As fiscal year 2012/2013 came to a close, De Anza staff held a meeting Wednesday, June 12, to preview FHDA’s budget for fiscal year 2013/2014. Ice cream was served to attendees at the meeting’s start, although it melted over the course of an hour and a half.
The projected deficit for 2013/2014 was originally $10.2 million, but dropped to $3.8 million after incorporating the governor’s May revisions for educational funding.
Furthermore, the passing of Prop 30 means that no state funding will be cut, and the projected deficit for 13/14 will be completely covered by the $10.2 million stability fund.
The problem lies in preparing for fiscal year 2014/2015, said Kevin Elroy, Vice Chancellor of Business Services, who was the main presenter at the meeting.
By using the stability fund (usable savings from 12/13), less leeway remains for dealing with 14/15. Less funding is also expected in the future.
The total apportionment of FTES (Full-Time Equivalent Students) for the district came out to 29,455 last year, and dropped down to 27,824 this year.
Every 100 FTES is equal to $450,000, meaning that $7.3 million will be lost if enrollment does not rise in 13/14.
Fortunately, FHDA will not lose these funds immediately. “The state gives you one year to kind of, cushion a safety net. Says, ‘You know what, you can’t adjust fast enough… we’ll go ahead and give it to you this year,’” said Mr. Elroy.
De Anza campus is currently receiving about half of the ongoing projected deficit, $1.9 million, while Foothill and Central Services are each dealing with $900,000.
Attendees were disatisfied with this split, De Anza President Brian Murphy said that the deficit shifts often. His opinion was to “Wait and see where it goes rather than make a jump now. Because if you make a jump now, you have to readjust next year. If it flips the other way, that’s the problem.”
Although the state has set aside $16.9 million (throughout all districts) to expand courses using online technology, it is uncertain how much FHDA would receive. For now, De Anza students will not be affected by the budget situation.
