2017-19 Budget Presentation Phyllis Carter, Director of Business - - PowerPoint PPT Presentation

2017-19 Budget Presentation

Phyllis Carter, Director of Business and Administrative Services April 26, 2017

1

Overview of Topics

 Overview of Budget Planning Process and Goals  Historical Budget Trends by Fund  2017-19 Budget Assumptions  2017-19 Preliminary Consolidated All Funds Budget  2017-19 Discretionary Fund 01 Budget (Request Approval)  2017-19 Budget Report – Division or Department Level  Status of Budget Planning and Calendar Timeline

2

Budget Planning Process and Goals

The Laney College 2016 Education Master Plan was completed in Spring 2016 and leading to the approved two year Strategic Plan for FY 2016-18.

 FIRST TIME: Strategic Plan FY 2016-18 Initiative Goal II.A.1, create a Fund 01 budget plan (2 years) integrated with the Annual Strategic Plan, College Goals and Annual Program Updates(APU) and Program Review(PR).  FIRST TIME: Create a consolidated “All Funds” balanced budget with recognition of funding across multiple departments and divisions include data

• n staffing and FTES levels.

 Restore general unrestricted budget reduced during workload reduction prior to 2011

3

Budget Planning Process and Goals(cont.)

 Address funding gaps:

• newly established departments (PIO, Research and Campus IT)
• Instructional assistants in classroom
• Embedded tutoring to support student learning

 Build sustainable college operations budget covering fixed costs:

• 100% of Utility costs, annual instructional and classroom software license renewal

and website hosting

• total cost of ownership for instructional equipment (i.e. maintenance support

contracts on equipment in CTE and Science Classes)  Implement continuous improvement to budget process based on feedback provided at February 2016 College wide Budget Retreat  Meet District and College Budget Planning Report and Document Submission Dates

4

2016 Budget Retreat Feedback – Continuous Improvements

Request #1: Share information with faculty across disciplines.

 Actionable Improvement Implemented:

• Budget Training - Budget Basics and Advanced for Classified Staff
• Grants Management Training I & II
• District and College Budget Forum in Fall 2016 and Spring 2017
• Budget Planning for Administrators – Part I & II in March 2017

Request #2: Budget data should be in the context of program reviews related to departments and divisions.

 Actionable Improvement Implemented:

• Laney SOP Annual budget development process requires Administrators to review APUs and PRs with

Department Chairs and incorporate in budget submissions any funding requests

• 2017-19 Budget financial data presented at department level including both financial and non-financial

data sets reflecting complexity of department (i.e. performance measures and/or targets etc. )

Requests #3: Discuss ways to improve the budget development process for the better.

 Actionable Improvement Implemented:

• Post-budget development process, schedule meetings to requests feedback from college constituents.

5

College Budget Assumptions

2017-19 Budget Assumptions The college discretionary budget development process will be based on instructions and estimates from District Finance, college standard operating procedure and other known factors at this time. At this stage

• f the budget development process, the District estimates are based on the Governor’s January Budget

Proposal for 2017-18 and will change. Prior to submitting the proposed college budget to District Finance for tentative board approval, the budget is presented to the college participatory governance bodies before submission to the College President for approval. General Assumptions

• 1. 2017-18 Proposed Discretionary Budget will be balanced with 2 year budget plan.
• 2. 2017-18 Proposed Discretionary Budget will include three primary

scenarios.

• a. Medium Case – 0% Reduction ( District Mandate)
• b. Best Case – College Needs to Support All Programs
• 3. 2017-18 Proposed Discretionary Budget will not have a reserve for economic uncertainty 0%.
• 4. 2017-18 Proposed Discretionary Budget will have a small line item for repair of general

campus equipment. It is assumed the college will be allocated an equitable share of the District funding for IELM equipment and a portion for repairs for instructional and non- instructional equipment. Revenue Assumptions

• 1. No Growth Funds and college declining enrollment forecasted for 2017-18 and targets shown

below (District Finance established targets):

• a. College Total FTES Allocation

7979

• b. College Total FTEF Allocation

455.9

• c. College Total Productivity

17.5

• d. PT Faculty Budget

$4,924,796

• 2. Parcel Tax/Measure B – PCCD Annual revenue forecast $8,060,00 per property tax Measure and

District Finance allocation $2,527,276 for PT Faculty.

