Transcript Board Discussion on 50 % LAW

Board Discussion on 50 % LAW
November 13, 2007
50% Law Compliance
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Education Code 84362: Requires Community College
Districts
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Spend at Least Half of Their Current Expense of Education
for
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Classroom Instructor Salaries and Benefits
Classroom Instructional Aide Salaries and Benefits
Current Expense of Education Includes
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2
Unrestricted General Fund Only
Actual Expenditures
No Categorical Programs or Grants
No Capital Projects, Equipment, Transfers Out
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General Fund Unrestricted Only
Object Code
Academic
1111
1111
1111
1111
1312
TOPS Code
Description
Helps
Hurts
Numerator
Denominator
X
X
0100-5999
F/T Classroom Instructors
Reassign Time*
Faculty using Banked OSH**
Instructional Sabbaticals
Overload
X
X
X
X
X
X
X
X
X
1313/1314
0100-5999
Fall, Spring, & Sum Inst OSH
X
X
X
1317
1211
0100-5999
Instr Banked OSH when earned
Librarians
X
X
X
X
X
1413/1414
1211
1417
1211
6120
Part Time Librarians
Librarian Sabbaticals
Libr Banked OSH when earned
Counselors
X
X
X
X
X
X
X
X
Part Time Counselors
Counselor Sabbaticals
X
X
X
X
Cnslr Banked OSH when earned
Academic Administrators
Stipends
X
X
X
X
X
X
0100-5999
6000
6099
0100-5999
6120
6120
6120/6130
6310
1413/1414
1211
6310
1417
1221
1400
6120/6130
6310
6610-6999
0100-6799
X
X
Not Included
* Cost of time reassigned only
** Cost is reduced by amount of OSH banked
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General Fund Unrestricted Only
Object Code
TOPS Code
Description
Helps
Hurts
Numerator
Denominator
Not Included
Classified
2100
0100-6799
Non Classroom Classified
X
X
2131
6000-7999
Classified Managers
X
X
2200
0100-5999
Classroom Lab Techs
X
X
X
2200
6110
Learning Center Technicians
X
X
X
2400
6110
Learning Center Tutors
X
X
X
Instructional Employees
X
X
X
Benefits
Non Instructional Employees
X
X
Supplies
4
4300
0100-6799
Instructional Supplies
X
X
4200
0100-6799
Books & Software
X
X
4600
0100-6799
Non Instructional
X
X
11/13/2007
General Fund Unrestricted Only
Object Code
TOPS Code
Description
Helps
Other Operating Expense
Hurts
Numerator
Denominator
X
X
5270
0100-6799
Conferences
X
X
5812
0100-6799
Software Licenses
X
X
5830
0100-6799
Advertising
X
X
5173
0100-6799
Consultants
X
X
5810
0100-6799
Printing
X
X
5811
0100-6799
Contracted Services
X
X
5811
0100-5999
Contract Instruction***
5840
0100-6799
Postage
X
X
5651
0100-6799
Maintenance Agreements
X
X
5721
0100-6799
Legal Fees
X
X
5691
0100-6799
Field Trips
X
X
X
X
Not Included
X
*** e.g. - Cosmetology
5
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General Fund Unrestricted Only
Object Code
TOPS Code
Description
Helps
Hurts
Numerator
Denominator
Not Included
Capital Outlay
6120
Site Improvement
X
6220
Buildings
X
6410
Instructional Equipment
X
6410
Non Instructional Equipment
X
7100
Debt Retirement
X
7390
Transfers to other funds
X
7400
Transfers-Categorical Matches
X
Other Outgo
Ancillary and Auxiliary Programs
6
6991
Student Development
X
7091
Foundation Salaries
X
6890
Community Outreach
X
6960
Athletic Support
X
11/13/2007
50 % LAW
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Three Different Laws Regarding Faculty Employment
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50% Law
Full Time Faculty Obligation
75/25 Full Time to Part Time
Each Law Is Independent of the Other: One Does Not Relate
to Another
Four Year History of 50% Calculation
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7
2003/2004
2004/2005
2005/2006
2006/2007
-
53.38%
51.81%
50.31%
50.03%
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Compliance Work
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Fiscal Staff
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8
Met With Coast CCD and Rancho Santiago CCD to Discuss
Compliance Practices in Feb. 2007
Reviewed Practices With Auditors
Implemented Practices of Surrounding Districts
Made Preliminary Calculation During Year End Close
Reviewed Expenditures During Year End Close and Made
Transfers to Restricted Accounts Where Permitted to Help
Calculation
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Compliance Work
Calculation is “A Moving Target”
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Difficult To Project % Until Books Are Closed
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Based On Actual Expenses
Salaries (our largest expense) Vary From Month to Month
Final Payrolls Are Posted June 30th and July 10th
Encumbrances Not Reversed Until June 30th
Final Expenditures Not Recorded Until Mid July After
Year End
Full Time Faculty Hiring Process Requires One Year
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Reasons for Decline in Calculation %
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Account Coding Changes
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State Chancellor’s Office Requires Auditor Review
Reassigned Time Recoded to Non-Instructional (2005-2006)
Instructional Aide Recoding – Resulted from Auditor Testing
in Spring 2007
Increased Reassigned Time/Stipend Costs
Reduction in Full Time Faculty Ratio
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Exceeded Full Time Faculty Obligation by 24 in Fall 2006
Enrollment Was Declining
