2018 2018-19 Governors 19 Governors Budget Proposal Budget - - PowerPoint PPT Presentation

2018 2018-19 Governor’s 19 Governor’s Budget Proposal Budget Proposal

State Center Community College District State Center Community College District

Board of Trustees Meeting Board of Trustees Meeting February 6, 2018 February 6, 2018

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• Building Reserves

Building Reserves

• Minimize Costs to Students

Minimize Costs to Students

• Promote New Technology &

Promote New Technology & Innovation Innovation

• Improve Completion Rates

Improve Completion Rates

• Align with State Chancellor’s Vision

Align with State Chancellor’s Vision for Success Goals for Success Goals

Governor’s Priorities Governor’s Priorities

Governor’s Concerns Governor’s Concerns

• Future California Economic

Future California Economic Recession Recession

• Uncertainty of Federal Funds

Uncertainty of Federal Funds

• Federal Tax Reform & Impact

Federal Tax Reform & Impact not Included in Budget not Included in Budget Proposal Proposal

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Governor’s Governor’s Proposed Proposed 2018 2018-19 State 19 State Budget Budget

On On-Going Funding Going Funding

2017-18 State Adopted Budget CCC System Request Gov's Jan Budget Proposal Growth Funds $57.8m or 1%

• $60m or 1%

COLA $102.0m or 1.56%

• $161.2m or 2.51%

Base Funding $183.6m

• General Operating Expenses
• $200m
• New Student Centered Funding Formula
• $175m

Full-Time Faculty

• $75m

none Part-Time Faculty

• $25m

none College Promise

• $25m

$46m Online Education

• TBD

$20m 2018-19

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New Student Centered New Student Centered Funding Formula Funding Formula

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50% 50% 25% 25% 25% 25%

Base Funding Support Low Income Students Reward Progress

50% 50% Base Funding Base Funding (Based on Enrollments) 25% 25% Support Low Support Low Income Students Income Students – District supplemental grants for low income students with waivers and Pell Grants 25% 25% Reward Progress Reward Progress (1) Number of certificates and degrees awarded; (2) Number of students who complete a degree

• r certificate in 3 years or less; and

(3) Each Associates Degree for transfer HOLD HOLD HARMLESS PROVISION (1 year) HARMLESS PROVISION (1 year)

Online Education Online Education

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$20m $20m On On-Going Funds Going Funds $100m $100m One One-Time Funds Time Funds

• Fully online CA Community College to address

underserved working students.

• Targeting 25 -34 year olds with no degree

One One-Time Funding Time Funding

State Adopted Budget CCC System Request Gov's Jan Budget Proposal Online Education

• TBD

$100m Scheduled Maintenance/ $76.8 (no match)

• $275.2m

Instructional Equipment Prop 39 (Energy Efficiency) $46.5m

• Equal Employment Opportunity

$3.4m $5m

• Innovation Awards

$20m

• $20m

2017-18 2018-19

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Categorical Funding Categorical Funding

State Adopted Budget CCC System Request Gov's Jan Budget Proposal Guided Pathways $150m

• SSSP, Equity, Workforce
• AEBG
• $20.5m (2.51% COLA)

AEBG (Data Collection)

• $5.0m

EOPS, DSPS, CalWorks & Child Care Tax Bailout

• $7.3m (2.51% COLA)

2018-19

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Capital Projects Capital Projects

2017-18 State Adopted Budget CCC System Request Gov's Jan Budget Proposal Prop 51 Bonds 15 Projects Approved 5 Projects Approved

Redwoods CCD Arts Bldg. Replacement Coast CCD Language Arts Complex

• Mt. San Antonio

New PE Complex Peralta CCD (2) Learning Resource Center & Child Dev. Center

2018-19

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Future Future Considerations Considerations

Recession Looming in the Future Recession Looming in the Future

• $50
• $40
• $30
• $20
• $10

$0 $10 $20

Dollars in Billions

Source: Governor's Budget Summary, Page 2

Balanced Budgets Have been Quickly Balanced Budgets Have been Quickly Followed by Huge Deficits Followed by Huge Deficits

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Rising STRS & PERS Rates Rising STRS & PERS Rates

8.25% 8.88% 10.73% 12.58% 14.43% 16.28% 18.13% 19.1% 20.1% 20.25% 20.25% 20.25% 11.442% 11.771% 11.847% 13.888% 15.531% 18.1% 20.8% 23.8% 25.2% 26.1% 26.8% 27.3%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 2013-14 2014-15 2015-16 2016-17 2017-18 Proposed 18-19 Proposed 19-20 Proposed 20-21 Proposed 21-22 Proposed 22-23 Proposed 23-24 Proposed 24-25 Employer rate

Projected pension rates by plan

STRS PERS

Rising STRS & PERS Costs Rising STRS & PERS Costs

14 Fiscal Year Fiscal Year STRS STRS Increase* Increase* PERS PERS Increase* Increase* Total Annual Total Annual Increase* Increase* Total Annual Total Annual Cumulative* Cumulative* Proposed 2014 Proposed 2014-15 15 734,779 23,956 758,736 758,736 758,736 Proposed 2015 Proposed 2015-16 16 1,441,751 181,646 1,623,397 1,623,397 2,382,133 Proposed 2016 Proposed 2016-17 17 1,385,834 721,897 2,107,731 2,107,731 4,489,864 Proposed 2017 Proposed 2017-18 18 1,363,637 528,870 1,892,507 1,892,507 6,382,370 Proposed 2018 Proposed 2018-19 19 1,390,049 816,843 2,206,892 2,206,892 8,589,262 Proposed 2019 Proposed 2019-20 20 1,416,854 872,412 2,289,265 2,289,265 10,878,527 Proposed 2020 Proposed 2020-21 21 817,908 981,127 1,799,035 1,799,035 12,677,562 Proposed 2021 Proposed 2021-22 22 854,548 505,568 1,360,117 1,360,117 14,037,679 Proposed 2022 Proposed 2022-23 23 253,323 358,859 612,181 612,181 14,649,861 Proposed 2023 Proposed 2023-24 24 146,981 302,195 449,177 449,177 15,099,037 Proposed 2024 Proposed 2024-25 25 148,451 243,732 392,183 392,183 15,491,221 *Amounts only include Fund 11 (General Fund)

Summary Summary

▪ Early in the Budget Process ▪ New Initiatives with Details to be Worked out ▪ Uncertainty

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▫ New Funding Formula ▫ Economy ▫ Federal Funding ▫ Federal Tax Reform Impact

Questions Questions