Definition of a Balanced Budget

Policy Number
BP 6225
Policy Category
Chapter 6 - Business and Fiscal Affairs
Adopted
Last Reviewed

The board directs the president to develop annual budget recommendations that are in accordance with the college's strategic plan and conform to the requirements of Local Budget Law (ORS 294.338). The budget shall provide for:

  • Annual operating expenditures not to exceed projected resources (Expenditures shall be budgeted according to the college's strategic priorities.)
  • Debt service, both current (due in less than 12 months) and long term
  • Reserves for maintenance and repairs to its existing facilities
  • Reserves for acquisition, maintenance and replacement of capital equipment
  • Reserves for strategic capital projects
  • Funding levels to fulfill future terms and conditions of employment, including early retirement benefits
  • Allocations for special projects related to the strategic directions of the college
  • Allocations for contingencies (unforeseen events requiring expenditures of current resources)
  • Ending Fund Balances (according to policies set specifically for that purpose)

Lane has a further responsibility to:

  • Plan how it will spend any "one-time" unanticipated revenue, allocating it strategically and prudently between:
    • The restoration of any shortfall to targeted ending fund balances,
    • Currently unfunded projects in the strategic plan, and/or
    • Holding some or all of it in reserve during financially volatile periods.
  • Permanently stabilize its finances in their entirety (operating budget, reserves, contingencies and ending fund balances) when it perceives a long term change (increase or decrease) to its available future recurring resources.
     
References

Legal: ORS 294.338 - Definition Compliance with Local Budget Law required prior to expenditure or tax certification

Note: This policy replaces retired Board Policy 240 (last reviewed November 6, 2024). The language has been adopted without change and renumbered to align with the four-digit policy structure.

Board Policies are adopted by the Lane Community College Board of Education and establish the College’s governing principles and institutional direction. These policies are reviewed by the Board at least every five years or more often as needed. Board Policies are distinct from College Operating Policies and Procedures (COPPS), which provide operational guidance and are developed through governance processes and by responsible managers.