Transcript Budget Workshop August 17, 2011

PBIM
SUMMIT
August 29, 2014
TODAYS INFORMATION
State Budget Highlights
Peralta’s 2014-15 Final Budget
Funding Sources
Unrestricted General Fund
Parcel Tax Fund
2014-15 STATE BUDGET
 4th Consecutive Year the budget passed on time
 Based on the Governor’s conservative forecast
 Progress made toward paying down deferrals
 Down to $94 million from $592 million before passage of Prop 30
 Governor has clearly laid out his path
 Protect against boom and bust cycles
 Retire Debt
 Focus new money on education
 Includes a reserve of $1.4 million
 Includes a Rainy Day Fund
2014-15 STATE BUDGET
 Wall of Debt
 Budget eliminates $10 Billion in debt
 Mid year positive trigger would further reduce deferrals to schools and colleges
 Rain Day Fund on November Ballot
 When capital gains exceed 8% of GF revenues, a deposit to the RDF is required
 Half used to pay off debt and liabilities for the first 15 years
 Allows for withdrawal for disasters or if spending is at or below highest level of
spending of the prior 3 years
 CalSTRS – 30 Year obligation of $74.4 billion
 State GF contribution increase from 3% to 6.3% in 2016-17
 Employee rate increase from 8% to 10.25% as of 2016-17
 Employer rate increase from 8.25% to 19.1% as of 2021
2014-15 STATE BUDGET
The Budget Bill contained the following community college provisions:
 Access funds (growth) of $140.4 million (2.75%)
 Cost of Living Adjustment (COLA) of $47.3 million (.85%)
 $100 million for Student Success and Support (SSSP)
 Match of 2:1 on entire amount
 $30 million increase for DSPS
 $70 million increase for Student Equity Plans
 $50 million one time increase for the Economic and Workforce
Development program
 $49.5 million to pay down mandates
 $148 million for deferred maintenance and instructional equipment.
Flexible locally and specified as one-time.
COMMUNITY COLLEGE WHAT’S NEW
 Technical Assistance for Chancellors Office
 $1.1 million and 9 positions for goal setting and monitoring of institutional
effectiveness
 $2.5 million for technical assistance to support implementation of effective practices
at college
 State funding for Career Development and College Program (CDCP)
Rate per FTES to be increased to be equal to Credit Rate as of 2015-16
 Positive Trigger –
 Department of Finance can pay down deferrals during the year if Proposition 98
guarantee is higher than estimated
 New formula for Growth allocation is effective in 15-16
 Proposal to be out late summer/early fall
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 end of 2018
 STRS obligation
 Deficits
 Continued exposure to shortfalls in property taxes and fees
OUR DISTRICT - PCCD
 Access funds (growth) $2.2 million (increase in funded FTES of 430)
 Cost of Living Adjustment (COLA) $846,989 (.085%)
 Categorical increases – awaiting on allocations from the State Chancellors Office
 $2,366,996 for scheduled maintenance/instructional equipment
 Flexible locally and specified as one-time
 No match except if the funds are used for Architectural Barrier Removal
 State Retirement increases to employer rates:
 STRS .63% increase ; $198,600
 PERS .329% increase ; $73,563
 Increase in Medical Premiums $979,893
 Kaiser 0%;
 Traditional PPO 26%
 Lite PPO 24.9%
 Traditional PPO (Local 39) 22.1%
 Lite PPO (Local 39) 17.5%
 Increase in Workers Compensation rate of .1% estimated cost of $54,500
 Increase in OPEB Debt service payment of $1,642,666
ADDITIONAL ASSUMPTIONS USED TO
DEVELOP THE BUDGET
 FTES – Target of 19,355 Residence FTES with funded FTES from the
state of 19,055
 Productivity level of 17.5
 Unrestricted Lottery dollars funded at $124.25 per funded FTES
 State Apportionment deficit factor of 2%
 Parcel Tax revenue estimated to be $8,053,385
STATE APPORTIONMENT REVENUE
State Apportionment Revenue is calculated in the following manner:
 Basic Allocation
 Based on the type and size of your college
 We have 4 colleges with less than 9,375 FTES and therefore our basic allocation is
$13,286,180 ($3,321,545 per college)
 Funded Base Full Time Equivalent Students (FTES)
 Prior year funded FTES
 Funded FTES
 Prior year funded FTES times the growth percentage passed in the State Budget
STATE APPORTIONMENT CALCULATION
 Funding per FTES
 Base Funding
 Amount per FTES from prior year ($4,636.492854 for credit FTES; $2,788.053637 for non-
credit FTES)
 Marginal Funding
 Base funding multiplied by the Cost of Living Adjustment (COLA)
 COLA for 2014-15 is .85% (%4,675.90 for credit FTES; $2,811.75 for non-credit
FTES)
 Multiply the Marginal Funding times the number of funded FTES reported
 Add the Basic Allocation plus the Funding Per FTES to calculate your
State apportionment revenue, also referred to as the computational
revenue.
