Desert Community College District Adopted Budget Update John - PowerPoint PPT Presentation

Desert Community College District Adopted Budget Update John Ramont, Director, Fiscal Services September 15, 2017

Budget Update – September 2017 “The budget information you hear today is likely to change tomorrow” Lisa Howell 2

Budget Update – September 2017 “My problem lies in reconciling my gross habits with my net income .” Errol Flynn 3

Budget Update – September 2017 2017-18 State Budget Highlights • The economy is holding steady, making for a good state budget • Revenues are still increasing, but much more slowly • Inflation is expected to rise modestly − COLA was adjusted upwards slightly to 1.56% from 1.48% • California unemployment holding around 4.9% • Prop 98 (K-14 funding guarantee) increases $2.6 billion • Continued eye towards inevitable recession 4

Budget Update – September 2017 2017-18 Budget Features • Augmentations for Community Colleges – $382 million for apportionments – $20 million for Innovation Awards (1 time) – $25 million increase for Full-Time Student Success Grants (Cal Grant supplement) – $76.9 million for maintenance/instructional equipment – $150 million one- time to develop “guided pathway” programs – $25 million for CCC Completion Grant Program – $10 million for access to learning management system – $6 million one-time to develop an integrated library system 5

Budget Update – September 2017 Thoughts on 2017- 18 State Budget… • Budget continues to reflect stability and growth in education funding − Economic Expansion has lasted 8 years - beware • Overall, a good budget for education 6

Budget Update – September 2017 Economic Considerations • Most community colleges are facing declining enrollment • Demand diminishes with economic improvement • COD has been growing at an extraordinary pace − We have been able to get all of our growth funded − We have the opportunity to gain middle college status − We expect to achieve Center Status at Indio in Nov 2017 (more $) − We have grown our faculty and staff − plEDGE is shaping up to be a significant factor to our growth • We are the envy of the State! 7

Budget Cycle College Budget Adoption Governor’s State Budget May Revise Adoption Governor’s College Annual Proposed Financial Budget Report 8

Budget Update – September 2017 2017-18 Budget Calendar  Governor’s Proposed Budget. . . . . . . . . . . . . . . January 10th  Budget Sub-Committee Meeting . . . . . . . . . . . February 13th  Budget Sub-Committee Meeting . . . . . . . . . . . March 13th  Budget Sub-Committee Meeting . . . . . . . . . . . . April 24th  Governor’s May Revise . . . . . . . . . . . . . . . . . . . May 15th  Budget Sub-Committee Meeting . . . . . . . . . . . . May 22nd  Budget Committee Meeting . . . . . . . . . . . . . . . . June 12th  COD Tentative Budget Adoption . . . . . . . . . . . . . June 15th  State Budget Adoption . . . . . . . . . . . . . . . . . . . . . before June 30th Final Budget Adoption . . . . . . . . . . . . . . . . . .. . . .September 15th 9

Budget Update – September 2017 Budget Committee Members Lisa Howell, Chair VP Administrative Services Dr. Joel Kinnamon College President Dr. Ralston, Dr. Nery, Dr. Gularte Vice Presidents (Student Learning & Success, HR) John Ramont Director of Fiscal Services Dr. Kelly Hall Dean Dr. Carl Farmer Academic Senate President Denise Diamond CTA Dr. Catherine Levitt CODAA Lauro Jimenez CSEA Linda Costagliola Confidential TBD Student Representative 10

Budget Update – September 2017 Assumptions used are based upon the Governor’s Proposed Budget 2014-15 2015-16 2016-17 2017-18 Adopted Adopted Adopted Adopted Statutory COLA .85% 1.02% 0.0% 1.56% Funded Growth (Actual Over Prior Year) 7.4% 14.6% 0.9% 6.0% Lottery – Base unrestricted $128 $140 $144 $144 Lottery – Prop 20 restricted $34 $41 $45 $45 Revenue Shortfall 1.5% 1.5% 1.5% 1.5% STRS Employer Rate 8.88% 10.73% 12.58% 14.43% PERS Employer Rate 11.771% 11.847% 13.888% 15.531% 11

Budget Update – September 2017 A look at our Budget – past and present COMBINED FUND 10 2015-16 2016-17 2017-18 Actuals Unaudited Adopted Actuals Budget Revenues $71,877,901 $71,420,423 $78,741,924 Expenditures ($62,671,515) ($70,805,080) ($80,925,115) Surplus / (Deficit) $9,206,386 $615,343 ($2,183,191) Transfers/Contributions/Other Outgo ($2,205,691) ($1,141,894) ($1,193,806) Increase / (Decrease) to Fund Balance $7,000,694 ($526,550) ($3,376,997) Beginning Balance $9,670,409 $16,671,104 $16,268,113 Audit Adjustment $0 $123,560 $0 Ending Balance $16,671,104 $16,268,113 $12,891,115 12

