GLENDALE — More revenues are expected for Glendale Community College in the current fiscal year compared with what the college initially planned for, but expenditures are expected to be greater, too, the college’s board of trustees was told during a midyear budget update Friday.
The college is expected to bring in about $2.5 million more in revenues for the 2007-08 fiscal year than the college had budgeted for, College Controller Ron Nakasone said in his report to trustees. That would bring the college’s revenues for the year to about $82 million, Nakasone said.
“So that’s a very positive note,” Nakasone said, stressing that his report was just a prediction and based on best-guess projections for the coming months.
Much of that revenue comes from unanticipated cost-of-living adjustments from the state, as well as additional state dollars due to growth in the college’s enrollment, he said.
Each year, the state makes funding available for community college districts that have increasing enrollment, but there is a cap on the amount of money colleges can receive for growth. The college is expected to reach that target this year, Nakasone said.
“We’re going to reach our cap with the enrollment that was reported,” Nakasone said.
The college is expected to receive close to $500,000 for growth in student enrollment, Nakasone said.
Several board members lauded the college for successfully increasing student enrollment this year, and in doing so, bringing in more funding for the college.
“I’d like to congratulate the entire campus for this,” board member Tony Tartaglia said. “I don’t want that to be lost — that you guys hustled to make that happen.”
The final enrollment numbers for the spring semester won’t be officially tallied until Monday, according to Larry Serot, the college’s executive vice president of administrative services, but they look good so far, several college administrators said.
The college should also receive an extra $250,000 this year from nonresident tuition, due in part to an increase in nonresident tuition fees, and an increase in nonresident enrollment, Nakasone said.
On the expenditure side of the budget, the college looks as though it will be over budget in several areas, including salaries of certificated and classified employees, employee benefits and utilities, Nakasone said.
“We’re showing overdrafts in most of our operating categories,” he said. “It’s good that we have this large reserve at this point.”
Overall, the college may have an additional $1.3 million in expenses to pay by the end of the fiscal year.
The college may pay $578,000 more than it expected for employee health insurance, due in large part to increasing premiums. And utilities could cost the college $264,000 more than expected, partially as a result of increases in utility prices, Nakasone said.
“We had a fairly large increase in the utility rates,” he said.
Dawn Lindsay, vice president of instructional services, said the college was looking closely at the areas in which it was over budget.
The total projected changes to revenues and expenditures adds $1.2 million to the college’s budget.
Between that money and the college’s current reserves of $3.6 million, the college should have about $4.8 million in its reserve account at the end of the fiscal year, Nakasone said.
That’s $300,000 less than the reserve amount the college had at the end of last year, he said.
Nakasone predicted that, due to increasing costs in certain areas and reduced revenues in others, the college will need to make cuts between $700,000 and $1.2 million to balance its budget for 2008-09.
ANGELA HOKANSON covers education. She may be reached at (818) 637-3238 or by e-mail at email@example.com.