1.  Attendance
The meeting of the Lane Community College Budget Committee was called to order by Bert Dotson at 4:35 p.m. in the Lane Community College Boardroom. Present were Budget Committee members Stephen Allison, Jay Bozievich, Roger Hall, John Hamilton, Paul Holman, Mike Rose, Kathleen Shelley, Dennis Shine, Jerry Sirois. Also present were President Mary Spilde and Vice President Marie Matsen. Budget Committee members absent were Sandie Hitchcock, Larry Romine, Kevin Wells, and Rick Yecny.

2.  Elections:
Mike Rose nominated John Hamilton to serve as chair of the Chair Budget Committee for 2005-06. Holman seconded.
Motion carried unanimously.

3.  Vice Chair Paul Holman nominated Mike Rose to serve as vice chair of the Budget Committee for 2005-06. Shelley seconded.
Motion carried unanimously.

4.  Secretary Paul Holman nominated Kathleen Shelley to serve as secretary of the Budget Committee for 2005-06. Bozievich seconded.
Motion carried unanimously.

5.  Budget
Vice President Matsen read the 2005-06 budget message
Message (appended to the notes) projecting a total general fund budget of $81M. This represents a 2.2 percent increase over the current fiscal year.

6.  Budget
President Spilde described the uncertainty in the state budget that
Development affected budget projections. Although no significant cost
Process containment changes are planned for FY06, there is a potential shortfall in FY07 and another large deficit in FY08 caused by an increase in the PERS unfunded liability rate. It is important to build in an allowance for strategic investments. Spilde reviewed topics that need further discussion including PERS reserves, tuition policy, stabilization fund, capital reserve fund, differential pricing, and strategic investments.

7.  Budget
Matsen presented the FY06 Proposed Budget Document. She defined budget terms, explained the budget process and issues for budget development, showed past and projected total public resources and tuition revenues, reviewed expenditures by expense function and object, and described proposed budgets for various fund accounts.

Information distributed included:

• 2005-06 Budget Message
• Proposed 2005-06 Budget
• FY06 Budget Projections, April 6, 2005
• May 4, 2004, Projections v. Actual, FY04 Budget v. Actual, Summary of Net Assets, June 30, 2004
• FY06 Budget Development, General Fund, Summary of Other Expenditures
• FY06 Budget Development, OPE Estimate Summary
• FY06 Budget Recommendations, Mandatory Adjustments
• Proposed Facilities Maintenance and Improvement Funding 8-Year Plan

8.  General
It is important to understand that tuition is increased just enough to
Discussion offset the inflation rate. Past financial problems were caused by a lack of keeping pace with inflation when adequate public funding was available.

Spilde and Masten recommended that the FY06 state public resource projection be increased as a “cushion” to allow for an increase in state revenues to community colleges. If funds were realized, the board would need to discuss priorities for the investment of that money.

A proposed Facilities Maintenance and Improvement Funding –
8-year Plan was distributed. Although significant progress has been made on deferred maintenance, there still is a long list of major maintenance needs.

Budget committee members were encouraged to send individual questions to Matsen or her staff, so that responses could be researched and completed prior to the next meeting.

Background information pertaining to next week’s budget committee agenda will be provided prior to next week’s meeting.

9.  Attendance
The meeting of the Lane Community College Budget Committee was called to order by Bert Dotson at 4:35 p.m. in the Lane Community College Boardroom. Present were Budget Committee members Stephen Allison, Jay Bozievich, Roger Hall, John Hamilton, Paul Holman, Mike Rose, Kathleen Shelley, Dennis Shine, Jerry Sirois. Also present were President Mary Spilde and Vice President Marie Matsen. Budget Committee members absent were Sandie Hitchcock, Larry Romine, Kevin Wells, and Rick Yecny.

10.  Next budget committee meeting: May 18 at 5:30 p.m.

Meeting agenda includes:

• Public Comment
• PERS Reserve
• Differential Pricing
• Capital Reserve Fund
• Other information as requested

11.  Adjournment Chair Hamilton adjourned the meeting at 6:15 p.m.

Approved:

_______________________________ _______________________________
John Hamilton, Chair                Date  Mary Spilde, President             Date

Recorder: Laura Tamura, Assistant to the Board