Budget Workshop August 17, 2011

2014-15Final BudgetSeptember 9, 2014AgendaState Budget HighlightsPeraltas 2014-15 Final BudgetFunding SourcesUnrestricted General FundParcel Tax Fund2014-15 Budget Allocation Model Summary

2014-15 State Budget4th Consecutive Year the budget passed on time Includes a reserve of $1.4 billionBased on the Governors conservative forecastProgress made toward paying down deferralsDown to $94 million from $592 million before passage of Prop 30Governor has clearly laid out his pathProtect against boom and bust cyclesRetire DebtFocus new money on educationIncludes a Rainy Day Fund

2014-15 State BudgetWall of DebtBudget eliminates $10 Billion in debtMid year positive trigger would further reduce deferrals to schools and collegesRain Day Fund on November BallotWhen capital gains exceed 8% of GF revenues, a deposit to the RDF is requiredHalf used to pay off debt and liabilities for the first 15 yearsAllows for withdrawal for disasters or if spending is at or below highest level of spending of the prior 3 yearsCalSTRS 30 Year obligation of $74.4 billionState GF contribution increase from 3% to 6.3% in 2016-17Employee rate increase from 8% to 10.25% as of 2016-17Employer rate increase from 8.25% to 19.1% as of 2021

2014-15 State Budget

The Budget Bill contained the following community college provisions:Access funds (growth) of $140.4 million (2.75%)Cost of Living Adjustment (COLA) of $47.3 million (.85%)$100 million for Student Success and Support (SSSP)Match of 2:1 on entire amount$30 million increase for DSPS$70 million increase for Student Equity Plans$50 million one time increase for the Economic and Workforce Development program$49.5 million to pay down mandates$148 million for deferred maintenance and instructional equipment. Flexible locally and specified as one-time.

COMMUNITY COLLEGE whats newTechnical Assistance for Chancellors Office$1.1 million and 9 positions for goal setting and monitoring of institutional effectiveness$2.5 million for technical assistance to support implementation of effective practices at college State funding for Career Development and College Program (CDCP) Rate per FTES to be increased to be equal to Credit Rate as of 2015-16Positive Trigger Department of Finance can pay down deferrals during the year if Proposition 98 guarantee is higher than estimatedNew formula for Growth allocation is effective in 15-16Proposal to be out late summer/early fall

Cautions and concernsProposition 30 is temporarySales tax increase terminates at the end of 2016 (Approximately 21% of Prop 30 revenues)Income tax increase terminates at end of 2018STRS obligationDeficitsContinued exposure to shortfalls in property taxes and feesOur district - PCCDAccess funds (growth) $2.2 million (increase in funded FTES of 430) Cost of Living Adjustment (COLA) $846,989 (.085%)Categorical increases awaiting on allocations from the State Chancellors Office$2,366,996 for scheduled maintenance/instructional equipmentFlexible locally and specified as one-timeNo match except if the funds are used for Architectural Barrier RemovalState Retirement increases to employer rates:STRS .63% increase ; $198,600PERS .329% increase ; $73,563Increase in Medical Premiums $979,893Kaiser 0%;Traditional PPO 26%Lite PPO 24.9%Traditional PPO (Local 39) 22.1%Lite PPO (Local 39) 17.5%Increase in Workers Compensation rate of .1% estimated cost of $54,500Increase in OPEB Debt service payment of $1,642,666Additional assumptions used to develop the budgetFTES Target of 19,355 Residence FTES with funded FTES from the state of 19,055Productivity level of 17.5Unrestricted Lottery dollars funded at $124.25 per funded FTESState Apportionment deficit factor of 2%Parcel Tax revenue estimated to be $8,053,385

