Transcript Document

Mt. San Jacinto Community College District
2007-2008 Adopted Budget
PRESENTATION
September 13, 2007
Board of Trustees
Interim Superintendent/President
Eugene V. Kadow
Dorothy J. McGargill
Ann Motte
Gwendolyn Schlange
Joan F. Sparkman
Dr. Jon Tyler, DPA
Mt. San Jacinto College 2007-08 Adopted Budget
PRESENTATION OUTLINE
• Economic Profile
• 2007-08 State Budget for Community Colleges
• MSJC Budget Planning Assumptions
 Impact of State Budget
 Budget Process Planning Assumptions
 Enrollment Summary
 Major funding issues
• Adopted Budget 2007-08 Recommendation
Business Services, September 13, 2007
Mt. San Jacinto College 2007-08 Adopted Budget
ECONOMIC PROFILE
Federal
• Job growth slowed slightly in August, but privatesector growth continued for a 48th straight month.
• Unemployment rate is at 4.6% in August,
decreased or held steady in 24 states over the year
ending in July 2007.
• Consumer spending weakened but growing
incomes reported in August should continue to
support household consumption.
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Mt. San Jacinto College 2007-08 Adopted Budget
ECONOMIC PROFILE
Federal
• Business investment on commercial structures and
equipment strengthened in the second quarter.
• Strong global growth is boosting U.S. exports,
which grew by 7.1% over the past four quarters.
• Tax receipts in FY 2006 increased 11.8% over FY
2005, increasing trend is expected for FY 2007.
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Mt. San Jacinto College 2007-08 Adopted Budget
ECONOMIC PROFILE
State
• In June 2007, California unemployment rate held
steady at 5.2%; the national unemployment rate
was unchanged at 4.9%.
• Residential and commercial construction
continued to slow from prior year increases,
especially during the first half of 2007.
• State revenue collections from July 2007 to-date
showed mixed results.
 Personal income tax = $137 million below
forecast
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Mt. San Jacinto College 2007-08 Adopted Budget
ECONOMIC PROFILE
State
 Sales and use tax = $31 million above forecast
 Corporation tax = $12 million above forecast
 Other revenues = $123 million below forecast
• State revenue fluctuations affect Proposition 98
decision making.
Business Services, September 13, 2007
Mt. San Jacinto College 2007-08 Adopted Budget
ECONOMIC PROFILE
Local
• Inland Empire economic growth was strong in fiscal
2006 but rates continue to slow for 2007.
• Population composition has changed since 2004 and
reflects growing diversity.
• Substantial differences in educational attainment
levels have resulted with the change in population.
• New and existing home prices show decline with
sales volume off 29.1% for 2007.
• Projections for the Inland Empire housing markets
suggest sales volume and prices will continue to fall.
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Mt. San Jacinto College 2007-08 Adopted Budget
STATE BUDGET FOR CALIFORNIA COMMUNITY COLLEGES
The California Budget Bill signed on August 24, 2007
• Authorized General Fund spending of $102.3 billion,
essentially the same as revenues.
• Assumes year-end reserve equivalent to 2006-07 reserve
of $4.1 billion, but state spending exceeded revenues by
more than $5 billion in 2006-07.
• Operating shortfalls projected at more than $5 billion in
2008-09 and 2009-10; many of the solutions in budget
plan are one-time in nature.
 Lower 2007-08 minimum guarantee for Prop. 98
 Use of $1.3 billion in Public Transportation funds to
reduce General Fund expenditures.
Business Services, September 13, 2007
Mt. San Jacinto College 2007-08 Adopted Budget
STATE BUDGET FOR CALIFORNIA COMMUNITY COLLEGES
 $1 billion one-time revenues: sale of EdFund,
amended tribal gambling compacts, accelerated
transfer of $600 million in tobacco securitization
funds.
 Savings in Social Services CalWORKs COLA for
one year and State SSI COLA for five months.
 Vetoes for $703 million, mainly $332 million MediCal program, $72 million higher state employee
compensation, $47 million CCC initiatives, $12
million K12 education.
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Mt. San Jacinto College 2007-08 Adopted Budget
STATE BUDGET FOR CALIFORNIA COMMUNITY COLLEGES
On-going Changes:
• 4.53% Cost-of-living Adjustment (COLA)
• 2% Enrollment Growth
• EOPS Textbook Assistance Program, FCMAT Audits,
Foster Care/Kinship
• Rebenching base apportionment
• Reduction of Basic Skills base augmentation
• Reduction of Career Development/College Preparation
(CDCP ) enhanced non-credit funding augmentation
Total on-going augmentation to the system is
approximately $289.4 million.
