FINAL BUDGET Fiscal Year 2013-2014 September 3, 2013 Backup - PDF document

Backup September 3, 2013 Page 1 of 31 FINAL BUDGET Fiscal Year 2013-2014 September 3, 2013

Backup September 3, 2013 Page 2 of 31 FY 2013-2014 In Millions CCC System RCCD Base Apportionment - COLA (1.57%) $ 87.50 $ 1.96 - Access (2.26%) 89.40 2.63 Categoricals 88.00 0.95 Scheduled Maintenance/Instructional Equipment 30.00 0.63 Energy Efficiency Programs 47.00 ? Online Education Development 16.90 ? Adult Education Planning Grants 25.00 ? Total $ 383.80 $ 6.17 Deferral "Buy Down" $ 179.00 $ 4.20

Backup September 3, 2013 Page 3 of 31 FY 2012-2013 � Redevelopment Funds � Estimated shortfall of $325 million at P1 � $197.8 million backfilled in Governor’s “May Revise” Proposal � $97 million still unfunded � $2.4 million for RCCD

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Backup September 3, 2013 Page 5 of 31 $18.4 Million $16.5 Million $14.3 Million $11.4 Million $4.7 Million $4.1 $2.93 Million $.92 Million $.80 Million $-0- * FY 09-10 FY 10-11 FY 11-12 FY 12-13 FY 13-14 Budget Problem Instructional Reduction * For FY 13-14, a total of $2.25 million was included in the budget to align associate faculty and overload budgets and to provide for additional student access.

Backup September 3, 2013 Page 6 of 31 FY 2013-2014 Beginning Balance at July 1, 2013 $ 11.41 Revenues 138.96 Total Available Funds 150.37 Less Contingency Reserve (3.8%) (6.36) Amount Available for Expenditures 144.01 Expenditures 144.01 Remaining Balance $ -

Backup September 3, 2013 Page 7 of 31 Revenues FY 2013-14 FY 2012-13 Base Revenue Budget $ 134.38 Significant Revenue Adjustments COLA at 1.57% 1.96 FY 2012-13 Access 1.27 FY 2013-14 Access at 2.26% 2.63 Lottery 0.10 Non-Resident Tuition 0.38 La Sierra Transfer (2.00) Other 0.24 Total Revenue Adjustments 4.58 FY 2013-14 Base Revenue Budget $ 138.96

Backup September 3, 2013 Page 8 of 31 Expenditures FY 2013-14 FY 2012-13 Base Expenditure Budget $ 136.62 Significant Expenditure Adjustments Seven Faculty Positions and Three Possible Staff Positions $ 0.97 Set-Aside for Potential Compensation Adjustment 1.57 Enrollment Management Increase/Assoc. Faculty/Overload Alignment 2.25 Budget Reduction Strategy - district Office and Support Services Areas (0.74) Step/Column/Growth/Placement/Classification 1.52 Health Benefits (+4.6%) 0.56 Off-Year Board of Trustees Election (0.30) Other Employee Benefits (0.91)

Backup September 3, 2013 Page 9 of 31 Expenditures (continued) FY 2013-14 Contracts and Agreements 0.20 Use of Barnes & Noble Signing Bonus 0.60 Use of Facilities/Customized Training Contracts, etc. 0.23 RCC Useable Common Area Project 0.35 Reduction in Federal Work Study Support (0.11) Utilities 0.10 Reduction in Categorical Backfill (0.47) New Facilities Operating Costs 0.30 Repayment of La Sierra Capital Loans 1.27 Total Expenditure Adjustments 7.39 FY 2013-14 Base Expenditure Budget $ 144.01

Backup September 3, 2013 Page 10 of 31 FY 2007-08 $ 327.4 M FY 2008-09 $ 341.8 M FY 2009-10 $ 360.3 M FY 2010-11 $ 431.6 M FY 2011-12 $ 355.1 M FY 2012-13 $ 314.3 M FY 2013-14 $ 289.2 M

Backup September 3, 2013 Page 11 of 31 Unaudited Beginning Balance, July 1 $ 11.41 M Reduction to Ending Balance (5.05) M Contingency Reserve – 3.8% of Unrestricted Funds $ 6.36 M Contingency Reserve at 5.0% $ 8.18 M

Backup September 3, 2013 Page 12 of 31 State Income $96,935,401 69.75% Federal Income $188,321 Local/Other/Interfund 0.14% Transfer $41,834,367 Total $ 138,958,089 30.11% Federal Income State Income Local/Other/Interfund Transfer

