Fiscal Year 2020-2021 Proposed Budget Governing Board Meeting May 13, 2020 Presented by: Dr. David Bea
Projected Revenues ● Approved tuition and fees ○ $87.00 per credit in-state resident rate, +$1.1M over FY20 ● Levy neutral property taxes ○ Growth of existing property, +$2.0M over FY20 ● Reduction in: ○ Prop 301 funds ○ Auxiliary revenues ○ Investment earnings
Expenditure Priorities ● Flat enrollment ● Salaries and wages ○ 1.0% increase to salary pools ○ 1.5% increase to adjunct faculty load rate ● $450K for 6 additional advising positions ● $500K for Marketing (sustains half of the FY20 Enrollment Revitalization one-time funds) ● $500K for COVID-19 facilities cleaning and retrofits ● $1.0M in academic efficiency savings ● $11.7M capital budget ● $4.5M in revenue bond debt payments ● ~$1.3M in lease-purchase and certifications of participation debt payments
COVID-19 Impacts ● Enrollment uncertainty ○ Unemployment ○ Higher education landscape: implications and changes ● Revenue losses ● Expenditure Limitation impacts
Adopting the Budget ● Establishes the maximum spending capacity for the fiscal year ● Provides reserves ○ Support new or changing priorities ○ Meet enrollment demand ● Does not require all funds to be expended if fewer programs or services are needed ● Allows for future reductions based on lower revenue projections
Hypothetical -15% FTSE Scenario Financial Impact Tuition Revenues -$5,100,000 Reductions Academic Efficiencies -2,810,000 Soft Freeze/Positions Closures -1,950,000 Operational Reductions -340,000 Subtotal -$5,100,000 Net Expense $ 0 50:1 Ratio - Future Impact -$2,387,475
Primary Property Tax Levy Detail – Proposed FY 2021 FY 2020 (Levy Neutral) Net Taxable Value Current Year ($100s) $87,299,649 $91,404,259 Overall Change in Valuation 4.75% 4.70% Change from New Property 1.05% 1.66% Estimated Primary Tax Rate Authorization $1.3758 $1.3373 (per $100 net assessed valuation) Primary Tax Levy $120,106,857 $122,100,631 Change from Previous Fiscal Year $1,993,774 Truth in Taxation Levy Increase $0
FY 2011-2021* Budgeted Revenue and Fund Balance by Source (All funds, in $ thousands, *Proposed)
Budget Comparison – Adopted Fiscal Year 2020 vs. Proposed Fiscal Year 2021 FY 2020 FY 2021
FY 2020-2021 Proposed Budget by Fund, $332.0M (All funds, in $ millions) Proposed FY 2020 FY 2021 Change $168.6 $165.9 -$2.7 General Fund 76.0 77.2 1.2 Capital Fund 50.4 65.9 15.5 Restricted Fund 14.6 14.9 0.3 Designated Fund 2.2 2.3 0.1 Auxiliary Fund 5.4 5.8 0.4 Debt Fund Total $317.2 $332.0 $14.8
FY 2021 Proposed Budget Expenditures, $332.0M (All funds, in $ millions)
Communication and Next Steps ● May 18 and May 26, 2020 publication of the FY 2021 proposed budget in the Arizona Daily Star ● May 18 , 2020 Press Release on the proposed budget ● June 3, 2020 Public Hearing and Special Board Meeting to adopt the FY 2021 budget and set property tax levies and rates
Additional Information & Resources
Budget Comparison – Fiscal Year 2020 vs. Fiscal Year 21* General Fund Revenues by Source (In $ millions, *Proposed) Proposed FY20 FY 21 Change Property Tax Levy $120.1 $122.1 $2.0 Tuition and Fees 42.3 40.3 -2.0 Other Revenue 4.2 4.1 -0.1 College Equity 7.4 5.2 -2.2 Total Resources $174.0 $171.7 -$2.3 Debt Fund Transfer -5.4 -5.8 Total $168.6 $165.9
