|
October 2004, Volume 15, Issue 2 - Budget: Then and Now |
 |
 |
 |
By Mitra Moassessi The following figures are from Board of Trustees meeting agenda dated October 4, 2004 | | 2003-2004 Adopted Budget | 2003-2004 Actual Budget | | Unrestricted Total Revenue | $100, 577, 592 | $102,037,019 | | Unrestricted Beginning Balance | $1,862,057 | $1,862,057 | | Unrestricted Total Expenditure & Transfer | $100,577,592 | $96,962,281 | | Unrestricted Contingency Reserve | $1,862,057 | $6,834,088 | In the Unrestricted General Fund Adopted Budget for 2003-2004: · Revenue was underestimated by $1,459,427. · Expenditures were overestimated by $3,615,311. · Contingency Reserve was underestimated by $4,972,031. | | 2003-2004 Adopted Budget | 2003-2004 Actual Budget | | Restricted Total Revenue | $18,527,756 | $17,148,797 | | Restricted Total Expenditure& Other Outgo | $18,527,756 | $16,138,995 | | Restricted Contingency Reserve | $0 | $1,009,802 | In the Restricted General Fund Adopted Budget for 2003-2004: · Revenue was overestimated by $1,378,959 · Expenditure was overestimated by $2,388,761 · Contingency Reserve was underestimated by $1,009,802 | | 2003-2004 Adopted Budget | 2003-2004 Actual Budget | | Unrestricted Total Revenue | $100, 577, 592 | $102,037,019 | | Unrestricted Beginning Balance | $1,862,057 | $1,862,057 | | Unrestricted Total Expenditure & Transfer | $100,577,592 | $96,962,281 | | Unrestricted Contingency Reserve | $1,862,057 | $6,834,088 | In Unrestricted General Fund Adopted Budget for 2003-2004: · Revenue was underestimated by $1,459,427. · Expenditure was overestimated by $3,615,311. Contingency Reserve was underestimated by $4,972,031. | | 2003-2004 Adopted Budget | 2003-2004 Actual Budget | | Restricted Total Revenue | $18,527,756 | $17,148,797 | | Restricted Total Expenditure& Other Outgo | $18,527,756 | $16,138,995 | | Restricted Contingency Reserve | $0 | $1,009,802 | In Restricted General Fund Adopted Budget for 2003-2004: · Revenue was over estimated by $1,378,959 · Expenditure was over estimated by $2,388,761 · Contingency Reserve was underestimated by $1,009,802 In addition to contingency reserve, $1,135,858 of the restricted income due to the college for 2003-2004 was not spend in 2003-2004 fiscal year and therefore was not included in the total revenue. This income has been carried over to 2004-2005 fiscal year. | | 2003-2004 Adopted Budget | 2003-2004 Actual Budget | | Unrestricted Total Revenue | $100, 577, 592 | $102,037,019 | | Unrestricted Beginning Balance | $1,862,057 | $1,862,057 | | Unrestricted Total Expenditure & Transfer | $100,577,592 | $96,962,281 | | Unrestricted Contingency Reserve | $1,862,057 | $6,834,088 | In Unrestricted General Fund Adopted Budget for 2003-2004: · Revenue was underestimated by $1,459,427. · Expenditure was overestimated by $3,615,311. Contingency Reserve was underestimated by $4,972,031. | | 2003-2004 Adopted Budget | 2003-2004 Actual Budget | | Restricted Total Revenue | $18,527,756 | $17,148,797 | | Restricted Total Expenditure& Other Outgo | $18,527,756 | $16,138,995 | | Restricted Contingency Reserve | $0 | $1,009,802 | In Restricted General Fund Adopted Budget for 2003-2004: · Revenue was over estimated by $1,378,959 · Expenditure was over estimated by $2,388,761 · Contingency Reserve was underestimated by $1,009,802 In addition to contingency reserve, $1,135,858 of the restricted income due to the college for 2003-2004 was not spend in 2003-2004 fiscal year and therefore was not included in the total revenue. This income has been carried over to 2004-2005 fiscal year. | | 2003-2004 Adopted Budget | 2003-2004 Actual Budget | | Unrestricted Total Revenue | $100, 577, 592 | $102,037,019 | | Unrestricted Beginning Balance | $1,862,057 | $1,862,057 | | Unrestricted Total Expenditure & Transfer | $100,577,592 | $96,962,281 | | Unrestricted Contingency Reserve | $1,862,057 | $6,834,088 | In Unrestricted General Fund Adopted Budget for 