All college budget forum
This presentation is the property of its rightful owner.
Sponsored Links
1 / 32

All College Budget Forum PowerPoint PPT Presentation


  • 73 Views
  • Uploaded on
  • Presentation posted in: General

All College Budget Forum. Mission College October 11, 2013. Overview. The national and state economic recession and recovery has a long-term impact Not meeting FTES targets and efficiency targets impacts our revenue generation

Download Presentation

All College Budget Forum

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


All college budget forum

All CollegeBudget Forum

Mission College

October 11, 2013


Overview

Overview

  • The national and state economic recession and recovery has a long-term impact

  • Not meeting FTES targets and efficiency targets impacts our revenue generation

  • Both colleges and the district have balanced budgets through a combination of one-time cuts and contributions from the Land Corporation


Overview1

Overview

  • Decline in student enrollment results in lowered ongoing revenue

  • To balance the budget all entities must identify ongoing, permanent reductions

    • MC=$1.35 Million

    • District=$630,000

    • WVC= $1.5 Million

  • Basic Aid provides glimpse of hope from future revenue growth


  • Background

    Background


    Decline from peak 2769

    Decline from Peak (-2769)


    Ftes fy 13 14 t arget @ 15 898 6 yr decline of 1846 ftes

    FTES FY 13/14 Target @ 15,898 6 yr. decline of 1846 FTES


    Mc total budget 2009 2013

    MC-Total Budget 2009-2013


    Fy 12 13 budget r ecap

    FY 12/13 Budget Recap

    • Adopted budget was balanced

    • Prop. 30 passed – no mid-year “trigger” cuts

      • Missed out on growth funding (177 FTES )

      • Create EPA account (Prop 30 $ at $100/FTES)

  • District foregoes $50M in restoration funding

  • WVC and MC missed their FTES targets by 250 FTES each

    • On State “stability”, but entered Locally Funded Basic Aid


  • Basic aid

    Basic Aid

    Definition

    • Basic aid occurs when local property tax revenue exceeds total funding that the State provides as calculated by SB 361 apportionment.

    • Local property taxes and enrollment fees are primary source of revenues.


    The bucket analogy

    The Bucket Analogy

    • 2012/13 funding formula, District received $5.4M in state apportionment

    • Local property tax/student fees exceeded $5.4 in apportionment, entered Basic Aid


    Revenue impact of basic aid

    Revenue Impact of Basic Aid

    • District’s Core Funding is notaffected by issues at the state level

      • State budget shortfalls

      • Community College system shortfall

      • Deferrals


    Revenue impact of basic aid1

    Revenue Impact of Basic Aid

    • District continues to receive funding for:

      • Student Categorical Funds

        • EOPS, DSPS, Financial Aid, Student Success

      • Lottery

      • Mandated Costs

      • EPA

      • Other grants

    • Funding dependent on # of students/FTES


    Greater impact of basic aid

    Greater Impact of Basic Aid

    • Better planning

      • More stability in revenue

      • Less impact from the ups and downs of state funding

    • Potential for incremental growth

      • Slow growth dependent on Santa Clara County tax revenues


    Multi year basic aid projections

    Multi-Year Basic Aid Projections


    Fiscal stability planning

    Fiscal Stability Planning

    • 2013-2014

      • One Time Budget Reduction ($578K MC)

        • Reductions recommended by GAP Spring 2013

      • Basic Aid Status

        • Revenues from property taxes

        • Potential Slow Growth

        • One time funds

        • Participatory Task Force to determine use


    Fy 13 14 district budget

    FY 13/14 District Budget

    Budget development approach

    • Balance with one-time funds for FY 13/14

      • Estimated shortfall – $4.5 million

      • Available revenues

        • $3.0 million from the Land Corporation

        • $1.5 million District Services/Colleges

          • $578,000 from Mission College


    One time reductions 13 14

    One Time Reductions 13/14


    Fiscal stability planning1

    Fiscal Stability Planning

    • Ongoing Structural Deficit

      • Living year-to-year with

        • One time cuts

        • Land Corp infusions of dollars

    • 14/15

      • Ongoing Permanent Budget Reduction

        • District – approximately $3.5M

        • MC portion – approximately $1.35M


    Constraints on reductions

    Constraints on Reductions

    • 50% Law

    • Full Time Obligation Number (FON)

      • Required to be 311 based on state requirements

      • Fine from State is significant

        • Timing is awkward

      • Likely will be hiring for Fiscal Year 2014-15 to meet this obligation


    It s bigger than us

    It’s Bigger Than Us

    • Structural and Economic Changes

      • End of the wave of Baby Boomer children

      • Improving Silicon Valley economy

        • We are not alone in this,

          but we still have to adjust

          to this new environment

    • Our only growth will come from attracting new students with new and refreshed programs and higher retention


    Structural deficit

    Structural Deficit

    • Reliance on Land Corporation and One Time Cuts to balance budget each year

    • Smaller FTES & Headcount = Loss of Revenue

      • 12-13 Target missed by 250 FTES

      • 83 FTES from Prop 30

      • Restoration not restored (based on Growth)

      • Missing Efficiency Targets 550-555.

        • 10 points = $400K


    Fy 14 15 budget planning

    FY 14/15 Budget Planning

    • On-going budget reductions for FY 14/15

      • Estimated shortfall – $5.0 million

      • Available revenues for 14/15

        • $3.5 million budget reduction

        • $1.5 million from the Land Corporation

    • On-going budget reductions continue beyond FY 14/15


    Re cap how did we get here

    Re Cap--How did we get here?

    • Past 4 budgets have been balanced with one time funding—Not Sustainable

      • Combination of one-time cuts and Land Corp Stability Funding

    • Enrollment decrease=revenue decrease

      • 12/13 FTES target—MC short by 250 ($1.2M)

      • Prop 30 District short by177 FTES-MC =83 ($400K)

      • Serving almost 3000 less students

    • Non Peak Efficiency

      • Target short by 20 points ($800K)


    Next steps

    Next Steps

    • Colleges Develop Budget Reduction Plans for FY 2014/15 and beyond

    • District develops Board policy for Basic Aid Funds Allocation

      • Based Participatory Governance

      • District Council Task Force recommendations


    Looking to the future

    Looking to the Future

    • Financial stability in short term

      • Reductions address structural factors

      • Greater stability due to Basic Aid

      • Never a guarantee, but should not face cuts in the immediate future

    • Potential for growth

      • Basic Aid provides opportunity for growth in revenue in future years


    Questions and discussion

    Questions and Discussion


    Reference slides for q a follow this slide

    Reference Slides for Q&A Follow This Slide


    Basic aid districts

    Basic Aid Districts

    • Marin

    • Mira Costa

    • San Mateo

    • South Orange County

    • San Jose-Evergreen

    • West Valley-Mission


    Fy 13 14 state budget for community colleges

    FY 13/14 State Budget for Community Colleges


    Full time faculty obligation

    Full-time Faculty Obligation


  • Login