FUNDING FOR COMPUTATIONAL
REVENUE
 Sources are
 Local Property Tax
 98% of Student Enrollment Fees
 State Aid
 State General Fund Apportionment
 Prop 30 Education Protection Account (EPA)
 Deficit
 Computational Revenue accounts for approximately 80% of our
General fund operating budget each year
COMPUTATIONAL REVENUE SOURCES
120,000,000
100,000,000
80,000,000
Student Enrollment Fees
Property Tax
60,000,000
Prop 30
State Aid
40,000,000
20,000,000
2009/10
2010/11
2011/12
2012/13
2013/14
2014/15
2013-14 UNRESTRICTED GENERAL FUND
FINAL BUDGET SUMMARY
2014-15
Final
Budget
Revenue
Federal Revenue
State Revenue
Local Revenue
Transfer In Revenue
$
$
$
$
2013-14
Estimated
Actuals
-
67,396,913
46,682,083
13,128,094
$
$
$
$
Revenue Total $
127,207,090
$
$
$
$
$
$
$
$
$
Expense Total $
2012-13
Actuals
-
65,270,981
45,137,518
11,691,939
$
$
$
$
64,346,744
47,174,459
9,152,116
$
122,100,438
$
120,673,319
21,353,690
4,864,416
5,679,831
8,226,114
24,469,094
38,598,080
15,954,977
175,836
7,885,052
$
$
$
$
$
$
$
$
$
18,252,185
4,214,079
5,388,306
12,310,320
21,974,337
36,409,122
14,561,377
327,151
7,053,604
$
$
$
$
$
$
$
$
$
16,233,586
3,466,038
4,002,127
13,723,964
20,070,280
37,216,997
12,576,388
148,456
9,613,258
127,207,090
$
120,490,481
$
117,051,094
$
$
$
$
1,609,957
12,599,251
$
$
$
$
Expenses
Full Time Academic
Academic Admin
Other Faculty
Part Time Academic
Classified Salary
Fringe Benefits
Books, Supplies, Services
Equipment Capital Outlay
Debt Service / Transfers
Revenue over Expenditures
Beginning Fund Balance
Audit Adjustments
Ending Fund Balance
$
$
$
14,209,208
14,209,208
14,209,208
3,622,225
10,017,896
-1,040,870
12,599,251
MEASURE B – PARCEL TAX
2014-15
Final
Budget
Revenue
Local Revenue
2013-14
Estimated Actuals
2012-13
Actuals
$
8,055,785
$
8,056,883
$
7,683,197
Revenue Total $
8,055,785
$
8,056,883
$
7,683,197
Expenses
Full Time Academic
$
-
$
-
$
-
Academic Admin
$
-
$
-
$
-
Other Faculty
$
-
$
-
$
-
Part Time Academic
$
6,500,000
$
5,586,364
$
3,222,024
Classified Salary
$
369,702
$
747,079
$
247,511
Fringe Benefits
$
624,511
$
738,164
$
610,737
Books, Supplies, Services
$
$
369,470
$
1,372,129
Equipment Capital Outlay
$
$
135,600
$
55,156
$
5,507,567
-
Expense Total $
7,494,213
$
7,576,677
Beginning Fund Balance
$
2,655,836
$
2,175,630
Revenue over Expenditures
$
561,572
$
480,206
$
2,175,630
Ending Fund Balance
$
3,217,408
$
2,655,836
$
2,175,630
Questions