Transcript 14 15 Adopted Budget - Mt. San Jacinto College
MT. SAN JACINTO COMMUNITY COLLEGE DISTRICT ADOPTED BUDGET 2014-2015
B o ard o f Tr ustees A nn M otte, Pr esi dent – Tr ustee A r ea 4 D o rothy M c G argi l l, C l erk – Tr ustee A r ea 2 To m A shl ey – Tr ustee A r ea 5 Eugene V. Ka dow – Tr ustee A r ea 1 G wendolyn S c hlange – Tr ustee A r ea 3 A dmi nistration D r. Ro ger S c hul tz— Superi ntendent/President
MT. SAN JACINTO COLLEGE 2014-2015 ADOPTED BUDGET
TOPICS OF DISCUSSION
2014-2015 State Budget Summary 2014-15 Advance Principle Apportionment MSJC 2014-2015 Adopted Budget Assumptions
Board of Trustees Meeting, September 11, 2014
MT. SAN JACINTO COLLEGE 2014-2015 ADOPTED BUDGET
STATE BUDGET SUMMARY The Big Picture
Total General Fund Expenditure = $108 billion $12 billion higher than the 2013 Budget No threat of Trigger cuts Reserve of $1.4 billion Budget Eliminates $10 billion in debt $5.1 billion in K-14 deferrals $3.9 billion in Economic Recovery Bonds Remainder in mandates, loans & maintenance factor
Board of Trustees Meeting, September 11, 2014
MT. SAN JACINTO COLLEGE 2014-2015 ADOPTED BUDGET
STATE BUDGET UPDATE Cal STRS
30-year obligation of $74.4 billion (only 67% funded) Agreement Reached: State General Fund contribution to increase from 3% to 6.3% as of 2016-17 Employee rate will increase from 8% to 10.25% as of 2016-17 Employer rate will increase from 8.25% to 19.1% as of 2021 (increase to 8.88% in 2014-15) Significant cost obligation for colleges and schools
Board of Trustees Meeting, September 11, 2014
MT. SAN JACINTO COLLEGE 2014-2015 ADOPTED BUDGET
STATE BUDGET UPDATE Community College Highlights
Access - $140.4 million (2.75%) COLA - $47.3 million (0.85%) Categorical Programs $100 million for Student Success & Support Program $70 million for Student Equity Plans $30 million for DSPS $498 million for paying down deferrals -
deferrals remaining $94 million in Board of Trustees Meeting, September 11, 2014
MT. SAN JACINTO COLLEGE 2014-2015 ADOPTED BUDGET
STATE BUDGET UPDATE
Community College Highlights Cont.
$148 million for deferred maintenance and instructional equipment $50 million one-time increase for Economic & Workforce Development Programs $49.5 million to pay down mandates –
allocated per FTES funding is
$39.7 million for Proposition 39 ($32.7 million for projects)
Board of Trustees Meeting, September 11, 2014
MT. SAN JACINTO COLLEGE 2014-2015 ADOPTED BUDGET
STATE BUDGET UPDATE
Community Colleges – What’s New Beginning 2015-16, the CDCP rate will equal the credit rate Positive Trigger – Director of Finance can further pay down deferrals if Proposition 98 guarantee is higher than estimated
Board of Trustees Meeting, September 11, 2014
MT. SAN JACINTO COLLEGE 2014-2015 ADOPTED BUDGET
STATE BUDGET UPDATE
Community Colleges – What’s New Cont. Growth Allocation – New formula effective in 2015-16 “Primary factors” to include individuals under/over 25 within district boundaries without a college degree and number of unemployed and disadvantaged Focus on “primary missions of the segment” (i.e., credit and noncredit courses
excluding
NC courses for older adults, home economics, and health & safety education) Fiscal Affairs Workgroup hoping to present a proposal in near future
Board of Trustees Meeting, September 11, 2014
MT. SAN JACINTO COLLEGE 2014-2015 ADOPTED BUDGET
STATE BUDGET UPDATE
Cautions and Concerns Proposition 30 is
temporary
Sales tax increase terminates at the end of 2016 (approximately 21% of Prop 30 revenues) Income tax increase terminates at the end 2018 STRS obligations Reluctance to identify source to address employer costs At 19.1%, effective cost increase is over $300 million Deficits Progress in some areas, but continued exposure to shortfalls in property taxes and fees
Board of Trustees Meeting, September 11, 2014
MT. SAN JACINTO COLLEGE 2014-2015 ADOPTED BUDGET
STATE BUDGET UPDATE
Community Colleges: Budget Trends Focus on low-income and disadvantaged populations Wall of debt: Deferrals and Mandates More flexible support items (SSSP, Student Equity Plans) Scrutiny on course offerings
Board of Trustees Meeting, September 11, 2014
MT. SAN JACINTO COLLEGE 2014-2015 ADOPTED BUDGET
2014-15 ADVANCED APPORTIONMENT
Base FTES 9,558.421
396.890
199.890
10,155.201
Workload Restoration 326.730
14.883
7.496
349.110
Funded FTES 9,885.152
411.773
207.386
10,504.311
Unfunded FTES 31.710
31.710
Actual FTES 9,916.862
411.773
207.386
10,536.021
VII Total Computation Revenue $53,737,029 A1-Property Taxes $18,494,713 B-Student Enrollment Fees $3,037,658 C-State General Apportionment $23,595,596 D-Estimated EPA $8,311,021 Available Revenue $53,438,988 E-Revenue Shortfall $298,041
MT. SAN JACINTO COLLEGE 2014-2015 ADOPTED BUDGET
MSJC BUDGET- REVENUE ASSUMPTIONS
Cost of Living Adjustment (COLA) .85 % - $439,477 Enrollment Restoration/Growth 2.75 % - $1.5 million Education Protection Account (Prop 30) - $8.3 million Schedule Maintenance/Instructional Equipment - $1.4 million Prop 39, Energy Efficiency Projects - $304,321 Fire Alarm System Project/SJC - $413,000
Board of Trustees Meeting, September 11, 2014
MT. SAN JACINTO COLLEGE 2014-2015 ADOPTED BUDGET
MSJC BUDGET- EXPENDITURE ASSUMPTIONS
• Eight New Faculty Positions; Eleven replacement for SERP, Golden Handshake, Retirement or Resignation • Salary Step and Column Included • Two Percent Increase for Access • Increase in STRS, PERS & Worker’s Compensation Insurance • Summer Session • No Categorical Backfill • Board of Trustee Election, Area 4 • 6% Board Reserve
Board of Trustees Meeting, September 11, 2014
MT. SAN JACINTO COLLEGE 2014-2015 ADOPTED BUDGET
BUDGET DEVELOPMENT COMMITTEE
Administration Becky Elam, Co-Chair Patrick Schwerdtfeger William Vincent Faculty Michael Welden, Co-Chair Ted Blake Classified Jennifer Pickens Kaye Melsheimer Debra Gleason Jeanine Gardner Student Government Corrine Rutledge Ana Moreno
Resources Wade Ellis Gail Jensen Brandon Moore Julie Venable Rebecca Teague Jennifer Marrs
Board of Trustees Meeting, September 11, 2014