Transcript Budget Workshop August 17, 2011

2014-15
FINAL BUDGET
September 9, 2014
AGENDA
State Budget Highlights
Peralta’s 2014-15 Final Budget
Funding Sources
Unrestricted General Fund
Parcel Tax Fund
2014-15 Budget Allocation Model Summary
2014-15 STATE BUDGET
 4th Consecutive Year the budget passed on time
 Includes a reserve of $1.4 billion
 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 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
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
GENERAL FUND REVENUE SOURCES
Computational Revenue
79%
Transfer In
from OPEB
10%
Out of State/International
5%
Other State
3%
Other Local
3%
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 GENERAL FUND EXPENDITURES
Debt Service / Transfers
6%
Equipment Capital Outlay
0%
Books, Supplies,
Services
13%
Academic Admin
4%
Full Time Academic
17%
Other Faculty
4%
Part Time Academic
7%
Fringe Benefits
30%
Classified Salary
19%
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
IMPLEMENTATION OF THE BUDGET
ALLOCATION MODEL
 In August of 2010, the Planning and Budgeting Council began working on
the creation of and recommendation to the Chancellor a Budget Allocation
Model (BAM)
 Purpose to:
 Move from the existing model to a model that would better serve the Colleges and
District
 Fully respond to previous Accreditation recommendations
 Core Principles:
 Provide financial stability
 Consistent with the State’s SB361 funding model
 Simple and easy to understand
 Provide for a reserve in accordance with Peralta’s Board Policy
 Maintain autonomous decision making at the college level
 Responsive to the District’s and Colleges’ planning processes
BUDGET ALLOCATION MODEL
2014-15 Budget Allocation Model Worksheet
Base Allocation:
Total Revenue Allocation
Total Exclusions
Applicable Revenue
$
128,791,119
$
(18,754,797)
110,036,322
Alameda
Three Year FTE Rolling Averages
Percentage
Revenue Allocation by College
Berkeley
3,534.73
19.36%
$
20,994,479
Out of State and International Allocation
Laney
3,683.22
19.54%
$
679,856
21,876,414
Merritt
7,524.21
40.66%
$
44,689,920
3,784.08
20.44%
$
22,475,510
1,538,321
1,847,239
524,754
DO Service Center Budgets
(4,050,934)
(4,221,105)
(8,623,024)
(4,336,702)
Centralized Services Budgets
(1,181,076)
(1,230,690)
(2,514,098)
(1,264,393)
Net Revenue Allocation by College
$
16,442,326
$
17,962,939
$
35,400,036
$
17,399,168
Unrestricted Expenditure Budgets
$
15,523,535
$
15,684,256
$
30,961,345
$
17,475,512
Parcel Tax expenditure budgets
$
1,448,823
$
1,464,996
$
2,777,320
$
1,442,750
Total Expenditures
$
16,972,358
$
17,149,252
$
33,738,665
$
18,918,262
Expenditures (over)/under Net Revenue Allocations
by College
(530,032)
813,687
1,661,371
(1,519,094)
Thank you for your
time!
Questions