Transcript 06-07 Adopted Budget_ppt

Mt. San Jacinto Community College District
2006-2007 Adopted Budget
September 14, 2006
Board of Trustees
Superintendent/President
Eugene V. Kadow
Dorothy J. McGargill
Ann Motte
Gwendolyn Schlange
Joan F. Sparkman
Mark J. Zacovic, Ph. D.
Mt. San Jacinto College 2006-07 Adopted Budget
PRESENTATION OUTLINE
• Economic Profile
• 2006-07 State Budget for Community Colleges
• MSJC Budget Planning Assumptions
• Impact of State Budget, Trailer Bills
• Enrollment trends
• Major funding issues
• Adopted Budget 2006-07 Recommendation
Business Services, September 14, 2006
Mt. San Jacinto College 2006-07 Adopted Budget
ECONOMIC PROFILE
Federal
• Rapid growth is slowing from previous pace
• Housing market continues to cool
• Consumer spending and business investments
have decelerated
• Demand for labor moderated - hiring pace slowed
• Price inflation in energy, shelter costs
• U.S. International trade deficit widened
The impact of Federal Reserve Board interest rate
increases is reflected in the slowdown in economic
growth.
Business Services, September 14, 2006
Mt. San Jacinto College 2006-07 Adopted Budget
ECONOMIC PROFILE
State
• At June 30, 2006, California reported an overall gain
in jobs with unemployment down slightly.
• Residential and commercial construction continued
to slow from prior year increases.
• State revenue collections exceeded budget
projections in fiscal 2005-06.
Last year, the State economy continued to grow but at a
slower pace than the previous year. State budget
assumptions have held up but are highly vulnerable.
Forecasts for fiscal 2007 and 2008 project continued
deceleration.
Business Services, September 14, 2006
Mt. San Jacinto College 2006-07 Adopted Budget
ECONOMIC PROFILE
Local
• Inland Empire economic growth was strong in fiscal
2006 but below 2004 and 2005 rates.
• Population composition has changed since 2004 and
reflects growing diversity.
• Substantial differences in educational attainment
levels have resulted with the change in population.
• New and existing home prices show modest
increases with sales volume off.
• Projection for the Inland Empire housing markets
suggest sales volume will continue to slow and price
increases will be moderate.
Business Services, September 14, 2006
Mt. San Jacinto College 2006-07 Adopted Budget
STATE BUDGET FOR CALIFORNIA COMMUNITY COLLEGES
The California Budget Bill signed on June 30, 2006
continues to recognize the extraordinary role of the
Community Colleges in addressing the economic wellbeing of California.
• Increase to Proposition 98 Revenues
• AB1802, the education trailer bill, provides for a fee
reduction from the current $26 per credit unit to $20
per credit unit effective Spring 2007.
• SB361 (Scott), which has been unanimously approved
by the legislature, awaits the Governor’s approval and
provides for changes to the existing funding formula
for the system.
Business Services, September 14, 2006
Mt. San Jacinto College 2006-07 Adopted Budget
STATE BUDGET FOR CALIFORNIA COMMUNITY COLLEGES
On-going Revenue:
• 5.92% Cost-of-living Adjustment (COLA)
• 2% Enrollment Growth
• $159M Equalization
• $30M Non-credit Enhancement
• $48M Categorical Restoration
• $37.5M Economic/Workforce Development/
Career Technical Training
Total on-going augmentation to the system is
approximately $666 million.
Business Services, September 14, 2006
Mt. San Jacinto College 2006-07 Adopted Budget
STATE BUDGET FOR CALIFORNIA COMMUNITY COLLEGES
One-time Revenue: (AB1802)
• $94.4M Instructional Equipment/Facilities
• $40M Career Tech Equipment & Facilities
• $100M General Purpose Block Grant
• $40M Reimbursement of State Mandates
• $3M Nursing Placement/Faculty Stipends
• $30.7M Basic Skills Re-appropriation
• $ 1.4M Internet Services to Centers
One-time appropriations are a result of AB1802 and
also includes the fee reduction provision.
Business Services, September 14, 2006
Mt. San Jacinto College 2006-07 Adopted Budget
IMPACT OF STATE BUDGET ACTIONS
CCC
Cost of Living Adjust (COLA) 5.92%
Student Access (Growth) 2%
Equalization
Non-credit Enhancement
Categorical Restoration
Economic/Workforce Dev/Career Tech
$ 294,387,000
97,508,000
159,438,000
30,000,000
48,000,000
37,500,000
MSJC
$ 2,139,811
1,570,515
2,885,719
TBD
TBD
TBD
The 2006-07 State budget includes line item on-going
appropriations detailed above with direct fiscal impact on
MSJC. The allocation mechanism for certain budget line
items have not been disclosed and are to be determined
(TBD) with trailer bill language or system office notification.
These will be treated as budget modifications during the
fiscal year.
