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Antelope Valley Community College District
2013-2014 Final Budget
Presented By: Mazie L. Brewington
Vice President of Administrative Services
Board of Trustees Meeting
September 9, 2013
Outline
1. 2013-14 State Budget Highlights
2. 2013-14 Community Colleges
3. 2013-14 –AVC Budget Assumptions
4. 2013-14 Unrestricted General Fund
5. 2013-14 AVC-All Budgets
6. Outlook 2014-2015
2013-14 State Budget Highlights
THE BIG PICTURE
•
Total General Fund Expenditures = $96.3 billion
• General Fund Expenditures are increasing but remain $6 billion below
2007-08 levels
• Budget has a reserve of $1.1 billion
• Despite passage of proposition 30 and strong tax receipts- the Governor
actually revised 2013-14 revenues downward from January estimates.
• LAO projected $2.8 billion more in 2013-14 revenues
• The Budget is based on the Governor’s more conservative forecast
Best News- No threat of Trigger cuts
2013-14 Community Colleges
• Access - $89.4 million (1.63%)
• COLA - $87.5 million (1.57%). 1st COLA since 2007-08 budget.
• Categoricals - $88 million:




$50 million for Student Success and support
$25 million for DSPS
$15 million for EOPS
$8 million for CalWORKs
•
Major Progress- paying down deferrals – Down to about $592 million from
$961 million.
•
$30 million for deferred maintenance and instructional equipment
(specified as “one time”)
•
$150,000 increase for the Academic Senate
•
Priority enrollment for CalWORKS participants
2013-14 Community Colleges: New Initiatives
Adult Education
• $25 million for Adult Education local planning grants
• Grants to local consortia which must include at least 1 CCD and 1 K12 LEA
• Funding available over 2 years
• Criteria for awards to be jointly determined by CCCCO and CDE
• Intent for local consortia to develop plans for providing adults with basic
skills, high school diploma or equivalency, classes and courses for
immigrants, education for adults with disabilities and career technical
education programs for apprentices.
• No change to existing noncredit programs or funding…..
2013-14 Community Colleges: New Initiatives
Online Education
• $16.9 million approved
• Expand availability of courses through online technology
• Legislature’s intent is to maximize the development of online
courses available across campuses to alleviate shortages of certain
core courses at certain campuses.
• The CCCCO will develop a common learning management system
available for use by all colleges
2013-14 Community Colleges: New Initiatives
Proposition 39
• $47 million approved to be allocated at the discretion of the
Chancellor
• Allocation subject to the guidance approved by the energy
Commission
• Workforce components as well as projects
2013-14 Proposed Adopted Budget Assumptions
• COLA included (1.57%); plus 1% to salaries
• No Growth Funding
• 18% of 2011-2012 workload reductions or 157 FTES
• Partial restoration of selected categorical programs (DSPS & EOPS) and
reduced District support of 150K
• No prior year recalculation funding
• $46 per credit unit
• Continued State Deferrals
• 0.5% deficit factor included -$282,314
Budget is Balanced
2013-14 Opportunities: Reduction in Deferrals
2012-2013 spike in deferrals includes $8.9 million in EPA funds not received until June 30th
2013-14 Opportunities: 2011-2012 Workload
Reduction Eligibility
Reductions That Have Been Implemented
Fiscal
Year
20112012
Initial Workload Reduction
Workload
Apportionment
%
-6.21%
($3,223,949)
Additional Deficit due to $23 mil in base
funding increase from 2009-2010 and 20102011 with no state funding increase (2 new
colleges, several new centers and natural
increases to basic allocation)
($129,285)
Tier 1 Deficit Co-Efficient
Tier 2 Additional Workload Reduction
($309,085)
($741,526)
-1.52%
Student Fee Deficit Co-Efficient/P-Tax
Shortfall
2011-2012 Total Reductions
•
Base
11,371
FTES
New
Base
Head
Count
(706)
10,665
(1,484)
(162)
10,502
(341)
($1,389,460)
-7.74%
($5,793,305)
(869)
(1,825)
Workload eligibility to earn 18% of reduction = 157 additional FTES and $742,895 in additional apportionment
revenue
We are restoring access, not growing!
