Mt. San Jacinto Community College District Board of Trustees Eugene V. Kadow Dorothy J. McGargill Ann Motte Gwendolyn Schlange Joan F. Sparkman Interim Superintendent/President Dr. Jon Tyler, DPA 2007-2008 Adopted Budget PRESENTATION September 13, 2007
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Mt. San Jacinto Community College District Board of Trustees Eugene V. Kadow Dorothy J. McGargill Ann Motte Gwendolyn Schlange Joan F. Sparkman Interim.
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Mt. San Jacinto Community College District
Board of Trustees
Eugene V. KadowDorothy J. McGargillAnn MotteGwendolyn SchlangeJoan F. Sparkman
Interim Superintendent/President
Dr. Jon Tyler, DPA
2007-2008 Adopted Budget
PRESENTATION
September 13, 2007
Business Services, September 13, 2007
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
ECONOMIC PROFILE
Federal
• Job growth slowed slightly in August, but private-sector 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.
Mt. San Jacinto College 2007-08 Adopted Budget
Business Services, September 13, 2007
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.
Mt. San Jacinto College 2007-08 Adopted Budget
Business Services, September 13, 2007
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
Mt. San Jacinto College 2007-08 Adopted Budget
Business Services, September 13, 2007
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.
Mt. San Jacinto College 2007-08 Adopted Budget
Business Services, September 13, 2007
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.
Mt. San Jacinto College 2007-08 Adopted Budget
Business Services, September 13, 2007
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.
STATE BUDGET FOR CALIFORNIA COMMUNITY COLLEGES
Mt. San Jacinto College 2007-08 Adopted Budget
Business Services, September 13, 2007
$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 Medi-Cal program, $72 million higher state employee compensation, $47 million CCC initiatives, $12 million K12 education.
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
IMPACT OF STATE BUDGET
Mt. San Jacinto College 2007-08 Adopted Budget
Business Services, September 13, 2007
CCC MSJCPhysical Plant and Instructional Equip. $ 8,100,000 $ 75,000Nursing/Allied Health Equipment 8,100,000 TBDNew Nursing Program Simulators 4,000,000 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.
IMPACT OF STATE BUDGET
Mt. San Jacinto College 2007-08 Adopted Budget
Business Services, September 13, 2007
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
Mt. San Jacinto College 2007-08 Adopted Budget
Business Services, September 13, 2007
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.
ENROLLMENT SUMMARY
usiness Services, September 14, 2006
Mt. San Jacinto College 2007-08 Adopted Budget
Business Services, September 13, 2007
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
Mt. San Jacinto College 2007-08 Adopted Budget
Business Services, September 13, 2007
ENROLLMENT TRENDMt. San Jacinto College 2007-08 Adopted Budget
Technology Center Match (100%) 2,256,048Property Acquisition 788,848SJC Cooling Tower and MVC Boiler 523,206Learning Resource Center HVAC 500,000Modular Construction and Leases 371,640 Other Capital Outlay Expenses 15,258
Total Budget Requirements $ 8,823,405
Budget Change Proposals $ 15,115,000 * Includes estimated COLA
Mt. San Jacinto College 2007-08 Adopted Budget
Business Services, September 13, 2007
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.
Mt. San Jacinto College 2007-08 Adopted Budget
Business Services, September 13, 2007
LEASE REVENUE BOND $8,000,000
First Draw (April 27, 2004) 2,975,072 Second Draw (June 23, 2004) 600,089 Total 3,575,161