Fiscal and Staffing Update Presented by

Cheryl Marshall, Fred Williams & Victor Manchik

N O R T H O R A N G E C O U N T Y

C O M M U N I T Y C O L L E G E D I S T R I C T

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Topics

• Allocation Model

• Categorical Funding

• Draft Recommendations for One-time Funding

• Big Picture Analysis

• Recommendations and Next Steps

• Directions and Strategies

• 2019-20 Budget Assumptions

• New Funding Formula

▫ Comparison

▫ Where to Focus

• Personnel/Staffing

• Allocation Model

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Directions and Strategies

• Realign processes and staffing to address our new reality▫ Philosophy: Supporting Student Access and Success

▫ Categorical Expectations, Outcomes, & Performance Metrics

• Develop the best staffing structure to meet future needs▫ Decrease overall employee headcount, including non-permanent positions

• Provide competitive wages and benefit packages

• Develop tools for measurement and accountability▫ Dashboards

▫ Resource Allocation Model

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Budget Assumptions 2019/20Revenues

• FTES

• Apportionment Calculator

• Other Revenues

Expenses • Salary

• Faculty – Full-time

• FON

• Faculty

• Overload

• Extended Day/Part-time

• Classified/Confidential/Management

• Hourly

Expenses Cont. Benefits

• Retiree Benefits • PERS• STRS• Social Security• Workers’ Comp • Unemployment

Other Expenses • Operating allocations• District-wide expenses • Other

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Drop in FTES by 6.25% or 2,255 FTES from 2014-15 to 2019-20

11,488 11,727 11,691

17,869 16,538 16,708

29,357 28,265 28,399

2,665 2,700 2,700

2,665 2,700 2,700

- 259 259

173 146 166

2,401 2,300 2,300

2,574 2,705 2,725

11,488 11,986 11,950

18,042 16,684 16,874

5,066 5,000 5,000

34,596 33,670 33,824

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

2017-18 2018-19 2019-20 2017-18 2018-19 2019-20 2017-18 2018-19 2019-20 2017-18 2018-19 2019-20

Cypress Fullerton NOCE TOTAL

FTESCredit FTES CDCP FTES Non-Credit FTES

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Apportionment Calculator Change of 1% Summary

• Examples of 1% Increases

18-19 1%

Additional Revenue

Pell Grant Recipients 11,728 117 $111,533 Promise Grant Recipients 25,893 259 $246,242 ADTs 1,590 16 $28,954 Transfer Math & English 774 8 $7,043

See page 3 of the supplemental materials for 1% change information

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Largest Improvements in Performance Metrics

Metric 2016-2017 2017-2018 % Inc. (Dec) Associate Degrees 1,892 2,300 21.56% ADTs 1,279 1,590 24.32% Transfer Math & English 681 774 13.66%

See page 4 of the supplemental materials for comparison between 2016-17 and 2017-18 Performance Metrics

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Apportionment Calculator Summary – 2019-20

Hold Harmless – last year is 2020-21

2018-19 2019-20 2020-21 2021-22

$9,060,130 $14,310,770 $14,023,877 0

SCFF Funding Formula

Basic Allocation $10,808,846 Three-year average FTE-Base Allocation $133,012,739 Supplemental Allocation $37,402,570 Student Success Allocation $19,175,929

Earned Revenue $200,400,084 Hold Harmless $14,310,770

TOTAL $214,710,854

*Using 17/18 Data for the Supplemental and Student Success metric and 2018/19 FTES numbers

See page 1 of the supplemental materials for the SCFF Apportionment Calculations

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On-going Revenues Apportionment/Taxes/Enrollment Fees $200,400,084

Adjustment for PERS/STRS Holding ($4,379,672) Full-time Faculty Dollars $3,659,823 Unrestricted Lottery $5,107,424 Part-time Faculty Office Hours and Benefits $770,000 Part-time Faculty Compensation $711,019 Fee Waiver Admin $650,602 Non-resident Tuition $1,000,000 Interest $1,000,000 Miscellaneous Income $10,000 Mandated Costs $1,009,265 Redevelopment Funds $1,000,000