Unrestricted General Fund Summary
2012-2013 Unaudited
Actuals
2013-2014 Adopted Budget Scenario C:
1.57% COLA plus 1% of salaries
7,456,314
9,448,661
55,789
48,719,655
9,399,243
60,172
50,013,703
9,125,234
Total Revenue
58,174,686
59,199,108
REVENUE PLUS BEGINNING FUND BALANCE
65,631,000
68,647,769
25,088,109
10,909,542
10,579,438
988,007
6,465,738
69,531
26,454,367
11,599,087
10,542,067
948,007
7,245,647
189,531
54,100,365
56,978,706
2,081,974
2,216,153
56,182,339
59,194,859
0
0
Ending Fund Balance
9,448,661
9,452,910
Surplus/(Deficit)
1,992,347
4,249
16.82%
15.97%
BEGINNING FUND BALANCE
REVENUE
8100-8200
8600-8700
8800
Federal
State
Local
EXPENDITURES
1100-1400
2100-2400
3100-3800
4100-4700
5100-5800
6100-6700
Academic Salaries
Classified Salaries
Employee Benefits
Supplies
Other Operating Costs
Capital Expenditures
Total Expenditures
7100-7600
Total Expenditures & Other Outgo
Other Outgo
Reserves
Reserve for Contingency (Mid-Year Cuts)
Reserve %
Exhibit A Changes to the Unrestricted Fund
Exhibit A
2012- 13 Estimated Expenditure Changes to 2013-2014 Adopted Budget
Change
Increase
Restoration: Travel & Training Budget Reinstatement
Restoration: District-Funded Student Workers
Restoration: Increase in non-instructional materials ~ 7%
Increase in Per Diem Rate Reimbursement
$
$
$
$
Increase in Mileage Rate Reimbursement from $0.485 to $0.56
$
7,782
Increase in Step & Column Estimates
Decrease in State Unemployment Insurance from 1.10% to 0.05%
Legal Reserve Contingency
Contingency Reserve-Unforeseen and Emergency Conditions
Blackboard (Covered under Prop 20 in 12-13)
EbscoHost (Covered under Prop 20 in 12-13)
Dean of Institutional Research & Effectiveness Sal & Benes difference
Research Analyst difference Salary & Benefits difference
Performing Arts Manager Salary & Benefits difference
$
411,908
$
$
$
$
$
$
$
100,000
100,000
127,153
20,000
122,177
57,248
53,845
Vice President of Student Services Salary & Benefits difference
$
7,631
$
$
511,560
10,000
$
$
387,113
57,571
$
$
$
$
$
11,200
76,061
47,357
14,000
District transfer support to Palmdale for rental payments-RDA shortfall
$
-
30
Central Plant payment (Lancaster RDA funded in 12-13) also in 13-14
Resource Allocation Funding
$
$
300,000
31
Biennial Elections
$
500,000
Interim President Salary & Benefits Reduction
Vice President of Human Resources Salary & Benefits Difference
Increase in Course Offerings
Recruitments for 2 Custodians and 1 Utility Worker
1.57% COLA
Increase above salaries, 1%
Instructional Materials Reduction-block grant funds in budget
$
$
$
$
$
33,192
551,537
164,957
659,726
425,079
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
32
33
34
35
36
37
38
39
Faculty Retirements x 6 Salary & Benefits
Faculty Retirement Replacements x 6 Salary & Benefits
Centralized IMC Projector Bulbs
SERP Completed
GASB 45 Contribution to Trust Fund for Retiree Health Liability
Financial Aid Tech I - 2 Positions Salary & Benefits difference
SCE Rebill Completed
Increase in Solar payments
EOPS Director going from 50% to 100% Salary & Benefits
Security Contract Increase of 3% per year
Fleet Replacement-Bus. Paid for out of mandated cost block grant
Ellucian Mobile Application for Smart Phones
Reduction in District categorical program support due to State-wide budget increases
Total Increase (Decrease)
$
Decrease
Total
50,000
25,000
50,000
83,616
4,965,712
$
(392,808)
$
(692,004)
$
(387,113)
$
(177,021)
$
(54,245)
$
(100,000)
$
(150,000)
$ (1,953,191)
$
3,012,522
2013-2014 General Fund Revenues
Where does the money come from?