Business Services, September 14, 2006
Mt. San Jacinto College 2006-07 Adopted Budget
IMPACT OF STATE BUDGET ACTIONS
CCC
Instructional Equipment Trailer Bill
Scheduled Maintenance Trailer Bill
Career Tech Trailer Bill
General Purpose Block Grant
Basic Skills Re-appropriation
General Purpose Re-appropriation
Transfer and Articulation
MSJC
$ 47,200,000
47,200,000
40,000,000
100,000,000
30,700,000
22,300,000
545,000
$ 365,925
365,925
309,954
606,416
225,770
174,054
5,000
The 2006-07 State budget includes one-time appropriations
detailed above with direct fiscal impact on MSJC. These
allocations are the result of AB1802 as signed by the
Governor. The bill provides one-time appropriation of
unexpended growth funds allocated in previous budget acts.
Business Services, September 14, 2006
Mt. San Jacinto College 2006-07 Adopted Budget
BUDGETING PROCESS PLANNING ASSUMPTIONS
• Fiscal Stability is Highest Priority
– Prudent Reserve of 5.83%, or $2.7 million
• Resource Allocation Linked to Formal Planning:
– Education Plan, Master Plan, Facility Master Plan
• Budget Committee Recommendations
–
–
–
–
Compliance to 50% Law and Full-time Faculty Obligation
Hire 7 FT faculty; 2 FT classified support staff
Fund for enrollment growth and efficiency
Increase materials, service and equipment budgets by five
percent
– Provide technology upgrades for stability, quality
– Continue with physical plant maintenance and repair
projects for deteriorating infrastructure systems
Business Services, September 14, 2006
Mt. San Jacinto College 2006-07 Adopted Budget
ENROLLMENT – STATEWIDE SUMMARY
2005-06 at P2 – a difficult year:
• All districts were funded to actual enrollment
• No unfunded enrollment in the System
• 39 Districts received stability
• 13 of 39 Districts were in the second year of
decline
Source: Chancellor’s Office Budget Workshop 7/31/2006
Business Services, September 14, 2006
Mt. San Jacinto College 2006-07 Adopted Budget
ENROLLMENT TREND
• At P2, MSJC credit enrollment growth was funded at
1.6%. The 320 Attendance Report filed in July shows
credit enrollment growth at 2.6%. (Actual certification
will be received in February 2007.)
•Chancellor’s Office 2006-07 calculated growth rate for
MSJC is 6.4%.
•MSJC Fall 2006 credit enrollments are up 10 percent
at census compared to Fall 2005.
•The schedule for Spring and Summer 2007 provides
the access needed to achieve target enrollments.
Business Services, September 14, 2006
Mt. San Jacinto College District
Ten-Year Revenue Analysis
50
8,960
45
8,453
40
8,245
7,630
35
7,478
6,959
30
6,537
25
5,998
5,294
20
4,820
15
10
5
0
F Y97-98
COLA
2.97
FTES % of Increase
12.73
State FTES % of Increase 2.98
F Y98-99
F Y99-00
2.26
9.82
3.48
1 .41
13.31
3.85
*Enrollment Target = 8,960 FTES
Dollar Values are in Millions
Credit Full Time Equivalent Student (FTES)
Business Services September 14, 2006
F Y00-01
4.17
8.99
3.81
F Y01-02
3.87
6.46
2.90
F Y02-03
F Y03-04
F Y04-05
2.00
7.46
3.88
0
2.03
.71
2.41
8.06
3.67
FEDERAL
OTHER
ENROLLM ENT FEES
STATE APPORTIONM ENT
PROPERTY TAXES
F Y05-06
4.23
2.52
-1.39
P R OJ 2007
5.92
6.00
2.00
Mt. San Jacinto College 2006-07 Adopted Budget
ENROLLMENT TREND
Mt. San Jacinto College
Ten-Year FTES Comparison
14
12
10
8
6
4
2
0
-2
FY 97-98
FY 99-00
FTES % of Increase
Business Services, September 14, 2006
FY 01-02
FY 03-04
State FTES % of Increase
FY0506
Projected
Mt. San Jacinto College 2006-07 Adopted Budget
MAJOR FUNDING ISSUES
• Menifee Valley Technology Center will require District
matching funds greater than projected:
• State Funds
$ 8,785,000
• District match
3,625,926
The bid results exceeded the construction budget. The
Adopted Budget includes $1.8 million District match.
• Reserves for GASB 43/45 and GASB 16 are reflected in the
proposed adopted budget. Full reserve is required in fiscal
2007-08.
• Technology upgrade, repair and expansion is required to
provide stability and quality for students and staff.
• Maintaining the physical plant will require resources. Many
systems continue to fail and require replacement or repair.
Business Services, September 14, 2006
Mt. San Jacinto College 2006-07 Adopted Budget
MAJOR FUNDING ISSUES
State Budget Act Augmentations:
On-going revenue
One-time revenue
Total State Augmentations
$ 6,751,313
2,053,000
$ 8,804,313*
District Budget Requests
Certificated, Classified Positions $ 1,249,644*
Technology Center Match (100%)
3,625,926
Emergency Repairs
670,000*
Technology Upgrade, Support
730,000*
Budget Change Proposals
7,939,000
Total District Requests
$ 14,214,570
* Included in the Adopted Budget.
