ctcLink Accounting Manual | 20.20 Local Operating Budget

Most college districts begin the budget process in January (6 months before the start of the next fiscal year). However, college are prepared to make adjustments to their budgets until the Governor signs the budget bill, OFM provides final appropriation amounts and the State Board sends out the allocation schedule. During mid-biennium years, appropriations are scheduled to be available by April. However, in some years the biennial budget has not been passed by the legislature until July.

Financial planning and budgeting are ongoing processes driven by the mission and goals of the institution. The management process used for budget development varies from district to district based on the unique governance structure.

The process should be clearly defined and followed. Each district should have an approval process that includes approval by the district Board of Trustees since it is the authorizing body at the district level for all uses, sources and transfer of college funds.

In most instances, the budget prepared for the trustees is at a higher rollup level. However, districts generally prepare a more detailed annual budget for its executive team, deans and managers to allow them to effectively manage their area of responsibility. Frequently, employee groups request either involvement in the budget development process or to be kept informed of the district budget.

College budgets should be prepared at the fund level. Budgets adopted by the Board of Trustees should include the following funds:

1. All state funds (001, 08A, 24J, 060, etc)
2. Fund 149 (Operating Fees)
3. Fund 148 (Dedicated/General Fees)
4. Fund 145 & 146 (Grants and Contracts)
5. Fund 147 (Local capital projects)
6. Fund 522 (Student Services and Activities)
7. Other Funds. It is at the discretion of each college if they choose to budget other funds.

All budget revisions should be made promptly and, when applicable, a revised budget or schedule of budget changes should be approved by the district Board of Trustees.

Colleges typically begin the budget development process in January for the fiscal year beginning the following July. The State Board Operating Budget staff provide scenarios that include anticipated allocation levels given a set of assumptions. Districts vary in their method of anticipating state allocation and local revenue collection.