FISCAL YEAR 2018-2019 PROPOSED BUDGET MAY 9, 2018 PRESENTED BY: DR. DAVID BEA
BOARD APPROVED STRATEGIC PRIORITIES • 2017-2021 College Strategic Plan • Educational Master Plan • Facilities Master Plan • Diversity, Equity, and Inclusion Plan • Strategic Enrollment Management Plan
FY18 BUDGET SCENARIOS Scenario A: Delay Impacts for Scenario B: Rejuvenate the Scenario C: Revolutionize the Now with Larger Tuition College College Increases Reduce current operations by • Reduce current operations by • Small to no reductions for 17- about $10 mil per year in each of • $5 mil per year in each of next 3 18 and 18-19. Plan for $15 mil next 3 years years reduction in 19-20 Identify programs for elimination • Identify programs for elimination • Continue to reduce via attrition and begin phasing out • and begin phasing out Mitigate cost increases and Eliminate at least one location • • Reduce infrastructure/staffing Expenditure Limitation impacts • Significantly reduce • with larger tuition increases infrastructure/staffing Implement most of the first 5 • No funding to implement • years of the EMP/FMP Large and immediate investment in • EMP/FMP or other strategic EMP/FMP Rely on Revenue Bonds for changes until 19-20 • some EMP/FMP projects Ensure future financial stability and • Large reduction pending due to • ability to grow Expenditure Limitation
EXPENDITURE LIMITATION PROJECTIONS
KEY BUDGET COMPONENTS - REVENUES • Approved Tuition and Fees • $82.50 per credit in-state resident rate, +$450K • Credit Card Convenience Fee, +$400K • $10 fee per payment plan, +$100K • Proposed Property Tax Levy Increase of 2% (levy max), +$2.4M • Proposed Revenues – All Funds $300.6M • Proposed Revenues – General Fund $154.9M
KEY BUDGET COMPONENTS - EXPENDITURES • Reduction of approximately 3 administrator, 51 staff, and 10 instructional faculty positions • Maintenance of the 2.5% increase to salaries • Capital Budget of $10.3M • Revenue Bond Debt of $4.5M • Lease Purchase Debt of $1.1M • Proposed Expenditures – All Funds $300.6M • Proposed Expenditures – General Fund $154.9M
BUDGET COMPARISON – ADOPTED FISCAL YEAR 2018 VS. PROPOSED FISCAL YEAR 2019 Adopted Fiscal Year 2018 Budget Revenues - $246.1M Proposed Fiscal Year 2019 Budget Revenues - $300.6M (all funds, in $ millions) (all funds, in $ millions) Other Revenue Other Revenue $7.8 $4.8 College Equity 2% 2% $27.8 11% Bond Proceeds $56.0 19% Property Tax Revenue Property Tax $116.5 Revenue Tuition & Fees 39% $112.1 $48.2 College Equity 46% 19% $23.8 8% Grants, Contracts, Financial Tuition & Fees Grants, Contracts, Aid $48.8 Financial Aid $53.2 16% $47.7 22% 16%
PRIMARY PROPERTY TAX LEVY DETAIL – PROPOSED FY 2019 FY 2019 FY 2018 Levy Neutral Proposed Net Taxable Value Current Year ($100s) $ 80,749,577 $ 83,338,929 $ 83,338,929 Overall Change in Valuation 3.30% 3.21% 3.21% Change from New Property 1.43% 1.86% 1.86% Estimated Primary Tax Rate Authorization $ 1.3890 $ 1.3709 $ 1.3983 (per $100 net assessed valuation) Primary Tax Levy $ 112,161,162 $ 114,249,338 $ 116,532,824 Change from previous fiscal year $ 2,088,176 $ 4,371,662 Truth in Taxation Levy Increase $ 2,241,800
AZ COMMUNITY COLLEGES PROPERTY TAX RATES FY 2018 (RATES PER $100 NET ASSESSED VALUATION) $3.50 $ 3.1383 $3.00 $ 2.6210 $ 2.5429 $ 2.3735 $2.50 $ 1.9828 $ 1.8067 $2.00 $ 1.4096 $ 1.3890 $ 1.3430 $1.50 $1.00 $ 0.6142 $0.50 $0.00 Graham Yuma/La Paz Pinal Cochise Yavapai Navajo Maricopa Pima Mohave Coconino Secondary Tax Rate $- $0.3632 $0.3099 $- $0.2001 $- $0.2140 $- $- $0.1326 Primary Tax Rate $3.1383 $2.2578 $2.2330 $2.3735 $1.7827 $1.8067 $1.1956 $1.3890 $1.3430 $0.4816
FY 2009-2019* BUDGETED REVENUE AND FUND BALANCE BY SOURCE (ALL FUNDS, IN $ THOUSANDS, *PROPOSED) $325,000 $300,000 $275,000 $250,000 Bond Proceeds $225,000 Fund Balance $200,000 $175,000 Grants, Contracts & Financial Aid $150,000 Other Revenue $125,000 $100,000 Tuition & Fees $75,000 Property Taxes $50,000 $25,000 State Aid (Operations + Capital) $- FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019*
