for benefits and salaries and similarly
with the 15-16 an audited actuals if we took out the one-time mandated costs
funds we spent 89.4 percent of our funding on salaries and benefits and 15
16 they the ending balance is fluctuating you can see that we ended
the year with a 21-point 4% ending fund balance and we’re projecting with the
large 10.4 million dollar deficit to reduce that percentage down to 13.3
percent at the end of $MONTH 16-17 this slide just kind of shows you that some
of the mandated cost allocations I think we’ve covered that so I’ll just skip
through this one and here we have a two year projection so since we were
bringing to the board such a large deficit we wanted to do a forward look
assuming nothing changes with the budget so the way this projection works is as i
just mentioned we are projecting that are ending fund balance and 16 17 will
be the 17 million eight hundred and sixty-five thousand dollars and it had a
deficit in it of 10.4 million since we do a roll over budget we what that means
is the budget that we have in 1617 is our starting point for 17 18 so what
we’re doing here is we’re saying okay starting with 16 17 what are the changes that we know or are
projecting will change in the seventeen eighteen year so under the apportionment
changes we are projecting that the state will provide us 1.11 percent in cola and
so we’ve added in 1.2 million we are also projecting that we will no longer
get the 1.9 million in the one-time mandated costs money so we’re taking
that out we are projecting that we need to hide liar 31 full-time faculty for fall of
$YEAR 17 and so offsetting that with the reduction in part-time faculty when you
hire full-time faculty typically your part time faculty goes down we’re
projecting that to cost 2.4 million dollars the other salary and benefit
changes here that you show this is our step in column increases so step and
column that’s just where employees are progressing on the salary schedules just
by the fact that they’ve been here a year so they move up a step or if they
get on the faculty side if they get additional education they can move up on
a column so when we say step in column that’s the movement on the salary
schedule that just happens on the natural year after year that’s about 1.2
million for us and then we’ve also included in here our health and welfare
increases assuming about a five percent increase to that as well as the person
stirs increases so those four things combined we’re projecting is going to
cost us the three million four hundred eighty eight thousand in 1718 that we
don’t have in the budget today and then we’re adding back six and a half million
because that includes the five and a half million for the BP ours that if we
spend it all we won’t have it in 1718 as well as the mandated costs changes in
the president presidential search so some of those one-time things we’ve
allocated by adding back in so what that means is if all of this were to occur we
didn’t receive any additional funding from the state we would have almost a 10
and a half million dollar deficit and our 17-18 budget which would bring our
ending fund balance down to just under 7.4 million or 5.5 percent doing the
same thing in 1819 as you can see if nothing changes in
1819 we will have completely spent our ending fund balance and will have a
negative ending fund balance so i think what this slide is trying to project is
that if we don’t get additional funding from the state or if we can’t grow in
our FTEs then we’re going to have to start making some difficult decisions on
where we going to reduce our expenditures so that we can maintain a
prudent level fund balance moving forward and i will say that with this
these projections we haven’t put any projections in here for salary increases
for any of the bargaining units this is just the known step in college changes
and the known person stirs increases in that type of thing so madam chair sorry excuse me a vice president gable
thank you I’m doing the best I can to follow and
understand as you go so i’m sorry if i have too many questions or ask for
clarification i can appreciate the very conservative projections I I think
they’re great in fact that I’d rather err on the side of caution and be
conservative than not but in looking at previous years you know we always end up
with the surplus it appears as if we always end up doing well so I don’t want
to be too conservative and the only reason I’m saying this is because you kind of added a footnote in your
presentation as far as that you haven’t actually address salary increases for
the bargaining units so while it is prudent to be conservative at the same
time you know in looking at our previous budgets and looking at our trends I mean we’ve you know our 2016-2017
projection of 17 million we actually ended in 1516 with 28 million so we did
well that 10 million difference surely we can afford to do some salary
negotiating there and again I I’m I feel an obligation to say that because you
added the footnote that the salaries had not been reviewed and then also I just
want to add that in your presentation overall I really appreciate how
student-centered it is and i really appreciate it appears as if the majority
of the decisions in the budget that have been made are really student-focused and
with that i think that the quality of the faculty and the classified the
quality of the services that they provide should be compensated fairly and
they should be because they’re at the frontline dealing with students so just
you know my two cents on a so far very thorough very good presentation I just
want to make that point to add to what you said thank you it if i can add to
that trust him my Lou and I think this is a point that comes up many times
