state budget crisis
DESCRIPTION
State Budget Crisis. John Morton Vice President for Community Colleges Fall 2008. The State Budget Deficit (in millions of dollars). Based on 10/29/08 Council of Revenues revised forecast. State Tax Revenue Projections (in millions of dollars). Bottom Line. - PowerPoint PPT PresentationTRANSCRIPT
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State Budget Crisis
John MortonVice President for Community Colleges Fall 2008
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The State Budget Deficit(in millions of dollars)
FY 2007 FY 2008 FY 2009 FY 2010 FY 2011
Revenue 5,142.0 5,244.8 5,155.1 5,300.5 5,506.2
Expenses 5,381.0 5,406.9 5,716.3 5,822.8 5,924.7
Revenue over Expend
-238.9 -162.2 -561.2 -522.3 -418.5
Carry-over Begin Bal
732.3 493.4 331.2 -230.0 -752.3
Ending Balance
493.4 331.2 -230.0 -752.3 -1,170.8
Based on 10/29/08 Council of Revenues revised forecast
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State Tax Revenue Projections(in millions of dollars)
4,000.0
4,500.0
5,000.0
5,500.0
6,000.0
6,500.0
FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013
August2007
July 2008
Jan 2009(possible)
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Bottom Line
Current State budget cannot be maintained
Likely to get even worse No choice but to cut - the budget cannot
be in deficit
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Steps to Solution
Step 1 - Legislature reduced FY 2009 general funds by 4% of “discretionary” budgetDiscretionary means all funds used for
administration, operations, and public serviceCC budget reduced by $1,373,087
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Steps to Solution
Step 1 (continued)CC System reduced equipment fund by
$820,000Balance of $553,087 distributed to campuses
based on new money (GF+TFSF increases)
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Steps to SolutionFY 2009 Legislative Reduction
Equipment
FY 2009 Budget
Reduction Total
Honolulu 78,460 78,460
Kapi‘olani 128,364 128,364
Leeward 90,456 90,456
Windward 40,690 40,690
Hawai‘i 75,416 75,416
Maui 91,082 91,082
Kaua‘i 48,619 48,619
CCSWS 820,000 820,000
Total 820,000 553,087 1,373,087
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Steps to SolutionFY 2009 Legislative Reduction
FY 2009 FY 2009 FY 2009 FY 2009 % ofReduction GF TFSF GF + TFSF % of GF GF + TFSF
Windward 40,690 10,702,857 2,219,900 12,922,757 0.38% 0.31%
CCSWS 820,000 7,909,774 0 7,909,774 10.37% 10.37%
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Steps to Solution Step 2 - Governor restricted additional 4%
of discretionary budget CC share was $1,019,547 CC System restricted $500,000 of enrollment growth
money Balance of $519,547 was distributed to campuses
based on A 25% - GF Apprn + TFSF Revenue B 25% - Adjusted Cash Balance C 25% - Vacancy Savings (Delay filling to 01/01/09) D 25% - Vacancy Savings (2 year old vacancies)
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Steps to SolutionFY 2009 Executive Restriction
Enrollment
Growth
CC System
FY 2009 Budget Restriction Total
Honolulu 86,071 86,071
Kapi‘olani 48,745 48,745
Leeward 79,772 79,772
Windward 25,413 25,413
Hawai‘i 83,179 83,179
Maui 59,070 59,070
Kaua‘i 71,319 71,319
CCSWS 500,000 65,978 565,978
Total 500,000 519,547 1,019,547
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Steps to SolutionFY 2009 Reduction & Restriction
FY 2009
Reduction FY 2009 FY 2009 FY 2009 % of
+ Restriction GF TFSF GF + TFSF % of GF GF + TFSF
Windward 66,103 10,702,857 2,219,900 12,922,757 0.62% 0.51%
CCSWS 1,385,978 7,909,774 0 7,909,774 17.52% 17.52%
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Steps to Solution Step 3 - Governor orders FY 2009 Budget
Execution Policy ConstraintsNo filling of positions without permission,
except for teaching facultyNo out-of-state travel without permissionNo personal services contracts in excess of
$10,000 without permissionNo equipment purchases in excess of $10,000
without permissionNo motor vehicle purchases without permission
