11-10-03 Agenda - Santa Rosa Junior College

SRJC’s $13 million payroll. Brenda said that the majority of the claims (84% to 91%) are filed by adjunctinstructors who typically file for the winter, spring, and sometimes summer, breaks.There was a brief discussion regarding the increase in claims filed by classified and STNC employees during2002. Cole Perry suggested that because of SRJC’s hiring freeze, STNC hiring increased and may havecontributed to the increase in claims filed.Karen Furukawa mentioned that the college uses a third-party administrator for its unemployment claims andKaren is in the process of assessing whether or not the college should continue this arrangement.Ted Crowell pointed out that EED adjusts premium rates to maintain solvency of its unemployment fund whichis tied to the condition of the economy.4. Chancellor’s Talking Points for New GovernorRon Root reviewed a handout that listed the Chancellor’s talking points for the new governor. The first point asksthat the state provide funding mandated by Proposition 98. The state needs to allocate a significant portion of theProp 98 funds to community colleges in order to restore the rate to 10.93%. The second main point asks that thestate reduce its micromanagement of community colleges by enabling the Board of Governors and the Chancellor’sOffice to carry out their assigned roles.5. Community College League State Budget SummaryRon Root said that CCLC’s budget summary was completed before the election, but it is still a good brief of thestate budget situation. Ron explained that $200 million of the state budget cuts were mitigated by the state’sscheme of shifting payments to community colleges—the June 2004 payment will be deferred until July 2004.Community colleges can claim the payment as received in June, but the state will consider the payment as paidduring the fiscal year 2004/05, counting the payment as part of the 2004/05 Prop 98 limit.Ron reviewed the CCLC sheet regarding the state’s budget gap. Starting with an $8 billion baseline deficit, thesheet shows an additional $1.3 billion in pension obligation bonds, as well as amounts pending because ofcourt cases—$4.2 billion in vehicle license fees, and $10.7 billion if the deficit reduction bonds are ruled asunconstitutional. With this in mind, there is a total possible budget gap of $24.2 billion. Ron continued bysaying that because of the pending litigation, the state has not been able to accurately figure the size of thedeficit and fundamental questions at the state level go unanswered at this point. He said details of the budgetwill evolve this spring and the first definitive budget information on which SRJC can base its budget may notcome until the May revise.6. System Budget Change Proposal for FY 2004/05Ron Root reviewed a handout showing the preliminary recommendations for the Consultation Council discussionregarding the system budget proposal for FY 2004/05.7. SRJC: First Look at FY 2004/05 BudgetThere was a discussion regarding what percentage of additional state funding would be necessary to achieve threedifferent levels of revenue enhancement: repair SRJC’s structural budget deficit—5%; repair structural deficit andcover new 2004/05 cost increases—9%; repair structural deficit, cover new 2004/05 cost increases, and restoreSRJC’s budget to what it was as of 7/1/02—18% or $11,950,831.7