Ending Fund Balance (General Fund 10) - Property Tax 8.63%, COLA 6% - PowerPoint PPT Presentation

san josé  ever gr een COMMU NI T Y COL L E GEDI S T RI CT D. Smith

Ending Fund Balance (General Fund 10) - Property Tax 8.63%, COLA 6% 20% Actual Projected 18% 16.14% 15.89% 15.33% 16% 14.65% 14.80% 14.39% 13.60% 14.31% 14% 12.74% 11.59% 11.80% 11.87% 10.99% 12% 10.50% 10.96% 9.70% 9.10% 10% 8.39% 7.81% 8% 6.22% 6% 4% 2% 0% 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 Est.18/19 Est.19/20 Est.20/21 Est. 1. Based on FY18-19 Tentative Budget Report adjusted for 6% COLA retro to 7/1/17 2. New property tax increase at 8.63% for FY2017-2018 3. New property tax increase at 3.5% in out years 4. On-going COLA at 6% retro to 7/1/17 5. FY2018-2019 and out years medical rates based on SISC estimates 6. Recognizes $2,471,000 in one-time money for FY2018-2019 as projected by Successor Redevelopment Agency

san josé  ever gr een COMMU NI T YCOL L E GEDI S T R I CT Includes adjusted estimated salary schedule change: FY2018/19 FY2019/20 FY2017/18 Tentative Estimated Estimated Actuals* Percentage Budget* Percentage Budget* Percentage Beginning Fund Balance $15,591,265 14.3% $12,907,226 11.0% $14,245,883 11.9% Revenues $115,070,361 $121,372,332 $121,886,703 Expenditures $117,754,400 $122,047,458 $122,778,112 Discount Factor $0 ($2,013,783) ($2,025,839) $117,754,400 $120,033,675 $120,752,273 Total Expenditures Net Change in Fund Balance ($2,684,039) $1,338,657 $1,134,430 Ending Fund Balance $12,907,226 11.0% $14,245,883 11.9% $15,380,313 12.7% *As adjusted for estimated FY2017-18 pending contract settlements.

san josé  ever gr een COMMU NI T YCOL L E GEDI S T R I CT Pending FY2017/18 Collective Bargaining agreements will be ratified. Property tax growth will be 3.5% in FY2018/19 and the out years. Medical premium increases for Blue Cross and Kaiser will be 8.84% and 15.5% respectively in FY2018/19 and 5.9% and 5.5% in the out years.

san josé  ever gr een COMMU NI T YCOL L E GEDI S T R I CT STRS & PERS rate increases will continue to escalate resulting in substantial new costs. The discount factor of unspent allocations will occur at 1.65% in the out years, which are the historical trends. The Tentative Budget does not include a set-aside for additional staffing or future collective bargaining agreements.

san josé  ever gr een COMMU NI T YCOL L E GEDI S T R I CT 1. Deficit Spending 2. Fund Balance 3. Enrollment 4. Unrestricted General Fund Balance 5. Cash Flow Borrowing 6. Bargaining Agreements 7. Unrestricted General Fund Staffing % 8. Internal Controls Source: Chancellors Office – California Community Colleges

san josé  ever gr een COMMU NI T YCOL L E GEDI S T R I CT 9. Management Information Systems 10. Position Control 11. Budget Monitoring 12. Retiree Health Benefits 13. Leadership/Stability 14. District Liability 15. Reporting Source: Chancellors Office – California Community Colleges

osé  ever san j gr een COMMU NI T YCOL L E GEDI S T R I CT 9,000 7,818 7,654 8,000 7,641 7,455 7,229 7,233 7,187 6,981 6,928 7,000 6,543 6,537 6,525 6,433 6,374 6,304 6,272 6,044 6,178 6,146 6,056 5,756 5,759 6,031 6,000 5,396 5,427 5,000 4,000 3,000 2,000 1,000 0 Source: Institutional Effectiveness and Student Success

osé  ever san j gr een COMMU NI T YCOL L E GEDI S T R I CT 9,000 8,485 8,496 8,073 8,000 7,636 7,418 7,264 6,976 6,977 6,877 6,804 7,000 6,648 6,695 6,596 6,558 6,556 6,401 6,346 6,279 6,185 6,210 6,078 5,854 5,770 6,000 5,752 5,506 5,000 4,000 3,000 2,000 1,000 0 Source: Institutional Effectiveness and Student Success

