Fiscal Year 2020-2021 Proposed Budget Governing Board Meeting May - - PowerPoint PPT Presentation

Fiscal Year 2020-2021 Proposed Budget

Governing Board Meeting May 13, 2020 Presented by: Dr. David Bea

Projected Revenues

• Approved tuition and fees

○ $87.00 per credit in-state resident rate, +$1.1M over FY20

• Levy neutral property taxes

○ Growth of existing property, +$2.0M over FY20

• Reduction in:

○ Prop 301 funds ○ Auxiliary revenues ○ Investment earnings

Expenditure Priorities

• Flat enrollment
• Salaries and wages

○ 1.0% increase to salary pools ○ 1.5% increase to adjunct faculty load rate

• $450K for 6 additional advising positions
• $500K for Marketing (sustains half of the FY20 Enrollment Revitalization one-time funds)
• $500K for COVID-19 facilities cleaning and retrofits
• $1.0M in academic efficiency savings
• $11.7M capital budget
• $4.5M in revenue bond debt payments
• ~$1.3M in lease-purchase and certifications of participation debt payments

COVID-19 Impacts

• Enrollment uncertainty

○ Unemployment ○ Higher education landscape: implications and changes

• Revenue losses
• Expenditure Limitation impacts

Adopting the Budget

• Establishes the maximum spending capacity for the fiscal year
• Provides reserves

○ Support new or changing priorities ○ Meet enrollment demand

• Does not require all funds to be expended if fewer programs
• r services are needed
• Allows for future reductions based on lower revenue

projections

Hypothetical -15% FTSE Scenario

Financial Impact Tuition Revenues

• $5,100,000

Reductions Academic Efficiencies

• 2,810,000

Soft Freeze/Positions Closures

• 1,950,000

Operational Reductions

• 340,000

Subtotal

• $5,100,000

Net Expense $ 0 50:1 Ratio - Future Impact

• $2,387,475

Primary Property Tax Levy Detail – Proposed

FY 2020 FY 2021 (Levy Neutral) Net Taxable Value Current Year ($100s) $87,299,649 $91,404,259 Overall Change in Valuation 4.75% 4.70% Change from New Property 1.05% 1.66% Estimated Primary Tax Rate Authorization

(per $100 net assessed valuation)

$1.3758 $1.3373 Primary Tax Levy $120,106,857 $122,100,631 Change from Previous Fiscal Year $1,993,774 Truth in Taxation Levy Increase $0

FY 2011-2021* Budgeted Revenue and Fund Balance by Source

(All funds, in $ thousands, *Proposed)

Budget Comparison – Adopted Fiscal Year 2020 vs. Proposed Fiscal Year 2021

FY 2020 FY 2021

FY 2020-2021 Proposed Budget by Fund, $332.0M (All funds, in $ millions)

FY 2020 Proposed FY 2021 Change General Fund $168.6 $165.9

• $2.7

Capital Fund 76.0 77.2 1.2 Restricted Fund 50.4 65.9 15.5 Designated Fund 14.6 14.9 0.3 Auxiliary Fund 2.2 2.3 0.1 Debt Fund 5.4 5.8 0.4 Total $317.2 $332.0 $14.8

FY 2021 Proposed Budget Expenditures, $332.0M (All funds, in $ millions)

Communication and Next Steps

• May 18 and May 26, 2020 publication of the FY 2021 proposed

budget in the Arizona Daily Star

• May 18, 2020 Press Release on the proposed budget
• June 3, 2020 Public Hearing and Special Board Meeting to

adopt the FY 2021 budget and set property tax levies and rates

Additional Information & Resources

Budget Comparison – Fiscal Year 2020 vs. Fiscal Year 21* General Fund Revenues by Source (In $ millions, *Proposed)

FY20 Proposed FY 21 Change Property Tax Levy $120.1 $122.1 $2.0 Tuition and Fees 42.3 40.3

• 2.0

Other Revenue 4.2 4.1

• 0.1

College Equity 7.4 5.2

• 2.2

Total Resources $174.0 $171.7

• $2.3

Debt Fund Transfer

• 5.4
• 5.8

Total $168.6 $165.9

FY 2021 Proposed Budget Expenditures – General Fund, $171.7M (In $ millions)

General Fund Summary (In $ millions, Proposed for FY 2021)

