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Key Terms

The following terms are defined in the CCCCO Download Budget and Accounting Manual

, 2012 Edition, Appendix A Common Terminology and the Download  ACBO/California Community College League 2020-21 California Enacted Budget Joint Analysis ):

  1. 50 Percent Law:  The “50 Percent Law”, as defined in Education Code Section 84362 and California Code of Regulations Section 59200 et seq., requires California Community College districts to spend each fiscal year 50% of the current expense of education for payment of salaries of classroom instructors. The intent of the statute is to limit class size and contain the relative growth of administrative and non-instructional costs. The Annual Financial and Budget Report (CCFS-311) includes actual data on the district’s current expense of education and compliance with the 50% Law. (See Current Expense of Education.)
  2. Allocation - Division or distribution of resources according to a predetermined plan.
  3. Apportionment - Allocation of State or Federal aid, district taxes, or other moneys to community college districts or other governmental units.
  4. Base Revenue - The districts’ total prior-year revenue from state general apportionments, local property tax revenue and student enrollment fees adjusted when applicable for projected deficits.  
  5. Beginning Balance - The money that the district begins the year with. It is based on the ending balance from the prior year, unexpended funds, monies that are expected to be received and other cash on hand.  
  6. Budget - A plan of financial operation for a given period for a specified purpose consisting of an estimate of revenue and expenditures.
  7. Categorical Funds - Also called restricted funds, allocations that are required to be spent in a particular way or for a
    designated program.
  8. Ending Balance - A sum of money available in the district’s account at year-end after subtracting accounts payable from accounts receivable. 
  9. Fund - An independent fiscal and accounting entity with a self-balanced set of accounts for recording cash and other financial resources, together with all related liabilities.
  10. General Fund - The fund used to account for the ordinary operations of the district. It is available for any legally-authorized purpose not specified for payment by other funds.
  11. Mandated Costs - College district expenditures that occur as a result of federal or state law, court decisions, administrative regulations, or initiative measures. 
  12. Restricted Funds - Money that must be spent for a specific purpose either by law or by local board action. 
  13. Revenue - Income from all sources.

 

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Appendix C: Glossary Joint Analysis: Enacted Budget, July 2, 2020 | Page 23-24

  1. Appropriation: Money set apart by legislation for a specific use, with limits in the amount and period during which the expenditure is to be recognized.
  2. Augmentation: An increase to a previously authorized appropriation or allotment.
  3. Bond Funds: Funds used to account for the receipt and disbursement of non-self liquidating general obligation bond proceeds.
  4. Budget: A plan of operation expressed in terms of financial or other resource requirements for a specific period.
  5. Budget Act (BA): An annual statute authorizing state departments to expend appropriated funds for the purposes stated in the Governor's Budget, amended by the Legislature, and signed by the Governor.
  6. Budget Year (BY): The next state fiscal year, beginning July 1 and ending June 30, for which the Governor's Budget is submitted (i.e., the year following the current fiscal year).
  7. Capital Outlay: Expenditures which result in acquisition or addition of land, planning and construction of new buildings, expansion or modification of existing buildings, or purchase of equipment related to such construction, or a combination of these.
  8. Cost of Living Adjustment (COLA): Increases provided in state-funded programs intended to offset the effects of inflation.
  9. Current Year (CY): The present state fiscal year, beginning July 1 and ending June 30 (in contrast to past or future periods).
  10. Deferrals: Late payments to districts when the state cannot meet its funding obligations. Deferrals allow districts to budget for more money than the state will provide in a given year. A district is permitted to spend as if there is no deferral. Districts typically rely on local reserves or loans to cover spending for the fiscal year.
  11. Department of Finance (DOF or Finance): A state fiscal control agency. The Director of Finance is appointed by the Governor and serves as the chief fiscal policy advisor.
  12. Education Protection Account (EPA): The Education Protection Account (EPA) was created in November 2012 by Proposition 30, the Schools and Local Public Safety Protection Act of 2012, and amended by Proposition 55 in November 2016. Of the funds in the account, 89 percent is provided to K-12 education and 11 percent to community
    colleges.
  13. Expenditure: Amount of an appropriation spent or used.
  14. Fiscal Year (FY): A 12-month budgeting and accounting period. In California state government, the fiscal year begins July 1 and ends the following June 30.
  15. Fund: A legal budgeting and accounting entity that provides for the segregation of moneys or other resources in the State Treasury for obligations in accordance with specific restrictions or limitations.
  16. General Fund (GF): The predominant fund for financing state operations; used to account for revenues which are not specifically designated by any other fund.
  17. Governor’s Budget: The publication the Governor presents to the Legislature by January 10 each year, which includes recommended expenditures and estimates of revenues.
  18. Legislative Analyst’s Office (LAO): A nonpartisan office that provides fiscal and policy advice to the Legislature.
  19. Local Assistance: Expenditures made for the support of local government or other locally administered activities.
  20. May Revision: An update to the Governor’s Budget presented by Finance to the Legislature by May 14 of each year.
  21. Past Year or Prior Year (PY): The most recently completed state fiscal year, beginning July 1 and ending June 30.
  22. Proposition 98: A section of the California Constitution that, among other provisions, specifies a minimum funding guarantee for schools and community colleges. California Community Colleges typically receive 10.93% of the funds.
  23. Reserve: An amount set aside in a fund to provide for an unanticipated decline in revenue or increase in expenditures.
  24. Revenue: Government income, generally derived from taxes, licenses and fees, and investment earnings, which are appropriated for the payment of public expenses.
  25. State Apportionment - An allocation of state money to a district, determined by multiplying the district’s total FTES times its base revenue per FTES.
  26. State Operations: Expenditures for the support of state government.
  27. Statute: A law enacted by the Legislature.
  28. Tax and Revenue Anticipation Notes (TRANs): Short-term debt instruments issued in anticipation of taxes or other revenues to be collected at a later date.
  29. Title 5 - The Section of the Administrative Code that governs community colleges. The Board of Governors may change or add to Title 5.
  30. Workload Budget: The level of funding needed to support the current cost of already authorized services.