chambers