FY 2021 Proposed Budget Expenditures – General Fund, $171.7M (In $ millions)
General Fund Summary (In $ millions, Proposed for FY 2021) FY 2020 Proposed FY 2021 Change Administrators $5.9 $6.2 $ 0.3 Faculty 19.7 18.0 -1.7 Staff-Classified 39.2 43.4 4.2 Other Compensation 2.8 2.5 -0.3 Fringe 23.9 25.1 1.2 Subtotal 91.5 95.2 3.7 Operations 29.0 31.9 2.9 Capital 0.3 0.3 0.0 Transfers Designated Fund 20.2 20.1 -0.1 Capital 13.3 10.8 -2.5 Debt Service 5.4 5.8 0.4 Miscellaneous -0.7 -5.3 -4.6 Net Transfers 38.2 31.4 -6.8 Contingency / Reserves 15.0 13.0 -2.0 Total $174.0 $171.7 -$2.3 Debt Fund Transfer -5.4 -5.8 -0.4 Total $168.6 $165.9 -$2.7
Designated Fund Summary (In $ millions, Proposed FY 2021) Proposed FY 2020 FY 2021 Change Professional Development $0.0 $0.5 $0.5 Athletics 1.5 1.9 0.4 Course Fees 3.7 3.7 0.0 Academic Programs 19.9 17.6 -2.3 Center for Training & Development 2.6 3.0 0.4 Contract Training 1.5 2.5 1.0 Prison Program 0.6 0.5 -0.1 Public Safety Institute 0.4 0.2 -0.2 Community Education 0.4 1.0 0.6 Other 2.1 3.1 1.0 Contingency / Reserves 1.3 1.3 0.0 Transfers -19.4 -20.4 -1.0 Total $14.6 $14.9 $0.3
Restricted Fund Summary (In $ millions, Proposed FY 2021) Proposed FY 2020 FY 2021 Change Student Financial Aid $29.6 $28.3 -$1.3 Workforce Development (Prop 301) 2.3 3.9 1.6 Arizona State Aid Aviation Fund 0.0 15.0 15.0 Grants Health Profession Opportunity Grant (HPOG) 3.0 3.0 0.0 Adult Education 3.6 3.3 -0.3 Title III – Improving graduation rates, particularly STEM 0.8 1.3 0.5 Title V – Developing Hispanic Serving Institutions 0.5 0.7 0.2 TRIO (Upward Bound, Student Support Services, Talent Search) 2.5 2.8 0.3 Federal Funds Contracts 0.9 4.0 3.1 Other 2.4 0.6 -1.8 New Grants 4.8 3.0 -1.8 Total $50.4 $65.9 $15.5
Capital Fund Summary (In $ millions, Proposed FY 2021) Proposed Budget Year Projects FY 2020 FY 2021 Change General Capital Projects $12.3 $11.0 -$1.3 Technology Fee Projects 0.7 0.7 0.0 Capital Lease Projects 2.3 0.0 -2.3 Total Budget Year Projects $15.3 $11.7 -$3.6 Centers of Excellence Projects 60.0 75.0 15.0 Carry Forward Projects 15.0 15.0 0.0 Contingency / Reserves 1.0 1.0 0.0 Total All Projects $91.3 $102.7 $11.4 Less Transfers from Other Funds Proposition 301 Funding -2.3 0.0 2.3 Aviation Center Funding 0.0 -15.0 -15.0 General Fund Transfer -13.3 -10.8 2.5 Other Funds Support (including grants) 0.3 0.3 0.0 Net Budget $76.0 $77.2 $1.2
Auxiliary Fund Summary (In $ millions, Proposed FY 2021) Proposed FY 2020 FY 2021 Change Food Service $0.1 $0.1 $0.0 Business Relations 0.2 0.3 0.1 Rentals 0.2 0.2 0.0 Transfers 0.7 0.7 0.0 Contingency / Reserves and Other 1.0 1.0 0.0 Total $2.2 $2.3 $0.1
Debt Fund Summary (In $ millions, Proposed FY 2021) Proposed FY 2020 FY 2021 Change Lease Purchases $1.0 $0.6 -$0.4 Certificates of Participation 0.0 0.7 0.7 Revenue Bonds 4.4 4.5 0.1 Total $5.4 $5.8 $0.4
Reconciliation of Proposed FY 2021 Budget To Published State Format (All funds, in $ millions) PCC Budget PCC Budget as presented Transfers on State Forms General $171.7 Designated 14.9 Total General Fund $186.6 -$10.9 $175.7 Auxiliary 2.3 -0.8 1.5 Restricted 65.9 -19.6 46.3 Capital 77.2 25.5 102.7 Debt Service 0 5.8 5.8 Total $332.0 $0.0 $332.0
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