Federal
6%
Local
14%
State
80%
2013-2014 General Fund Expenditures
How is the money spent?
Capital Expenditures
2%
Other Operating Costs
13%
Other Outgo
4%
Academic Salaries
41%
Supplies
3%
Employee Benefits
17%
Classified Salaries
20%
Antelope Valley College 2013-2014 Budgets
2012-2013 Estimated Actuals
Fund
Name
01.0
01.3
44.0 & 48.0
41.0
General Fund
Unrestricted
Restricted
Scheduled Maintenance
Measure R Bond Fund
21.0
43.0
51.0
52.0
33.0
72
74
74.1 & 74.2
Bond Interest & Redemption
Palmdale Redevelopment
Bookstore
Cafeteria
Child Development Center
Student Rep
Other Trust Funds
Financial Aid
Beginning
Balance
Revenue
Expenditures
Ending Balance
Surplus/Deficit
7,456,314
982,005
3,898,295
10,151,726
58,174,686
9,158,468
2,671,634
53,975
56,182,339
7,948,432
3,567,984
6,786,398
9,448,661
2,192,040
3,001,944
3,419,303
1,992,347
1,210,035
(896,351)
(6,732,423)
4,816,181
370,107
1,435,855
(192,698)
5,085
224,998
43,716
350,183
7,751,287
551,917
911,089
239,762
608,304
30,962
192,373
50,140,696
7,084,141
667,914
1,206,788
267,143
613,389
34,446
192,379
49,086,777
5,483,327
254,110
1,140,156
(220,079)
0
221,514
43,710
1,404,102
667,146
(115,997)
(295,699)
(27,381)
(5,085)
(3,484)
(6)
1,053,918
80,344,457
84,551,353
Antelope Valley
College Budget
Reserve
16.82%
27.58%
(4,206,896)
2013-2014 Adopted Budget
Fund
Name
Beginning
Balance
Revenue
Expenditures
Ending Balance
Surplus/Deficit
01.0
01.3
44.0 & 48.0
41.0
General Fund
Unrestricted
Restricted
Scheduled Maintenance
Measure R Bond Fund
9,448,661
2,192,040
3,001,944
3,419,303
59,199,108
10,290,719
1,042,338
26,988
59,194,859
10,290,353
1,088,811
3,446,291
9,452,910
2,192,406
2,955,471
(0)
4,249
366
(46,473)
(3,419,303)
21.0
43.0
51.0
52.0
33.0
72
74
74.1 & 74.2
Bond Interest & Redemption
Palmdale Redevelopment
Bookstore
Cafeteria
Child Development Center
Student Rep
Other Trust Funds
Financial Aid
5,483,327
254,110
1,140,156
(220,079)
0
221,514
43,710
1,404,102
6,798,326
551,422
900,000
244,065
643,774
31,443
200,115
50,642,102
7,280,703
695,118
1,007,662
273,083
643,774
41,000
200,000
52,008,517
5,000,950
110,414
1,032,494
(249,096)
0
211,957
43,825
37,687
(482,377)
(143,696)
(107,662)
(29,018)
0
(9,557)
115
(1,366,415)
Antelope Valley
College Budget
•
•
•
•
•
79,928,297
84,161,654
Reserve
15.97%
21.31%
(4,233,356)
Assumes a balanced budget for 2013-2014
Major deficit spending for the overall budget is attributed to the Bond fund expenditures. Already received revenues and spending down the funds
Assumes that Palmdale redevelopment funds will be less than historically in the past due to the LA County Assessors alternative computation method
Lancaster redevelopment/scheduled maintenance deficit spending due to capital projects. Already received revenues and spending down the funds
Bookstore and cafeteria continue to deficit spend
Outlook 2014-2015
• CCC System Budget Request Includes:
– Schools Services of California states that the statutory COLA is
1.8% or $100 million. CCC requesting $240 Million for a “Super
COLA” or 4.4%
– $150 million for restoration of Categorical Programs
– $110 million for access or 2% restoration in FTES
– $100 million to buy down deferrals
