Antelope Valley College could end up with a $5.8 million reserve, based on its tentatively approved 2010-11 budget.
College trustees recently reviewed and unanimously approved the budget for the 2010-11 school year, with expenditures of restricted and unrestricted dollars from the general fund estimated to reach more than $65.2 million, and revenue gauged at slightly more than $66.8 million.
“(Antelope Valley College’s) main source of income is student enrollment, taxes, and state apportionment,” explained Director of Business Diana Keelin. “AVC and all community colleges must maintain a five percent reserve. Additionally, we receive statewide deferral monthly payments from the chancellor’s office. We don’t have the luxury to go bankrupt.
“The five percent reserve that we have accumulated over the last several fiscal years has given us the $6 million.”
Anticipated expenditures are up approximately $252,800 from the prior year, and revenues are expected to drop by more than $327,000 for the upcoming fiscal year.
At a time when much of the state is encountering a unstable state economy, certain areas on the AVC campus such as the bookstore reflected a loss. In the 2009-10 budget, the bookstore showed a deficit of $285,165. In the tentative 2010-11 budget, that deficit deepened to $463,000. “In the bookstore, we’re having some issues,” Deborah Wallace, vice president of Business Services, told the college board.
A reduction in the CalWORKs program resulted in fewer vouchers for students who purchase books with that assistance, Wallace explained. The CalWORKs program provides temporary financial aid and jobs to families with children, who have income below the state-recommended levels for their family sizes.
Although the bookstore figures indicated a weakened state, the cafeteria income remained strong. According to Wallace, the cafeteria budget ended the 2009-10 year with a surplus of $57,250. The expected ending balance for the cafeteria in the upcoming year is $170,999, with a surplus of $32,923. The vice president said changes in the cafeteria helped improve the facility.
Despite some low points and considering the economy in general combined with budget cuts from the state, board members were pleased with budget.
“Even though it’s tentative, I like the way it’s presented,” trustee Earl Wilson said. “It looks pretty good.”
“I’m pleased to see our reserve where it is, with no layoffs or furloughs,” board President Steve Buffalo said. “Overall, I thought it was a pretty good budget.”
The budget narrative noted that the document is based on Governor Arnold Schwarzenegger’s May revision of the state budget. “This budget is preliminary and could change pending final action by the legislature and the governor.”
“By law,” Antelope Valley College President Jackie L. Fisher Jr. said, “when the state approves its budget, we have 30 days to approve our final budget.”