MT. SAN JACINTO COMMUNITY COLLEGE
BUDGET COMMITTEE MEETING
March 15th, 2001
The meeting started at 8:00am in room 200 with Becky Elam (co-chair), Dewey Heinsma (co-chair), Carol Montez, Dennis Hogan, Gail Jensen, and Jeanine Woodford in attendance. Absent were Mary Helen Ish, Gale Ward, Dennis Anderson, Guy Reams, and the ASB representative.
The minutes of February 15th, 2001 were reviewed and approved as submitted with minor revisions. Becky Elam moved to approve the minutes with the suggested changes and Dennis Hogan seconded the motion.
Dewey recommended that all of this fiscal year's minutes and agendas be submitted to Stephanie Cason to post to our website. Jeanine will e-mail Stephanie this information.
Becky opened the meeting to any additions to the proposed agenda. No additions were presented.
Becky advised the committee members of the budget development process in regard to the effects of the energy crisis. Currently, the increased energy costs have not been passed on so our energy costs have remained relatively the same.
The preliminary anticipated increased costs of our health and welfare benefits are expected to be 16% for the next fiscal year. Possible suggested solutions to offset this increase would be to no longer have a free mail in prescription program and to change the co-pay from $5 to $7. When actual calculations were completed, it appears as though there could be a movement from Kaiser to Blue Cross due to a significant rise in the subscriber's out of pocket costs.
Carol Montez, Dennis Hogan, and Dewey discussed the feasibility of continuing to have free mail in prescriptions, increasing the co-pay, and generic drugs versus brand names.
Becky reported that COLA in January 2001 is at 3.91% and hopefully will stay the same at the May revise. COLA is what will help us fund the increased energy costs. Our utilities are the largest non-salary expenditure we have. Carol Montez questioned as to if our buildings are individually metered. Becky advised that we are in the process of upgrading and slowly converting to computerized metering systems for both campuses.
Becky stated that the economy is still very good despite all of the media reports. The March Chancellor's Office letter was very positive. The Department of Finance yearly January-to-January report stated that the overall economy is still going strong. The portfolios of PERS and STRS are safe, however, Japan's markets are starting to slide and this will have an impact on retirement systems and investments everywhere.
Becky distributed handouts that detailed the hows and whys of P1 - the first principal apportionment. A general discussion explaining each page of the document, the direct effect of being over-cap, and the difference between funded and unfunded growth (FTES) were discussed in length by Becky.
Dewey requested that the Budget Committee review the timelines in regard to the budget allocation mechanisms further. Dewey felt that now (springtime) instead of June or July when most of the faculty is gone, would be a better time to discuss the proposals for block grants and PFE funds. Dewey requested that the budget allocation mechanisms be discussed at the next scheduled Budget Committee meeting. Becky stated that the 50% recommendations should be available for review by the Budget Committee at the next meeting also.
Becky asked if there were any further items to be discussed. None were presented. The meeting adjourned at 9:15am.
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