BUDGET COMPARISON – FISCAL YEAR 2018 VS. FISCAL YEAR 2019* GENERAL FUND REVENUES BY SOURCE (IN $ MILLIONS, *PROPOSED) Proposed Other Revenue College Equity 0.4% 1.6% FY18 FY19 Change Tuition and Fees Property Tax Levy $ 112.1 $ 116.5 $ 4.4 25.5% Tuition and Fees 40.4 40.9 0.5 Other Revenue 0.6 0.6 0.0 College Equity 5.3 2.5 -2.8 Total Resources $ 158.4 $ 160.5 $ 2.1 Property Tax Levy Debt Fund Transfer -5.6 72.6% Total $ 154.9
FY 2018-2019 PROPOSED BUDGET EXPENDITURES – GENERAL FUND, $154.9M (IN $ MILLIONS) Administrators $6.0 Transfers 4% $24.8 Capital 16% $0.5 Faculty 0.3% $21.6 14% Contingency / Reserves $9.2 6% Staff-Classified $39.0 25% Operations $27.6 18% Other Compensation Fringe Benefits $2.7 $23.5 2% 15%
FY 2018-2019 PROPOSED BUDGET EXPENDITURES, $300.6M (ALL FUNDS, IN $ MILLIONS) Administrative Personnel, $6.3, 2% Contingency and Reserves, $17.6, 6% Faculty, $21.8, 7% Student Financial Aid, $30.7, 10% Additional Compensation-Faculty, $1.0, 0% Other Expenditures, $6.7, 2% Adjunct Faculty, $13.1, 4% Current Fixed Charges, $1.7, 1% Supplies and Materials, $8.6, 3% Classified Staff, $48.8, 16% Contractual Services, $18.1, 6% Other Compensation, $4.9, 2% Travel, $3.7, 1% Student Employment, $0.5, 0% Communications and Utilities, $5.8, 2% Fringe Benefits, $29.1, 10% Capital Equipment, $82.2, 27%
COMMUNICATION AND NEXT STEPS • May 28 and June 4, 2018 publication in the Arizona Daily Star • Proposed Budget • Truth in Taxation – Notice of Tax Increase • May 28, 2018 Press Release on the proposed budget and Truth in Taxation • June 13, 2018 Public Hearing and Special Board Meeting to adopt the FY 2019 budget and set property tax levies and rates
QUESTIONS?
ADDITIONAL CHARTS, INFORMATION, & RESOURCES
PROJECTION: ACTUAL FTSE VS. EXPENDITURE LIMITATION FTSE 30,000 25,000 20,000 15,000 10,000 5,000 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Audited FTSE CTE Weight EL FTSE
BUDGETED GENERAL FUND REVENUE SOURCES AS A PERCENT OF TOTAL REVENUE (EXCLUDES COLLEGE EQUITY LIKE USE OF FUND BALANCE / RESERVES / SAVINGS TO MORE CLEARLY SHOW REVENUE FROM EXTERNAL SOURCES, *PROPOSED) 80% 70% 60% 50% 40% 30% 20% 10% 0% FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019* Property Tax 62% 60% 62% 62% 64% 66% 69% 72% 73% 74% Tuition 24% 28% 32% 32% 31% 29% 31% 27% 26% 26% State Aid 13% 11% 5% 5% 5% 4% 0% 0% 0% 0% Other 1% 0% 1% 1% 1% 1% 0% 0% 0% 0%
PCC PRIMARY, SECONDARY, & COMBINED TAX RATES (FISCAL YEARS 2000-2019*) 1.7500 Proposed 1.3696 1.3983* 1.5000 1.2500 Levy Neutral 1.3709 1.0000 0.7500 0.5000 0.2500 0.0000 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019* Primary Property Tax Rate 1.1626 1.1709 1.1455 1.1530 1.1358 1.1143 1.0930 1.0570 1.0191 0.9787 0.9356 0.9755 1.0846 1.1484 1.2746 1.3344 1.3689 1.3733 1.3890 1.3983 Secondary Property Tax Rate 0.2070 0.3865 0.4015 0.3803 0.3526 0.2285 0.2184 0.1945 0.1654 0.1502 0.1414 0.1093 0.0248 0.0257 0.0187 0.0000 0.0000 0.0000 0.0000 0.0000 Combined Primary + Secondary Tax Rates 1.3696 1.5574 1.5470 1.5333 1.4884 1.3428 1.3114 1.2515 1.1845 1.1289 1.0770 1.0848 1.1094 1.1741 1.2933 1.3344 1.3689 1.3733 1.3890 1.3983 * proposed
PCC SALARIES & FTSE FY 2003-2018 (BUDGETED, ALL FUNDS BY FISCAL YEAR) $90,000,000 24,000 $80,000,000 22,000 20,000 $70,000,000 18,000 $60,000,000 16,000 14,000 $50,000,000 FTSE 12,000 Dollars $40,000,000 10,000 $30,000,000 8,000 6,000 $20,000,000 4,000 $10,000,000 2,000 $0 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018* Staff $32,133,946 $34,280,875 $35,868,297 $37,682,081 $39,483,632 $42,778,944 $43,181,009 $37,953,841 $42,148,993 $45,599,991 $47,060,059 $46,831,669 $49,453,273 $53,645,008 $54,411,915 $54,845,091 Faculty $17,595,382 $17,943,050 $19,985,652 $20,930,328 $21,801,158 $23,072,134 $23,442,431 $23,461,655 $24,227,479 $23,858,356 $24,294,337 $24,508,824 $25,025,370 $24,647,440 $22,941,718 $23,102,563 Administrators $4,743,030 $4,983,465 $5,269,538 $5,494,824 $5,774,937 $6,816,417 $7,135,400 $6,291,692 $6,701,482 $6,553,160 $6,844,161 $6,973,001 $7,196,004 $6,643,627 $6,414,826 $6,451,207 FTSE* 20,611 20,425 20,393 19,993 19,807 20,222 20,889 22,021 22,907 22,028 19,514 17,963 16,458 15,382 14,779 14,900 * FY 2018 FTSE is estimated
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