• 3. PASS Project funding - $0 allocated. Carryover seeking approval from District Finance.
• 4. IELM and Deferred Maintenance – District Finance estimated $700,000 and college administration

estimated Laney portion at $200,000.

• 5. Lottery – College administration estimates Laney portion at $250,000 or same level as last fiscal

year.

• 6. District Finance forecast flat funding: SSSP, Student Equity, Adult Ed and Strong Workforce.
• 7. District Finance estimates flat funding for all categorical and grants unless award letters

indicate otherwise or until CCCCO issues Advance Notices for Apportionments in July 2017.

6

Historical Budget Trend- Fund 01 Discretionary

$3.9M $3.5M $3.2M $2.9M $2.9M $3.1M $5.0M $3.1M $4.3M $2.9M $4.6M $4.7M $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 Approved 2010 Approved 2011 Approved 2012 Approved 2013 Approved 2014 Approved 2015 Submission 2016 Approved 2016 Submission 2017 Approved 2017 1st Year Submission 2018 2nd Year Forecast 2019

7

“Preliminary” Consolidated All Funds Budget FY 2017-19

No Change College Needs No Change College Needs

FY 2016-17 Budget FY 2017-18 Budget FY 2017-18 Budget FY 2018-19 Budget FY 2018-19 Budget

Budget Assumptions and/or Comments

Fund 1 General Apportionment Operating Fund $ 2,938,537 $ 2,938,537 $ 4,579,767 $ 2,938,731 $ 4,653,557 Discretionary Expense Budget ONLY (excludes salary and benefits). Fund 2 One Time State Allocation/Earned Indirect Cost $ 254,270 $ - $ - $ - $ - No District expectation for one-time funds from CCCCO. Fund 12 Parcel Tax, Measure B (PT Faculty ONLY) $ 2,757,604 $ 2,527,276 $ 2,527,276 $ 2,527,276 $ 2,527,276 District Finance Allocation as 4-25-2017. Subtotal Unrestricted Funds $ 5,950,411 $ 5,465,813 $ 7,107,043 $ 5,466,007 $ 7,180,833 Fund 3 Fee Based Courses $ 163,434 $ 109,930 $ 109,930 $ 109,930 $ 109,930 Budget based on prior year income or budget manager estimate. Fund 7 College Bookstore Commissions $ 30,840 $ 30,840 $ 30,840 $ 30,840 $ 30,840 Budget based on prior year income or budget manager estimate Fund 10 College Designated Fund $ 1,561,290 $ 1,372,590 $ 1,372,590 $ 1,372,590 $ 1,372,590 Budget based on prior year income or budget manager estimate Fund 11 General Restricted Fund $ 17,829,551 $ 11,717,994 $ 11,717,994 $ 11,717,994 $11,717,994 Budget based on District Finance or Budget Manager estimate. Fund 12 Parcel Tax, Measure B (PASS Projects ONLY) $ 670,070 $ - $ - $ - $ - PASS projects end 6-30-2017. Request submitted to District Finance for carryover approval in FY 2018. Fund 30 Contract Education $ 177,398 $ 177,399 $ 177,399 $ 177,399 $ 177,399 Budget based on prior year income or budget manager estimate Fund 63 Bond Measure A $ 3,310,961 $0 Available to college due to District restrictions for capital projects Fund 71 Associated Student Funds $ 114,225 $ 35,000 $ 35,000 $ 35,000 $ 35,000 Budget based on prior year income or budget manager estimate Fund 82 Student Center Activity Fee $ 318,037 $ 50,000 $ 50,000 $ 50,000 $ 50,000 Budget based on prior year income or budget manager estimate Subtotal All Other Funds $ 24,175,806 $ 13,493,753 $ 13,493,753 $ 13,493,753 $13,493,753 $ 30,126,218 $ 18,959,566 $ 20,600,796 $ 18,959,760 $20,674,586