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Steps to Solution
Step 3 (continued)UH limits Governor’s policy constraints to
general fundsChancellors may grant mission critical
exceptionsWeekly reports on exceptions required to be
submitted to the President
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Steps to Solution
Step 4 - Governor asks UH to plan for FB 2009-11 reductions of:$13.5M based on 10% of discretionary budget
and 1% of non-discretionary budget$22.0M based on 15% of discretionary budget
and 2% of non-discretionary budget$30.6M based on 20% of discretionary budget
and 3% of non-discretionary budget
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Steps to Solution
UH plans at the 10% Reduction Level$9.0M from the general fund budgetShift $4.5M from general funds to tuition and
fee fundsCC share is
$2,338,830 of general funds $1,166,287 of tuition and fee funds
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Steps to Solution
For the General Fund Reductions CC System Office reduces: $500,000 in enrollment growth funding $285,946 through eliminating 5.75 vacant positions
Mandated electricity savings of $854,446 Balance of $698,438 is allocated to the
campuses based on General Fund/TFSF budget
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Steps to SolutionFB 2009-11 Budget Reduction – 10% Level
Enrollment
Growth/
5.75 Positions Electricity Campus Total
Honolulu 127,428 127,428
Kapi‘olani 161,829 161,829
Leeward 120,867 120,867
Windward 56,917 56,917
Hawai‘i 85,807 85,807
Maui 91,329 91,329
Kaua‘i 54,261 54,261
CCSWS 785,946 854,446 1,640,392
Total 785,946 854,446 698,438 2,338,830
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Steps to Solution
Windward CC elects to reduce budget byCounselor Vacancy for Vocational & Continuing
Education/Employment Training Center - $56,917
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Steps to Solution
Tuition increases UH will generate approximately $20.0M
in new money each year at constant enrollment
Windward CC projects to generate an additional $229,987 in tuition revenue in FY 2010
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Steps to SolutionWindward CC Additional TFSF Revenue vs Funding Requirements
FY 2010 FY 2011
Additional TFSF Revenue (09/30/08 TFSF projection) 229,987 489,749
Less: Need Based Financial Aid 27,000 84,000
Net Additional TFSF Revenue 202,987 405,749
% of UHCC Total 0.052259 0.050871
Campus Share of TFSF Cost Transfer 60,949 59,330
Surplus/Deficit After TFSF Cost Transfer 142,038 346,419
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Steps to SolutionWindward CC Additional TFSF Revenue vs Funding Requirements
FY 2010 FY 2011
Surplus/Deficit After TFSF Cost Transfer 142,038 346,419
RRR-Furniture & Equipment 705,470 705,4705.50 5.50
RRR-Routine Maintenance 343,456 418,4566.00 9.00
Tier 1 PCR 597,628 706,576
New Facilities Support 1,085,900
FYF of New FY 2009 Positions 18,549 18,549
Surplus/Deficit After TFSF Cost Trf & RRR & New Facil Suppt -1,523,065 -2,588,532
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Steps to SolutionWindward CC Additional TFSF Revenue vs Budget Reductions at 15% and 20% Levels
FY 2010 FY 2011
Surplus/Deficit After TFSF Cost Transfer 142,038 346,419
Campus Share of TFSF Cost Transfer - Additional at 15% 116,057 112,975
Surplus/Deficit After 15% Budget Reduction 25,981 233,444
Campus Share of TFSF Cost Transfer - Additional at 20% 116,058 112,975
Surplus/Deficit After 20% Budget Reduction -90,077 120,469
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Steps to Solution Special and Revolving Fund Cash Carry
forward balances CC system has $18,098,301 as of June 30, 2008 Reserve requirement is $9,680,361
(4% of unrestricted fund E&E + working capital) Windward CC has $819,559 ending cash balance Reserve requirement range is $604,709-$739,612
(3-4%) Available to spend $79,947
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Steps to SolutionGeneral Fund Unbudgeted Temporary Positions – 9/19/08FY 2008 GF + TFSF Casual Payroll and Student Assistant E&E
