BRT - December 17, 2010

Recap of 2010-2011 Budget Book

Fiscal Year End June 30,

2011 2012 2013 2014 2015 2016

Salary package increase included in budget 3.6% or $2.5Mil 3.6% or $2.6Mil 3.6% or $2.7Mil 3.6% or $2.8Mil 3.6% or $2.9Mil 3.6% or $3.0Mil

2011 Budget Book (Beginning Balance) $ (1,140,593) $ (5,400,000)

Actions taken and reflected:

Class size carried into 2011-2012 (Add'l 1 student) 775,000 $775K $775K $775K $775K

Enrollment growth (6% above '11 and 3% above '12) 2,100,000 2.00% 0.00% -3.00% -3.00%

Additional $6.00 fee increase (total $8.00) 3,000,000 $ 2.00 $ 2.00 $ 2.00 $ 2.00

Additional 12% state aid cut (total 17%) (3,850,000) -3.00% 2.00% 0.00% 2.00%

Investment income (300,000) $75K $75K $75K $75K

IWI contribution included $856K $1,054K $1,256K $1,457K $1,665K

OPEB adjustment (18% Health Insurance Adj) (700,000)

Additional '10-'11 compensation adjustment (535,000)

College size adjustment (enrollment change) (800,000)

Increase to ADA funding to actual historical levels (163,143)

'11 - '12 Financial Plan Budget Book (Page 25) $ (1,288,539) $ (5,873,143) $ (10,637,385) $ (13,685,635) $ (16,295,625) $ (18,738,233)

BRT - December 17, 2010Current Early Retirement Plan and CostsRequirements of Early Retirement I. Ten (10) consecutive years of service to MCCII. Age 55III. Thirty (30) consecutive years of service to MCC regardless of age

Annual Costs of Current Early Retirement Plan

I. Special payment (aka Incentive pay) $ 700,000

II. Insurance benefits $ 2,600,000

III. Premium pay (Faculty, Staff & Admin) $ 1,600,000 $ 4,900,000

Components of Early Retirement

I. Special Payment $ 700,000

A. Formula based on age and current wage at retirement1. 75% of final contract or annual salary if taken at age 55; reduced by 5% for every year over age 55;

increased 1% for each year over 15 years of service to the district up to a maximum of 10% for early retirees 62 years of age or less at time of early retirement

B. Payout option of lump sum or two installmentsC. Average 22 Retirees per year

II. Insurance Benefits $ 2,600,000

A. 100% Employee (Individual) and 50% of dependent premium thru age 65 forhealth, vision, dental and group term life

B. OPEB includes the future insurance cost of the current work force - the primary component of the OPEB costC. 141 early retirees receiving some health benefit

III. Premium Pay for Reemployment $ 1,600,000

A. Up to 13.86 work units or 550 hours per fiscal year.B. Bumping rights - Assigned following the placement of FT faculty with full load and

and before part time or overload assignments.C. 69 early retirees benefiting

MCC BRT - December 17, 2010Option #1: Retirement Election - Incentive Pay - Current plan versus implementing rule of 80 versus elimination of plan

Fiscal Year End June 30, Fiscal Year End June 30,2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

Current Costs

Special/Incentive Payment

725,200

751,307

778,354

806,375

835,405

865,479

878,461

891,638

905,013

918,588

932,367

946,352

960,548

974,956

989,580

1,004,424

1,019,490

1,034,783

Insurance 2,818,375

2,954,890

3,097,227

3,241,485

3,398,876

3,667,034

3,836,034

4,013,643

4,200,333

4,396,600

4,602,970

4,819,999

5,048,276

5,288,422

5,541,095

5,806,988

6,086,838

6,381,422

Premium Pay 1,600,000

1,657,600

1,717,274

1,779,095

1,843,143

1,909,496

1,938,138

1,967,211

1,996,719

2,026,669

2,057,070

2,087,926

2,119,244

2,151,033

2,183,299

2,216,048

2,249,289

2,283,028

5,143,575

5,363,797

5,592,855

5,826,955

6,077,423

6,442,009

6,652,634

6,872,492

7,102,064

7,341,857

7,592,406

7,854,277

8,128,068

8,414,411

8,713,973

9,027,460

9,355,617

9,699,233

Rule of 80 Plan - Age plus years of MCC service - implemented July 1, 2013

Special/Incentive Payment (50% of base with $50,000 max)