osé  ever san j gr een COMMU NI T YCOL L E GEDI S T R I CT 18,000 16,303 16,149 15,713 16,000 14,823 14,432 14,106 13,881 13,623 14,245 14,000 13,448 13,347 13,095 13,029 12,702 12,736 12,720 12,579 12,582 12,241 11,966 12,122 11,197 12,024 12,031 12,000 11,250 10,000 8,000 6,000 4,000 2,000 0 Source: Institutional Effectiveness and Student Success

osé  ever san j gr een COMMU NI T YCOL L E GEDI S T R I CT 700 600 500 400 300 200 100 0 Certificates Degrees CSU Transfers UC Transfers Source: Institutional Effectiveness and Student Success

osé  ever san j gr een COMMU NI T YCOL L E GEDI S T R I CT 700 600 500 400 300 200 100 0 Certificates Degrees CSU Transfers UC Transfers Source: Institutional Effectiveness and Student Success

osé  ever san j gr een COMMU NI T YCOL L E GEDI S T R I CT 1400 1200 1000 800 600 400 200 0 Certificates Degrees CSU Transfers UC Transfers Source: Institutional Effectiveness and Student Success

osé  ever san j gr een COMMU NI T YCOL L E GEDI S T R I CT Property Tax History $120M 8.63% $100M 6.18 6.57% 10.28% $80M 8.47% 7.20% 2.93% -6.02% -3.99% 2.57% 3.21% 9.32% 9.26% $60M 8.43% 6.17% 1.90% 10.36% $40M $20M $M Base Property Tax Increase Property Tax Decline

san josé  ever gr een COMMU NI T YCOL L E GEDI S T R I CT 12.0% 10.4% 10.3% 10.0% 9.3% 9.3% 8.63% 8.5% 8.4% 8.0% 7.2% 6.6% 6.2% 6.2% 6.0% 4.0% 3.2% 2.9% 2.6% 1.9% 2.0% 0.0% -2.0% -4.0% -4.0% -6.0% -6.0% -8.0% Percentage Changed in Property Tax

san josé  ever gr een COMMU NI T YCOL L E GEDI S T R I CT 12.00% 10.10% 10.28% 10.00% 8.82% 8.63% 8.47% 7.97% 7.83% 7.69% 8.00% 7.31% 6.77% 6.57% 6.19% 6.46% 6.32% 6.02% 6.04% 5.87% 6.00% 5.36% 5.28% 4.94% 4.54% 3.96% 4.00% 3.67% 3.21% 2.95% 2.92% 2.46% 2.00% -0.30% -1.00% 0.00% 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 -2.00% August November February May June

san josé  ever gr een COMMU NI T YCOL L E GEDI S T R I CT 1. FY2017/18 estimated actuals projects the ending fund balance is reduced from 14.3% to 11.0%. 2. FY2018/19 as per Tentative Budget, based on all assumptions including 3.5% in new property taxes, projects ending fund balance increase from 11.0% to 11.9%. 3. FY2019/20, as estimated today, projects increases to ending fund balance from 11.9% to 12.7%. 4. The Tentative Budget is ready for Board of Trustee adoption

Funding Formula Online Education Categorical program consolidation Deferred maintenance and instructional equipment California College Promise

Governor proposes new formula modified based on feedback Fundamentals 1. 60% base grant, three year FTES rolling average 2. 20% Supplemental Grant: Based on low income eligible students and specified undocumented students 3. 20% Student Success Incentive Grant: Based on specific metrics and outcomes

Two years hold harmless $175M funding on-going $104M one-time for transition

Senate Budget Committee: Action: Rejected formula, reallocates dollars to other priorities Assembly Senate Subcommittee: Action: Rejected formula, creates formula task force, directs Chancellor’s Office to create formula task force, report back by March 1, 2019

Online College Senate approves, Assembly rejects Categorical program consolidation Consolidates SSSP, Basic Skills & Student Equity – Approved by both houses Deferred maintenance and instructional equipment Reduced allocation from January to May from $275M to $132M- Senate approves, Assembly proposes $171M California College Promise • $46M approved by both houses • Guidance is under development • Allocation of funds likely in August or September

Conference Committee reconcile difference Reach agreement with Governor Budget Act becomes law June 30 Board of Trustees adopts Tentative Budget tonight Final Budget presented to Board of Trustees for action September 11, 2018