Unbudgeted FY 2008 E&E FY 2008 E&ETemporary Casual Student
Campus FTE Salaries Payroll Assistants
Honolulu CC 11.70 514,426 365,846 356,750
Kapi‘olani CC 35.25 1,794,742 630,445 445,705
Leeward CC 7.50 346,227 143,018 328,829
Windward CC 3.00 176,898 58,850 196,551
Hawai‘i CC 8.30 456,830 452,312 171,636
Maui CC 21.50 945,147 187,681 156,437
Kaua‘i CC 3.60 261,214 105,300 21,770
CCSWS 3.00 195,204 61,181 15,227
Total 93.85 4,690,688 2,004,633 1,692,905
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Steps to Solution
Transfer temporary appointments to permanent positions
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Steps to SolutionGeneral Fund Permanent Position Vacancies – 9/30/08
CampusVacancy
FTEBudgeted
Salaries /1
BudgetedSalaries
Annualized /2
Honolulu CC 25.00 598,405 1,120,068
Kapi‘olani CC 43.00 947,168 1,956,492
Leeward CC 26.00 609,236 1,163,904
Windward CC 10.50 199,180 374,592
Hawai‘i CC 30.00 774,823 1,458,768
Maui CC 18.00 397,603 732,336
Kaua‘i CC 20.00 443,520 887,040
CC Systemwide 4.75 0 0
Total 177.25 3,969,935 7,693,200/1 Budgeted Salaries based on expected date of filling./2 Monthly salary reflected on Vacancy Report x 12
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Steps to SolutionFB 2009-11 Capital Improvements Program (CIP) BOR Budget(General Obligation Bond – Thousands of dollars)
Project FY 2010 FY 2011
Windward CC Library and Learning Resource Center (Equipment) 1,578
Maui CC Science Facility (Equipment) 3,157
Leeward CC Education and Innovation Instructional Facility (Constr & Equip) 14,309
Honolulu CC Advanced Technology Training Center (Constr & Equip) 36,392
Hawai‘i CC Native Hawaiian Success Centers (Plans/Design) 50
Kaua‘i CC Native Hawaiian Success Centers (Plans/Design) 70
Honolulu CC Health and Safety requirements 5,420
Leeward CC Health and Safety requirements 1,500
Maui CC Health and Safety requirements 630
Maui CC Major CIP Planning, Moloka‘i LRDP 100
Total 26,764 36,442
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Steps to SolutionFB 2009-11 Capital Renewal and Deferred R&M Request(Thousands of dollars)
CategoryFY 2009
AllocationFY 2010Request
FY 2011Request
Community Colleges Total 12,213 51,012 43,698Capital Renewal 0 13,840 12,508Modernization 0 9,494 12,248Major Renovation 0 0 4,869Reduction of Backlog 12,213 27,678 14,073
Honolulu Community College Total 1,040 12,158 6,743Capital Renewal 938 3,113Modernization 2,784 0Major Renovation 0 0Reduction of Backlog 1,040 8,436 3,630
Kapi‘olani Community College Total 3,700 15,659 4,048Capital Renewal 6,096 1,654Modernization 1,497 0Major Renovation 0 0Reduction of Backlog 3,700 8,066 2,394
Leeward Community College Total 1,924 5,780 11,755Capital Renewal 855 4,601Modernization 1,000 2,836Major Renovation 0 0Reduction of Backlog 1,924 3,925 4,318
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Steps to SolutionFB 2009-11 Capital Renewal and Deferred R&M Request(Thousands of dollars)
CategoryFY 2009
AllocationFY 2010Request
FY 2011Request
Windward Community College Total 2,100 3,278 5,959Capital Renewal 2,472 401Modernization 208 5,208Major Renovation 0 0Reduction of Backlog 2,100 598 350
Hawai‘i Community College Total 525 5,062 8,968Capital Renewal 1,441 1,993Modernization 2,614 1,864Major Renovation 0 4,869Reduction of Backlog 525 1,007 242
Maui Community College Total 1,090 4,807 1,512Capital Renewal 916 303Modernization 0 0Major Renovation 0 0Reduction of Backlog 1,090 3,891 1,209
Kaua‘i Community College Total 1,834 4,268 4,713Capital Renewal 1,122 443Modernization 1,391 2,340Major Renovation 0 0Reduction of Backlog 1,834 1,755 1,930
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Steps to Solution
Follow the strategic plan No change in commitment to goals of
strategic plan; cut elsewhere Repair and maintenance and equipment
replacement remains a priority Balance of new tuition dollars should go to
repair, replacement, and renovation, PCRs
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State Budget Crisis
Fall 2008