Per Chancellor’s Office Budget Workshop, August 6, 2013
Unrestricted Fund – 3 Year Scenario #1
Scenario #1 - Flat Revenue
2014-2015
Projected Budget
2015-2016
Projected Budget
2016-2017
Projected Budget
9,452,910
9,389,454
8,357,174
60,172
50,013,703
9,124,399
60,172
50,013,703
8,770,860
60,172
50,013,703
8,770,860
59,198,273
58,844,734
58,844,734
68,651,184
68,234,189
67,201,908
26,616,713
11,705,418
10,594,451
948,007
6,695,647
49,531
26,780,683
11,812,812
10,647,359
948,007
7,345,647
49,531
26,946,292
11,921,280
10,700,795
948,007
6,795,647
49,531
56,609,767
57,584,038
57,361,553
2,651,963
2,292,976
2,110,766
59,261,730
59,877,015
59,472,319
0
0
0
9,389,454
8,357,174
7,729,590
Surplus/(Deficit)
(63,456)
(1,032,280)
(627,584)
Reserve %
15.84%
13.96%
13.00%
BEGINNING FUND BALANCE
REVENUE
8100-8200
8600-8700
8800
Federal
State
Local
Total Revenue
REVENUE PLUS BEGINNING FUND BALANCE
EXPENDITURES
1100-1400
2100-2400
3100-3800
4100-4700
5100-5800
6100-6700
Academic Salaries
Classified Salaries
Employee Benefits
Supplies
Other Operating Costs
Capital Expenditures
Total Expenditures
7100-7600
Total Expenditures & Other Outgo
Other Outgo
Reserves
Reserve for Contingency (Mid-Year Cuts)
Ending Fund Balance
Unrestricted Fund – 3 Year Scenario #2
Scenario #2 - 11-12 FTES Restoration
2014-2015
Projected Budget
2015-2016
Projected Budget
2016-2017
Projected Budget
9,452,910
9,638,819
9,155,269
60,172
50,800,703
9,124,399
60,172
51,587,703
8,820,860
60,172
52,374,703
8,870,860
Total Revenue
59,985,273
60,468,734
61,305,734
REVENUE PLUS BEGINNING FUND BALANCE
69,438,184
70,107,554
70,461,003
27,154,348
11,705,418
10,594,451
948,007
6,695,647
49,531
27,855,953
11,812,812
10,647,359
948,007
7,345,647
49,531
28,559,197
11,921,280
10,700,795
948,007
6,795,647
49,531
57,147,402
58,659,308
58,974,458
2,651,963
2,292,976
2,110,766
59,799,365
60,952,285
61,085,224
0
0
0
9,638,819
9,155,269
9,375,780
Surplus/(Deficit)
185,909
(483,550)
220,511
Reserve %
16.12%
15.02%
15.35%
BEGINNING FUND BALANCE
REVENUE
8100-8200
8600-8700
8800
Federal
State
Local
EXPENDITURES
1100-1400
2100-2400
3100-3800
4100-4700
5100-5800
6100-6700
Academic Salaries
Classified Salaries
Employee Benefits
Supplies
Other Operating Costs
Capital Expenditures
Total Expenditures
7100-7600
Total Expenditures & Other Outgo
Other Outgo
Reserves
Reserve for Contingency (Mid-Year
Cuts)
Ending Fund Balance
Conclusions
• State is finally reinvesting in education, due in part to passage of prop 30
and an improving economy.
• Compared to prior years, the final 2013-14 State Budget faces considerably
less risk of falling out of balance. However there are a few risks:
–
–
–
–
3 centers approved that are not included in the budget figures. Potential deficit.
DOF and Chancellor’s office disagree on the amounts owed to California Community
College for guaranteed EPA funds backfill in 2012-13.
Potential deficit could be over $2 mil or as little as $200K due to RDA funds.
Proposition 30 is temporary
• Governor’s Budget does provide dollars for restoration and student success
• Cost-of-Living Adjustment (COLA) 1.57%; plus 1% is included
• AVC has submitted a balanced budget for 2013-2014
QUESTIONS