8

Discretionary Expense Budget – Current Year

FY 2016 -17 - $2,928,537

$.2M $.8M $.2M $.5M $.006M $1.3M Faculty - Stipends and PT assignments PT Classified, Instructional Aids and Student Workers Supplies and Materials

• Mtce. or Rental Service Contract,

Publications, ICCs, Travel, Dues, Etc. Equipment, Laptops, PCs and Peripherals Utilities

9

Discretionary Expense Budget – College Needs

$.3M $1.4M $.6M $1.M $.01M $1.4M Faculty - Stipends and PT assignments PT Classified, Instructional Aids and Student Workers Supplies and Materials

• Mtce. or Rental Service

Contract, Publications, ICCs, Travel, Dues, Etc. Equipment, Laptops, PCs and Peripherals Utilities

FY 2017-18 - $4,579,767 FY 2018-19 - $4,653,557

10

Major Fund 01 Discretionary Budget Gaps by Cost Center/Division

11

Cost Center Division Budget Gap FY 2017-18 Budget Gap FY 2018-19

CC501 President's Office

230,000 230,000

Fund President's Office at actual expense level FY 2017 and New Departments (PIO, Research and IT) CC531 Business Services

169,077 169,077

CC532 Food Services

171,000 176,190

Restore Culinary Instructional supplies for food purchase + 3% CPI in second year CC533 IT Department

143,955 143,955

Setup IT budget permanently with reallocation from OOP, VPI, VPSS and BO CC541 VP Student Services

33,922 33,922

See Supplemental comments. CC542 Dean - Student Success

173,285 173,285

See Supplemental comments. CC543 Dean - Enrollment

8,407 8,407

See Supplemental comments. CC544 Director of Student Activities and Campus Life

(4,000) (4,000)

See Supplemental comments. CC546 Associated Dean - Student Success

• CC547

Intercollegiate Athletics

128,961 128,961

Budget reflect the athletic directors request related to total cost of the program. CC551 VP instruction

59,164 49,164

Stipends (Curriculum Update, Assessment, PLO,SLO & Accrediation) and Accred. ICC CC552 Dean - CTE

65,312 141,912

CC553 Dean - Math and Sciences

298,110 300,110

Svc Contract, Biology Autoclave, IAs Biology, Math Sas for Tutoring CC554 Dean - Humanities and Social Sciences

21,330 21,330

Lab Tech for Facilities?, Licenses, ADA Assistan and Equipment repair CC555 Dean - Liberal Arts

142,707 142,707

See Supplemental comments.

1,641,230 1,715,020 Explanation for Budget Line Items and/or Increase in Funding

Increase pest control and Waste Mgmt., # Sub-Custodians, Custodial and IMC Supplies and New Emp. Trng. IAs + SAs for safety in woodtech & culinary, tools, supplies and SW and air gas for Welding (Fund 01 Discretionary Budget for college will be adjusted to reflect $35K requested by Budget

• Manager. Post-Budget Advisory Committee approval)

College Fund 01 Discretionary Budget by Cost Center/Division

FY 2017 FY 2018 FY 2019 Budget Assumptions - Yr/YR Change from FY 2018 vs. FY 2019

