Transcript Document
2013-2014 Budget Study Session San Bernardino Community College District May 30, 2013 Agenda •What has happened since 2012-13 •Comparing Governor’s May Revise, Senate & Assembly Subcommittee Proposals •State Summary •What does it mean for SBCCD? •Board of Trustees 2013-14 Budget Directions Agenda •2013-14 Strategic Issues •2013-14 Tentative Budget Assumptions •Estimated Impact on enrollment •2013-14 Budget Year Estimates •Estimated General Fund, Unrestricted Fund Balance •Next steps •Questions? What Has Happened Since 2012-13 •Prop 30 passes in November of 2012 • Sales tax ends December 31, 2016 • Income tax ends December 31, 2019 • $10.8M of $67M Budget (16%) •State revenues exceed 2012-13 projections by $4.5 billion •Redevelopment agencies (RDAs) have been eliminated Comparing Governor’s May Revise, Senate & Assembly Subcommittee Proposals Item 2012-13 Spending Level 2013-14 May Revise Senate Subcommittee Assembly Subcommittee Enrollment Growth 1% 1.63% (+0.63%) 1.63% (+0.63%) 2.2% (+1.1%) Cost-of-Living Adjustment 0% 1.57% (+1.57%) 1.57% (+1.57%) 1.57% (+1.57%) Student Success (formerly Matric.) $49.2M $99.2M (+$50M) $99.2M (+$50M) $113.4M (+$64.2) Online Education Platform $0 $16.9M (+16.9M) $16.9M (+$16.9M) $16.9M (+$16.9M) EOPS $73.6M $73.6M $98.6M (+$25M) $134.1M (+$60.5M) CARE $9.3M $9.3M $10.6M (+$1.3M) $9.3M DSPS $69.2M $69.2M $94.2M (+$25M) $126.8M (+$57.6) Student Financial Aid Administration $0 $67.5M (+$67.5M) $67.5M (+$67.5M) $72.1M (+$72.1M) Foster Care Education Program $5.25M $5.25M $5.25M $5.34M (+90K) Source: Community College League of California 5/23/13 Comparing Governor’s May Revise, Senate & Assembly Subcommittee Proposals Item 2012-13 Spending Level 2013-14 May Revise Senate Subcommittee Assembly Subcommittee Student Success (MESA/Puente) $3.8M $3.8M $3.8M $6.3M (+$2.5M) Nursing Support $13.4M $13.4M $13.4M $22.4M (+$9M) Telecom/Tech $15.3M $15.3M $15.3M $15.5M Academic Senate $318,000 $318,000 $415,000 (+97K) $474,000 (+$156K) Childcare Tax Bailout $3.3M $3.3M $3.3M $7.7M (+4.4M) Equal Employment Opportunity $767,000 $767,000 $767,000 $779,000 (+12K) Economic Development $22.9M $22.9M $22.9M $23.3M (+$400K) Apprenticeship $7.2M $7.2M $7.2M $15.5M (+$8.3M) Source: Community College League of California 5/23/13 Comparing Governor’s May Revise, Senate & Assembly Subcommittee Proposals Item 2012-13 Spending Level 2013-14 May Revise Senate Subcommittee Assembly Subcommittee Part-time Faculty Office Hours $3.5M $3.5M $5.9M (+$2.4M) $7.2M (+$3.7M) Part-time Faculty Health Insurance $490,000 $490,000 $820,000 (+$330K) $1M (+$510K) Part-time Faculty Compensation $24.9M $24.9M $24.9M $51.6M (+$26.7M) Transfer Education and Articulation $698,000 $698,000 $698,000 $1.4M (+$702K) Instructional Equipment $0 $0 $12M (one-time funds) $0 Scheduled Maintenance $0 $0 $12M (one-time funds) $0 Professional Development $0 $0 $6M (one-time funds) $0 Source: Community College League of California 5/23/13 State Summary • Apportionment increased Growth up from 1% to an additional 1.63% - 2.2% ($89.4M - $122.6M) COLA 1.57% ($87.5M) Student Success ($50M – $64.2M) • Categorical programs increased Increases Possible to ongoing programs one-time funds for instructional equipment, maintenance, and professional development State Summary • Adult education proposal withdrawn for 2 years • Deferral buy downs accelerated ($180M plus $64.5M for 2013-14 for a total of $244.4M; $961M deferral down to $557.5M) • Prop 39 funding Increased • 90-Unit cap and census date policy proposal withdrawn • Postpones proposal to require each student to complete Free Application for Federal Student Aid What