Transcript 2015-16_TentativeBudgetReport

PRESENTATION OF THE 2015-2016
TENTATIVE BUDGET REPORT
SANTA MONICA
COLLEGE
TENTATIVE IS….. TENTATIVE!!!
• Still waiting for P2
• Year end closing
• May Revise - Macro view
• Governor vs. Legislature
• CAUTION: For these reasons projections
may significantly differ from final allocation
OVERVIEW
• Governor’s Proposed Budget
• Tentative Budget
WARNING:
2015-2016
RESULTS MAY
Governor’s
VARY
May Revise
GOVERNOR’S MAY REVISE
Proposition 98 Funding at May Revise
• Record $115B General Fund Budget
$68.4
$70.0
• Prop 98 funding is $68.4B
$66.3
• $7.5B increase from 14-15 June Projection ($60.9M)
$60.9
• $2.1B increase from May Revise ($66.3M)
$58.9
$57.9
$56.6
$57.5
• Community
Colleges share is 11.5% or $7.9B
In Billions
$63.8
• System increase
$51.7 of $1.3B or 19.9% From 14-15 Enacted!!!
$51.3
$49.6
$49.2
• No enrollment fee change
$47.3
$45.0
07-08 08-09
09-10
10-11
11-12
12-13
13-14
14-15
AB
14-15
MR
15-16
RECAP OF GOVERNOR’S
BUDGET
UNRESTRICTED FUND
ONGOING
ONE-TIME
TOTAL
INC. TO BASE $266.7M
$4,984,973
-
$4,984,973
ACCESS - $156.5M
- 2.54%
$2,583,728
-
$2,583,728
COLA - $61M 1.02%
$1,161,177
-
$1,161,177
CDCP - $49M 41% PER FTES
$244,305
-
$244,305
MANDATED COST
PAYMENT- $626M
-
$11,978,846
$11,978,846
TOTAL
$8,974,183
$11,978,846
$20,953,029
RECAP OF GOVERNOR’S
BUDGET
RESTRICTED FUND
ONGOING
ONE-TIME
TOTAL
SSSP - $100M
$1,676,414
-
$1,676,414
EQUITY - $115M
$1,816,390
-
$1,816,390
COLA EOPS/DSPS/CALW
ORKS
$36,225
-
$36,225
INST. BG/SCHED.
MAINTENANCE
-
$2,840,225
$2,840,225
PROP 39 - $39.6M
-
$739,170
$739,170
TOTAL
$3,529,029
$3,579,395
$7,108,424
RECAP OF GOVERNOR’S
BUDGET
UNRESTRICTED AND RESTRICTED FUND
ONGOING
ONE-TIME
TOTAL
UNRESTRICTED
(01.0)
$8,974,183
$11,978,846
$20,953,029
RESTRICTED
(01.3)
$3,529,029
$3,579,395
$7,108,424
TOTAL
$12,503,212
$15,558,241
$28,061,453
PROPOSALS NOT INCLUDED
• Unrestricted
• $75M for full-time faculty
• $50M Awards for Innovation
PROPOSALS NOT INCLUDED
• Restricted
• $60M Basic skills and student outcomes
• $2M Basic skills pilot with CSU
• $15M Institutional effectiveness
• $500M Adult Ed Block Grant
• $48M CTE Pathways SB 1070
2015-2016 Tentative Budget
Changes in Revenue
PROJECTED CHANGES IN REVENUE
14-15 TO TENTATIVE PROJECTIONS
2014-2015 Revenue Projection:
Mandated Costs - Past Claims
Apportionment - Base Change/CDCP
Growth
Non-resident Tuition
Inflationary Adjustment
Deficit Factor net PY Adjustment
Lottery
Medicare Part D Subsidy
Other
$21,250,617
$-231,648
149,698,927
10,433,856
5,229,179
2,583,728
1,538,566
1,161,177
187,824
77,165
-231,648
39,122
$21,018,969 or 14%
2015-2016 Tentative Revenue Projection:
170,717,896
FIVE YEAR REVENUE TREND
Revenue
$180,000,000
$166,250,000
$152,500,000
$138,750,000
$125,000,000
2011-2012
2012-2013
2013-2014
2014-2015
2015-2016
Changes in Expenditures
MAJOR CHANGES IN
ASSUMPTIONS
• Vacancy List
• Past Practice: Fund 50% of the entire list
(Would equate to $3.1M in 15-16)
• New Practice: Fund $2.5M in salaries
and related benefits. Discount at 66%.
(Equates to $1.2M)
• Exception for 2015-2016 is President/Superintendent
MAJOR CHANGES IN
ASSUMPTIONS
• Technology Replacement Plan and Non-Technology Set Aside
• EMP 13-14 Institutional Objective #2 “To allocate resources
sufficient to support the ongoing maintenance of technology,
equipment and facilities.”
• Accreditation Standards III.B and III.C
• District Program Review - 2012 through 2015
• Technology Replacement Plan: Computers, Projectors,
Controllers/Amps, Doc Cams
• $1.2M offset by $792K IEBG = Total funding of $418K
• Non-Technology/TCO Set Aside: Total funding of $500K
PROJECTED CHANGES IN EXPENDITURES
2014-2015 TO TENTATIVE PROJECTIONS
2014-2015 Expenditure Projection:
153,834,272
Salary Increase and Related Benefits
2,588,479
Non-Health and Welfare Benefits
1,202,422
Equip., Technology and TCO Replacement Plan
1,012,375
Step, Column and Longevity
Vacancy List
$7,880,989
982,162
742,285
Health and Welfare Incl. Retiree
607,051
OPEB Contribution
500,000
Utilities and Insurance
Supplies and Other Operating
$-1,357,520
170,844
75,371
Decrease in Hourly
-654,278
Net Effect of Hiring and Separation
-660,628
Others
$6,523,469 or 4.2%
2015-2016 Tentative Exp. Projection:
-42,614
160,357,741
FIVE YEAR EXPENDITURE
TREND
Expenditures
$165,000,000
$157,500,000
$150,000,000
$142,500,000
$135,000,000
$127,500,000
2011-2012
2012-2013
2013-2014
2014-2015
2015-2016
Changes in Fund Balance
THE “BOTTOM LINE”
2014-2015
Projected
2015-2016
Tentative
$13,971,779
$9,836,434
Structural Surplus/Deficit
-$5,724,159
-$606,316
One-Time items
$1,588,814
$10,966,471
Ending Fund Balance
$9,836,434
$20,196,589
Fund Balance to TTL
Expenditures and
Transfers
6.39%
12.59%
Beg. Fund Balance
FIVE YEAR REVENUE TREND
Revenue
$180,000,000
$168,750,000
$157,500,000
$146,250,000
$135,000,000
Expenditures
OTHER ISSUES MOVING
FORWARD
• FTES: Cautious optimism
• Tentative FTES Target: 21,507 Credit (approx. 534
Growth)
• PERS and STRS increases
13-14
14-15
STRS
8.25%
8.88%
PERS
11.442%
15-16
16-17
17-18
18-19
19-20
20-21
10.73% 12.58% 14.43% 16.28%
18.13%
19.1%
11.77% 11.84% 14.24% 15.84% 17.44%
19.14%
19.64%
• Built in increases: Step and column, benefits, OPEB, utilities
• Structural Surplus/Deficit
Thank You!!!
The Accounting Team with Special
Thanks To Veronica Diaz and Jo Lau
Jocelyn Chong and Al DeSalles
Charlie Yen, Greg Brown and the Facilities
Team
Budget Committee