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Budget Allocation

Budget Allocation. Elements of a Budget Model. Alignment with Board Budget Priorities Rapid response to workforce gaps Address college and career readiness Invest in contemporary software solutions Increase the number of high value degrees and transfers. Elements of a Budget Model.

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Budget Allocation

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  1. Budget Allocation

  2. Elements of a Budget Model • Alignment with Board Budget Priorities • Rapid response to workforce gaps • Address college and career readiness • Invest in contemporary software solutions • Increase the number of high value degrees and transfers

  3. Elements of a Budget Model • Effective decision making in allocating resources • Encourages responsible risk taking • Easy to understand • Performance based outcomes • Provides transparency and accountability • Multi-year process

  4. Budget Allocation Models TODAY TOMORROW Still Input based but moving to Outcome based allocation Aligns with Board priorities Reward efficient use of resources both human and capital Revenue based-Colleges get what they earn • Input based • Base Allocation • Facilities Allocation • Chargebacks • Expense based

  5. College Allocation TODAY FY2016 Inputs 72% College earned revenues 41% Success Points/ Performance Funding 14% Facility Operations 6% Board Priorities 8% • Base 10% • Inputs 75% • College earned revenues 5% • Facility Operations 11% • Board Priorities 4%

  6. College Allocation TODAY FY2016 State (biennium) Formula $77.8M Success $7.4M Benefits $17.0M (est) Tuition (annual) Credit $92.0M; CE $12.8M Tax Support (annual) Facilities $19.5M Performance $31.0M Dual Credit Waivers $7.7M Salaries $10.9M Other $6.6M Total $282.7M • State • Formula $179M (subsidized) • Benefits $21M (subsidized) • Tuition • CE $13M • Tax Support • Base $28M • Facilities $31M • Other $7M • Total $279M • Without Chargebacks

  7. College Allocation • Revenue Smoothing Adjustment • Success Points (Two years) • Performance Funding (Prior FY) • Employment Outcomes • Transfer Rates • Graduates in Critical Fields • Degrees and Certificates • Course Completions • Adjustment based on prior budget model over three years • There may still be adjustment to Performance funding

  8. Expenses • Full cost of Benefits---not Net • Fixed cost plus a variable percent • No revenue for Public Serv., Facility & Auxiliary • Based on December 2014 payroll (for FY16-17 biennium) • HEGI FY16 one amount and FY17 will increase 7% • Retirement revenue does not change for biennium • Actual Expense will book to high level functional division • P&C Insurance, telephone and police dispatch will still be chargebacks • All other chargebacks will be a District expense---College Services • LCET will be a college service—no tuition • New programs and Career Ladder Provision

  9. Budget Comparison TODAY FY2016 Colleges $282M College Services $27M District $30M Provisions $16M Student Activities $8M Projects $16M Career Ladder $11M Total $390M • Colleges $279M • Chargebacks $28M • District $28M • Provisions $13M • Student Activities $6M • Projects $16M • Career Ladder $8M • Total $378M

  10. FY2017 • Compression Planning with Presidents to determine measurements • Possible changes • More wage related degrees • Promote course sharing among colleges • Facility utilization • Institutional Support metrics

  11. Questions?

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