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Antelope Valley Community College District
Budget Update
Presented By: Mazie L. Brewington
Vice President of Administrative Services
Town Hall Meeting
May 24, 2013
Outline
1. 2012-13 Unrestricted Estimates
2. 2013-2014 May Revise Highlights
3. 2013-2014 Budget Estimates
4. 3 Year Budget Projection Estimates
5. Education Protection Account
6. 2013-14 Tentative Budget Timelines
2012-13 Unrestricted General Fund Estimates
Beginning Balance
$ 7,502,546
Revenues
$58,283,918*
Expenditures
$56,541,267
Ending Fund Balance
$ 9,245,197
Surplus/(Deficit)
$ 1,742,651
Reserve %
16.35%
* Assumes a 1% revenue shortfall deficit co-efficient. Includes $1.687 million in prior year recalculation.
2013-14 May Revise Highlights
Policy Proposals
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•
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90-unit cap proposal withdrawn
Census proposal withdrawn
Online proposal doesn’t change
FAFSA: require BOG to develop process for determining student independence
(e.g., prior year tax return). Allow 1 term grace period for completion of FASFA.
Adult Ed
• Initial proposal withdrawn
• $30M, to be spent over 2 years, is proposed for planning of regional adult ed
programs (consortium that could include CCDs, K12, CBOs, jails, etc.)
• Plan is for $500M to be appropriated in 2015-2016
• All programs funded at CDCP rate
• Instructor qualifications subject to consortium plans
Source: Dan Troy, Vice Chancellor, College Finance and Facilities Planning
California Community Colleges Chancellor’s Office
2013-14 May Revise Highlights Continued…
Budget Year
• About $227M in programmatic funds ($30M more than was proposed in January)
• The Governor would allocate the funds as follows:
1. $87.5M for COLA (1.57%),
2. $89.4M to restore access (1.63%)
3. $50M for the Student Success and Support Program (the old Matriculation
program) with an allowance that up to $7M could be shifted from that amount
to develop e-transcript and e-planning tools.
Deferral Buy Down-• The Governor proposes to use the current year increase in Proposition 98
obligations to pay down an additional $179.9M in deferrals. This would reduce the
total system-wide deferral to $621.2M.
• The Governor would further pay down an additional $64.5M in deferrals in the
budget year, reducing the system-wide deferral to $557.5M.
Source: Dan Troy, Vice Chancellor, College Finance and Facilities Planning
California Community Colleges Chancellor’s Office
2013-14 May Revise Highlights Continued…
RDAs
• Statute passed concurrent with the 2012-13 budget requires the state to backfill any
shortage in property taxes related to the dissolution of RDAs that were assumed as
part of the CCC budget. The truing up process is required to be done on or before
June 30th.
• Currently, the Department of Finance’s estimate of this shortfall differs greatly from
the reports of actual disbursements our office has received from the counties. While
exact estimates from Finance are not yet available as of this presentation, they
believe we will receive approximately $150M more by June that what has been
reported to us so far this year. Ensuring that the full current year backfill is
provided by June 30 is our most important priority, and the Department of
Finance continues to assure us that is will be provided, whatever the final
figures are. We will work with staff to communicate the importance of truing up
our budget. Certainly, ensuring the current year apportionment is not deficited
should take precedence over any other proposals.
Source: Dan Troy, Vice Chancellor, College Finance and Facilities Planning
California Community Colleges Chancellor’s Office
2013-14 May Revise Highlights Continued…
Legislative Analysts Office (LAO) Overview of the May Revision
• The Governor’s administration is forecasting that even though revenues are up
$4.5B higher than expected, it will be eroded by weaker tax receipts in the coming
months
• The LAO does not agree with this assessment and is projecting a higher revenue
amount of $3.2B above the Governor’s May revision for 2011-12, 2012-2013 and
2013-2014 combined.
• LAO is advising the Governor that even though we having improved fiscal
performance, that emphasis needs to be given to the large budgetary and retirement
liabilities.
• LAO also advises that due to risks with the economic outlook and state’s volatility,
building larger reserves in the coming years as a priority.
Source: Legislative Analysts Office, The 2013-2014 Budget:
Overview of the May Revision, May 17, 2013
2013-14 Unrestricted Fund Budget Estimates
Beginning Balance
$ 9,245,197
Revenues
$56,970,560
Expenditures
$58,582,265
Ending Fund Balance
$ 7,633,501
Surplus/(Deficit)
($1,611,696)
Reserve %
*Does not include an revenue deficits, No growth, No COLA
13%
3 Year Budget Projection Estimates
2013-2014
2014-2015
2015-2016
9,245,197
7,633,501
6,479,259
Revenue*
56,970,560
56,969,607
56,544,607
Expenditures
58,582,265
58,123,850
58,991,725
Ending Balance
7,633,501
6,479,259
4,032,141
Surplus/(Deficit)
( 1,611,696)
( 1,154,243)
( 2,447,118)
13.03%
11.15%
6.84%
Beginning Balance
Reserve %
PROP 30 TAXES ARE TEMPORARY!!!
* Assumes no growth, no COLA, revenue is flat, no increase to benefits, central plant payment continued to be paid from Lancaster
Redevelopment funds
- Reduction in revenue in 2015-2016 due to no longer receiving utility incentives for solar project
- Reduction in expenditures in 2014-2015 due to not having elections that year and reduction due to not purchasing a bus
Education Protection Account (EPA)
• Proposition 30 was passed in November 2012, which established the EPA
account.
• LEAs have the sole authority to determine how the funds will be spent;
however, there are accountability provisions:
1. The spending plan must be approved by the governing board during a public meeting, which will
be held June 10, 2013.
2. EPA funds cannot be used for the salaries and benefits of administrators or any other
administrative costs (as determined through the account code structure).
3. Each year, the LEA must publish on its website an accounting of how much money was
received from the EPA and how the funds were expended.
• For 2012-2013, $8,798,894 in EPA payments to AVC are scheduled to be
made by June 30th
• In future years, it is expected to be paid quarterly, Sept/Dec/Mar/Jun. Sep &
Dec will most likely be based on prior year P2 ADA information, which
means it can be subject to change. This still creates cash flow
challenges!
2013- 14 Tentative Budget Timeline
•
May 24, 2013: Budget Update – Town Hall Meetings
•
May 28, 2013: Budget & Finance Subcommittee Meeting
•
May 29, 2013: Strategic Planning & Budget Council Meeting
•
May 31, 2013: Budget Study Session-Board of Trustees
•
June 10, 2013: 2013-2014 Tentative Budget submitted to the Board of Trustees for
approval
QUESTIONS