2003-2004: · Revenue was underestimated by $1,459,427. · Expenditure was overestimated by $3,615,311. Contingency Reserve was underestimated by $4,972,031. | | 2003-2004 Adopted Budget | 2003-2004 Actual Budget | | Restricted Total Revenue | $18,527,756 | $17,148,797 | | Restricted Total Expenditure& Other Outgo | $18,527,756 | $16,138,995 | | Restricted Contingency Reserve | $0 | $1,009,802 | In Restricted General Fund Adopted Budget for 2003-2004: · Revenue was over estimated by $1,378,959 · Expenditure was over estimated by $2,388,761 · Contingency Reserve was underestimated by $1,009,802 In addition to contingency reserve, $1,135,858 of the restricted income due to the college for 2003-2004 was not spend in 2003-2004 fiscal year and therefore was not included in the total revenue. This income has been carried over to 2004-2005 fiscal year. Fiscal year 2003-2004 ended with a reserve of $6,834,088 in unrestricted general fund, $1,009,802 in restricted general fund, and $1,135,858 in carry over revenue, totaling $8,979,748; the highest unrestricted and total reserve for the past four years. At the end of 2002-2003 fiscal year due to very low reserve SMC was put on the Chancellor Office priority one watch list and had to submit a recovery plan to the Chancellor Office. The following is an excerpt from submitted plan: “In 02-03 spring semester classes were reduced by about 7%. The lost FTE was made up with 2003 summer session FTE shifted into ’02-’03. This cut was minor compare to the reduction put in place for ’03-’04. Eight tenured faculty were laid-off as their programs were ended. Over 25% of the fall class schedule was cut. This resulted in hundreds of adjunted faculty not being rehired for the fall term. 14 fulltime classified employees were laid-off, and hundreds of hourly classified were released. Salary expenses were reduced but benefit costs soared. Despite the political pressure placed on the Trustees the cuts remain in place for ’03-‘04 fiscal year. “ Could the Trustees have withstood the political pressure that would’ve been placed on them if the 2003-2004 budget that was adopted back in September of 2003 had contained more realistic figures? Was this just a simple accounting error or a calculated error? | In addition to the contingency reserve, $1,135,858 of the restricted income due to the college for 2003-2004 was not spent in the 2003-2004 fiscal year and therefore was not included in the total revenue. This income has been carried over to the 2004-2005 fiscal year. The fiscal year 2003-2004 ended with a reserve of $6,834,088 in the unrestricted general fund, $1,009,802 in the restricted general fund, and $1,135,858 in carry over revenue, totaling $8,979,748; the highest unrestricted and total reserve for the past four years. At the end of the 2002-2003 fiscal year SMC was put on the Chancellor Office priority one watch list because of a very low reserve and had to submit a recovery plan to the Chancellor Office. The following is an excerpt from submitted plan: | “In 02-03 spring semester classes were reduced by about 7%. The lost FTE was made up with 2003 summer session FTE shifted into ’02-’03. This cut was minor compare to the reduction put in place for ’03-’04. Eight tenured faculty were laid-off as their programs were ended. Over 25% of the fall class schedule was cut. This resulted in hundreds of adjunct faculty not being rehired for the fall term. 14 fulltime classified employees were laid-off, and hundreds of hourly classified were released. Salary expenses were reduced but benefit costs soared. Despite the political pressure placed on the trustees the cuts remain in place for ’03-‘04 fiscal year. “ Could the trustees have withstood the political pressure that would have been placed on them if the 2003-2004 budget that was adopted back in September of 2003 had contained more realistic figures? Was this just a simple accounting error or a calculated error? |
|
|
|
|
