nov 20, 2012 mission college presented by: rick bennett, vp admin services
TRANSCRIPT
Dec 2007 Great RecessionMost severe economic decline-Great
DepressionDowngraded US debtOfficially 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
Rocky Ground--National Perspective
Assumes approval of Nov 6 Prop 30 tax initiative to raise new revenues0.25% increase in Sales tax for 4
yearsIncrease in personal income tax
for wage earnings in excess of $250K for 7 years
Total State Budget will still be $11B below 2007-08
State 2012/13 Budget…
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)
2012/13 Budget Assumptions
Tax Passes
•Minimum$2.5M shortfall earlier cuts
•$1.5M to restore bargaining concession
•$1.0M for salary, benefits & operational cost increases
2013/14 Shortfall PlanningStill in the woods even with Prop 30
Recovery Plan
•$1.0 Budget Reductions•$1.5M Continuing WVM LandCorp Funding
Snakes in the GrassRedevelopment Authority (RDA) shortfall
$340M owed to the SystemPotential delays and litigation
Potential 2013 mid year cuts if state doesn’t increase tax revenues
Risky Budget for 12/13 and 13/14
•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
Positive News