FY 2020 Proposed FY 2021 Change

Administrators $5.9 $6.2 $ 0.3 Faculty 19.7 18.0

• 1.7

Staff-Classified 39.2 43.4 4.2 Other Compensation 2.8 2.5

• 0.3

Fringe 23.9 25.1 1.2 Subtotal 91.5 95.2 3.7 Operations 29.0 31.9 2.9 Capital 0.3 0.3 0.0 Transfers Designated Fund Capital Debt Service Miscellaneous Net Transfers 20.2 13.3 5.4

• 0.7

38.2 20.1 10.8 5.8

• 5.3

31.4

• 0.1
• 2.5

0.4

• 4.6
• 6.8

Contingency / Reserves 15.0 13.0

• 2.0

Total $174.0 $171.7

• $2.3

Debt Fund Transfer

• 5.4
• 5.8
• 0.4

Total $168.6 $165.9

• $2.7

Designated Fund Summary (In $ millions, Proposed FY 2021)

FY 2020 Proposed FY 2021 Change Professional Development $0.0 $0.5 $0.5 Athletics 1.5 1.9 0.4 Course Fees 3.7 3.7 0.0 Academic Programs 19.9 17.6

• 2.3

Center for Training & Development 2.6 3.0 0.4 Contract Training 1.5 2.5 1.0 Prison Program 0.6 0.5

• 0.1

Public Safety Institute 0.4 0.2

• 0.2

Community Education 0.4 1.0 0.6 Other 2.1 3.1 1.0 Contingency / Reserves 1.3 1.3 0.0 Transfers

• 19.4
• 20.4
• 1.0

Total $14.6 $14.9 $0.3

Restricted Fund Summary (In $ millions, Proposed FY 2021)

FY 2020 Proposed FY 2021 Change Student Financial Aid $29.6 $28.3

• $1.3

Workforce Development (Prop 301) 2.3 3.9 1.6 Arizona State Aid Aviation Fund 0.0 15.0 15.0 Grants Health Profession Opportunity Grant (HPOG) 3.0 3.0 0.0 Adult Education 3.6 3.3

• 0.3

Title III – Improving graduation rates, particularly STEM 0.8 1.3 0.5 Title V – Developing Hispanic Serving Institutions 0.5 0.7 0.2 TRIO (Upward Bound, Student Support Services, Talent Search) 2.5 2.8 0.3 Federal Funds Contracts 0.9 4.0 3.1 Other 2.4 0.6

• 1.8

New Grants 4.8 3.0

• 1.8

Total $50.4 $65.9 $15.5

Capital Fund Summary (In $ millions, Proposed FY 2021)

Budget Year Projects FY 2020 Proposed FY 2021 Change General Capital Projects $12.3 $11.0

• $1.3

Technology Fee Projects 0.7 0.7 0.0 Capital Lease Projects 2.3 0.0

• 2.3

Total Budget Year Projects $15.3 $11.7

• $3.6

Centers of Excellence Projects 60.0 75.0 15.0 Carry Forward Projects 15.0 15.0 0.0 Contingency / Reserves 1.0 1.0 0.0 Total All Projects $91.3 $102.7 $11.4 Less Transfers from Other Funds Proposition 301 Funding

• 2.3

0.0 2.3 Aviation Center Funding 0.0

• 15.0
• 15.0

General Fund Transfer

• 13.3
• 10.8

2.5 Other Funds Support (including grants) 0.3 0.3 0.0 Net Budget $76.0 $77.2 $1.2

Auxiliary Fund Summary (In $ millions, Proposed FY 2021)

FY 2020 Proposed FY 2021 Change Food Service $0.1 $0.1 $0.0 Business Relations 0.2 0.3 0.1 Rentals 0.2 0.2 0.0 Transfers 0.7 0.7 0.0 Contingency / Reserves and Other 1.0 1.0 0.0 Total $2.2 $2.3 $0.1

Debt Fund Summary (In $ millions, Proposed FY 2021)

FY 2020 Proposed FY 2021 Change Lease Purchases $1.0 $0.6

• $0.4

Certificates of Participation 0.0 0.7 0.7 Revenue Bonds 4.4 4.5 0.1 Total $5.4 $5.8 $0.4

Reconciliation of Proposed FY 2021 Budget To Published State Format

(All funds, in $ millions)

PCC Budget as presented Transfers PCC Budget

• n State Forms

General $171.7 Designated 14.9 Total General Fund $186.6

• $10.9

$175.7 Auxiliary 2.3

• 0.8

1.5 Restricted 65.9

• 19.6

46.3 Capital 77.2 25.5 102.7 Debt Service 5.8 5.8 Total $332.0 $0.0 $332.0