Transcript Budget Overview - Antelope Valley College

Budget Presentation
Welcome Back
Diana Keelen
February 3, 2012
“While the California budget is uncertain, there is one
thing that is certain, it will change.”
2011-2012 Updates
January Tier 1 & 2 triggers pulled.

New Base 10,502.07 FTES
Student fee shortfall.

Deficit Co-efficient is 2.4%
Additional Deferral

April
$428K to AVC shifts February payment to
Deferrals


New additional deferral of $30 million for a new figure of
$991 million in total deferrals to California Community
Colleges. February payments moved to April.
AVC impact: $428,823 in additional deferrals for a total
of $14,165,447 or roughly 32% of our apportionment.
AVC
Deferrals
2007-2008
$2,769,936
2008-2009
$7,560,021
2009-2010
$9,856,368
2010-2011
$11,892,686
2011-2012
$14,165,447
2011-2012 Estimated Actuals
Beginning Fund Balance
Revenues
Expenditures
$ 8,766,920
$56,000,828*
$58,019,135
Ending Fund Balance
$ 6,748,612
Surplus/(Deficit)
Reserve %
$ (2,018,307)
11.63%
•Includes anticipated prior year recalculations and mid-year cuts
• Includes estimated deficit co-efficient and student fee increase of 2.4%. Will not have figure until the P1 at the end of
January/ beginning of February. Potential property tax shortfall not included in these figures.
•This presentation contains estimates. For budget planning purposes ONLY.
General Fund Make Up of Revenue
Local
19%
Federal
4%
State
77%
General Fund Make Up of
Expenditures
Capital
Expenditures
1%
Other Outgo
Other Operating
4%
Costs
11%
Supplies
3%
Employee
Benefits
19%
Classified
Salaries
20%
Academic
Salaries
42%
Governor’s 2012-2013 Budget Proposal Highlights

State deficit has gone from $26.6 billion to $9.2 billion





$5.1 billion from 2012-2013 and $4.1 billion carryover from prior year
Package includes $4.8 billion in “triggers” to K-12 & higher
education if November tax package is not approved
Includes a categorical consolidation block grant, except for
DSPS, TTIP and Foster Care Education
Reduces the Cal Works program & other significantly by $2
billion
Restructuring of the Cal Grants program
2012-2013 Community College Scenarios
SCENARIO B
SCENARIO A
• $218 million deferral buyback (no new funds)
• $12.5 million in mandates
block grant
• Will give community colleges
4% each out year beyond
2012-13 through 2016 (not sure
•
$264 million base cut
workload reduction %
• Scenario A becomes obsolete
how that will be allocated, deferrals, growth,
COLA?)
Categorical Consolidation will occur in Both
Scenarios = $411.6 million
2012-2013 State Budget Webinar, January 11, 2012
Budget Risks




