WORDS TO LIVE BY…

“ If you are not at the table… Then you are on the menu!”

Anonymous

CTE

THE BUDGET AND CTE What is a budget?

What is the faculty role in budgeting?

What mandates a budget and the budget form?

State and Local Budgets Categorical Funding Where do we currently stand and other budget concerns?

Where do we go from here?

Planning - From Program Review to Resource Allocation Data – Factual Resources

WHAT IS A BUDGET?

A. An income and expenditure plan B. A complete waste of time C. A mix-mash of numbers and jargon that nobody understands D. A distraction while the real allocation choices are made behind closed doors E. An annual series of evolving documents that can and should be paid attention to

WHAT IS THE FACULTY ROLE IN BUDGETING?

Title 5, §53200 (c) (10)

Processes

for institutional planning and budget development ACCJC III D. 1. d. The institution clearly defines and follows its guidelines and processes for financial planning and budget development, with all constituencies having appropriate opportunities to participate in the development of institutional plans and budgets.

WHAT MANDATES A BUDGET AND THE BUDGET FORM?

State Apportionment  51102 Minimum Conditions for Apportionment  53309 Calculation of FTES  58000-58875 Apportionment Regulations  58305 Adoption of a Final Budget  Form is Established by the CCCCO BAM (Budget Accounting Manual) and the SAAM (Student Attendance Account Manual) http://www.cccco.edu/ChancellorsOffice/Divisions/FinanceFacilities/FiscalServices/ManualsPublications/tabid/331/De fault.aspx

STATE AND LOCAL BUDGETS California State Budget Development  Start with existing budget (includes historical recommendations) from DOF  Make changes – Budget Change Proposals (BCP)  January 10 th Governor’s proposal to Legislature  May 15 th Governor’s Revision to Legislature  Senate and Assembly Budget Committees >> Conference Committee or Big 5 haggle out differences.

 June 15 th Legislature must pass or else…

STATE AND LOCAL BUDGETS Local development is for following year.

Current year can be altered  Mid year cuts – mid year deferrals Key Funding Targets – Current year behavior effecting subsequent budget  Base + Growth (growth affected by local demographics)  50% Law – 50% GF spent on instruction  75:25 FON (Faculty Obligation Number)  Categorical limitations (now flexible)

CATEGORICAL FUNDING (STRINGS ATTACHED) GENERAL PROGRAMS Vocational and Technical Education Act (VTEA) has provided a funding source for the past 22 years (1984) as the Carl D. Perkins funding. (reauthorized 1998) Made into law 2006 as the Career and Technical Education Improvement Act States limited to spend 5% of gross allocation on Administrative cost EOPS primarily serves CTE students SB 70 CTE focused State and local projects

WHERE DO WE CURRENTLY STAND?

3 years of cuts – 18-23% Funding deferrals = local debt burden 2-4% ACCJC and other accountability standards ramping up Institutional brain-trust retiring Entering student capacity declining Perfect storm is brewing

THE BUDGET AND CTE Perkins Act earmarks $1.3 billion Federal funding to all 50 states Funding for Perkins extends through 2012 Current State General Fund Apportionment to CCC BOG $961,000,000 Funding beyond 2013 – 2014 is expected to remain with a possible 4% increase if a proposed State sales tax is passed in November. (good thru 2015-2016).

Source: California Governor’s January 12, 2012 ‘ Budget Update’

SB 70 (SCOTT) 2005      Governor’s initiative to improve and strengthen CTE programs thru a Career workforce Innovations (CWI) partnership with CCC. $20,000,000 from the CCC Prop 98 reversion account $ 32,000,000 additional funding through 2013 – 14 fiscal year Awards programs which increase articulations between High schools, ROCP’s, industry and the CCC.

SB 1130 (2006) ensures funding through 2013 – 14 fiscal year

BUDGET CONSIDERATIONS FOR CCC FACULTY OBLIGATION NUMBER (FON)  Districts should attempt to provide instruction by a minimum 50% full-time instructors FULL TIME EQUIVALENT STUDENT (FTES)  Districts are funded based on FTES number * All Colleges have a decreasing FTES over the past 3 years.

FACULTY OBLIGATION NUMBER

COLLEGE OR DISTRICT FUNDING THRU FTES

THE BUDGET: HAVE YOU CONSIDERED?

Your colleges’ budgetary history?

Is your colleges’ ‘ Mission ‘ changing?

Have classes been cut?

Are Full-Time Faculty being replaced?

AB 515 - Local Boards ability to offer ‘for-credit ‘ Contract Ed Tuition increases For profit course offerings Source: http://www.cccco.edu/Home/tabid/189/Default.aspx

WHERE DO WE GO FROM HERE?

Become Informed  State fiscal and success data (includes Federal)  Local data Become Engaged  Advisory committees  Campus committees  College Academic Senate  Dept/Division/School  State committees

PLANNING - FROM PROGRAM REVIEW TO RESOURCE ALLOCATION Decision-making  Planning  Program Review (department)  Master planning (Education, Academic, Facilities, etc.) (college)  Strategic planning (college)  Budget development (college >>> district)  Real-time – Drama of the Day  Unplanned for expense exigencies  Predictive fiscal strategies (adapting, enrollment management, etc. )

DATA – FACTUAL RESOURCES ACCJC Accreditation Standards  Eligibility Requirements and Accreditation Standards ASCCC Papers  Budget Considerations - A Primer for Senate Leaders, 2009  Faculty Role in Planning and Budgeting, 2001  Enrollment Management Revisited, 2009 CCCCO Fiscal Services Unit  Fiscal Data Abstract  Full-Time Fac. Obligation  Fiscal Trend Analysis

QUESTIONS

Thank you