Victor Valley College

2005-06 Tentative General Fund Budget

 

Key Budget Development Assumptions

 

REVENUE ASSUMPTIONS

 

  • The District growth target is 11.19%.  We are projecting at this point in time that the District will be funded for fifty percent (50%) of its targeted growth.
  • The Cost-of-Living Adjustment is budgeted at 4.23% based on the Governor’s May Revise. 
  • Equalization is funded at 50% of 2004-2005 based on the Governor’s May Revise.
  • Partnership for Excellence (PFE) funds will become part of the base budget and will no longer be accounted for separately.  No funding is being added for the possible return of the portion of PFE funding withheld by the Governor pending legislative approval of proposed accountability measures.
  • Reduction in Lottery funding of 2.4% based on Governor’s May Revise.
  • Revenue enhancements that were projected for 2004-2005 that did not materialize are being reversed to provide a more accurate revenue projection.

 

EXPENDITURE ASSUMPTIONS

 

  • Cost of step and column salary increases is funded right off the top of the COLA funding.
  • A salary increase reserve equal to 4.23% COLA is being established.
  • The Unrestricted Reserve Fund is being fully funded at the minimum level set by the District Board of 5%.
  • The Reserve for Unfunded Liabilities is being carried forward and increased to $1 million to cover projected legal settlements, GASB 43/45 legal requirements, and other items as detailed in budget document.
  • Under-funded line items for utilities, water rights, increased liability and property insurance premiums, printing, postage, software licensing, Board elections, and contractual obligations is being corrected.
  • Year two of the three year payback of the High Desert COLA is funded.
  • Growth funding for 900 FTES is being budgeted to cover the cost of increased instructional offerings.
  • Funding will be provided to meet highest priority needs identified by the Budget Resources Identification Committee through the Unit Planning Process and based on recommendations accepted by Cabinet.