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RESOLUTION 93-007 THEREIS NO OTHER REASONABLE MEANS OF FINANCING SUCH BUILDINGS, FACILITIES, STRUCTURES, OR OTHER IMPROVEMENTS AVAILABLE TO THE COMMUNITY [Section 33445(2) of the Health and Safety Code] The District's services and the Eligible Capital Improvements are intended to be financed through various statutes of the California Education Code, and the various programs of the State of California. Through State statutes, the property taxes generated within the boundaries of the District are allocated to the District based upon a formula ("revenue limit'S) which insures equalization of revenues by full time equivalent students, to all community colleges districts throughout the State. Should local property taxes not be adequate to fund the revenue limit, the State supplements the property taxes with other designated State general fund revenues, so as to ensure that the revenue limit is annually attained. The equalized revenue limit per student increases or decreases depending on the State's and Chancellor's ability to supplement property tax revenues based upon the amount of revenue the Legislature allocates to the State's community college system. In recent years the revenue limit has remained stagnant or has decreased due to the State's financial crises. The District's FY 1992~1993 revenue limit per full-dine equivalent student per year for non-credit students is $1,550.00 (projected) and for credit students is $3,078.53, or an estimated total revenue of $52,795,464 (projected). This is comparable to the FY i 991 -1992 budget of the District, even though student enrollment and the cost of providing services have increased. This revenue allocation is expended by the District on operations and administration in order to provide the general educational programs of the DistricL Over the last several years, the ability of the State to maintain the level of revenue limit funding necessary to finance the District's operations and administration has been diminishing. The State's present budget crisis is reflective of its inability to attain the level of funding which school districts have had in the pasL This financial crisis may be leading to a restructuring of the endre State education financing programs, where community colleges and their local communities will have greater responsibilities and obligations for the financial needs of their iurisdictional areas. The District conducts business through various budgetary funds of the District, Many of these funds are "use-restricted" as a result of State statutes, regulations, or requirements. Similarly, many of these funds are constrained due to contract obligations which the District maintains in order to operate. These contract obligations include, for example, agreements with the employee associations of the District, which establish certain standards of District operation and employment benefits. These contract obligations are significant in that they affect the flexibility of the budgetary process of the District to reallocate revenue resources as necessary to capital facilities and deferred maintenance. The unrestricted funding is maintained in the General Fund of the District Portions of the revenue limit proceeds are within this fund. The District however, has had to conserve its expenditures in this fund over the past several years, in order to maintain a balanced budget.