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Budget
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We have a State budget. The Governor signed the budget on September 23, 2008. On all fronts this is a terrible budget for California with significant implications for 2009-10. I have attempted during the period of budgetary impasse to keep the college community informed on a regular basis. A brief summary includes: · Maintaining student fees at $20/unit; · Maintaining categorical programs at the 2007-08 levels; · Funding for 2% FTES growth; · COLA of 0.68 percent; · $75 million to partially fund last year’s property tax deficit; and
· A
new deferral of apportionment payments that will delay partial payments
of the January, February and March Most important to our fiscal planning is the mid-year cut authority given the Governor which applies to the COLA and the growth rate. What does this budget mean for Glendale College? The budget provides a slight augmentation of funding over the Governor’s May Revise budget upon which the District’s 2008-09 budget was based. First, it is important to remember that the District has been relying on its reserves to pay our bills during July, August and September. This means that funds that normally would sit in the county treasury earning interest have been spent. Not only Unrestricted General Fund reserves, but Restricted General Fund reserves and our Tax and Revenue Note financing have been used. Consequently, at the last Budget Committee, it was agreed to reduce our projected Interest income by $100,000 in the Unrestricted General Fund. We have also lost interest income in the other funds. Second, the 2% statewide growth funding translates to an enrollment growth cap at Glendale of 0.64%, or approximately $440,000. Remember that each district has a different growth rate based on a number of factors. Third, the 0.68 % COLA will yield approximately $450,000. However, with the possibility of mid-year budget cuts and the prospects for another dreary fiscal year in 2009-10, we should seriously consider setting these funds aside. If we do get to keep the COLA, it can assist us with the difficult task of balancing next year’s budget. Finally, the 2008-09 Budget restores the cuts made to categorical programs such as Matriculation, DSPS and EOPS. This restoration will avoid the need to make cuts to these critical programs or to find Unrestricted General Fund funds to maintain them.
In summary, community colleges were fairly treated in this budget, a
reflection of the positive role we play in our communities and the
state. But we aren’t out of the woods, as mid-year cuts are a very real
possibility. Finally, this budget pushes much of the state’s fiscal
problems into 2009-10, when we can expect a repeat of this year’s budget
impasse and another year of limited budget increases for community
colleges.
Larry Serot has served as Vice President of Administrative Services since July 1992. He will retire in December. |
