1 / 10

Mission College Budget Update Prop 30 Passes with 54% of vote

Mission College Budget Update Prop 30 Passes with 54% of vote. Nov 20, 2012 Mission College Presented by : Rick Bennett, VP Admin Services. Rocky Ground--National Perspective. Dec 2007 Great Recession Most severe economic decline-Great Depression Downgraded US debt

jud
Download Presentation

Mission College Budget Update Prop 30 Passes with 54% of vote

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Mission CollegeBudget UpdateProp 30 Passes with 54% of vote Nov 20, 2012 Mission College Presented by: Rick Bennett, VP Admin Services

  2. Rocky Ground--National Perspective • Dec 2007 Great Recession • Most severe economic decline-Great Depression • Downgraded US debt • Officially over July 2009-hard times keep coming • Economy slow to recovery- 1st Qtr. Growth • 2010 3.9% 2011 0.4% 2012 1.9% • Public sector continues to shrink • Economy needs private sector employment to rebound;tax revenues will lag

  3. State 2012/13 Budget… • Assumes approval of Nov 6 Prop 30 tax initiative to raise new revenues • 0.25% increase in Sales tax for 4 years • Increase in personal income tax for wage earnings in excess of $250K for 7 years • Total State Budget will still be $11B below 2007-08

  4. 2012/13 Budget Assumptions • SB 361 still in place…for now • Hold harmless from shortages in Redevelopment Authority (RDA) Revenues • Meet FON and 50% Law • Funding for 310 FTEF • Cash flow is a trickle in 2012/13 FY • No COLA (last COLA was 2007-8) • No policy changes to categorical programs • Mandate Block Grant ($28 per FTES in lieu of claims)

  5. District 2012/13 budget • Part of a 3 year recovery plan from 11/12 cuts • Shortfall--revenues $6M less than Budget • Ongoing 3 year recovery plan • $3M reduction plan • $1.5M new revenues Land Corp • Reductions in Associate Faculty • Mission’s component is $600,000. • 3.5% salary concessions and furloughs from all MC staff—Faculty in negotiations

  6. With Prop 30 Passage • Ca. Community College System • Gains $50 M to restore portion of FTES lost in last 4 years • $160M in deferral repayments from the state • Decrease obligation from $961M to $801M • District Workload Increases 141 FTES ($640K) • Mission 65 FTES

  7. 2013/14 Shortfall PlanningStill in the woods even with Prop 30 • Tax Passes • Minimum$2.5M shortfall earlier cuts • $1.5M to restore bargaining concession • $1.0M for salary, benefits & operational cost increases • Recovery Plan • $1.0 Budget Reductions • $1.5M Continuing WVM LandCorpFunding

  8. Risky Budget for 12/13 and 13/14 • Snakes in the Grass • Redevelopment Authority (RDA) shortfall • $340M owed to the System • Potential delays and litigation • Potential 2013 mid year cuts if state doesn’t increase tax revenues

  9. Positive News • LAO report of 11/12/12 • showed decrease in State’s budget deficit from $13B to $1.9B • Potential relief for community colleges in 13/14 and 14/15 when combined with Prop 30 revenues

  10. Prop 39 passed by 60% margin • Tax Treatment for Multistate Businesses. Clean Energy and Energy Efficiency Funding. Education. • Potential additional State Revenue for CCC’s • May mean $25-50m per year for the CCC system over 4 years and $100m or more per year after 4 years

More Related