2013-14 Unrestricted General Fund final budget SummaryRevenue 2014-15Final Budget 2013-14 Estimated Actuals 2012-13 Actuals Federal Revenue $ - $ - $ - State Revenue $ 67,396,913 $ 65,270,981 $ 64,346,744Local Revenue $ 46,682,083 $ 45,137,518 $ 47,174,459Transfer In Revenue $ 13,128,094 $ 11,691,939 $ 9,152,116Revenue Total $ 127,207,090 $ 122,100,438 $ 120,673,319ExpensesFull Time Academic $ 21,353,690 $ 18,252,185 $ 16,233,586Academic Admin $ 4,864,416 $ 4,214,079 $ 3,466,038Other Faculty $ 5,679,831 $ 5,388,306 $ 4,002,127Part Time Academic $ 8,226,114 $ 12,310,320 $ 13,723,964Classified Salary $ 24,469,094 $ 21,974,337 $ 20,070,280Fringe Benefits $ 38,598,080 $ 36,409,122 $ 37,216,997Books, Supplies, Services $ 15,954,977 $ 14,561,377 $ 12,576,388Equipment Capital Outlay $ 175,836 $ 327,151 $ 148,456 Debt Service / Transfers $ 7,885,052 $ 7,053,604 $ 9,613,258Expense Total $ 127,207,090 $ 120,490,481 $ 117,051,094Revenue over Expenditures $ 1,609,957 $ 3,622,225Beginning Fund Balance $ 14,209,208 $ 12,599,251 $ 10,017,896 Audit Adjustments $ - $ - $ -1,040,870 Ending Fund Balance $ 14,209,208 $ 14,209,208 $ 12,599,251General Fund Revenue SourcesComputational revenue sources2013-14 General Fund expendituresMeasure B Parcel TaxRevenue 2014-15 Final Budget 2013-14 Estimated Actuals 2012-13 Actuals Local Revenue $ 8,055,785 $ 8,056,883 $ 7,683,197 Revenue Total $ 8,055,785 $ 8,056,883 $ 7,683,197 ExpensesFull Time Academic $ - $ - $ - Academic Admin $ - $ - $ - Other Faculty $ - $ - $ - Part Time Academic $ 6,500,000 $ 5,586,364 $ 3,222,024 Classified Salary $ 369,702 $ 747,079 $ 247,511Fringe Benefits $ 624,511 $ 738,164 $ 610,737Books, Supplies, Services $ $ 369,470 $ 1,372,129 Equipment Capital Outlay $ - $ 135,600 $ 55,156Expense Total $ 7,494,213 $ 7,576,677 $ 5,507,567Beginning Fund Balance $ 2,655,836 $ 2,175,630Revenue over Expenditures $ 561,572 $ 480,206 $ 2,175,630Ending Fund Balance $ 3,217,408 $ 2,655,836 $ 2,175,630Implementation of the budget allocation modelIn August of 2010, the Planning and Budgeting Council began working on the creation of and recommendation to the Chancellor a Budget Allocation Model (BAM)Purpose to:Move from the existing model to a model that would better serve the Colleges and DistrictFully respond to previous Accreditation recommendationsCore Principles:Provide financial stabilityConsistent with the States SB361 funding modelSimple and easy to understandProvide for a reserve in accordance with Peraltas Board PolicyMaintain autonomous decision making at the college levelResponsive to the Districts and Colleges planning processesBudget Allocation Model2014-15 Budget Allocation Model WorksheetBase Allocation:Total Revenue Allocation $ 128,791,119 Total Exclusions (18,754,797)Applicable Revenue $ 110,036,322 AlamedaBerkeley Laney MerrittThree Year FTE Rolling Averages 3,534.73 3,683.22 7,524.21 3,784.08 Percentage19.36%19.54%40.66%20.44%Revenue Allocation by College $ 20,994,479 $ 21,876,414 $ 44,689,920 $ 22,475,510 Out of State and International Allocation 679,856 1,538,321 1,847,239 524,754DO Service Center Budgets (4,050,934) (4,221,105) (8,623,024) (4,336,702)Centralized Services Budgets (1,181,076) (1,230,690) (2,514,098) (1,264,393)Net Revenue Allocation by College $ 16,442,326 $ 17,962,939 $ 35,400,036 $ 17,399,168 Unrestricted Expenditure Budgets $ 15,523,535 $ 15,684,256 $ 30,961,345 $ 17,475,512 Parcel Tax expenditure budgets $ 1,448,823 $ 1,464,996 $ 2,777,320 $ 1,442,750 Total Expenditures $ 16,972,358 $ 17,149,252 $ 33,738,665 $ 18,918,262 Expenditures (over)/under Net Revenue Allocations by College (530,032)813,687 1,661,371 (1,519,094)Thank you for your time!

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