Revised Budget Forecast Governing Board Study Session April 27, 2020 Presented by: Dr. Nic Richmond & Dr. David Bea
Objectives • Review Short - and Long - Term Implications of COVID-19 • Enrollment projections and scenario planning • General economic impacts • Fiscal Year 2021 budget adjustments • Discuss Governing Board Budget Priorities
Scenario Planning & Enrollment Projections • Scenario development
Economic Outlook • Declines in industries/sectors • Unemployment • State budget projections – “skinny” budget and upcoming adjustments • Income and sales taxes • Financial markets - losses and interest rate declines • Higher education changes • Face-to-face, residential, ancillary services • Speed of training delivery • Support for online delivery
Budget Projections - Revenues • No taxy levy increase • Reduced revenues and Expenditure Limitation (EL) impacts • Prop 301 (from sales tax) • Contractual and non-credit • Auxiliary services • Tuition Losses • International • Extended courses/incompletes
Budget Projections - Expenditures • Enrollment and classroom funding model • Salaries & staffing • Avoiding furloughs/layoffs through June 30, 2020 • Awaiting enrollment and return-to-work realities • Recognizing the excellent transition to remote work • Capital project plan • Prioritizing Centers of Excellence, minimizing other projects • Determining long-term needs for physical space and related maintenance/improvements
Setting the Budget • Establishes the maximum spending capacity for the fiscal year • Provides reserves • Support new or changing priorities • Meet enrollment demand • Does not require all funds to be expended if fewer programs or services are needed
Strategies • Short-term • Expenditure Limitation relief • Student assistance • Mid-term • Known revenue and expenditure adjustments to budget • Continued academic program efficiencies • Long-term • Centers of Excellence • Increasing distance learning and remote working • Exploring implications of enrollment changes
Discussion
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