Backup September 3, 2013 Page 13 of 31 Services and Operating Capital Outlay Expenditures Books and Supplies $1,010,689 $15,053,094 $2,368,078 0.70% 10.45% 1.64% Interfund/Intrafund Set-Aside for Potential Transfers $3,665,084 COLA 2.55% $1,571,546 1.09% Employee Benefits $29,663,471 20.60% Academic Salaries $62,443,692 43.37% Classified Salaries $28,231,312 19.60% Total $ 144,006,966 Academic Salaries Classified Salaries Employee Benefits Set-Aside for Potential COLA Books and Supplies Services and Operating Expenditures Capital Outlay Interfund/Intrafund Transfers

Backup September 3, 2013 Page 14 of 31 35,000 30,961 30,813 29,033 26,810 26,785 26,610 30,000 26,203 26,203 26,061 26,051 25,886 25,721 25,607 25,052 25,040 24,738 24,569 24,569 24,175 23,845 23,845 23,509 22,832 22,394 21,944 21,781 25,000 21,057 20,452 20,000 15,000 10,000 5,000 - 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 Projected Projected 2012-13 2013-14 Actual State Funded

Backup September 3, 2013 Page 15 of 31 FY 2013-2014 Credit College Credit FTES FTES % Target RCC 13,924.40 53.80 % NC 5,980.78 23.10 % MVC 5,980.78 23.10 % Total 25,885.96 100.00 %

Backup September 3, 2013 Page 16 of 31 BAM REVISION 2013-2014 � In the Spring 2013, the District Budget Advisory Council (DBAC), three college presidents, and the Chancellor began meeting to revise the existing Budget Allocation Model (BAM). � The goal was to develop a model to meet the needs of a three college district. � Additionally, this effort was in response to surveys conducted by DBAC and the continuous assessment process of the BAM. � The group met numerous times over the spring to review and/or establish budget allocation model: � Principles � Policy and Organizational Considerations � Components

Backup September 3, 2013 Page 17 of 31 BAM REVISION 2013-2014 BAM Principles Considerable time was spent on budget allocation principles. Seven principles were established: Equilibrium in the operating budget Structural balance is maintained through assurance that � ongoing expenditures do not exceed ongoing revenues and that compliance with State and District reserve requirements is maintained. The BAM recognizes that resource allocation is linked to District-wide strategic planning. � The BAM provides for the equitable allocation of available resources to the three (3) colleges � and the District Office, while ensuring compliance with statutory and regulatory requirements. Enrollment management decisions drive the allocation of operational resources. � The BAM is simple, readily communicable and understood, and as easy to administer as � possible. The BAM is defined in measurable terms to maintain objectivity and predictability and so that � the outcome is independently verifiable. The BAM is driven by verifiable data. �

Backup September 3, 2013 Page 18 of 31 BAM REVISION 2013-2014 Policy/Organizational Considerations Also considered were a variety of policy and organizational matters. These are important considerations when it comes to resource allocation, each of which requires substantial discussion, thought and analysis. Four such considerations will be addressed prospectively. They are: Defining the roles of the District vis-à-vis the District’s four major entities in the budget � development and execution processes. Defining the way in which compliance with statutory, regulatory and policy requirements shall be � assured (e.g. FON, 50% Law, categorical match). Defining self-insurance funding. � Defining DSPS services and funding levels. �

Backup September 3, 2013 Page 19 of 31 BAM REVISION 2013-2014 Revision Components Nine revisions to the model were agreed upon to ensure that the BAM was responsive to the way in which the District has evolved as a multi-college district. These revisions will be reviewed in fiscal year 2013-2014 to determine if they have worked as envisioned. The revisions are as follows: RCCD’s BAM will mirror the State funding model for the California Community Colleges for � the basic allocation, full-time-equivalent student (FTES) apportionment, one-time funding, and one-time funding on an annual basis (e.g. Prop 30). The model will comply with budget-related statutory and regulatory requirements (e.g. 50% Law, FON, etc.). The minimum 5% required level of District reserves and funding for the district office will be � the first allocations of the District’s “Total Available Funds” in the Unrestricted General Fund. In recognition that it may be necessary to transition over time to a point whereby each of the � colleges achieve equilibrium between allocated revenues and the expenditures needed to support instructional service levels to students, a separate allocation may be provided. Non-State apportionment, one-time funds, ongoing funds and entrepreneurial revenues (e.g. � Norco College Trading Post, Riverside City College Splash, Nonresident tuition, indirect cost reimbursements, lease/rental income, etc.) that are specific to a particular entity will be retained by the respective college that generates the revenue.