Fiscal Year 2017 Proposed Budget Board of Governors Meeting May - PowerPoint PPT Presentation

Finance and Administration Finance and Administration Fiscal Year 2017 Proposed Budget Board of Governor’s Meeting May 11, 2016 Presented by: David Bea, Ph.D. www.pima.edu www.pima.edu

Finance and Administration Fiscal Year 2017 Budget Calendar December 2015 • Fiscal Year 2017 Budget Planning Presentation was made to the Board of Governors during Study Session. • Fiscal Year 2017 Budget Planning and Outlook presentation was made to the Board of Governors • Fiscal Year 2017 Budget Outlook presentations were made at numerous College locations February 2016 • Fiscal Year 2017 Budget Planning and Tuition presentation was made to the Board of Governors during Study Session • Property tax levy letter was received from Pima County • Fiscal Year 2017 Budget Outlook presentations were made at numerous College locations • Fiscal Year 2017 Budget Outlook presentation was made to Student Leaders • Fiscal Year 2017 Budget Outlook and Tuition presentation was made to the Finance and Audit Committee March 2016 • Academic Year 2017 tuition and fees were presented to the Board of Governors and approved • Employee benefits contracts for fiscal year 2017 were presented to the Board of Governors and approved • SB 1322 was signed into law by Governor Ducey • Fiscal Year 2017 Budget Outlook and Revenue presentation was made to the Finance and Audit Committee April 2016 • Fiscal year 2017 Capital Budget and Projects were presented to the Board of Governors and approved www.pima.edu

Finance and Administration Fiscal Year 2017 Budget Calendar (continued) • Fiscal Year 2017 Budget Overview was presented to the Executive Leadership Team • Proposed fiscal year 2017 preliminary budget, tax rate, and tax levy with a request for approval to allow publication according to statutory guidelines are presented to the Board of Governors May 2016 • Proposed fiscal year 2017 budget and 'Truth in Taxation Notice of Tax Increase' (if necessary) are published and a press release is distributed as required by Arizona Revised Statutes • Proposed fiscal year 2017 budget and 'Truth in Taxation Notice of Tax Increase' (if necessary) are published as required for a second time as required by Arizona Revised Statutes • A Public Hearing is scheduled on the proposed fiscal year 2017 budget, property tax rates and levies • A Special Meeting is scheduled to vote on the budget and property tax levies and rates and by a roll call June 2016 vote to levy the proposed property tax and vote to approve the proposed budget • The documents are transmitted to the Property Tax Oversight Commission as required by Arizona Revised Statutes July 2016 • On July 1, 2016 the fiscal year 2017 budget is implemented for the new fiscal year www.pima.edu

Finance and Administration Budget Communications • Budget Outlook presentations were made to: – Student Leaders – Finance and Audit Committee – Executive Leadership Team – Board of Governors – Faculty and Staff at 9 different locations • Created survey for continuous improvement and feedback – All presentations available on Budget webpage https://www.pima.edu/administrative-services/finance/budget/index.html • • Strategic Planning Committee, Budget Subcommittee • Numbers! – PCC’s Finance Newsletter www.pima.edu

Finance and Administration PCC Strategic Plan 2014-2017 1. Reaffirm HLC accreditation and fully commit to the HLC guiding values 2. Improve access and student success 3. Foster partnerships to strengthen educational opportunities in response to community needs 4. Improve responsiveness to the needs of business community and economic development opportunities 5. Increase diversity, inclusion, and global education 6. Develop a culture of organizational learning and employee development https://www.pima.edu/about-pima/strategic-plan/docs/strategic-plan-district-wide-2014-17.pdf www.pima.edu

Finance and Administration Strategic Planning Committee, Budget Subcommittee - Criteria for Budgetary Decisions • Resources will be allocated to ensure the success of the College’s priorities as outlined in our Missions, Goals, and Strategic Plans. • All regulatory and compliance requirements will continue to be met and funded. • All programs and services will be evaluated in terms of their benefits, costs, relevancy, and impact to our students, and external community, including businesses and transfer institutions. – Underperforming areas, once identified, should be modified or eliminated. – As new needs arise, funds will be needed for new programs and services. • Human resources should be optimally assigned throughout the district. – In-house talent, retraining, and cross training may be considered before external hiring occurs. – Unit functionality and efficiency will be promoted, meaning that employee assignments correspond to real needs, student enrollment, and organizational demands. – All services need not be offered at all locations. • Physical assets will be optimally utilized throughout the district. • Return on investment, process efficiency, and income-generating initiatives need to be explored in order to continuously improve and adapt. www.pima.edu

Finance and Administration Major Factors Impacting Budget • No State Appropriations or State Aid for Capital equipment • Continued Enrollment Declines • Expenditure Limitation • Ongoing College Reorganization • Facility intensive structure throughout County www.pima.edu

