College of the Sequoias

2015-16Final Budget

September 14, 2015

Budget Process1. Tentative Budget is created based on May Revise

2. Approval of Tentative Budget by Board in June authorizes expenditures over summer

4. Summer - Legislature proposes adjustments to state allocations, and Governor negotiates

5. State Budget is adopted by June 15th (legislature); Governor approves by June 30th

6. Staff account for final changes to income & expenditures

7. Final Budget is adopted by Board in September

Final Budget - Assumptions:•5.72% Access Funding (Growth) $2.4M available

– Budget only includes 140 FTES, or 1.5% growth, due to third session summer 2015 (120 FTES) and small growth (20 FTES) = appx $650,000

•1.02% COLA = $474,000 COS (per-FTES, and base)

•$2.2M increased “base allocation” ongoing, but first/only•3.1% H&W cap increase (50% of PPO-4 RX-A increase) for COSTA $76,752, CSEA $71,340, & Mgt/Conf $23,616.

Final Budget - Assumptions:•Student Success/SSSP- additional $750K ongoing•Student Equity/SEP – additional $850K ongoing•Scheduled Maintenance

– May Revise = $577K allocation (zero match required)

•Instructional Equipment– May Revise = $577K allocation– COS budgets $277K per year for annual computer refresh -

$150K extra refresh/$150K for other allocations

–Full Time Temp placeholders – 3 FTT filled, 1 open

Final Budget - Assumptions:•Increased STRS by $370K (GF Unrestricted) – employer contribution rate increased from 8.88% (14-15) to 10.73% (15-16)•Increased PERS by $98K - Employer contribution rate increased from 11.417% (GF budget) to 11.84%•Now includes $491,169 revenue for increased full-time faculty hiring

• State is allocating based on FTES. COS will need to use this to hire additional faculty in fall 2016 to meet FON.

•Does not include $4.9 million in one-time mandate cost reimbursements – will budget when received in December

Final Budget - Assumptions:•CSEA settlement 170.6K for Unrestricted General Fund:

• One-year-only stipends for 50% medical premium increase• One-year-only 6% PERS contribution (50 ee’s only hired after 1/1/13) • Small ongoing increase in dental/vision coverage

•Management/Confidential small ongoing increase in dental/vision $2500 GFU

•Switched carriers for P&L insurance, netting the District $160K annually in savings (but not in final budget yet!)

Final Budget –

Major Changes in Budget Assumptions:General Fund Unrestricted 2015-16

Surplus/Deficit Estimated at January Governor’s Budget 1.58% COLA

235,727

Surplus/Deficit at District Budget Forums (after COSTA settlement)

(72,273)

+ $975K Increase in Base Allocation & other small misc. incr 1,043,923

Surplus/Deficit at May Revise and Tentative Budget adoption 1.02% COLA

$971,650

+ $136K addt’l Base Allocation + $491K new FON allocation, - 2 additional FTT positions budgeted - CSEA settlement

$387,222

Surplus/Deficit at Final Budget Adoption $1,358,872

Description 2015-16 GFU 2015-16 Combined

State Allocation $50,187,193 $50,187,193

Federal Revenues $ 7,000 $2,330,906

Other Income $ 2,367,909 $12,595,294

Total Revenues $52,562,102 $65,113,393

Certificated $22,180,384 $23,606,263

Classified $ 9,534,973 $13,177,575

Benefits $11,751,075 $13,814,251

Materials & Supplies $ 957,834 $ 2,415,137

Contracted Services $ 5,592,513 $ 7,127,672

Capital Expenditures $ 929,964 $ 2,505,582

Transfer Out/Other Outgo $ 256,487 $ 1,108,041

Total Expenditures $51,203,230 $63,754,521

Surplus/(Deficit) $ 1,358,872 $ 1,358,872

Description 2015-16

Beginning Fund Balance $7,115,046 14.9% (13.1% after designated carryover)

Surplus/(Deficit) $1,358,872 (Does not include mandate reimb funds)

Ending Fund Balance $8,473,918 16.55%

6% Reserve for Economic Uncertainties $3,072,194 Board Policy 6%

Additional Fund Balance $5,401,724

= Projected 6/30/16 Gen Fund Balance $8,473,918 Board Priority 10% (~16.5%)

Note 1: Additional funds expected to fall to fund balance at close of each year

Note 2: 1 month of GF expenditures $4,300,000 8.4 %

state average-CC Fund Balance $8,700,000 17%

Annual Ongoing Increases 2016-17 GFU 2017-18 GFU

Step & Column $345,000 $360,000

H&W Benefits $0 $0

PERS (11.847%, 13.047%, 16.6%) $150,000 $448,000

STRS (10.73%, 12.58%, 14.43%) $416,000 $419,000

Utilities 3% Increase $50,000 $50,000

Solar Savings ($119K FY16 + $131K FY17) ($131,000)

CSEA 1-year stipends eliminated (164,000)

P&L Insurance change savings (160,000)