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Mt. San Jacinto College 2007-08 Adopted Budget
STATE BUDGET FOR CALIFORNIA COMMUNITY COLLEGES
One-time Changes:
• Instructional Equipment/Facilities
• Nursing /Allied Health Equipment
• New Nursing Programs
• Cal-PASS Faculty Councils
Total one-time monies to the system is
approximately $21.2 million.
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Mt. San Jacinto College 2007-08 Adopted Budget
IMPACT OF STATE BUDGET
CCC
Cost of Living Adjust (COLA) 4.53%
Student Access (Growth) 2%
EOPS Textbook Assistance
Foster Care/Kinship, FCMAT Audits
Rebenching apportionments
Basic Skills base reduction
$ 263,300,000
136,200,000
1,900,000
1,100,000
(80,000,000)
(33,100,000)
MSJC
$ 2,227,595
2,225,181 *
TBD
TBD
TBD
TBD
The 2007-08 State budget includes line item on-going
appropriations detailed above with direct fiscal impact on
MSJC. The allocation mechanism for certain budget line
items have not been disclosed and are to be determined
(TBD) with system office notification. These will be treated
as budget modifications during the fiscal year.
* At 5.2% growth
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Mt. San Jacinto College 2007-08 Adopted Budget
IMPACT OF STATE BUDGET
CCC
Physical Plant and Instructional Equip.
Nursing/Allied Health Equipment
New Nursing Program Simulators
MSJC
$ 8,100,000
8,100,000
4,000,000
$ 75,000
TBD
TBD
The 2007-08 State budget includes one-time appropriations
detailed above with direct fiscal impact on MSJC. These
allocations are the result of SB 78 as signed by the Governor.
Business Services, September 13, 2007
Mt. San Jacinto College 2007-08 Adopted Budget
BUDGETING PROCESS PLANNING ASSUMPTIONS
• Fiscal Stability is Highest Priority
– Prudent Reserve of 5.1%, or $2.9 million
• Resource Allocation Linked to Formal Planning
– Education Plan, Master Plan, Facility Master Plan
• Budget Committee Recommendations
– Compliance to 50% Law and Full-time Faculty Obligation
– Hire 13 FT faculty, 5 interim faculty, 13 FT classified
support staff
– Fund for enrollment growth and efficiency
– Increase materials, service and equipment budgets by five
percent
– Provide technology upgrades for stability, quality
– Continue with physical plant maintenance and repair
projects for deteriorating infrastructure systems
Business Services, September 13, 2007
Mt. San Jacinto College 2007-08 Adopted Budget
ENROLLMENT SUMMARY
2006-07 at P2
• All districts were funded to actual enrollment
• No unfunded enrollment in the System
• MSJC credit enrollment growth was funded at 8.7%
growth. The 320 Attendance Report filed in July
shows credit enrollment growth at 10.3% (Actual
certification will be received in February 2008.)
2007-08
• All districts in growth mode
• Revised growth rates issued by Chancellor’s Office
September 4, 2007.
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Mt. San Jacinto College 2007-08 Adopted Budget
ENROLLMENT SUMMARY
• 2007-08 calculated growth rate for MSJC is 4.58%
• MSJC Fall 2007 credit enrollments are up 11% at
census compared to Fall 2006
• Chancellor’s Office Budget Workshop scheduled
for September 18, 2007
• Updates will be given after Workshop and staff
review
Business Services, September 13, 2007
Mt. San Jacinto College 2007-08 Adopted Budget
ENROLLMENT TREND
Mt. San Jacinto Community College
Ten-Year FTES Comparison
14
12
10
8
6
4
2
0
-2
FY 98-99 FY 99-00
FY 00-01
FY 01-02 FY 02-03
FTES % of Increase
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FY 03-04
FY 04-05
FY 05-06 FY 06-07 BUD07-08
State FTES % of Increase
Target
Mt. San Jacinto College 2007-08 Adopted Budget
MAJOR FUNDING ISSUES
• Mandated safety and security systems: fire alarm and
energy management
• Ongoing outreach that requires expansion in Southwest
Corridor
• Mandatory reserves for GASB 43/45 required in fiscal
2008-09.
• Ongoing Technology upgrade, repair and expansion to
provide stable and quality service to students and staff.
• Maintenance of physical plant that requires replacement
and/or repair.