725,200

751,307

4,778,986

546,364

562,754

579,637

593,555

602,458

611,495

620,668

629,978

639,427

649,019

658,754

668,635

678,665

688,845

699,177

Insurance (retirees before July 1, 2013) 2,818,375

1,748,890

1,874,477

2,177,188

2,034,248

1,895,944

1,667,546

1,423,172

1,161,744

1,073,535

977,389

669,443

339,736

-

-

-

-

-

Insurance (new retirees) -

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Premium Pay 336,000

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

3,879,575

2,500,197

6,653,463

2,723,552

2,597,002

2,475,581

2,261,101

2,025,630

1,773,239

1,694,203

1,607,367

1,308,870

988,755

658,754

668,635

678,665

688,845

699,177

Savings

Special/Incentive Payment -

-

(4,000,632)

260,011

272,650

285,842

284,906

289,180

293,518

297,920

302,389

306,925

311,529

316,202

320,945

325,759

330,645

335,605

Insurance -

1,206,000

1,222,750

1,064,297

1,364,628

1,771,090

2,168,488

2,590,472

3,038,589

3,323,064

3,625,581

4,150,557

4,708,540

5,288,422

5,541,095

5,806,988

6,086,838

6,381,422

Premium Pay 1,264,000

1,657,600

1,717,274

1,779,095

1,843,143

1,909,496

1,938,138

1,967,211

1,996,719

2,026,669

2,057,070

2,087,926

2,119,244

2,151,033

2,183,299

2,216,048

2,249,289

2,283,028

1,264,000

2,863,600

(1,060,608)

3,103,404

3,480,421

3,966,428

4,391,533

4,846,862

5,328,825

5,647,654

5,985,040

6,545,408

7,139,314

7,755,657

8,045,338

8,348,795

8,666,772

9,000,055

Eligibility Requirements of Early Retiree'sComponents of Retirement Plan - Effective July 1, 2013 (unless noted differently)

1. Twenty (20) years of service to MCC 1.Special/Incentive payment - 50% of final contract or salary and capped at $50,000

2. Rule of 80 - age plus years of service to MCC 2. Insurance benefit - discontinued

3. Elect benefit in first year of eligibility or lose it 3.

Premium pay - Board elimination of ERT units. July 1, 2011 has 200 units or 7,936.5 hours. July 1, 2012 and after 0 units or 0 hours

4.No bumping rights

MCC BRT - December 17, 2010Option #2: Retirement Election - Health Insurance - Current plan versus implementing rule of 80 versus elimination of plan

Fiscal Year End June 30, Fiscal Year End June 30,2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

Current Costs

Special/Incentive Payment 725,200

751,307

778,354

808,618

832,876

857,863

870,731

883,792

897,049

910,505

924,162

938,025

952,095

966,376

980,872

995,585

1,010,519

1,025,677

Insurance 2,818,375

2,954,890

3,097,227

3,241,485

3,398,876

3,667,034

3,836,034

4,013,643

4,200,333

4,396,600

4,602,970

4,819,999

5,048,276

5,288,422

5,541,095

5,806,988

6,086,838

6,381,422

Premium Pay 1,600,000

1,657,600

1,717,274

1,779,095

1,843,143

1,909,496

1,938,138

1,967,211

1,996,719

2,026,669

2,057,070

2,087,926

2,119,244

2,151,033

2,183,299

2,216,048

2,249,289

2,283,028

5,143,575

5,363,797

5,592,855

5,829,198

6,074,895

6,434,393

6,644,903

6,864,646

7,094,100

7,333,774

7,584,201

7,845,950

8,119,616

8,405,832

8,705,265

9,018,621

9,346,646

9,690,127

Rule of 80 Plan - Age plus years of MCC service - implemented July 1, 2013

Special/Incentive Payment (discontinued effective July 1, 2013)

725,200

751,307

4,778,986

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Insurance 2,818,375

2,594,890

2,732,227

3,322,285

3,430,476

3,630,174

3,729,378

3,835,776

3,949,754

4,071,718

4,202,099

4,341,353

4,489,959

4,661,626

4,876,690

5,102,719

5,340,313

5,590,106

Premium Pay -

348,096

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

3,543,575

3,694,293

7,511,213

3,322,285

3,430,476

3,630,174

3,729,378

3,835,776

3,949,754

4,071,718

4,202,099

4,341,353

4,489,959

4,661,626

4,876,690

5,102,719

5,340,313

5,590,106

Savings

Special/Incentive Payment -

-

(4,000,632)

808,618

832,876

857,863

870,731

883,792

897,049

910,505

924,162

938,025

952,095

966,376

980,872

995,585

1,010,519

1,025,677

Insurance -

360,000

365,000

(80,800)

(31,600)

