By Clyde Noel
Preparing the 2004-05 budget for the Foothill-De Anza Community College District without the slightest indication what the state will do is an obvious challenge.
Because of the severity of a projected budget shortfall for next year, Mike Brandy, vice chancellor of business services, presented his first 2004-05 forecast to the board of trustees Sept. 22. Brandy put in plain words the challenge the Foothill-De Anza Community College District must meet.
Brandy explained that the district is using one-time dollars to defer cuts in 2003-04, and those dollars will not regenerate for 2004-05.
“Because we made a deliberate effort to hold off filling positions, reduce individual budgets, and the administrators and staff did such a good job on productivity, we were able to save about $7.2 million and are using those funds to avoid making more cuts in 2003-04,” Brandy said.
The 2003-04 budget resulted in revenues of $143,380,537, expenses of $150,560,784 and a net loss of $7,180,247.
The budget was balanced through a combination of reduction in expenses and the use of one-time funds from last year (2002-03) obtained through a planned slowdown in spending, high productivity and sweeping departmental ending balances.
Brandy’s presentation underscored that even without further state revenue reductions, the district faces a projected $10.7 million deficit for 2004-05 resulting from the lack of availability of the one-time dollars used to mitigate cuts during 2003-04.
In addition, medical benefits will continue to rise at double-digit inflation rates. PERS may rise to 18 percent, adding $3 million in total expenses just related to PERS with no indication of a cost-of-living adjustment.
In addition, step and column increases for staff members could amount to more than $1 million. A utility rate increase and purchase of equipment could add to the budget deficit.
The budget problems will be increased if the state also decreases the district’s revenue as part of a solution to balance California’s projected deficit of $8 billion.
Brandy’s presentation was for discussion only, and no board action was expected.
