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Board Budget Subcommittee Minutes

May 15, 2007

  Committee Members: Mark Dover, Elvira Robinson, and Leonard Washington
  Committee Resources: Steve Kinsella, Joseph Keeler, and Shuk Au-Yeung

1) Call Meeting to Order: Elvira Robinson, the Subcommittee's Chair, called the meeting to order at 4:11 p.m.
2) Approve Minutes: The minutes from December 5, 2006 were approved unanimously; MS (Dover/Washington).
3) Comments from the Public: No comments from the public.

4) FY 2007-08 State Budget

Joe referred the Committee to the State Budge Update #3 and pointed out that the Legislative Analyst Office had certified that the 2007-08 COLA for community colleges went from 4.04% to 4.53%. Joe also indicated that in the Governor's May revise of May 14, the Governor's COLA was also set at 4.53%.

Steve discussed how growth funding works and the possibility that because Gavilan is growing beyond its cap and since other colleges in the system are either flat or experiencing a decline in growth that an opportunity exists for Gavilan to be funded for all growth. This growth will be permanently rolled into FY 2006-07 which rolls over into the base for FY 2007-08. We are still waiting to see what the State does in terms of the overall funds available for growth to community colleges.

5) FY 2006-07 Gavilan Budget

Joe referred the Committee to Exhibit 2 and reviewed pages 1-6 noting what each of the various funds were used for. Joe then concentrated on the current budget for 2006-07 in the General Fund; Fund 10. Fund 10 is in very good shape for a number of reasons. For example, SB 361 provided a new funding allocation process but also included for Gavilan a large amount of "equalization" funding. In addition, the college received a number of one time funding allocations along with its normal apportionment for instructional equipment funding and scheduled maintenance funding.

Joe also indicated that although Exhibit 2 shows that the General Fund balance will increase by $433,000 it may close even higher than that as some of the ongoing and one time revenue received in FY 2006-07 will not be fully expensed until 2007-08.

6) FY 2007-08 Gavilan Budget

Joe again referred the Committee to Exhibit 2 which shows a FY 2007-08 General Fund deficit of $407,000. Steve indicated that with GCFA negotiations concluding and the potential for additional growth the deficit should go away and the budget will be a breakeven budget. Joe indicated also that in Fund 34 a transfer of $300,000 had been made from the General Fund in 2006-07 to help defray the costs of the current outdated computer system in 2007-08. In addition the 2007-08 budget does not show a budget for Fund 43, the Property Development Fund (Golf Course), as Steve will be discussing issues surrounding this development and we will budget accordingly at that time. Joe also indicated that the large amount in Fund 60, Measure E, includes monies to pay for the property in both Coyote Valley and San Benito County. Finally, Joe and Steve reviewed Fund 92 that is accumulating funds for the districts liability for retiree benefits under GASB 45.

7) Other Issues: Library Book Funding

Shuk Au-Yeung discussed the history of funding for the library and how it is currently paid through the instructional equipment categorical funding process. Shuk asked that it be paid out of the General Fund instead. Shuk noted that each year as part of the Instructional Equipment Funding process, she needs to argue on behalf of receiving funding and competes with all the other interests that are vying for the use of Instructional Equipment Funds. Steve indicated, and the Committee concurred, that in the future, the allocation for the library will be taken "right off the top" and the remaining Instructional Equipment Funds will be discussed and distributed.

8) Next Meeting Date

The subcommittee agreed to meet sometime during the summer to review the Final Budget.

9) Adjourned Meeting adjourned at 4:50 p.m.

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Last modified: September 14, 2009
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