throughout the years about how the community college budget works and why
do we show surpluses and I think it’s a very legitimate question it certainly asked repeatedly a budget
Advisory Committee a lot of the surplus are one-time funds which is the caution
that we have and I mean you’re correct that the last few years we’ve had a
healthy fund balance but remember for years ago we were laying off employees
it will change that quickly and you’re committing the district every
time you increase salary to permanent ongoing expense I’m not saying that you shouldn’t i’m
just saying that you’re going to have to be making choices along the way for the
next three to four years your budget will be reduced there’s no question in my mind that over
the next three years your budgets will be reduced so the challenge for the
board will be to balance those discussions and of course every time we
commit permanent salaries it’s got to come out somewhere when when
the revenue declines because if you do get down to some of these ending fund
balances you’re going to get a call from from Sacramento putting you on a watch
list it’s something we haven’t had to talk
about here in many years but it is a major concern in the state we’re hopeful that Prop proposition 55
will pass that will help smooth out the the next budget downturn but remember we
just tired a hundred and plus new faculty their salaries are going to
continue to increase even if you hire no one significantly over the next few
years now does that mean the challenge always we can be college budget is we
don’t know what’s going to happen next year that’s the problem we are only
given one year budgets we can project out two years three years so I think
what a memory is doing and saying if nothing changed this is where you’re
going to be hopefully something changes but every time we make a commitment you
know we can’t we can predict the commitment we can’t predict the future
funding so that is my only word of caution to the board and you know you
will be living with the decisions you make in good times and in bad times in the state isn’t always very
kind to us in the bad times so that’s that’s the only word of
caution certainly absolutely our frontline staff deserve every bit of
compensation that the district can provide them all i would caution you is
to make sure that you’re balancing today’s commitment with some of the
issues that will come up tomorrow can I don’t go ahead yeah I’m uh I was very worried about
these things earlier this year when it looked like prop 30 was you know that
nothing was going to happen and then the state i know thinks about these things
too and they’re trying to move money around if you look at and maybe I’m
sneaking ahead here but if you look at the sunset of prop 30 revenues 17.2
million dollars over the next couple of years I i’m just going to presume that
the state’s going to try and do something to it to make some adjustments
for that that happens but give me a picture of what that looks like how it
might happen just so we have a vision so right now the twenty one percent from
sales tax the sales tax is set to expire December thirty-first of $MONTH this
year the state has already taken into account the expiration of that sales tax
and is not assuming that it will be there so the budget that we have for
1617 has that assumption in there the income tax in what proposition 55 is
doing is extending that termination for another five years they can till 20 21
so you know and i think as president a club president oakley said sue never hit
not even gone yet I was gonna see his first name and then
I was combining his first and last name so a license president oakley mentioned
it will help the state smooth out their revenues in the projections that they
did the out your projections when the governor put his budget out they didn’t
assume anything would come forward with the extension of the income taxes so
with if proposition 50 were to pass it will alleviate some of the pressures
that will be on the state’s budget moving forward you know the other thing
that I think is looming is another economic downturn you know I don’t know
if it’ll be a recession but there will be an economic downturn you know we are
in i think the seventh year of recovery which is one of the longest time spans
of a recovery since a recession so it will be coming you know I think our budgets will be cut
in the future probably within the next three years as president oakley
mentioned so it is something that I think is looming in the future how far
into the future we don’t know ok just color so the question really
because 442 us is sat through those meetings of happiness chamber packed
with people month after month telling us how wrong we were to make any cuts had
no choice there was a process involved and at that
time the question came up about and I’ll get the answer to the question what they
said you know we we can’t wait the question was well why you wait till
the November election come up with your budget and the answer of course is we
cannot were not allowed to wait we have to wear the budget what we did then was
take a budget that in that case proposition 30 past and another scenario
where proposition 30 did not pass and i’ll put in very simple terms of it
didn’t pass we had on the block’s probably 2221 programs that we’re going
to be cut if it did pass rejoice we only we’re going to cut 11-12 I mean it was
it was it was a doomsday scenario no matter how we looked at it so the point
is in this budget and think thank goodness we were extremely
conservative as we’re working through that meeting 2007 2008 2009 are also
would have been much worse the question tho long commentary is did we look at