Finance and Administration Expenditure Limitation (EL) Cost Reduction Strategies • Reorganization/Reductions – Campus/Department Consolidation – Hiring / Recruitment Reviews and position eliminations – Budgeting for expected faculty positions • Minimizing Capital Budget Expenses • Lease purchase equipment vs. purchase • Funding for ongoing and future capital needs – Educational and Facilities Master Plans – Resource reallocation/consolidation $  $ – Program innovation www.pima.edu

Finance and Administration Change in Number of Vacant Positions by Month and Personnel Account Code 175 150 125 Non Exempt 100 Exempt Instructional 75 Academic Support Administrators 50 25 0 Sep 2015 Oct 2015 Nov 2015 Dec 2015 Jan 2016 Feb 2016 Mar 2016 Apr 2016 www.pima.edu

Finance and Administration Revenues http://www.jpacaz.org/index.asp www.pima.edu

Finance and Administration FY 2017 Revenue Summary Tuition and Fees – $3.00 increase to in-state resident tuition, from $75.50 per unit to $78.50 per unit • 2 nd lowest in-state resident tuition rate among Arizona community colleges for 2017 – New Life-Long Learner tuition discount – Tuition cap at 15 credit hours – Decreases to out-of-state non-resident tuition rates in order to ensure that we are competitive with peer institutions yet still cover the cost of education Property Tax – Primary • Growth of 1.89%, $2.0 million • Levy Increase of 1.0%, $1.1 million – Secondary • $0.00 – No Debt! State Based Funding – $0.00 - Operating State Aid – $0.00 - STEM and Workforce programs State Aid – $100,000 increase in Proposition 301 funding www.pima.edu

Finance and Administration FY 2017 AZ Community Colleges In-State Resident Tuition Rates + Fees per unit $110.00 $100.00 $90.00 $80.00 $70.00 $60.00 $50.00 $40.00 $30.00 $20.00 $10.00 $0.00 Yuma/La Navajo - Pinal - Graham - Coconino Mohave Maricopa Pima Cochise Yavapai Paz - AZ Northland Central Eastern Western Pioneer FY 2017 Fees Per Unit $0.00 $7.00 $0.00 $0.00 $5.50 $0.00 $0.00 $0.00 $0.00 $0.00 FY 2017 Tuition Per Unit $102.00 $81.00 $86.00 $84.00 $78.50 $80.00 $80.00 $79.00 $79.00 $70.00 www.pima.edu

Finance and Administration FY 2016 + 2017 AZ Community Colleges In- State Resident Tuition Rates + Fees per unit $120.00 $100.00 $80.00 $60.00 $40.00 $20.00 $0.00 Yuma/La Navajo - Pinal - Graham - Coconino Mohave Maricopa Pima Paz - AZ Cochise Yavapai Northland Central Eastern Western Pioneer FY 2016 Tuition + Fees Per Unit $99.00 $88.00 $84.00 $82.00 $81.00 $78.00 $69.33 $77.00 $75.00 $68.00 FY 2017 Tuition + Fees Per Unit $102.00 $88.00 $86.00 $84.00 $84.00 $80.00 $80.00 $79.00 $79.00 $70.00 www.pima.edu

Finance and Administration Property Tax Levy Detail - Proposed (per $100 net assessed valuation) FY 2017 FY 2017 FY 2016 Levy Neutral 1% Increase Primary Tax Rate $ 1.3689 $ 1.3597 $ 1.3733 % Change in Tax Rate 2.6% -0.7% 0.3% Secondary Tax Rate $ 0.0000 $ 0.0000 $ 0.0000 % Change in Tax Rate 0.0% 0.0% 0.0% Combined Primary and Secondary Rates $ 1.3689 $ 1.3597 $ 1.3733 % Change in Tax Rates 2.6% -0.7% 0.3% Difference in Combined Tax Rates $ -0.0092 $ 0.0044 www.pima.edu

Finance and Administration Primary Property Tax Levy Detail – Proposed FY 2017 FY 2017 FY 2016 Levy Neutral 1% Increase Net Taxable Value Current Year ($100s) $ 76,203,609 $ 78,166,998 $ 78,166,998 Overall Change in Valuation 1.36% 2.58% 2.58% Change from New Property 1.94% 1.89% 1.89% Estimated Primary Tax Rate $ 1.3689 $ 1.3597 $ 1.3733 Authorization (per $100 net assessed valuation) Primary Tax Levy $ 104,315,120 $ 106,283,667 $ 107,346,737 Change from previous fiscal year $ 1,968,547 $ 3,031,617 Truth in Taxation Levy Increase $ 1,063,070 www.pima.edu