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 increased

Growth 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 increased

Increases to ongoing programs

Possible 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 – $3.4M

Growth 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 increased

Increases to ongoing programs

Possible one-time funds for instructional equipment, maintenance, and professional development

What Does It Mean For SBCCD?

•Deferrals reduced $3M; from $9.8 to $6.8M

2013-14 reduced $2.2M

2013-14 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 13,590

Sections/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 Amount

2012-13 Structural Imbalance -$1,900,000

Step and Column Increases -$650,000

Increase in Medical and Dental -$1,000,000

Increased Grant Obligations -$60,000

Increase 75 Sections -$300,000

5 Faculty and 3 Counselors -$400,000

SLO Increase -$200,000

COLA Increase $1,100,000

Growth Increase $1,100,000

Student Success $600,000

Select Hiring Freeze $600,000

Energy Savings $175,000

KVCR Savings $300,000

Net Excess/(Liability) for 2013-14 -$635,000

Estimated General Fund, Unrestricted Fund Balance

Description Amount

Beginning Fund Balance, July 1, 2012 $21,454,831

Revenues less Expenses -$600,000

Fund Balance Contribution $0

Projected 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. $3,400,000

Deferrals $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?