2013-2014 Budget Study Session San Bernardino Community College District May 30 , 2013

2013-2014 Budget Study SessionSan Bernardino Community College District

May 30, 2013

Agenda

•What has happened since 2012-13•Comparing Governor’s May Revise, Senate & Assembly Subcommittee Proposals•State Summary•What does it mean for SBCCD?•Board of Trustees 2013-14 Budget Directions

Agenda

•2013-14 Strategic Issues•2013-14 Tentative Budget Assumptions•Estimated Impact on enrollment•2013-14 Budget Year Estimates•Estimated General Fund, Unrestricted Fund Balance•Next steps•Questions?

What Has Happened Since 2012-13

•Prop 30 passes in November of 2012• Sales tax ends December 31, 2016• Income tax ends December 31, 2019• $10.8M of $67M Budget (16%)

•State revenues exceed 2012-13 projections by $4.5 billion•Redevelopment agencies (RDAs) have been eliminated

Item 2012-13 Spending Level

2013-14 May Revise

Senate Subcommittee

Assembly Subcommittee

Enrollment Growth

1% 1.63% (+0.63%) 1.63% (+0.63%) 2.2% (+1.1%)

Cost-of-Living Adjustment

0% 1.57% (+1.57%) 1.57% (+1.57%) 1.57% (+1.57%)

Student Success (formerly Matric.)

$49.2M $99.2M (+$50M)

$99.2M (+$50M)

$113.4M (+$64.2)

Online Education Platform

$0 $16.9M (+16.9M)

$16.9M (+$16.9M)

$16.9M (+$16.9M)

EOPS $73.6M $73.6M $98.6M (+$25M)

$134.1M (+$60.5M)

CARE $9.3M $9.3M $10.6M (+$1.3M)

$9.3M

DSPS $69.2M $69.2M $94.2M (+$25M)

$126.8M (+$57.6)

Student Financial Aid Administration

$0 $67.5M (+$67.5M)

$67.5M (+$67.5M)

$72.1M (+$72.1M)

Foster Care Education Program

$5.25M $5.25M $5.25M $5.34M (+90K)

Comparing Governor’s May Revise, Senate & Assembly Subcommittee Proposals

Source: Community College League of California 5/23/13

Item 2012-13 Spending Level

2013-14 May Revise

Senate Subcommittee

Assembly Subcommittee

Student Success (MESA/Puente)

$3.8M $3.8M $3.8M $6.3M (+$2.5M)

Nursing Support $13.4M $13.4M $13.4M $22.4M (+$9M)

Telecom/Tech $15.3M $15.3M $15.3M $15.5M

Academic Senate

$318,000 $318,000 $415,000 (+97K)

$474,000 (+$156K)

Childcare Tax Bailout

$3.3M $3.3M $3.3M $7.7M (+4.4M)

Equal Employment Opportunity

$767,000 $767,000 $767,000 $779,000 (+12K)

Economic Development

$22.9M $22.9M $22.9M $23.3M (+$400K)

Apprenticeship $7.2M $7.2M $7.2M $15.5M (+$8.3M)

Comparing Governor’s May Revise, Senate & Assembly Subcommittee Proposals

Source: Community College League of California 5/23/13

Item 2012-13 Spending Level

2013-14 May Revise

Senate Subcommittee

Assembly Subcommittee

Part-time Faculty Office Hours

$3.5M $3.5M $5.9M (+$2.4M) $7.2M (+$3.7M)

Part-time Faculty Health Insurance

$490,000 $490,000 $820,000 (+$330K)

$1M (+$510K)

Part-time Faculty Compensation

$24.9M $24.9M $24.9M $51.6M (+$26.7M)

Transfer Education and Articulation

$698,000 $698,000 $698,000 $1.4M (+$702K)

Instructional Equipment

$0 $0 $12M (one-time funds)

$0

Scheduled Maintenance

$0 $0 $12M (one-time funds)

$0

Professional Development

$0 $0 $6M (one-time funds)

$0

Comparing Governor’s May Revise, Senate & Assembly Subcommittee Proposals

Source: Community College League of California 5/23/13

State Summary

•Apportionment increasedGrowth up from 1% to an additional 1.63% -

2.2% ($89.4M - $122.6M)COLA 1.57% ($87.5M)Student Success ($50M – $64.2M)

•Categorical programs increasedIncreases to ongoing programsPossible one-time funds for instructional

equipment, maintenance, and professional development

State Summary

•Adult education proposal withdrawn for 2 years•Deferral buy downs accelerated ($180M plus $64.5M for 2013-14 for a total of $244.4M; $961M deferral down to $557.5M)•Prop 39 funding Increased•90-Unit cap and census date policy proposal withdrawn•Postpones proposal to require each student to complete Free Application for Federal Student Aid

What Does It Mean For SBCCD?

