Financial Information Subcommittee
Financial Information Subcommittee Minutes|
Hartnell College -- PE 136
June 3, 2011 at 9:00AM
Kent Stephens, Vice President, Support Operations
Joanne Trevino, Classified Senate representative
* DRAFT MINUTES *
Nancy Schur, Faculty representative
Ann Wright, HCFA representative
Al Munoz, Administration
|Topic:||Approval of Minutes from March 17, 2011 meeting|
|Summary of Agenda Item:||Kent asked for a motion to approve the March 17, 2011 draft minutes. Ann Wright motioned; Nancy Schur seconded. Vote to approve - 4 ayes; 0 nays; 0 abstentions. Motion carried; the draft minutes were approved.|
|Topic:||2011-12 Tentative Budget|
|Presenter:||Kent Stephens and Al Munoz|
|Summary of Agenda Item:||In order to provide an update to what has been going on in Sacramento and how it affects Hartnell College, Kent touched on the current conditions in California as it relates to the budget. |
Previously, expectations were a $7.6 billion deficit for the current year. Further, an additional $19 billion deficit was expected for next year for a total of $26.6 billion. Since the Governor released his proposal, revenue has come in higher, primarily due to higher individual income tax and sales tax but mostly because of individual and corporate income taxes. This is $2.8 billion higher than what was originally budgeted. Consequently, instead of a $7.6 billion shortfall for the current year, that shortfall is now approximately $4.8 billion.
Revenues are projected to be $3.8 billion higher next year and, between January and now, the legislature approved approximately $10.4 billion in cuts. Taking that into consideration, the deficit for next year is estimated at $4.8 billion for a total deficit of $9.6 billion. A much improved situation from the $26.6 billion that we were faced with six months ago.
Currently, without any tax extensions and because of the improved picture for revenue, revenues are now estimated (without any tax extensions) at $85.7 billion which appears to be enough to efficiently balance the Governorís proposed budget.
The question is now: Will temporary taxes be extended? If so, how will that process occur and what will need to be done with those additional revenues?
Kent then reviewed the different budget models as they relate to the different cuts. Al Munoz explained why a tentative budget is prepared how it is built.
The major inclusions in the 2011-12 tentative budget are: 7 faculty (5 of which were previously budgeted); 4 new deans (3 of which were previously budgeted); 2 new VPs (also previously budgeted); and health insurance (an 8% increase was built in). A significant increase is unemployment insurance which is up 110%. The prior year also experienced an increase in unemployment insurance of over 100%. Additional inclusions are: election costs, of which this year the county estimates at $280,000; redistricting costs of $75,000 which occurs every 10 years; and summer school, which is roughly $900,000. In order to balance the budget, we will be going to reserves and Kent stressed that HC is still following the rule to not use one time money for ongoing expenses.
Joanne Trevino asked what is meant by transfers in and transfers out. Kent explained that transfers in relate to portion of our overhead costs related to our grant funds. Some of those dollars are captured and the funds are transferred from the grants to the general fund. Also $100,000 a year comes from the bookstore. Transfers out are more reflective of what we would like to go in to other funds, such as early retirement. Discussion ensued with regard to direct and indirect costs.
Al then pointed out that the state budget will be monitored over the summer and necessary refinements will be made to the budget model in order to prepare the final budget for presentation to the Board at a hearing in September at which time the Board may adopt the final budget. This is to be done no later than September 15. Discussion regarding budget cycles followed.
|Action(s) required:||Al and Kent will be working on the budget during the summer months and if an informational FIS meeting is required over the summer, that meeting will be held prior to the September hearing. |
|Responsibilites:||Kent Stephens, Al Munoz|
|Summary of Agenda Item:||Joanne Trevino asked if Kent had any idea what the plan is related to FTES and how FTES will be monitored. Discussion ensued with regard to FTES needed and how those numbers will be obtained. Lengthy discussion took place regarding enrollment management as well as state reimbursement.|
|Topic:||Board Action Item|
|Summary of Agenda Item:||Ann brought up an item from the Board agenda, specifically Adopting Uniform Public Construction Cost Accounting Procedures and Informal Bidding Ordinance. Ann stated that she did not fully understand the item being brought before the Board and was hopeful that Kent would be able to help her understand. Discussion about project cost limits and the laws governing such. Kent further explained that should the item be approved, more work would be required in the Business Office to account for particular projects. Al explained that he has been in contact with San Mateo Community College, who has had this system in place for three to four years. He must determine the labor time required of not only his department but the Facilities department as well. |