the potential of what happens if i think i was picking up on your answer but if
it does or does not pass with proposition 55 i think it is now yeah famous semi Hagar song I can’t
drive 55 so we’ll see but do I think it was trustee autos . in here the the EPA
or whatever it was 14.7 three percent that’s a big chunk of our budget that
may be going away and regardless and you brought up a good point of we’re
probably gonna have a little bit of an economic slowdown state of California
with many things going on you can see some of the issues even locally events
taking place but so as we as we’re doing again as we always budget we’re looking
at multiple factors coming in but we don’t have the option of just waiting
around we have to make calls and with projections but as far as the scenario
with proposition 55 like we did in that last time was very clear we even told
people that if it doesn’t pass this is what we’re looking at how we got one of
those scenarios Emery on if it doesn’t doesn’t pass in here that’s why I was
looking for I know when that those budgets a long
time ago we actually had that in here if i remember correctly we don’t have that
scenario in here at this point in time because since the governor did and out
your projection assuming that it wouldn’t ass and they didn’t have any estimations
for cuts to community colleges we didn’t include it at this point in time so if
it passes and we will have an adjustment and we’ll have some relief correct but
potentially you know it are our budget is is always up to the legislature and
the governor so they could find ways to redirect funding elsewhere you know the
the proposition the current proposition 30 revenues are required to go to the
k14 system but that doesn’t mean that they couldn’t take other state funding
and move it elsewhere to where we would have a decrease in our other funding
that isn’t tied to proposition 30 so you know you you don’t know what’s gonna
happen legislative session to legislative session thank you ok are you finished I’m done okay could I have a moment
there’s more question I decide when I just wanted to comment
vice president gable I i know that even through the journey of this process it’s
a very tedious it’s a very quite a comprehensive effort i know my
questioning may come across as though you know get into the details is that I
need to approve that’s just how i learned but i just
want to commend you and your team and take the time to really acknowledge you
and your team it’s not an easy task and a lot of times the finance world is a
very thankless job so I want to thank you for the great job you doing all of
your team members some of whom are here today tonight and applaud you for a
great presentation thank you adding q50 killa it’s thank you very
much and the item came through it was earlier slide about with the
presidential search even though that’s a simplistic it’s for the presidential search but we-we’ve we have earmarked
$100,000 for I very briefly what does the hundred thousand dollars going to
include what what what are we getting for that because i think i think what we
did you just use put a number out there that would cover the cost but it may not
cost a hundred thousand dollars goes through this process I i hope it doesn’t
cost a hundred thousand dollars i wasn’t planning on it but all coming here that
but what it would cover would be the presidential search firm that we have if
there’s any you know it’s really up to the board if the board wants to pay
travel expenses for any potential candidates that would come out of there
you know that’s assuming that we only have to go through the process once you
know so I you know I think if we go through the process once we won’t spend
a hundred thousand dollars if we have to go through the process the second time
we we might get close to spending a hundred thousand dollars more the auto I
don’t have a good oh ok are you making a motion to approve
the that 2016-17 adapted budget how did you know that second psychic ok and
seconded by trustee easier for the question in a virginia baxter i jeff
kellogg i Vivien Molyneux I dug auto or send easier i thank you very much 7.4 2015-16 CC FS dash 311 annual
financial no yes ok it this is just the this is required
state form black is that good layman’s way to explain it so I’ll make the
motion to who proved second okay i motion made by trustee kellogg
seconded by trustee zia caliber would you did you want an explanation I i personally don’t as I said it’s just
a statewide it’s this form that every district uses the state of California
and send it to the state like night to correct a memory I mean that yes that
one yeah it details out every fund the
information that we went over with the budget is presented on the 311 report of
the question virginia baxter i jeff kellogg i Vivien
malu I dug auto I oh I I and sunny xia I 8.1 academic senate president thank you
dr. Baxter and I want to thank nice president gable for giving me such a
nice segue from a tough and very uplifting report to mind so thank you I’m kidding ok first I want to say I’m
really happy that the faculty professional development area with Jerry
Florence’s the coordinator introduce our new faculty or a portion of them to this
evening as already mentioned jerry has trained over a hundred new
faculty can’t think of anybody better to work with the new faculty her love for
the college in our knowledge of the college is unprecedented so our new
faculty are in good hands we always think faculty professional
development and the hundreds of faculty and the deans who spend a lot of time on
the ground floor in hiring and I’m glad we mentioned dr. long and dr. Peterson