Does It Mean For SBCCD? • Apportionment increased $2.8M – $3.4M Growth up from 1% to an additional 1.63% - 2.2% ($1.1M - $1.5M) COLA 1.57% ($1.1M) Student Success ($600K – $800K) • Categorical programs increased Increases Possible to ongoing programs one-time funds for instructional equipment, maintenance, and professional development What Does It Mean For SBCCD? • Deferrals reduced $3M; from $9.8 to $6.8M 2013-14 reduced $2.2M 2013-14 reduced additional $800K Board of Trustees 2013-14 Budget Directions • Balance the 2013-14 budget without the use of Fund Balance (Reserve) while maintaining a minimum Fund Balance of 15% (State minimum is 5%) • Allocate funding through the district resource allocation model to support SBVC and CHC as comprehensive community colleges • Increase student success and access • Identify new or reallocated funds for strategic initiatives Board of Trustees 2013-14 Budget Directions • Maintain selective “hiring freeze” to provide strategic funding of priority needs • Reorganize and reallocate resources where possible to increase efficiency and improve services • Reduce expenditures that are not mission-critical • Invest in projects that enhance the efficiency of district and college operations • Continue the Measure M bond program based on facilities master plans Board of Trustees 2013-14 Budget Directions • Continue to develop external funding streams including grants, scholarships, and fundraising • Maintain full funding for step and column increases • Maintain 50% law ratios in staffing plans • Honor collective bargaining agreements 2013-14 Strategic Issues • Increase student success throughout SBCCD • Increase student access and restore enrollment • Make progress in having two comprehensive colleges for SBCCD • CHC is scheduled to construct 80,000 additional square feet within the next 4 years. • SBVC has near-term plans to replace and renovate existing facilities that do not increase the square footage of the campus. 2013-14 Tentative Budget Assumptions • Growth 1.75% • COLA 1.5% • Allocation Split 70/30 SBVC/CHC • One-time 0.8% allocation (approximately $300,000) additional access funding from Fund Balance for CHC to address access, comprehensive college, and new construction strategic issues Estimated Impact on Enrollment Description FTES Sections/Classes Head Count * Estimate *Funded 2012-13 *Actual 2012-13 *Funded 2013-14 *Target 2013-14 13,312 13,312 13,456 13,590 3,550 3,550 3,588 3,624 34,435 34,435 34,804 35,153 2013-14 Budget Year Estimates Description Amount 2012-13 Structural Imbalance -$1,900,000 Step and Column Increases Increase in Medical and Dental Increased Grant Obligations -$650,000 -$1,000,000 -$60,000 Increase 75 Sections -$300,000 5 Faculty and 3 Counselors -$400,000 SLO Increase -$200,000 COLA Increase $1,100,000 Growth Increase $1,100,000 Student Success $600,000 Select Hiring Freeze $600,000 Energy Savings $175,000 KVCR Savings $300,000 Net Excess/(Liability) for 2013-14 -$635,000 Estimated General Fund, Unrestricted Fund Balance Description Beginning Fund Balance, July 1, 2012 Revenues less Expenses Fund Balance Contribution Projected Fund Balance, June 30, 2013 Fund Balance% of Budgeted Expenditures Amount $21,454,831 -$600,000 $0 $20,854,831 30.7% Fund Balance at 15% of Budgeted Exp. $10,200,000 Fund Balance at 5% of Budgeted Exp. $3,400,000 Deferrals $9,800,000 Next Steps • June 13, 2013: Present 2013-14 Tentative Budget to Board for adoption • July: California budget enacted • September 12, 2013: Present 2013-14 Final Budget to Board for adoption • Keep Board informed • Board meetings • Chancellor’s Chat • Other means as necessary Questions?