TOTAL On-going Revenues $210,938,545

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On-going Personnel – 11200 Fund

COST

# of Positions

Salary Benefits STRS/PERS TOTAL

Full-Time Faculty 569.51 60,303,956 6,783,938 9,974,478 77,062,372 Classified Professionals 515.51 39,152,498 7,781,062 7,29,165 54,227,725 Confidential 15.75 1,364,929 254,153 256,366 1,875,448 Management 92.81 13,156,323 1,682,779 2,395,083 17,234,185 Executive Level 6.75 1,768,757 158,796 331,326 2,258,879

TOTAL 1,200.33 115,746,463 16,660,728 20,251,418 152,658,609

See pages starting on page 6 of the supplemental materials for detailed salary information

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Salary Increase Impact

2019-20 2018-19 2017-18 2016-17 2015-16

Faculty 2,733,783 - 3,023,601 2,022,564 1,996,830 Classified - 3,004,132 1,860,243 1,090,116 1,031,652 Confidential - 67,716 65,372 38,775 32,817 Executive - 43,833 81,820 49,530 44,469 Management - 467,369 633,252 380,964 345,243 Ad Fac 1,632,629 - - 333,872 1,053,729

4,366,412 3,583,050 5,664,288 3,915,821 4,504,740

COLA 3.46% 2.71% 1.56% 0% 1.02% COLA Amount 6,627,846 5,110,934 2,633,041 - 1,693,305

Highlighted numbers are estimates and have not been approved

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Position Count

2019-20 2018-19 2017-18 2016-17

Full-time Faculty 597.00 575.00 606.00 619.00 Classified Professionals 687.52 680.88 683.23 678.03 Confidential 16.00 15.00 15.00 15.00 Executive 7.00 7.00 7.00 7.00 Management 116.00 112.00 112.00 111.00 Temporary 47.93 40.43 35.80 26.80

Grand Total 1,471.45 1,430.31 1,459.06 1,456.83

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Full-time Faculty Obligation (FON)

• Expected FON for 2019-20 – 565

• .

• Expect to exceed the Full-time Faculty Obligation

• Clean up of positions is still in process

Full-time Faculty in the Budget 597

Non-credit Faculty (19)

TOTAL Faculty (FON) Positions 578

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Updates on Special Project Managers

• Continue to replace long-term SPMs with permanent positions

• Using the category as it is intended – for projects that will not exceed 2 years

• Current Number of SPMs: 34

• Number of SPMs in 2017-2018: 37

• Number of SPMs in 2016-2017: 40

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Fullerton College Special Project Manager Reductions

• Fullerton College has been reducing the number of temporary management positions by consolidating job duties and/or by developing permanent management job descriptions where appropriate. Some examples are shown below.▫ Special Project Manager - Child Development Lab to Director, Child Development

and Educational Studies Laboratory School▫ Special Projects Manager, Distance Education to Distance Education Director (full-

time faculty member on reassigned time)▫ Special Projects Director, Health Center to Director of Behavioral Health Services

• Our goal is to eliminate each of the remaining temporary management positions that we filled prior to July 2018 by the end of 2019/20.

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NOCE Special Project Manager Reductions

• Consolidate several SPM positions in the same area of responsibilities into one categorically funded permanent management position▫ Example: SSSP SMP + Student Equity SPM = Student Success and Equity Program

Manager

• Restructure responsibilities of a SPM position to align them with a permanent categorically funded classified position▫ Student Equity Coordinator → Research Analyst

• Establish faculty coordinator positions with reassigned time for existing fulltime faculty▫ Example: SLO and ProD SPM → ProD Faculty Coordinator + SLO Faculty Coordinator

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Cypress College Special Project Manager Reductions

• From 2016-19 Cypress reduced the number of SPMs by 27% - from 11 to 8. • An example of this consolidation is our current Interim SSSP Director was

previously the SPM over Charger Experience/Pledge. Those duties are now captured in her current Director position, allowing us to eliminate the SPM position.

