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Board Budget Subcommittee Minutes

April 21, 2009

  Committee Members: Mark Dover and Mike Davenport
  Committee Resources: Steve Kinsella and Joseph Keeler

1) Call Meeting to Order: Mike Davenport, on behalf of the Committee's Chair, called the meeting to order at 4:40 p.m.
2) Approve Minutes: The minutes from April 30, 2008 were approved unanimously; MS (Dover/Davenport).
3) Comments from the Public: No comments from the public.

4) FY 2009-10 State Budget
  Joe provided the Committee with a Community College Update dated April 3, 2009 from School Services of California and a second handout entitled, "Projected Impact on Community College Districts of the May 19 Ballot Measures". The discussion centered on the problems the State of California is having with a FY09-10 budget that is already $8 billion in the hole and also the May 19 propositions 1A - 1E. If Proposition 1A fails, Gavilan revenue will be reduced by $1.6 million. Steve discussed the process, if Proposition 1A fails, starting on May 20 to cut the FY09/10 budget accordingly so that Gavilan will have a balanced budget. Steve discussed, for example, that if the proposition failed we will need to start the process of cutting our class schedules immediately.
5) FY 2008-09 Gavilan Budget
  Joe provided the Committee with the "Consolidated Summary of All Funds" for the FY09-10 Tentative Budget which is based on the best information the District has at this time. The FY08-09 budget includes those adjustments from the Expenditure Reduction Task Force and all other adjustments the Board has approved including those of the April 2009 Board meeting. The projected deficit for FY08-09 is ($542,219).
6) FY 2009-10 Tentative Gavilan Budget
  Joe provided the Committee with three (3) additional handouts
  • "Schedule of Revenue"
  • "Schedule of Intrafund and Interfund Transfers
  • Expenditures by Object Code
Steve pointed that the tentative budget deficit is ($170,000) but by the adopted budget, all other things being constant (i.e. the propositions), the deficit should be eliminated. Steve also discussed the possibility of retirements of faculty and that the District is negotiating an incentive package. In addition, other costs that the District may incur are additional lease payments for the expansion of the Morgan Hill and Hollister facilities.
7) Review and Approve Budget Adjustment to Realign the Measure E Budget to Actual Costs
  The Committee reviewed the Measure E Master Budget draft dated April 7, 2009, pages 1-24. Page 2 compares total estimated revenue and expenses showing a deficit of $7,209,695. In addition, the far right column adds in the state match of $15,150,000 and an equal amount to the expenditures which results in the same deficit of $7,209,695. Pages 8-9 show a re-evaluation of the proposed costs to complete each Measure E project, a recommended reallocation of funds from those projects with an excess into those projects with deficits, and the unresolved question of how to cover the $7.2 million deficit. The Committee reviewed those scope changes that lead, in part, to the deficit. The Committee also reviewed the purpose of the land acquisition residual account of $9,687,403. In developing both the Coyote Valley and San Benito properties, the residual account was to help pay for site development costs. In the District's application to the State of California, each project contains $3.8 million of state funded site development costs. This, in turn, frees up funds from the residual account to offset the $7.2 million deficit. Joe noted that the Board Facilities Committee is recommending using the $7.2 million to cover the deficit. The Board Budget Committee unanimously agreed to take the $7.2 million out of the land acquisition residual account to cover the deficit. Joe indicated that he would prepare the various budget adjustments, outlined in pages 8 and 9, for action at the May 2009 Board of Trustee meeting.
8) Next Meeting Date No meeting date set.
9) Adjourned Meeting adjourned at 5:25 p.m.

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Last modified: May 26, 2011
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