•Apportionment increased $2.8M – $3.4MGrowth up from 1% to an additional 1.63% -

2.2% ($1.1M - $1.5M)COLA 1.57% ($1.1M)Student Success ($600K – $800K)

•Categorical programs increasedIncreases to ongoing programsPossible one-time funds for instructional

equipment, maintenance, and professional development

What Does It Mean For SBCCD?

•Deferrals reduced $3M; from $9.8 to $6.8M2013-14 reduced $2.2M2013-14 reduced additional $800K

Board of Trustees 2013-14 Budget Directions

• Balance the 2013-14 budget without the use of Fund Balance (Reserve) while maintaining a minimum Fund Balance of 15% (State minimum is 5%)• Allocate funding through the district resource allocation model to support SBVC and CHC as comprehensive community colleges• Increase student success and access• Identify new or reallocated funds for strategic initiatives

Board of Trustees 2013-14 Budget Directions•Maintain selective “hiring freeze” to provide strategic funding of priority needs• Reorganize and reallocate resources where possible to increase efficiency and improve services• Reduce expenditures that are not mission-critical• Invest in projects that enhance the efficiency of district and college operations• Continue the Measure M bond program based on facilities master plans

Board of Trustees 2013-14 Budget Directions• Continue to develop external funding streams including grants, scholarships, and fundraising•Maintain full funding for step and column increases•Maintain 50% law ratios in staffing plans•Honor collective bargaining agreements

• Increase student success throughout SBCCD• Increase student access and restore enrollment•Make progress in having two comprehensive colleges for SBCCD• CHC is scheduled to construct 80,000 additional square feet within the next 4 years. • SBVC has near-term plans to replace and renovate existing facilities that do not increase the square footage of the campus. 

2013-14 Strategic Issues

•Growth 1.75%• COLA 1.5%• Allocation Split 70/30 SBVC/CHC•One-time 0.8% allocation (approximately $300,000) additional access funding from Fund Balance for CHC to address access, comprehensive college, and new construction strategic issues

2013-14 Tentative Budget Assumptions

Estimated Impact on Enrollment

Description *Funded2012-13

*Actual2012-13

*Funded2013-14

*Target2013-14

FTES 13,312 13,312 13,456 13,590Sections/Classes

3,550 3,550 3,588 3,624

Head Count 34,435 34,435 34,804 35,153

* Estimate

2013-14 Budget Year EstimatesDescription Amount2012-13 Structural Imbalance -$1,900,000Step and Column Increases -$650,000Increase in Medical and Dental -$1,000,000Increased Grant Obligations -$60,000Increase 75 Sections -$300,0005 Faculty and 3 Counselors -$400,000SLO Increase -$200,000COLA Increase $1,100,000Growth Increase $1,100,000Student Success $600,000Select Hiring Freeze $600,000Energy Savings $175,000KVCR Savings $300,000Net Excess/(Liability) for 2013-14 -$635,000

Estimated General Fund, Unrestricted Fund Balance

Description AmountBeginning Fund Balance, July 1, 2012 $21,454,831Revenues less Expenses -$600,000Fund Balance Contribution $0Projected Fund Balance, June 30, 2013

$20,854,831

Fund Balance% of Budgeted Expenditures

30.7%

Fund Balance at 15% of Budgeted Exp.

$10,200,000

Fund Balance at 5% of Budgeted Exp. $3,400,000Deferrals $9,800,000

• June 13, 2013: Present 2013-14 Tentative Budget to Board for adoption• July: California budget enacted• September 12, 2013: Present 2013-14 Final Budget to Board for adoption• Keep Board informed

• Board meetings• Chancellor’s Chat• Other means as necessary

Next Steps

Questions?