• In 2019-20 the goal is to eliminate all remaining SPMs by consolidating duties into 4 permanent positions

• We also have 5 Special Project Coordinators, all of which are paid for by categorical funding. We continue to explore ways to reduce this number either through hiring permanent positions, or re-allocation of duties to other employees

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Extended Day/Overload • Definitions ▫ Extended Day ▫ Over Loads

• Extended Day Model ▫ # of Full-time teaching faculty ▫ Release time▫ Average Salary ▫ Class size

• Historical Spending

2019-20 Budget

2018-19 Budget

2017-18 Actual

2016-17 Actual

2015-16 Actual

District 24,361,831 24,520,154 29,283,911 29,430,838 30,307,595

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Cypress CollegeExtended Day Changes and Reductions

• Implemented extended budget by division in 2018-19

• Currently reviewing 2018-19 expenditures and reducing/revising as needed for 2019-20 budget by division

• Identifying additional funding for extended day, if necessary

• Reducing sections for increased efficiency in enrollment, while still focusing and prioritizing in-demand courses

• Implementing predictive analytics to better predict course needs

• Ongoing discussions about class size and balancing low class size courses with higher class size courses

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Fullerton CollegeExtended Day Changes and Reductions

• Developed data views in Tableau to more effectively monitor and manage extended day budget

• Reduced certain class offerings in response to demand, while adding sections in high-demand areas (i.e. Science)

• Vice President worked closely with deans and department coordinators to achieve lower cost/FTES

• Annual extended day line-item budget deficit has been decreasing compared to previous years

• Identifying additional funding for extended day, if necessary

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NOCE Extended Day Changes and Reductions

Extended day budget deficit reductions over 50% from 16/17 to 17/18 by using the following strategies:• Implemented Tableau Dashboards for use by Directors and Deans to monitor class

and lab attendance on a weekly basis• “Magic Number 27” messaging campaign for students and faculty• Consolidating sections not meeting the minimum class size of 27 • Intervention for faculty resulting in a significant reduction of unreported attendance

hours• Quarterly review of current year expenditures in relation to previous years'

expenditures and FTES production by managers, faculty and support staff• Use of eligible categorical funds to cover low but critical sections• CAEP support of leasing classroom space for high demand classes at peak times

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On-going Expenses

Unrestricted General Fund Personnel $152,658,609

Retiree Benefits $5,368,642

Extended Day Budget $24,361,831

Extended Day/Hourly Benefits $4,694,405

Operating Allocation $11,341,650

Districtwide $6,683,992

Sabbatical $300,000

Related Activity $350,000

Other (Memberships) $6,000

On-going Contribution to Retiree Irrevocable Trust 0

TOTAL $205,765,129

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Benefits

• PERS/STRS

• Retiree Benefits

Cost of 1% rate increase using 19-20 salaries

Actual Budgeted Projected Projected based on 19-20 salaries

17-18 18-19 19-20 20-21 21-22

PERS Rates 15.531% 18.062% 20.70% 23.40% 24.50%

PERS $ 6,981,107 8,521,395 10,031,435 11,339,893 11,872,965 484,600

STRS Rates 14.43% 16.28% 17.10% 18.10% 18.10%

STRS $ 8,609,685 9,283,771 10,219,983 10,817,683 10,817,683 597,700

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Assumption Summary

On-going Revenues $210,938,545

On-going Expenses $205,765,129

Surplus/Deficit $5,173,416

United Faculty – Proposal Increase

1% Salary Increase $691,115

Fringe Benefit Increase $2,042,668

TOTAL $2,733,783

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Personnel Dashboards

• Employee Counts

• Financial Status

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Personnel Calculator

Budget Budget Actual Actual Actual Actual 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15

On-going Revenues - Adjusted for

Non-resident Tuition 213,138,545 207,140,007 200,425,484 200,343,278 186,041,986 168,810,320

Ongoing salaries and Benefits 182,890,166 181,688,257 186,422,132 179,620,339 163,824,909 148,219,372 Adjustment for Retiree Benefits (5,368,642) (5,684,732) (4,865,894) (4,796,071) (4,552,081) (4,277,745)

