GOVERNING BOARD STUDY SESSION FISCAL YEAR 2018-2019 BUDGET - - PowerPoint PPT Presentation

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GOVERNING BOARD STUDY SESSION FISCAL YEAR 2018-2019 BUDGET - - PowerPoint PPT Presentation

Aug 17, 2022 277 likes •503 views

GOVERNING BOARD STUDY SESSION FISCAL YEAR 2018-2019 BUDGET DISCUSSION FEBRUARY 5, 2018 PRESENTED BY: DR. DAVID BEA BOARD APPROVED STRATEGIC PRIORITIES 2017-2021 College Strategic Plan Educational Master Plan Facilities Master Plan

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SLIDE 1

GOVERNING BOARD STUDY SESSION FISCAL YEAR 2018-2019 BUDGET DISCUSSION

FEBRUARY 5, 2018 PRESENTED BY: DR. DAVID BEA

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SLIDE 2

BOARD APPROVED STRATEGIC PRIORITIES

  • 2017-2021 College Strategic Plan
  • Educational Master Plan
  • Facilities Master Plan
  • Diversity, Equity, and Inclusion Plan
  • Strategic Enrollment Management

Plan

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SLIDE 3

FY19 BUDGET DEVELOPMENT CALENDAR

Activity December 2017 Governing Board Study Session to discuss the budget outlook and acquire Board direction on potential scenarios and/or key parameters February 5, 2018 Governing Board Study Session to review the budget model and scenarios based on Board feedback at the December Study Session February 7, 2018 Governing Board Meeting to review and approve course fees for 2018-2019 Academic Year March 7, 2018 Governing Board Meeting to review and potentially approve: Employee Benefits; Tuition and Fees; Capital Budget Project List; Salaries and Wages; Budget Priorities; and Proposed Primary Tax Rate and Levy April 11, 2018 Governing Board Meeting to review the proposed Fiscal Year 2018-2019 budget and approve the Publication of Proposed Budget and, if required, Truth in Taxation Notification May 9, 2018 Public Hearing and Special Board Meeting to set tax levies and rates and adopt the Fiscal Year 2018-2019 budget

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SLIDE 4

STUDY SESSION AGENDA

  • Board Direction on FY19 Budget:
  • Salaries & Wages
  • Tuition
  • Property Taxes
  • Revenue Enhancements
  • Expenditure Reductions
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SLIDE 5

FY18 BUDGET SCENARIOS

Scenario A: Delay Impacts for Now with Larger Tuition Increases

  • Small to no reductions for 17-

18 and 18-19. Plan for $15 mil reduction in 19-20

  • Continue to reduce via attrition
  • Mitigate cost increases and

Expenditure Limitation impacts with larger tuition increases

  • No funding to implement

EMP/FMP or other strategic changes until 19-20

  • Large reduction pending due to

Expenditure Limitation Scenario C: Revolutionize the College

  • Reduce current operations by

about $10 mil per year in each of next 3 years

  • Identify programs for elimination

and begin phasing out

  • Eliminate at least one location
  • Significantly reduce

infrastructure/staffing

  • Large and immediate investment in

EMP/FMP

  • Ensure future financial stability and

ability to grow

Scenario B: Rejuvenate the College

  • Reduce current operations by

$5 mil per year in each of next 3 years

  • Identify programs for elimination

and begin phasing out

  • Reduce infrastructure/staffing
  • Implement most of the first 5

years of the EMP/FMP

  • Rely on GO Bonds for some

EMP/FMP projects

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SLIDE 6

FY18 GENERAL AND ACADEMIC FUND POSITIONS

(AS OF NOVEMBER 13, 2017)

Position Type Closed Vacant Filled Grand T

  • tal

Administrators 6.0 42.0 48.0 Faculty 45.0 298.0 343.0 Staff 39.4 103.7 744.5 887.6 Campus Total 11.0 53.5 331.9 396.4 District 28.4 50.2 412.6 491.2 Chancellor 3.6 7.0 10.6 External Relations 7.8 31.0 38.8 Finance/IT 8.0 9.0 120.0 137.0 Facilities/Police 15.4 15.7 168.0 199.1 HR 2.0 7.0 13.0 22.0 Academic/Student Affairs 3.0 7.0 73.6 83.6 Grand T

  • tal

39.4 154.7 1,084.5 1,278.6

  • Staff Positions
  • On target to reduce 100

vacant FTE by start of FY19

  • Reduction of $6.0M in

salaries

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SLIDE 7

PROJECTION: ACTUAL FTSE

  • VS. EXPENDITURE LIMITATION FTSE

5,000 10,000 15,000 20,000 25,000 30,000 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

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SLIDE 8

EXPENDITURE LIMITATION PROJECTIONS

60,000 70,000 80,000 90,000 100,000 110,000 120,000 130,000 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Expenditure Limit (in $1,000s) Fiscal Year

Expenditure Limit Actual Expenses Typical Increases No Tuition Increases FY18 Plan

$10 mil $24 mil We are Here

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SLIDE 9

SUMMARY OF BUDGET CRITERIA

  • Ensure success of the College’s Mission and Strategic Plan
  • Meet all regulatory and compliance requirements
  • Evaluate all programs and services for modification or

elimination

  • Optimally assign human resources and physical assets across

the District

  • Encourage Return on Investment (ROI), process efficiency,

and income-generating initiatives

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SLIDE 10

BUDGET CRITERIA IN ACTION

Budget Criterion Examples

Ensure success of the College’s Mission and Strategic Plan

  • Center of Excellence Community Summits
  • Scheduling Software – System Purchase & Implementation
  • Catalog & Curriculum Management System