36,860

106,656

177,867

250,579

324,882

400,871

478,647

558,318

626,797

664,404

704,269

746,525

791,316

Premium Pay 1,600,000

1,309,504

1,717,274

1,779,095

1,843,143

1,909,496

1,938,138

1,967,211

1,996,719

2,026,669

2,057,070

2,087,926

2,119,244

2,151,033

2,183,299

2,216,048

2,249,289

2,283,028

1,600,000

1,669,504

(1,918,358)

2,506,913

2,644,419

2,804,219

2,915,525

3,028,869

3,144,346

3,262,056

3,382,102

3,504,597

3,629,657

3,744,206

3,828,575

3,915,902

4,006,333

4,100,021

Eligibility Requirements of Early Retiree'sComponents of Retirement Plan - Effective July 1, 2013 (unless noted differently)

1. Twenty (20) years of service to MCC 1.Special/Incentive payment - discontinued

2. Rule of 80 - age plus years of service to MCC 2.Insurance benefit - Employee (individual) premium only. No dependent subsidy.

3. Elect benefit in first year of eligibility or lose it 3.Premium pay - Board elimination of ERT units. July 1, 2011 has 200 units or 7,936.5 hours. July 1, 2012 and after 0 units or 0 hours.

4. No bumping rights

MCC BRT - December 17, 2010Option #3: Discontinue all MCC Early Retirement Programs

Fiscal Year End June 30, Fiscal Year End June 30,2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

Current Costs

Special/Incentive Payment 725,200

751,307

778,354

808,618

832,876

857,863

870,731

883,792

897,049

910,505

924,162

938,025

952,095

966,376

980,872

995,585

1,010,519

1,025,677

Insurance 2,818,375

2,954,890

3,097,227

3,241,485

3,398,876

3,667,034

3,836,034

4,013,643

4,200,333

4,396,600

4,602,970

4,819,999

5,048,276

5,288,422

5,541,095

5,806,988

6,086,838

6,381,422

Premium Pay 1,600,000

1,657,600

1,717,274

1,779,095

1,843,143

1,909,496

1,938,138

1,967,211

1,996,719

2,026,669

2,057,070

2,087,926

2,119,244

2,151,033

2,183,299

2,216,048

2,249,289

2,283,028

5,143,575

5,363,797

5,592,855

5,829,198

6,074,895

6,434,393

6,644,903

6,864,646

7,094,100

7,333,774

7,584,201

7,845,950

8,119,616

8,405,832

8,705,265

9,018,621

9,346,646

9,690,127

Rule of 80 Plan - Age plus years of MCC service - implemented July 1, 2013

Special/Incentive Payment (50% of base with $50,000 max)

725,200

751,307

4,778,986

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Insurance (retirees before July 1, 2013) 2,818,375

1,748,890

1,874,477

2,177,188

2,034,248

1,895,944

1,667,546

1,603,603

1,347,588

1,169,245

977,389

669,443

339,736

-

-

-

-

-

Insurance (new retirees) -

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Premium Pay -

348,096

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

3,543,575

2,848,293

6,653,463

2,177,188

2,034,248

1,895,944

1,667,546

1,603,603

1,347,588

1,169,245

977,389

669,443

339,736

-

-

-

-

-

Savings

Special/Incentive Payment -

-

(4,000,632)

808,618

832,876

857,863

870,731

883,792

897,049

910,505

924,162

938,025

952,095

966,376

980,872

995,585

1,010,519

1,025,677

Insurance -

1,206,000

1,222,750

1,064,297

1,364,628

1,771,090

2,168,488

2,410,041

2,852,745

3,227,355

3,625,581

4,150,557

4,708,540

5,288,422

5,541,095

5,806,988

6,086,838

6,381,422

Premium Pay 1,600,000

1,309,504

1,717,274

1,779,095

1,843,143

1,909,496

1,938,138

1,967,211

1,996,719

2,026,669

2,057,070

2,087,926

2,119,244

2,151,033

2,183,299

2,216,048

2,249,289

2,283,028

1,600,000

2,515,504

(1,060,608)

3,652,010

4,040,647

4,538,449

4,977,357

5,261,043

5,746,512

6,164,529

6,606,812

7,176,507

7,779,880

8,405,832

8,705,265

9,018,621

9,346,646

9,690,127

Eligibility Requirements of Early Retiree'sComponents of Retirement Plan - Effective July 1, 2013 (unless noted differently)

1. Twenty (20) years of service to MCC 1.Special/Incentive payment - discontinued

2. Rule of 80 - age plus years of service to MCC 2. Insurance benefit - discontinued

3. Elect benefit in first year of eligibility or lose it 3.Premium pay - Board elimination of ERT units. July 1, 2011 has 200 units or 7,936.5 hours. July 1, 2012 and after 0 units or 0 hours.

4.No bumping rights