501 Total President Office

116,600 346,600 346,600

531 Total Business Services

1,637,296 1,806,373 1,806,373

532 Total Food Services

2,000 173,000 178,190 CPI index on Culinary instructional supplies in FY 2019

533 Total IT Department

20,045 164,000 164,000

541 Total VP-Student Services

89,078 123,600 123,600

542 Total Dean-Student Services

226,909 400,194 400,194

543 Total Dean-Enrollment

50,219 58,626 58,626

544 Total Director of Student Activities and Campus Life

103,781 99,281 99,281

547 Total Athletics

170,365 299,326 299,326

551 Total VP-Instruction

200,903 260,067 250,067 Accreditation Cost in FY 2018

552 Total Dean-CTE

65,588 130,900 207,400 Hire Hourly Welding Instructional Assistants in FY 2019

553 Total Dean-Math and Sciences

99,090 397,200 399,200 Equipment Service Contract in FY 2019

554 Total Dean-Humanities and Social Sciences

43,470 64,800 64,800

555 Total Dean-Liberal Arts

113,193 255,900 255,900

Grand Total

2,938,537 4,579,867 4,653,557

12

Example of New Reporting Methods – College Budget by Department/Discipline

FUND - 01 General Unrestricted

Total Math and Science Division

553 553 553 553 553 553 553 553 553

40100 170100 190200 190500 220200 220600 70100 79900 601200

Total Budget $ Salary and Benefits $ Available for Discretionary Expenses Total Perm Faculty Total Perm Classified Total Perm Administrators Target FTEF by Department Target FTES by Department Allocated PT Faculty Budget based on Target PT - FTEF $ Discretionary by FTES FY 2017-18

0% Change to FY 17

99,090 8,370 22,950

• 2,970
• 1,350

63,450

• Department Needs

397,200 94,600 130,200 5,750 40,500 1,000 1,950 46,100 74,100 3,000

Budget Gap

(298,110) (86,230) (107,250) (5,750) (37,530) (1,000) (1,950) (44,750) (10,650) (3,000) FY 2018-19

0% Change to FY 18

99,090 8,370 22,950

• 2,970
• 1,350

63,450

Department Needs

399,200 96,600 130,200 5,750 40,500 1,000 1,950 46,100 74,100 3,000

Budget Gap

(300,110) (88,230) (107,250) (5,750) (37,530) (1,000) (1,950) (44,750) (10,650) (3,000)

13

Status of Budget Planning Timeline

14 Shared Governance Contributor Budget Planning Process Timeline and Dates

College Budget Managers Proposed budgets completed and submitted to Business Services in order to prepare a Consolidated All Funds Budget:  Fund 01 – General Unrestricted (Discretionary Budget ONLY)  Fund 03 – Fee Based Classes  Fund 07 – Bookstore Commissions  Fund 10 – College Designated Funds (Auxiliary Fees)  Fund 12 – Measure B (Parcel Tax)  Fund 71 – Associated Students of Laney College  Fund 82 – Student Center Fees

April 2017

Budget Advisory Committee Vote to approve Fund 01 Discretionary Budget and submit to College Council

April 25, 2017

College Council Vote to approve Fund 01 Discretionary Budget and submit to College President

April 26, 2017

College President Approve Fund 01 Discretionary Budget and submit to District Finance for inclusion in PCCD Tentative Budget in June and Final Budget in September

May 1, 2017

College Budget Managers Fund 01 - Submit written justifications linking Strategic Plan goals to APUs and supporting budget requests increase or budget GAPs to explain differences between Fund 01 Discretionary “Flat” budget vs. College Needs Budget.

May 15, 2017

College Administration, faculty, staff and students Schedule meeting to discuss feedback on FY 2017-18 integrated planning and budget development process

On or before May 19, 2017

College Administration Report to College the tentative budget approved (Fund 01) by District Finance and status of budgets loaded (ALL Funds) by College and District Finance

May 26, 2017

Business Services and Cost Center Managers Coordinates with District Finance on loading of ALL Fund budgets for college with validation by Cost Center Managers

On or before June 30, 2017

College Administration Report to College the final FY 2018 approved Consolidated All Funds budget and loaded in PeopleSoft PROMT and prior year fiscal results

September 18, 2017

Budget Advisory Committee Recommedation

Continuous Improvement to College Integrated Planning Processes

• Written justifications should accompany budget funding requests from cost center

managers linking college goals to APUs and PRs to resource allocation process.

• The process needs transparency for shared governance committee members (ie.

