Budget Update
June 2005
TO: Lane Faculty and Staff
FROM: Mary Spilde
DATE: June 9, 2005
RE: Budget Update
As the academic year draws to a close let me share some information on where we are regarding the budget. There are several changes to our budget since I last sent a budget update on April 15. For the most part it is good news ñ not great news but going in the right direction!
We have been dealing with five ìunknownsî during this budget cycle. Four of the five are now ìknownî ñ PERS Supreme Court decision, PERS rate, health insurance, funding distribution formula. For the most part the results improved the college's financial position, at least in the short run.
The one thing we still do not know is how much we will receive from the legislature. You may know that the House and Senate disbanded the Joint Ways and Means Committee which is the budget writing committee. The House has already passed the community college budget out at close to $434 million ($440 when you include the state office) which is what we requested. Unfortunately, the Senate number is a lot lower so we are working very hard to increase it. The Governor has been meeting with House and Senate leadership and, apparently, they are getting closer but they have not agreed at this point. Once decisions are made on the K-12 budget, which consumes most of the state funds, the other budgets will fall into place.
The most recent figure we received from the Department of Community Colleges and Workforce Development was $416 million ($422 including the state office) so we based our budget on that number. The Budget Committee approved the recommended budget and last night the board adopted it.
We continue to see the 2005-06 budget as a ìrolloverî budget with few additions or reductions. We wish it could be better as there are many needs that need to be met but the board must adopt a balanced budget. We have based the budget on a projection of a 4% enrollment increase so divisions and departments have been working with the Office of Instruction and Student Services to develop plans to accomplish this goal.
The budget committee also made recommendations regarding PERS Reserves, Capital Reserve Funding, Financial Stabilization, and Differential Pricing. Details on these are posted to the budget development website. We also indicated that we might make recommendations to the board for one time strategic investments for next year depending on our ending fund balance and the allocation from the state.
In summary, we're okay for next year. The 2006-07 projection continues to show a deficit but much will depend on the legislative allocation and our ending fund balance. Once the legislature has acted I will let everyone know the final outcome and the impact on Lane.
Thanks. |