Insurance (WC/P&L) 4% Increase $40,000 $40,000

Add FTF –Estimated FON $400,000 $200,000

Total Increased Expenditures $946,000 $1,517,000

FTES Growth <1.75% 100 FTES $ 472,400 $ 472,400

1% COLA $ 501,872 $ 511,615

FISCAL SOLVENCY PROJECTIONS

Fiscal Solvency Projection 2015-16 GFU 2016-17 GFU 2017-18 GFU

State Allocation $50,187,193 $50,187,193 $50,187,193

Federal Revenues $ 7,000 $ 7,000 $ 7,000

Other Income $ 2,367,909 $ 2,367,909 $ 2,367,909

Total Revenues $52,562,102 $52,562,102 $52,562,102

Certificated $22,180,384 $22,744,486 $23,117,286

Classified $ 9,534,973 $ 9,500,587 $ 9,637,387

Benefits $11,751,075 $12,368,359 $13,285,759

Materials & Supplies $ 957,834 $ 957,834 $ 957,834

Contracted Services $ 5,592,513 $ 5,391,513 $ 5,481,513

Capital Expenditures $ 929,964 $ 929,964 $ 929,964

Transfer Out/Other Outgo $ 256,487 $ 256,487 $ 256,487

Total Expenditures $51,203,230 $52,149,230 $53,666,230

Surplus/(Deficit) $ 1,358,872 $ 412,872 $ (1,104,128)

Assumed 0% COLA and no growth 16-17 & 17-18

Fiscal Solvency Projection 2015-16 GFU 2016-17 GFU 2017-18 GFU

State Allocation $50,187,193 $51,161,465 $52,145,480

Federal Revenues $ 7,000 $ 7,000 $ 7,000

Other Income $ 2,367,909 $ 2,367,909 $ 2,367,909

Total Revenues $52,562,102 $53,536,374 $54,520,389

Certificated $22,180,384 $22,744,486 $23,117,286

Classified $ 9,534,973 $ 9,500,587 $ 9,637,387

Benefits $11,751,075 $12,368,359 $13,285,759

Materials & Supplies $ 957,834 $ 957,834 $ 957,834

Contracted Services $ 5,592,513 $ 5,391,513 $ 5,481,513

Capital Expenditures $ 929,964 $ 929,964 $ 929,964

Transfer Out/Other Outgo $ 256,487 $ 256,487 $ 256,487

Total Expenditures $51,203,230 $52,149,230 $53,666,230

Surplus/(Deficit) $ 1,358,872 $ 1,387,144 $ 854,159

Assumed 1% COLA and 100 FTES growth 16-17 & 17-18

Items to watch for future years:Note: COS may earn more Access Funding; projecting +180 FTES

•2016-17:• Loss of Prop 30 (EPA) .25% sales tax - 12/31/16 expiration = appx $1.2M to

$1.5M for COS annually • Increased PERS & STRS costs of $566,000 annually

•2017-18:• Increased PERS & STRS costs of $867,000 annually

•2018-19:• Increased PERS & STRS costs of $625,500 annually• Loss of Prop 30 (EPA) increased high-earner income tax 12/31/18 expiration

= appx $5M for COS annuallyCOS may wish to set aside ongoing funds to cover PERS/STRS in future years.

FTES Update Historical Perspective

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Year Actual FTES Funded FTES

1999-00 8,204.79 8,204.79

2000-01 8,149.45 8,204.79

2001-02 8,419.17 8,419.17

2002-03 8,506.82 8,506.82

2003-04 8,510.76 8,510.76

2004-05 8,620.16 8,620.16

2005-06 7,582.27 8,620.16

2006-07 8,929.55 8,929.55

2007-08 8,209.56 8,929.55

2008-09 10,160.04 9,042.35

2009-10 10,614.57 8,696.69

2010-11 10,561.93 8,945.00

2011-12 9,033.30 8,261.13

2012-13 8,646.55 8,408.26

2013-14 9,448.98 8,697.10

2014-15 8,870.40 8,870Fdd/8,986cap

2015-16 9,010.00? ? Funded/9431 cap

Major Categorical Program 2014-15 Revenues 2015-16 Revenues

Basic Skills $116,692 $116,692

BFAP Financial Aid $417,634 $437,634

EOP&S $859,235 $1,165,763

CARE $127,487 $213,239

DRC $1,200,564 $1,212,810

CalWorks $362,388 $366,084

Student Success $1,262,102 $2,012,102

Student Equity $692,650 $1,542,650

Adjunct Parity $172,899 $234,336

TANF $ 84,311 $80,095

Scheduled Maintenance $911,872 $577,364

Instructional Equipment $276,873 $577,364

Total $6,484,707 $8,536,133

Mandate Reimbursement Funds for COS:•The large “one-time” reimbursement (not the annual block grant) is currently estimated at $4.931M for COS in 2015-16•The District never budgets mandate reimbursement funds until they are actually received – should be received in December 2015•Further discussion and research will be presented to the board, including detailed information of possible funding needs.•When received, options for possible board direction follow. Board direction will be sought in January 2016

• Pay toward General Fund 2004 COP $3M balance (student center trust, health center, and District)

•Questions or Comments?

•For Board Approval