Greetings all,

As I have shared in previous College Budget Updates, we are in the process of developing budget reduction planning scenarios (of 1.4%, 2.9%, and 4.4%) for FY11 in anticipation of future State budget cuts.

Last week the College held two open meetings during which time, I provided an update on the status of the FY10 and FY11 State budgets and Jackie Askin, Mary Lou Mosley, Shirley Green and Paul Golisch provided an overview of possible budget reduction strategies compiled at the division level. Soon copies of division level generated ideas will be posted on the College Budget web site.

As you may know, approximately 8 percent of the District funding (approximately $45 million) comes from the State. Compared to other State funded entities, this is a very modest level. So why is the State budget still experiencing significant shortfalls? Since FY07 sales tax collections have declined 22%, and personal income tax collections have declined 38%. And since 2004, 144,000 new students have entered the K -- 12 system and 475,000 new members have joined AHCCS. On top of this, since 2007, the State has lost 280,000 jobs. On a positive note though, economist, Alan Maguire shared at a recent MCCD Board meeting, the State has begun a slow climb "out of a ten foot hole of an economic crisis."

At this time, we are still unsure of the budget reductions for Fiscal year 2011. Over the last three days, I've learned of a range of possibilities including: the district being held harmless (in terms of any reductions) for FY10 and FY11 to the other extreme that if new revenue is not generated (through the planned special election in May), MCCD's reduction could be as much as $22.5 million. In the mean time we will continue to develop a variety of scenario plans. Watch for the following budget related activities:

* College Financial Planning Advisory Committee Report Out February 19
* 21st Century Maricopa Implementation Planning (January, February Board Meetings)
* Integration of District Wide Budget Reduction Recommendations - ongoing
* College APB Process for FY11- calendar to be released soon

As always, please feel free to call me directly at 7-6610 if you have further questions.

Regards,

Paul