Meet all regulatory and compliance requirements

  • Academic Leadership Training
  • Crisis Management Training

Evaluate all programs and services for modification or elimination

  • Program Viability
  • Program Review
  • Service Review
  • Reorganization Plans

Optimally assign human resources and physical assets across the District

  • Summer Scheduling
  • Space Leasing
  • Reorganization Plans
  • Passport Services

Encourage Return on Investment (ROI), process efficiency, and income-generating initiatives

  • CampusLogic – Financial Aid

Verification

  • Enterprise Systems
  • Concur
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SLIDE 11

POTENTIAL REVENUE ENHANCEMENTS

  • Space Leasing & Partnerships
  • Property Taxes
  • Tuition Increase
  • State Aid
  • Charge Fee for Payment

Plans

  • Charge for Merchant

Services Fees

  • Parking Fees
  • Revenue Bonds
  • Increase Employee Benefits

Contribution

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SLIDE 12

PROPERTY TAX RATES: AZ COMMUNITY COLLEGES, FY18

(RATES PER $100 NET ASSESSED VALUATION)

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 $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50

$3.1383 $2.6210 $2.5429 $2.3735 $1.9828 $1.8067 $1.4096 $1.3890 $1.3430 $0.6142

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SLIDE 13

IN-STATE TUITION AND MANDATORY FEES PER CREDIT HOUR: AZ COMMUNITY COLLEGES, FY18

Coconino Mohave Pima Maricopa Pinal Graham Yavapai Yuma/La Paz Cochise Navajo FY 2018 Fees Per Unit $0.00 $7.00 $5.50 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 FY 2018 Tuition Per Unit $105.00 $81.00 $81.50 $86.00 $86.00 $85.00 $83.00 $82.00 $82.00 $72.00 $105.00 $88.00 $87.00 $86.00 $86.00 $85.00 $83.00 $82.00 $82.00 $72.00 $0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 $80.00 $90.00 $100.00 $110.00 $120.00

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SLIDE 14

PEER COMPARISON - PER CREDIT HOUR PUBLISHED OUT

  • OF-STATE

TUITION RATES 2016-17 (IPEDS DATA - IC2016_AY)

$- $100.00 $200.00 $300.00 $400.00 $500.00 $600.00

Tuition per Credit Hour For 2017, PCC had the 16th lowest

  • ut-of-state tuition rate among its

Peers, AZ CCs, Aspen Winners & Peer City Colleges

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SLIDE 15

PEER COMPARISON - PER CREDIT HOUR PUBLISHED IN-STATE TUITION RATES 2016-17 (IPEDS DATA - IC2016_AY)

$- $50.00 $100.00 $150.00 $200.00 $250.00 $300.00

Tuition per Credit Hour For 2017, PCC had the 7th lowest in-state tuition rate among its Peers, AZ CCs, Aspen Winners & Peer City Colleges

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SLIDE 16

TOTAL PCC TUITION & FEES VS. MAX PELL AWARD

(FOR IN-STATE STUDENTS TAKING 12 CREDITS IN BOTH FALL AND SPRING)

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Total Tuition and Fees $1,256 $1,304 $1,352 $1,412 $1,532 $1,652 $1,724 $1,844 $1,974 $2,046 $2,118 Remaining Pell $3,475 $4,046 $4,198 $4,138 $4,018 $3,898 $3,921 $3,886 $3,801 $3,769 $3,802 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000

Max Pell Award

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SLIDE 17

TUITION

  • Increase of $1.00 per credit to

In-state/Resident tuition rate = $450K

  • Guaranteed Tuition
  • Tuition Cap at 15 hours
  • Tuition Cap at 12 hours
  • Tuition Tiers
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SLIDE 18

POTENTIAL EXPENDITURE REDUCTIONS

  • Positions
  • Salaries & Wages
  • Cell Phone Stipends
  • Contracts/Schedules
  • Recess Pay
  • Employee

Recognition/Events

  • Sponsorships
  • Professional Development

Allocations

  • Contractual Services
  • Athletics
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SLIDE 19

LONG TERM REDUCTIONS

  • $2.5M from Student Services
  • $2.5M from Instruction
  • $5.0M from Operations
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SLIDE 20

BUDGET COMMUNICATION PLAN

  • 11/03/17: Budget Development calendar reviewed with the Finance and Audit Committee
  • 11/07/17: Discussion with the ELT regarding the FY19 budget outlook
  • 11/08/17: Budget Development calendar submitted to the Governing Board
  • 11/16/17: Discussion with Student Leadership regarding the FY19 budget outlook
  • 12/04/17: Governing Board Study Session, held in conjunction with the Finance and Audit Committee,

to review the FY19 budget outlook and discuss parameters for the February/March Study Session

  • January: Numbers newsletter to PimaAll
  • January: Budget presentations to faculty, staff, administrators, students, and community members
  • Ongoing: Collaboration with the Finance and Audit Committee
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SLIDE 21

BUDGET MODEL

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SLIDE 22

RESOURCES

  • Budget Criteria
  • February 2017 Expenditure Limitation presentation to the Governing Board
  • June 2017 Adoption of Tax Levies and Rates and Budget for FY18
  • FY18 General Fund Budget Detail
  • November 2017 Report to the Governing Board – Proposed FY19 Budget Calendar
  • November 2017 Preliminary Budget Presentation to Student Leadership
  • December 4, 2017 FY19 Budget Outlook Presentation to the Governing Board
  • January 2018 Budget Forums Presentation