Transcript MiraCosta Community College

Allocation of Resources to the Districts of the California
Community College System (CCC)
Jim Austin
April, 2014
Learning Outcomes
 The funding components are




Base Allocation
FTES Base Allocation
COLA
Growth
 Sources are



Property taxes
Student Enrollment fees
State General Apportionment; Educational Protection Account
 Know how to link to the actual apportionment document
(Exhibit C) that implements SB361 as defined by California
Education Code 84750.5
For More detailed Information
 http://www.yosemite.edu/fiscalservices/budget_files/CC
%20Finance%20Handbook%202014.pdf
 That link will take you to Community College Finance
Past/Present/Future
 Prepared by Teresa Scott, Executive Vice Chancellor,
Yosemite CCD
 Beginning on page 25 there is more background and
history concerning the development of the SB361
methodology
Basic Goals of the Formula
 Simplicity
 Transparency
 Equalization of funding per FTES (Full Time Equivalent
Students) among the districts
 Increased funding for certain types of noncredit FTES
Remember that the formula only apportions the
Unrestricted General Fund via Exhibit ; other types of
funds are distributed by the other exhibits on the
CCCCo.edu site
Basic Allocation Components of the Formula
 FTES Workload
 Credit FTES
 Noncredit FTES
 CDCP Noncredit FTES (Career Development & College
Preparation
 COLA
 Growth (increased access)
 Base (based on accredited colleges and approved centers
within a district)
Step 1: Basic Allocation
 Each district receives a base allocation that is comprised
of an FTES workload component and a facilities based
Basic Allocation component.
 The Basic Allocation is computed based on the number
and size of accredited colleges and approved centers
within the district
 Colleges receive a greater amount than do centers
 The amount per college depends upon whether it is in a
single college district or a multi-college district and the
size of the college
 The amount per center varies upon the size of the center
Step 2: Base FTES Allocation
 The prior year’s funded level of FTES in each category is
funded as a Base allocation
 For 2013-14 the rounded amounts are:
 Credit:
$4,565
 Noncredit:
$2,788
 CDCP Noncredit: $3,283
 The amount per FTES is adjusted when there is a COLA
(Cost of Living Adjustment); AKA (Also Known As) the
Inflation Adjustment
Step 3: Inflation Adjustment, COLA
 If there is a state-funded COLA the total Base revenue
from steps 1 and 2 is multiplied times the funded COLA
percentage
 In 2013-14 the Cola is 1.57%
Step 4: Growth (Access)
 The intent of SB361 was that the total of the Base plus
the COLA would be multiplied times the Growth
percentage is the state budget funded Growth
 The growth percentage would increase the district’s
funding by up to the Growth percent if the FTES increased
by that Growth percentage
 The combination of the Base FTES and the Growth FTES
equals the “Cap” FTES
 That means a district is not funded for more than the Cap
level of FTES no matter how many FTES are taught
Step 4: Growth - HOWEVER
 However, the world has become more complicated due to
the deep funding reductions resulting from the Great
Recession
 Due to the deep reductions in funding the “growth” item
in the budget is being used to restore funding until
districts are fully made whole
 That process will take several years
Step 5: Total Computational Revenue (TCR)
 Total Computational Revenue is the total of
 Base Allocation
 Base FTES
 COLA
 Growth (could be “constrained” if inadequate funding)
 The next step is to identify the sources to provide the
Total Computational Revenue
Step 6: Sources of Revenue
 The TCR is funded by the following sources in “window
shade” order until the TCR is fully funded. In other
words, if the total of the first two sources is adequate,
then the third is not used.
 Sources in order
Locally collected property taxes
2. Student Enrollment Fees
3. State General Apportionment and EPA (Prop. 30
Educational Protection Fund)
1.
Example A of Funding the TCR
 Assume a TCR of $100 million
 Situation A – the normal situation
 $10 million of district Enrollment Fee revenue
(that means still $90 million to fund)
 $70 million of locally collected property taxes
(that means still $20 million to fund: 100 – 10 – 70 = 20)
 So, $20 million must come from the state’s general fund
and Prop. 30 EPA sources
Example B of Funding the TCR
 Assume a TCR of $100 million
 Situation B – “Basic Aid,” Locally Funded District
 $10 million of district Enrollment Fee revenue
(that means still $90 million to fund)
 $110 million of locally collected property taxes
(that means that a total of $120 of funding
 So, no funding is needed from the state’s general fund, but
still would receive Prop. 30 EPA funding
 By law, the district gets the entire $120 million even
though the TCR is only $100 million
Final Notes on Revenues - Shortfalls
 The dreaded “deficit factor”
 Timing of the budget and allocation processes
 Enrollment Fees
 Property Taxes
 Stuff to know about
 Enrollment Fees – no local control
 Property Taxes – lack of backfill
Review – Your Learning Objectives
 The funding components are




Base Allocation
FTES Base Allocation
COLA
Growth
 Sources are



Property taxes
Student Enrollment fees
State General Apportionment; Educational Protection Account
 Know how to link to the actual apportionment document
(Exhibit C) that implements SB361 as defined by California
Education Code 84750.5