GAVILAN JOINT COMMUNITY COLLEGE DISTRICT
Board Budget Subcommittee Minutes

Director of Business Services, Susan Cheu, reviewed "Exhibit 2, Consolidated Summary of All Funds, Tentative Budget FY 2011-12"; a spreadsheet which provides the prior year's revenues and expenses as compared to the tentative budget. With the proposed changes, the ending fund balance would be 5% of the general fund; a net change of $1.6 million. Susan noted some significant changes:

• A total reduction in revenue of $172,000 due in part to a reduction in state apportionment and the end of the STEM grant;
• Increase in salaries due to new positions offset by retirements, an increase in adjunct faculty costs, normal step and track increases and a 2% increase in the fall schedule over the current semester. The tentative budget does not include a COLA;
• Employee burdens and benefits have risen $583,000;

Susan reviewed the changes in all other funds. Kathleen Rose reported the possibility of the Title V and STEM grants which are now in the application phase.

Interfund transfers included allocations to categorical programs that suffered reductions in revenue. The Child Development Center deficit is forecasted at $304,381. Funds totaling $100,000 have been set aside for the development of the Hollister and Morgan Hill educational centers.

It was noted that the tentative budget is a fluid document and that the Governor's May revision to the state budget may determine whether the retiree benefit fund monthly contributions will need to be suspended to balance the budget which now has a net change in fund balance of ($1.6 million). In addition, the District may ask to be reimbursed from the retiree benefit trust for those retiree benefits currently being paid by the general fund on a "pay-as-you-go" method.

Trustee Child moved for acceptance of the FY 11-12 tentative budget. MSC (Child/Dover) The tentative budget will be presented to the full Board of Trustees at their June 14, 2011 meeting.