Foothill-De Anza Community College District expects to serve 35,420 full-time equivalent students (FTES) next year without further state-level budget cuts.
"The governor's office has proposed fully funding the COLA for 2004-2005, and we have included that revenue in the budget assumptions," said Mike Bandy, vice chancellor of business services. "Recent discussions indicate the COLA will be recalculated at 2.4 percent."
The district will close books in mid-August, and the board will adopt the final budget in September taking into account the state budget and the ending balance.
In an update on the 2004-2005 budget development, Bandy has not included any growth in the proposed budget since there is another proposed fee increase for students and a more substantial increase for baccalaureate degree holders. The loss of FTES could be offset by the increase in the redirects from the UC and CSU systems.
The relationship between current income and current expense reveals the financial health of the district. Income is $148.5 million, while expenses after reductions are $151.8 million. The difference is $3.1 million.
Trustee Betsy Bechtel was quick to remark, "We have to be aware we are still spending more money than we are taking in."
Bandy remarked last September the budget gap was identified as $12 million, but through a lengthy process solutions were put in place to close that gap.
"The strategies were developed to balance several goals by serving the maximum number of students, maintaining the support services and minimizing layoffs of staff and maintaining productivity," Bandy said. "We will balance the budget using our ending balance from June 30, 2004, an estimated amount of $3.1 million."
Apportionment dollars received through the state funding formula represent the majority of income. Nonresidents pay full tuition, and their fees are retained by the district rather than going to the state.
A reflection of a 5 percent drop in nonresident enrollment is considered because of stringent Department of Homeland Security policies and economic conditions in foreign countries.