Palomar College (California), the only college in its district, serves a region which is expanding economically in agriculture, light industry, retail, and recreational facilities. Enrollment for fall 1978 was 14,800 with 204 full-time teachers, 166 part-time teachers, and 42 full-time teacher aides. Budget expenditures were $24.8 million for 1977-78; because of Proposition 13 a budget of $23.7 million was projected for 1978-79. Legal constraints on budget reductions involve certified employees and their salaries, enrollment reduction compensations, and consideration of potential loss of state funding due to reduction of student weekly contact hours were all factors in overall budget planning. The adopted budget included the following: (1) 1977-78 salary schedules for certificated and classified employees; (2) allocations for hourly pay which eliminated the need for an overload policy; (3) additional funds for fringe benefits program; (4) a contingency account for salary increases; (5) funds to implement the California State Personnel Board recommendations; (6) allowances for a modified sabbatical leave plan; (7) temporary elimination of certificated and classified positions; (8) assignment of non-teaching certificated staff to the classroom; (9) reduction in classified overtime and adult hourly expenditures; (10) reductions in membership, replacement of equipment, travel, and graduation accounts; (11) reduction in community services; and (12) reduction in capital outlay. (MB)