Business Services, September 13, 2007
Mt. San Jacinto College 2007-08 Adopted Budget
MAJOR FUNDING ISSUES
Budgeted Augmentations:
On-going revenue
One-time revenue
Total Augmentations
Budgeted Requirements
Certificated, Classified Positions
Technology Center Match (100%)
Property Acquisition
SJC Cooling Tower and MVC Boiler
Learning Resource Center HVAC
Modular Construction and Leases
Other Capital Outlay Expenses
Total Budget Requirements
Budget Change Proposals
* Includes estimated COLA
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Unrestricted General Fund
$
$
$
$
8,452,776
-08,452,776
4,368,405 *
2,256,048
788,848
523,206
500,000
371,640
15,258
8,823,405
$ 15,115,000
Mt. San Jacinto College 2007-08 Adopted Budget
MAJOR FUNDING ISSUES
As in every cycle, budget requests exceed resources available.
The budget prioritization process will determine final
distribution of budget augmentations.
Formal planning documents such as the Master Plan, Facility
Master Plan, Education Plan and program review will be
used to determine funded requests. In addition, Chancellor’s
Office expenditure criteria will be followed for all
appropriations.
Safety, program stability and compliance will be determining
factors for final allocations.
Business Services, September 13, 2007
Mt. San Jacinto College 2007-08 Adopted Budget
LEASE REVENUE BOND
LEASE REVENUE BOND
$8,000,000
 First Draw (April 27, 2004)
 Second Draw (June 23, 2004)
 Total
2,975,072
600,089
3,575,161
 Interest Earned (thru June 30, 2007)
173,980





467,498
462,509
452,377
439,975
467,498
First Payment FY0304 (Funds 12 & 41)
Second Payment FY0405 (Funds 12 & 41)
Third Payment FY0506 (Fund 41 only)
Fourth Payment FY0607 (Fund 41 only)
Fifth Payment FY0708 (Fund 41 only)
Business Services, September 13, 2007
MSJC 2007-08 Adopted Budget
REVENUE AND EXPENSE SUMMARY-ALL FUNDS
FUND NAME
FUND#
BEGINNING
BALANCE
REVENUE
EXPENSE
INTERFUND
TRANSFER
RESERVE/
CARRYOVER
GENERAL FUND
11
$634,085
$56,658,788
$52,161,635
($4,823,724)
$307,514
SPECIAL RESERVE
11
2,400,000
-0-
-0-
200,000
2,600,000
INSTR EQUIPMENT
12
86,047
104,224
225,012
34,741
-0-
PARKING FUND
12
153,787
439,000
556,321
-0-
36,466
RESTRICTED FUND
12
-0-
6,469,857
6,469,857
-0-
-0-
CHILD DEVELOMENT
33
-0-
1,835,816
1,909,799
73,983
-0-
CAPITAL OUTLAY
41
7,658,234
4,962,865
10,609,071
4,455,000
6,467,028
SELF INSURANCE
61
142,370
88,508
208,958
60,000
81,920
ASSOC STUDENT BODY
71
56,225
229,182
195,220
-0-
90,187
STUDENT FINANCIAL AID
74
67,654
7,173,855
7,189,288
-0-
52,221
STUDENT REP FEE
72
3,333
1,059
4,392
-0-
-0-
FOUNDATION
79
3,293,964
689,532
659,014
-0-
3,324,482
BOOKSTORE
51
1,585,691
4,563,550
4,302,550
(35,000)
1,811,691
CAFETERIA
52
-0-
331,100
366,100
35,000
-0-
$16,081,390
$83,547,336
$84,857,217
-0-
$14,771,509
GRAND TOTAL
Business Services, September 13, 2007
Mt. San Jacinto College 2007-08 Adopted Budget
RECOMMENDATION
The Adopted Budget for fiscal year 2007-08 is
recommended with the following:
• Enrollment target set at 9,871 credit, 176 basic
non-credit, and 123 enhanced non-credit FTES, or
7.356% growth
• Adopted Budget based on 9,673 credit, 172 basic
non-credit, and 120 enhanced non-credit FTES, or
5.2% growth
• Budget Base/Revenue Limit = $53.6 million
• Compliance with statutory requirements of the 50
Percent Law and FT Faculty Obligation
• 5.1% Contingency & Reserve = $2,900,000
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Mt. San Jacinto College 2007-08 Adopted Budget
QUESTIONS
Business Services, September 13, 2007