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Budget triggers geared to education if tax package
does not pass
LAO estimates only $4.8 billion of the $6.9 billion in
tax revenues due to higher earner income volatility
5.56% workload will not be decided until after
November 2012, making reductions difficult since it’s
the middle of the fiscal year
Property tax shortfalls are likely, especially due to
RDA dissolution
50% Law implications
2012-2013 State Budget Webinar, January 11, 2012
3 Year Projection-Taxes Pass
Scenario A
2012-13
2013-14
2014-15
Beginning Fund Balance
6,748,612
6,831,682
6,219,777
Revenue
57,283,912
57,283,912
57,283,912
Expenditures w/o add’l
staffing
56,825,691
57,501,909
57,643,142
Additional Staffing
375,151
393,908
413,603
Ending Fund Balance
6,831,682
6,219,777
5,446,943
Surplus/(Deficit)
83,070
(611,905)
(772,833)
Reserve %
11.94%
10.74%
9.38%
Base FTES
10,502.07
10,502.07
10,502.07
50 % Law Compliance
52.34%
~52.02%
~53.32%
(1-18-12)
•Includes anticipated prior year recalculations and mid-year cuts
•This presentation contains estimates. For budget planning purposes ONLY.
• 4% in 2013/14-2015/16 breakout not explained. Could deferral buy-back.
Revenue Reductions Overview
General Unrestricted Fund
Reductions That Have Been Implemented
Initial Workload Reduction
Fiscal
Year
20112012
Additional Deficit due to $23 mil in base
funding increase from 2009-2010 and
2010-2011 with no state funding increase
(2 new colleges, several new centers and
natural increases to basic allocation)
Tier 1 Deficit Co-Efficent
Tier 2 Additional Workload Reduction
Student Fee Deficit Co-Efficient
2011-2012 Total Reductions
Reductions That Will Be Implemented if
the Tax Package Fails
Scenario B-No Taxes
2012-2013 Potential Reduction
Total Reduction + Potential Reduction for
2011-2012 and 2012-2013 Only
Workoad
Apportionment Base
%
-6.21%
($3,223,949) 11,371
FTES
New
Base
Head
Count
(706) 10,665 (1,484)
($129,285)
-1.52%
-7.74%
Fiscal
Year
20122013
($309,085)
($741,526)
($847,171)
($5,251,562)
Workoad
Apportionment Base
%
(162) 10,502
(869)
FTES
(341)
(1,825)
New
Base
Head
Count
-5.56%
($2,666,908) 10,502
(584)
9,918 (1,226)
-5.56%
($2,666,908)
(584)
(1,226)
-13.30%
($7,918,470)
(1,453)
(3,051)
2011-2012 Deficit Co-Efficient is an estimate and does not include potential property tax shortfalls
and possible exclusions from districts that are falling below 5% reserve
3 Year Projection-Taxes Do Not Pass
Scenario B
2012-13
2013-14
2014-15
Beginning Fund Balance
6,748,612
4,987,499
2,532,077
Revenue
54,617,004
54,617,004
54,617,004
Expenditures w/o add’l
staffing
56,002,966
56,678,517
56,819,076
Additional Staffing
375,151
393,908
413,603
Ending Fund Balance
4,987,499
2,532,077
(83,599)
Surplus/(Deficit)
(1,761,113)
(2,455,422)
(2,615,676)
Reserve %
8.85%
4.44%
(0.15%)
Base FTES with 5.56%
reduction
9,917.66
9,917.66
9,917.66
50 % Law Compliance
51.58%
~50.98%
~51.1%
•Includes anticipated prior year recalculations and mid-year cuts
•This presentation contains estimates. For budget planning purposes ONLY.
Revenue & Expenditures Trend
General Unrestricted Fund
2006-2007
Revenue
Instructional
Salaries
Classified
Salaries
Benefits
Supplies
Services
Capital
Equipment
Other Outgo
Expenditures
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2014-2015
2015-2016
$52,029,469 $59,105,016 $60,316,778 $58,175,691 $67,022,921 $56,000,828 $54,617,004 $54,617,004 $54,617,004
$26,513,686
$29,521,974
$29,785,399
$27,243,534
$27,011,528
$25,787,364
$24,902,975
$25,060,652
$25,519,906
$9,160,778
$9,929,983
$1,721,811
$4,623,069
$10,874,732
$11,067,342
$1,751,544
$5,159,134
$10,745,876
$10,851,393
$1,378,317
$5,408,283
$10,470,638
$10,884,568
$1,010,838
$6,446,763
$10,621,953
$11,374,236
$895,153
$6,152,073
$10,268,469
$11,796,414
$808,497
$6,306,564
$10,364,238
$11,452,319
$808,497
$6,056,564
$10,460,965
$11,478,662
$808,497
$6,606,564
$10,558,659
$11,556,087
$808,497
$6,356,564
$556,015
$613,248
$26,602
$427,027
$97,584
$836,561
$17,816
$881,535
$39,303
$2,196,772
$297,591
$2,754,235
$297,591
$2,120,781
$297,591
$1,965,585
$297,591
$2,021,771
$53,118,591 $58,828,354 $59,103,413 $56,955,691 $58,291,018 $58,019,134 $56,002,965 $56,678,516 $57,119,075
Reserve if Tax Package Fails
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8% - $750K each year over the
years for a total of $2,250,000
7% - $642K each year over the
years for a total of $1,926,000
6% - $570K each year over the
years for a total of $1,710,000
5% - $480K each year over the
years for a total of $1,440,000
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Facts
Facts:
California
Community Colleges are facing a structural change in
revenue reductions
Prior efforts to extend existing taxes were unsuccessful; passing a
new tax package is uncertain
Antelope Valley College material expenses are at an all time low
Our services have increased over the years due to
consultants/interpreters, security, and computer software license and
fees. We are reviewing utility savings with Chevron.
We have debt that is fixed based upon existing contracts
We have not received scheduled maintenance funds in several years.
There are vehicle replacement costs, potential equipment failures, and
building maintenance funds that are needed.
We have not received TTIP funds in several years and there are
outdated information technology items that need to be resolved
Questions?