Adopted Budget Fiscal Year 2012/2013

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1 Adopted Budget Fiscal Year 2012/2013 D. Smith September 11, 2012

2 The year finished! FY Actuals Beginning Fund Balance $8,503, % Revenues $74,981,832 Expenditures $75,896,366 (Deficit)/Surplus ($914,534) Ending Fund Balance $7,589, %

3 The year ahead! FY Adopted Beginning Fund Balance $ 7,589, % Revenues $75,816,097 Expenditures $76,567,918 (Deficit)/Surplus ($715,821) Ending Fund Balance $6,837, %

4 As Our Books Closed The Standard: 1-2% Variance usually positive Revenues $579, % Expenditures $1,264, % San Jose City $403, % Evergreen Valley $348, % District Office $159, % Districtwide $354, % All positive! Well done!

5 Ending Fund Balance 16.00% 14.80% 14.00% 13.00% 12.00% 10.00% 8.00% 10.50% 8.39% 7.81% 10.99% 10.00% 8.93% 6.00% 6.22% 4.00% 2.00% 0.00% Actual Adopted Budget

6 About the Adopted Budget FY Projected Finish $6.8M 8.93% Balanced with one-time and on-going savings. 1. Bookstore Transfer-in $200,000 * 2. Enrollment Strategies $880,000 * 3. Defunding Positions $1.04M * *One-time adjustments

7 About the Adopted Budget FY Balanced with one-time and on-going savings. 4. Statutory Benefits $670, Health Benefits $1.6M 6. OPEB Refinancing $300, Growth Revenue $700,000 Achieved FY balance by drawing $715,821 from reserves. Preserves 8.9% EFB, achieves Board required 7% minimum. Well done!

8 About the Adopted Budget FY Major Assumptions Assumes State Tax Measure (Prop 30) passes Assumes spend all budget $ s Assumes no COLA, 1.11% growth, 1% deficit factor Enrollment fees $36 $46 Parking permits $40 $45, daily $2 $3 Health fee $17 $18

9 About the Adopted Budget FY Major Assumptions Assumes enrollment cap 14,042 FTES Targets 300 FTES over-cap SJCC FTES target 7,276 EVC FTES target 6,997 Non-Credit FTES 69

10 Enrollment History Over Cap ? Funded Cap Tax Passes Tax Fails

About the Adopted Budget FY2012-2013 Variables aka Wildcards If Prop 30 tax measure fails: Downside risk!

11 About the Adopted Budget FY Variables aka Wildcards If Prop 30 tax measure fails: Downside risk! Workload reduction 1,167 FTES Reduced apportionment $4.0M San Jose/Evergreen becomes fifth Basic Aid community college district in California estimated loss approximately $400,000

12 About the Adopted Budget FY Variables aka Wildcards The Basic Aid Effect! 1% deficit no longer applies Solely dependent on student fee revenue and local property taxes collected FTES cap from 14,042 to 12,876 Funding less predictable, more vulnerable to local economy

13 Total Assessed Valuation (in Billions) $110 $105.9 $105 $100 $100.8 $102.4 $99.4 $99.7 $101.5 $95 $93.1 $90 $85 $85.4 $80 $78.6 $75 $70 FY FY FY FY FY FY FY FY FY

14 Total Apportionment, Enrollment Fees and Property Taxes (Assuming Tax Measure Passes in November 2012) $80,000,000 $75,000,000 $70,000,000 $65,000,000 $60,000,000 $55,000,000 $50,000,000 $45,000,000 $40,000,000 $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $- $2,656,080 $69,068,069 $4,309,355 $9,018,375 $64,908,348 $62,316,196 $3,572,740 $4,102,749 $3,850,161 $4,351,586 FY08-09 Total Apportionment Funding Sources: $75,296,889 FY09-10 Total Apportionment Funding Sources: $73,320,452 FY10-11 Total Apportionment Funding Sources: $75,184,732 Resident Enrollment fees Property Taxes State Apportionment $253,921 $620,551 $63,915,560 $63,915,560 $63,915,560 FY11-12 Total Apportionment Funding Sources: $68,521,067 $5,631,300 $5,152,278 FY12-13 Total Apportionment Funding Sources: $70,167,411 Tax Measure Passes FY12-13 Total Apportionment Funding Sources: $69,067,838 Tax Measure Fails

15 If the tax measure passes No change to adopted budget Watch changeable deficit factor State overestimates revenue Unclear regarding FY , FY , new revenue, or not? 4% or not?

Deficit Factor Changes During Fiscal Year $0 $(500,000) $(1,000,000) $(1,500,000) $(2,000,000) $(983,887) FY 2008-2009 FY 2009-2010 FY 2010-2011 FY 2011-2012 $(1,132,869) $(906,731) $0 $(82,983) $0

16 Deficit Factor Changes During Fiscal Year $0 $(500,000) $(1,000,000) $(1,500,000) $(2,000,000) $(983,887) FY FY FY FY $(1,132,869) $(906,731) $0 $(82,983) $0 $(611,791) $(400,121) $(243,756) P R O J E C T E D $(1,648,595) $(1,745,053) $(2,500,000) $(2,399,448) $(3,000,000) First Principal Apportionment Second Principal Apportionment Recalculation Apportionment

18 A look ahead FY Depends on tax measure 4% growth/restoration? $2.5M $2.1M FY rebalancing one-timers new deficit in FY Fund 10 OPEB debt service contribution increases $1.1M Health and Welfare, other increases new deficit

19 A look ahead FY Property taxes, AV growth FY greater than 0% FY greater than 1% State budget picture Very uncertain Very changeable Our status depends on tax measure and AV growth

20 And Finally the Summary FY : Strong finish, positive balances, reserves at 10.00%. FY : Made necessary corrections, need Prop 30 to pass, moderate downside risk, adopted at 8.93%. FY : Compounding effect of tax measure, Basic Aid and one-time cuts reoccurring, OPEB, Health & Welfare, likely a challenging budget so want to go into FY with another strong finish.

ADOPTED BUDGET

2011-2012 ADOPTED BUDGET 2011-2012 State Budget $1.7 billion in cuts from higher education, including $650 million from both the UC and CSU $400 million from California i Community Colleges Major revisions