but I also want to say that the area of human resources it’s absolutely impacted by the number
of hires that we’re doing and we never thanked them so I want to thank you rose
and you’re incredible staff nobody understands the work load that falls
into your area with the amount of faculty both full-time and part-time that we
hire so thank you very much i also want to say that dr. long night chair the
hiring priorities committee that work is getting underway already and because as
you can see we’re anticipating hiring another large group of faculty for the
17 18 year we’re working hand-in-hand with human resources because we’re
trying to be a little more efficient in our timelines training of our CEO reps
and getting the process of hiring priorities approvals done in such a time
that we can start advertising these positions ahead of the curve and then do
our hiring in a much more timely fashion so that’s something that we’ve been
working on with HR and I want to thank you again for that I also want to say
that as mentioned by karen roberts and a few others that we were able to add an
additional day to college day the pre-college day workshop i want to thank
president oakley for allowing us to do that it was an innovative idea and it
was highly successful you want to thank karen for her absolute skilled work with
our part-time faculty and the ability to get part-time faculty there for that day
we had about 300 faculty and staff attending on a day that normally we
don’t have anything it was highly successful we had a lead group present
something called see yourself in the plan that involved about 30 to 35 folks
and then something totally unexpected one of our departments was so touched by
the part about the strategic plan that they actually wrote a song and asked to
sing it to to everybody on college days so clearly the strategic plan has had
quite an effect on folks which is more than we expected but really great so I
want to thank everybody including the collège de committee and the lead project group and everybody
else who jumped in to make sure that both days were successful i want to
mention that our curriculum work is well underway and you haven’t had anything
come to you in the last two meetings we haven’t had a business meeting of the
curriculum committee yet that happens tomorrow but the curriculum chair has
trained on the orientation and training of the curriculum committee it’s an ongoing process of training and
in the last few years our curriculum jerk in Helmand has worked with michelle
Grimes Holman and dr. long to increase efficiency and which goes hand-in-hand
with the plan and I in speaking of the plan i want to say that a lot of the
work in the plan in goals one and two and three really are a lot of curriculum
work and efficiencies and we’re talking about pathways and I was going to
complement any spent on the work that she does with guided pathways big
differences you see the in-goal before you get started in other words a lot of
times we say do what major do you want to be and they don’t know because they
really don’t know what that major does so you start with here’s the careers
that you can have if you do XYZ so it puts the student on a path with an in
goal in mind other than the achievement of just the degree they actually know
what careers are going into and they’re guided along the way through internships
and those kinds of supports so a lot of work is already being done as you heard
tonight and more work will be done and that’s what’s exciting the faculty are
excited to dive into this and I i feel it’s quite a privilege to get to do what
I do and work with the administration and the faculty in my role so thank you
thank you attended president oakley thank you for president Baxter I will be
brief i want to thank the student leadership for putting on a couple of
great days of of signing up for clubs getting a lot of
great information out no members of the board and others have
already been thanks for coming out but I want to thank the student leadership for
doing a great job putting that together i also want to notify the board in the
public that our facilities department received an award from the chancellor’s
office the chancellor’s office sustainability award for a recent
project which project was it vice president gable it was the extent
expansion of the chiller plant where we added that the 900 ton tank to the LACC
campus as well as putting in the systems control so the software system that is
now running all of our HVAC units yes so our sustainability is that was
recognized you know for the members of the college and the public who have been
here for many years you will recognize that as the trustee kellogg boiler
project of many many years ago so we’ve come a long way but i will say it’s
slated to save 730,000 kilowatt-hours with with that project so that is the
significant savings and there were about 1,200 jobs that were put to work by
doing that project yes so congratulations to the bond
management team facilities and administrative services so they’ll go up
to the next board of governors meeting to receive that award is it is that
enough to cancel classes for a day no I think you can cancel the board
meeting no stipulated and then finally in your report to the board just want to
highlight that the mayor mayor Garcia Garcia recently recognized a couple
members of the college and the mayor’s business award they’re listed here to
hide and and the V&A she miami i just wanted to congratulate
them publicly for receiving that award from our mayor and that’s all I have Thank You trustee reports let’s start
with the trustee mallu interesting most interesting i did that last time 200 so
tells you what we think of him thanks patience is here