POLICY NUMBER: E.010
POLICY TYPE: BUDGET AND FINANCIAL
POLICY TITLE: DEFINITION OF A BALANCED BUDGET
The board directs the president to develop annual budget recommendations that are in accordance with the college's strategic plan and conform to the requirements of Local Budget Law (ORS 294.326). The budget shall provide for:
- Annual operating expenditures not to exceed projected revenues (Expenditures shall be budgeted according to the college’s strategic priorities.)
- Debt service, both current (due in less than 12 months) and long term
- Reserves for maintenance and repairs to its existing facilities
- Reserves for acquisition, maintenance and replacement of capital equipment
- Reserves for strategic capital projects
- Funding levels to fulfill future terms and conditions of employment, including early retirement benefits
- Allocations for special projects related to the strategic directions of the college
- Allocations for contingencies (unforeseen events requiring expenditures of current resources)
- Ending Fund Balances (according to policies set specifically for that purpose)
Lane has a further responsibility to:
- Plan how it will spend any "onetime" unanticipated revenue, allocating it strategically and prudently between:
o The restoration of any shortfall to targeted ending fund balances,
o Currently unfunded projects in the strategic plan, and/or
o Holding some or all of it in reserve during financially volatile periods.
Permanently stabilize its finances in their entirety (operating budget, reserves, contingencies and ending fund balances) when it perceives a long term change (increase or decrease) to its available future recurring resources.
ADOPTED: January 14, 2004
REVIEWED: November 8, 2006
REVIEWED: September 15, 2009