Adjusted Salaries and Benefits 177,521,524 176,003,525 181,556,238 174,824,268 159,272,828 143,941,627

Salaries and Benefits % to On-going Revenues

83.29% 84.97% 90.59% 87.26% 85.61% 85.27%

See page 75 of the supplemental materials for the salary as a % of earned revenue

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Allocation Model Status

• Overview of the Model

• Cambridge West Contract

• CBF Committee Members

• Timeline

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Categorical Programs

63,320,950

44,339,183 40,659,763 37,458,103

2018-19 2017-18 2016-17 2015-16

Budget Actual Actual Actual

GF Restricted Revenue

Budget 2018-19

Actual 2017-18

Actual 2016-17

Actual 2015-16

General Fund- 11200 205,048,704 204,089,240 207,195,685 191,964,558 General Fund-Other 20,333,289 27,347,349 14,058,776 30,696,705 General Fund-Restricted 63,320,950 44,339,183 40,659,763 37,458,103

Total Revenue 288,702,943 275,775,772 261,914,224 260,119,366 21.93% 16.08% 15.52% 14.40%

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Categorical Programs

$9,026,720 $7,742,747 $8,288,952 $7,210,418

$4,665,940

$3,838,871 $3,952,456

$3,845,469

$782,073

$82,502

$12,737,418

$3,592,352 $893,512

2018-19 2017-18 2016-17 2015-16

Budget Actual Actual Actual

Select Categorical Programs

SSSP Student Equity Guided Pathway Strong Workforce

Budget 2018-19

Actual 2017-18

Actual 2016-17

Actual 2015-16 Program

SSSP 9,026,720 7,742,747 8,288,952 7,210,418 Student Equity 4,665,940 3,838,871 3,952,456 3,845,469 Guided Pathway 782,073 82,502 - - Strong Workforce 12,737,418 3,592,352 893,512 -

TOTAL 27,212,151 15,256,472 13,134,920 11,055,888

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Draft Recommendation for One-Time Funding

17/18 18/19 19/20 20/21 21/22 Total

Sources:

Previous Year Balance

50,203,441 47,389,637 38,813,542 32,974,959

Board Discretionary Contingency 8,774,808

8,774,808 PERS/STRS 21,996,054 6,234,391 4,379,672 2,221,555

34,831,672

Stability Funds/Hold Harmless

9,019,384 14,362,217 14,504,862

37,886,463 SERP Savings

4,500,000

4,500,000

Allocations for 18-19 19,432,579 19,432,579

Available 50,203,441 69,957,216 66,131,526 55,539,959 32,974,959

Uses:

Districtwide

5,601,267 12,232,984 8,200,000 10,200,000 36,234,251 District Services

3,548,822 2,215,000 1,795,000 400,000 7,958,822

Cypress College

6,029,972 5,725,000 5,625,000 2,975,000 20,354,972 Fullerton College

6,254,334 5,825,000 5,725,000 3,075,000 20,879,334

NOCE 1,133,184 1,320,000 1,220,000 770,000 4,443,184

Total Uses - 22,567,579 27,317,984 22,565,000 17,420,000 89,870,563

Balance 50,203,441 47,389,637 38,813,542 32,974,959 15,554,959

See pages starting on page 76 of the supplemental materials for the draft of the one-time funding recommendation

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Big Picture Analysis

• While the SCFF appears positive for us, it is “volatile” and we will need to continue monitoring both the data and the calculations

• We have decreased headcount and percentages spent on salaries and benefits

• We propose using a portion of one-time funds to invest in student success initiatives, capital improvements, equipment, and retiree benefits, and to cover deficits

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Recommendations & Next Steps

• Continue to monitor the SCFF and advocate for changes

• Implement the use of dashboards to contribute to evidence-based decision making

• Implement a robust MIS data process

• Develop and implement a new resource allocation model

• Continue to assess and modify organizational structure and staffing levels

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