BAC and College Council) approving college budget and general college community in the form of written justifications

• The Resource Allocation Task Force charge plans to coordinate and propose to the

college community a comprehensive resource allocation matrix and supporting budget requests forms for new or increases in financial funding.

15

Historical Perspective Supporting All Funds Budgeting

Question:

What trends do you see on the next slide and why do you believe these are occurring?

16

7 Year - Trend of All Funds

General Unrestricted Revenue One-time Allocation of State Funds Fee Based Courses Bookstore Commission Fees College Designated (Auxiliary) General Restricted (Grants and State Categoricals) Parcel Tax Contract Ed Fee Bond Measure A Associated Student Student Activity Center Fees Total All Funds Fund 01 Fund 02 Fund 03 Fund 07 Fund 10 Fund 11 Fund 12 Fund 30 Fund 63 Fund 71 Fund 82

FYE 2010-11

Amount 32,001,600 22,500 135,652 395,245 8,076,864

• 655,698

4,602,543 42,605 45,932,707 % 69.7% 0.0% 0.3% 0.9% 17.6% 0.0% 1.4% 10.0% 0.1% 100.0%

FYE 2011-12

Amount 28,358,807 51,454 91,000 1,269,339 1,073,805

• 111,580

4,124,737 87,256 35,167,978 % 80.6% 0.1% 0.3% 3.6% 3.1% 0.0% 0.3% 11.7% 0.2% 100.0%

FYE 2012-13

Amount 28,194,715 33,339 91,000 1,712,993 9,415,209 2,098,541 430,937 6,346,248 60,767 48,383,749 % 58.3% 0.1% 0.2% 3.5% 19.5% 4.3% 0.9% 13.1% 0.1% 100.0%

FYE 2013-14

Amount 29,655,838 26,435 75,683 1,773,633 10,687,904 3,378,774 199,686 4,838,167 50,836 50,686,956 % 58.5% 0.1% 0.1% 3.5% 21.1% 6.7% 0.4% 9.5% 0.1% 100.0%

FYE 2014-15

Amount 31,863,680 107,080 42,872 1,643,988 12,767,410 3,780,635 50,316 3,267,111 67,831 334,789 # 53,925,712 % 59.1% 0.2% 0.1% 3.0% 23.7% 7.0% 0.1% 6.1% 0.1% 0.6% 100.0%

FYE 2015-16

Amount 34,605,718 1,271,859 89,533 34,627 1,515,255 16,395,025 3,512,443 171,349 2,905,156 100,485 309,384 # 60,910,834 % 56.8% 2.1% 0.1% 0.1% 2.5% 26.9% 5.8% 0.3% 4.8% 0.2% 0.5% 100.0% FYE 2016-17(YTD) Amount 34,223,955 254,270 163,434 30,840 1,561,290 17,864,353 3,427,674 177,398 3,310,961 114,225 318,037 # 61,446,437 % 55.7% 0.4% 0.3% 0.1% 2.5% 29.1% 5.6% 0.3% 5.4% 0.2% 0.5% 100.0%

17

Historical Perspective Supporting All Funds Budgeting

 Funding for CCCs were cut during Workload reductions in 2009-10 and 2011-12 across California due to national economic crisis and Categoricals were reduced significantly  Restoration funding was restored to PCCD in the amount of $6.9M but allocated to other district mandates including pay increases to staffing when state budget allocated 0% - less than 1% for COLA  State funding for CCCs is shifting from General Apportionments to Restricted to Performance based funding

• State reductions in General Appropriations in the amount $382M+ in fiscal year 2016-17

and directly impacting PCCD Fund 01

• New State Allocations of re-directed funding in Fund 11 Strong Workforce, SSSP, Student

Equity, Adult Ed, Basic Skills, Innovation Awards, Institutional Effectiveness etc.

 All Funds budgeting will allow for effective “resource planning and allocation” and matched to college wide goals and program review process across the entire college to support student success

18

2018-2019 College Budget

Questions & Answers

19