Early Retirement Incentive (Spring 2004)
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Cost Savings of the Plan Yielded Lower Faculty Salaries Resulting in
a Reduced Faculty Salary and Benefit Expense
Start-Up of ATEP
10
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Actions When Less Than 50%
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Governing Board
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May File Application for Exemption
Filing Deadline Sept. 15
Copy of Application Must Be Sent To
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District’s Academic Employees’ Representative
College Academic Senates
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Exemption Process
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Governing Board
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Hold a Public Hearing to Determine the Basis for Exemption
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Serious Hardship [Title 5, section 59204(c)]
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District Pays Salaries of Classroom Instructors Higher Than Cohort [Title
5, section 59204(d) and (e)]
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SOCCCD = Basic Aid District
SOCCCD = #4 Average Tenure Track Salary per CCCCO Report on Staffing
Transmit Findings of Local Governing Board to System Office
(form CCFS 350B)
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Deadline – Dec. 1st
Academic Organization
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May Submit Written Statement Opposing Application
Request a Hearing by the System Office
Within Two Weeks of Public Hearing or Dec. 1st
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Non Exempted Deficiency
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Districts With a Deficiency Not Entirely Exempted by
the State Board of Governors Are Subject to Title V,
Section 59213
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Must Submit a Plan by June 30th
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How the Amount Not Exempted Will Be Expended for Salaries
of Classroom Instructors
Failure to Provide Plan
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Amount Not Exempted Will Be Withheld From State
Allocations
Basic Aid Districts
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State Will “Find A Way”
11/13/2007
Steps to 2007-08 Compliance
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Chancellor’s Establishment of Advisory Council on
Compliance with 50% Law
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Council Members
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Deputy Chancellor – Chair
Vice Chancellor, Technology and Learning Services
Vice Chancellor, Human Resources
Vice Presidents, Instruction
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Vice President, Student Services - IVC
Directors, Fiscal Services
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Saddleback and IVC
District, Saddleback, and IVC
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Steps to 2007-08 Compliance
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Chancellor’s Establishment of Advisory Council on
Compliance with 50% Law
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Council Members
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Academic Senate
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District Faculty Association
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15
Two Reps
CSEA
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Saddleback College – Two reps
IVC – Two Reps
Two Reps
Total Members - Seventeen
11/13/2007
50% Law Advisory Council
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Develop Plan for Compliance
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2007-2008: Recommendations Due to Chancellor by Nov. 1st
2008-2009: Recommendations Due to Chancellor by Dec.
15th
11/13/2007
50% Law Remedies
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Increase Classroom Salary and Benefit Expenditures
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Hire Additional Full Time Faculty
Hire Additional Instructional Aides
A Combination of the Above
1% Increase = $2.25 million Increase in Classroom Salary and Benefit
Expenditures
Reduce Non Classroom Expenses
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Non Classroom Salaries and Benefits
Supply and Operating Expenses
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1% Increase = $2.15 million Reduction in Non Classroom
Expenditures
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11/13/2007
50% Law Remedies
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Convert Non Classroom Expense to Classroom Expense
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Increase Classroom Salary and Benefit Expense
Decrease Non Classroom Expense
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18
Non Classroom Salaries and Benefits
Supplies
Operating Expenses
1% Increase = $1.1million Shift from Non Instructional to
Instructional
Greatest Impact on the Calculation
Incremental Increase of One Additional Full Time Faculty Estimated
at $60,000
11/13/2007
50% Law Summary
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Consider 50% Law Implications in All Expenditure
Decisions
Everyone is Committed to Resolve
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