Budget Update – September 2017 A look at our Budget – past and present UNRESTRICTED FUND 11 2015-16 2016-17 2017-18 Actuals Unaudited Adopted Actuals Budget Revenues $57,020,377 $55,881,291 $59,437,865 Expenditures ($49,014,069) ($55,728,786) ($60,762,289) Surplus / (Deficit) $8,006,308 $152,506 ($1,324,424) Transfers/Contributions ($1,065,300) ($822,827) ($690,752) Increase / Decrease to Fund Balance $6,941,008 ($670,322) ($2,015,176) Beginning Balance, (includes audit adjustment) $8,367,849 $15,308,857 $14,638,535 Audit Adjustment $0 $0 $0 Ending Balance $15,308,857 $14,638,535 $12,623,359 13

Budget Update – September 2017 COD Estimated New Revenues included in 2017-18 Budget Unrestricted Restricted One-time On-going 6% Growth $2,170,293 Base Increase $1,383,172 COLA $777,379 Deferred Maint & Instr Equip $618,561 Full-Time Student Success Grant $119,340 14

Budget Update – September 2017 • Additional information and considerations: − Our FTES settlement is complete, no further reductions! − Budget assumes: o Indio Center status is achieved in 2018-19 ($1.2 million) o Middle College status is achieved in 2019-20 ($1.2 million) − Growth takes significant investment, and we’ve been investing! o Lots of new faculty and staff − Adopted Budget will reflect upward revision for FTES from 3% assumed growth to 6% − We’re facing a structural deficit that will have to be dealt with 15

Budget Update – September 2017 A look at our Budget – past and present RESTRICTED FUND 12 2015-16 2016-17 2017-18 Actuals Unaudited Adopted Actuals Budget Revenues $14,857,524 $15,539,132 $19,304,059 Expenditures ($13,657,446 ($15,076,295) ($20,162,826) Surplus / (Deficit) $1,200,078 $462,838 ($858,767) Transfers/Contributions/Other Outgo ($1,140,392) ($319,066) ($503,054) Increase / Decrease to Fund Balance $59,687 $143,771 ($1,361,821) Beginning Balance (Includes Audit Adjustment) $1,302,560 $1,485,807 $1,629,577 Audit Adjustment $0 $123,560 $0 Ending Balance $1,362,246 $1,629,577 $267,756 16

Budget Update – September 2017 Fund Balance Components - Unrestricted 2015-16 2016-17 2017-18 Actuals Unaudited Tentative Actuals Budget Ending Fund Balance $15,308,857 $14,638,535 $12,623,359 7.5% Board Recommended Reserve $4,865,790 $5,396,023 $6,158,919 Appropriation for Contingency $8,861,552 $7,660,997 0 Reserve for Revenue (Budget) Shortfall $3,412,925 Reserve for West Valley Operations $350,000 Reserve for Bargaining $1,140,000 New Market Tax Credit $1,581,515 $1,581,515 $1,561,515 17

Budget Update – September 2017 Historical Ending Fund Balance Trend $18,000,000 $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 Unaudited Adopted Actual Unrestricted Restricted Budget 18

Budget Update – September 2017 2017-18 UNRESTRICTED TENTATIVE BUDGET Capital Outlay Other Operating Exp 1% 11% FT Faculty Salaries Materials and Supplies 22% 1% Health Benefits 9% Statutory Benefits 16% Adjunct Salaries 15% Administrative Salaries 9% Classified Salaries 16% Salaries and Benefits of categorically funded staff are not included 19

Budget Update – September 2017 % of Expenditures Budget by Category 2016-17 Unaudited 2017-18 Adopted Actuals Budget Faculty Salaries 21.8% 21.8% Adjunct Salaries 15.0% 14.7% Administrative Salaries 8.9% 9.4% Classified Salaries 15.9% 16.3% Statutory Benefits 16.0% 16.2% Health Benefits 8.7% 8.5% Commitment to Staff 86.4% 86.9% Materials & Supplies 1.2% 1.3% Other Operating Expenses 11.2% 11.0% Capital Outlay 1.2% 0.9% 18

Budget Update – September 2017 Commitment to Staff In $ millions 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 UNRESTRICTED GENERAL FUND Actuals Actuals Actual Actual Actual Budget Salaries and Benefits $30.8 $34.0 $38.1 $42.3 $48.1 $52.8 Total Expenditures (excluding $36.2 $40.0 $44.3 $49.0 $55.7 $60.8 transfers) % Committed 85.1% 85.0% 86.0% 86.3% 86.4% 86.9% *2017-18 budget projects that all appropriated expenditures will be expended 21

Budget Update – September 2017 Other Funds • Bond Interest and Redemption Fund 21 (Riverside County) • Child Development Fund 33 • Other Special Revenues (Student Kiosk) Fund 39 • Capital Outlay Projects Fund 41 • Bond Fund 43 • Self Insurance Fund 61 • Other Benefits Fund 69 • Student Representation Trust Fund 72 • Student Body Center Fee Trust Fund 73 • Other Post Employment Benefits Trust Fund 79 22