Business Services, September 14, 2006
Mt. San Jacinto College 2006-07 Adopted Budget
MAJOR FUNDING ISSUES
As in every cycle, the budget requests exceed resources
available. The budget prioritization process will determine
final distribution of budget augmentations.
Formal planning documents such as the Master Plan, Facility
Master Plan, Education Plan and program review will be
used to determine funded requests.
Safety, program stability and compliance will be determining
factors for final allocations. Also, Chancellor’s Office
expenditure criteria will be followed for all appropriations.
Business Services, September 14, 2006
Mt. San Jacinto College 2006-07 Adopted Budget
APPROPRIATIONS
CAPITAL OUTLAY
• MVC Technology Center Match
• SJC Cooling Tower Replacement
• SJC Electrical Upgrade
• MVC Boiler Replacement
• Sched. Maint. & Match Carryover
• Hazardous Materials Removal
• Facility Improvements
• Xerox Lease
• Equipment Replacement
• Lease Revenue Bond Pmt
• MVC Modular Lease
Business Services, September 14, 2006
$ 1,800,000
275,000
70,000
325,000
24,242
117,406
206,000
550,000
50,000
467,498
30,709
Mt. San Jacinto College 2006-07 Adopted Budget
APPROPRIATIONS
CAPITAL OUTLAY RESERVE
Funds on deposit with State Treasurer for land
acquisition, MVC: $1,789,000
 The Board authorized funds on deposit with the State
Treasurer for land acquisition, MVC.
 These funds are held with the State Treasurer.
 Accounting rules require disclosure of these funds on
District statements. For clarity, these funds will be
accounted for in one fund and in one line item.
 Although disclosed on District statements, funds are
physically held with State Treasurer.
Business Services, September 14, 2006
Mt. San Jacinto College 2006-07 Adopted Budget
LEASE REVENUE BOND
LEASE REVENUE BOND
$8,000,000
• First Draw (April 27, 2004)
• Second Draw (June 23, 2004)
• Total
2,975,072
600,089
3,575,161
• Interest Earned (thru June 30, 2006)
141,891
•
•
•
•
467,498
462,509
452,377
467,498
First Payment FY0304 (Funds 12 & 41)
Second Payment FY0405 (Funds 12 & 41)
Third Payment FY0506 (Fund 41 only)
Fourth Payment FY0607 (Fund 41 only)
Business Services, September 14, 2006
MSJC 2006-07 Adopted Budget
REVENUE AND EXPENSE SUMMARY-ALL FUNDS
FUND NAME
FUND#
BEGINNING
BALANCE
REVENUE
EXPENSE
INTERFUND
TRANSFER
RESERVE/
CARRYOVER
GENERAL FUND
11
$219,001
$46,380,536
$43,587,986
($2,705,333)
$306,218
SPECIAL RESERVE
11
2,200,000
-0-
-0-
200,000
2,400,000
INSTR EQUIPMENT
12
1,436
465,925
500,694
33,333
-0-
PARKING FUND
12
167,629
448,000
600,372
-0-
15,257
RESTRICTED FUND
12
-0-
6,075,924
6,075,924
-0-
-0-
CHILD DEVELOMENT
33
67,320
1,660,967
1,728,287
-0-
-0-
CAPITAL OUTLAY
41
7,049,561
12,455,982
15,473,620
2,412,000
6,443,923
SELF INSURANCE
61
130,629
104,043
191,161
60,000
103,511
ASSOC STUDENT BODY
71
23,879
60,560
61,646
1,000
23,793
STUDENT FINANCIAL AID
74
51,227
7,127,104
7,128,710
-0-
49,621
STUDENT REP FEE
72
2,324
815
1,002
-0-
2,137
FOUNDATION
79
3,252,672
1,143,836
1,150,921
(1,000)
3,244,587
BOOKSTORE
51
1,346,465
4,301,000
4,231,000
(70,000)
1,346,465
CAFETERIA
52
-0-
520,100
590,100
70,000
-0-
$14,512,143
$80,744,792
$81,321,423
-0-
13,935,512
GRAND TOTAL
Business Services, September 14, 2006
Mt. San Jacinto College 2006-07 Adopted Budget
RECOMMENDATION
The Adopted Budget for fiscal year 2006-07 is
recommended with the following:
• Enrollment target set at 8,960 credit and
269 non-credit FTES, or 6% growth
• Adopted Budget based on 8,700 credit and
262 non-credit FTES, or 3% growth
• Budget Base/Revenue Limit = $42.6 million
• Compliance with statutory requirements of the
50 Percent Law and FT Faculty Obligation
• 5.83% Contingency & Reserve = $2,700,000
Business Services, September 14, 2006
Mt. San Jacinto College 2006-07 Adopted Budget
QUESTIONS
Business Services, September 14, 2006