June 13, 2016 Kevin McElroy, Vice Chancellor, Business Services - - PowerPoint PPT Presentation

Board of Trustees Presentation 2016-2017 Tentative Budget June 13, 2016

Kevin McElroy, Vice Chancellor, Business Services Raquel Puentes-Griffith, Executive Director, Fiscal Services Joni Hayes, Director, Budget Operations

Review of Projected 6/30/16 Ending Fund Balance

The projected 6/30/16 ending fund balance of

$53.5M will be used as follows:

• $ 12.5M for colleges & Central Services B budget carryover
• $ 2.7M for district-wide carryover (elections costs,

negotiated contract items, EIS/ETS backfill, encumbrance carryforwards)

• $ 7.1M for district priorities to be determined (unallocated

balance of 15/16 mandated backlog payment)

• $ 9.5M to maintain district’s budgeted 5% reserve
• $ 17.1M Stability Fund

Major Revenue Assumptions

State Revenues

0% COLA $ 1.76M augmentation to base apportionment funding $ 2.48M one-time allocation for mandated cost

reimbursement

FTES estimates based on P-2 projections from

2015/16 (261 resident FTES below 2015/16 base)

No growth budgeted for non-resident FTES No deficit factor applied to state apportionment funds

2016/17 Revenue vs. Expenses

Revenue Base Revenue $ 181,309,698 Increase to Base Allocation 1,764,750 One-Time Claims Reimbursement 2,482,415 Total Revenue $ 185,556,863 Total Expenses (190,092,792) 2016/17 Net Deficit $ (4,535,929) Use of Stability Fund (one-time funds) $ 4,535,929 Net Deficit after Use of One-Time Funds $

Projected 2016/17 Fund Balance

Beginning Balance (Projected), July 1, 2016 53,475,921 $ Revenue 185,556,863 $ Expenses and Transfers/Other (190,092,792) Net Change in Fund Balance (Projected) (4,535,929) $ NET FUND BALANCE (Projected), June 30, 2017 48,939,992 $ Less: Designated "B" Budget Carryforwards 12,488,961 $ District-Wide "A" Restricted Carryforwards 2,678,926 Subtotal 15,167,887 $ Less: 7,119,132 $ Adopted Budget Reserves @ 5% (restricted) 9,504,640 Subtotal 16,623,772 $ Stability Fund 17,148,334 $ District Priorities to be Determined (unallocated balance of 15/16 one-time mandated backlog payment)

Variables Impacting Projections for Revenue and Expense

Reduction in state revenue due to potential decline in FTES Decrease in productivity to maximize FTES Final 2015/16 ending balance 2015/16 P-Annual FTES

RDA/EPA state revenue shortfall resulting in Proposition 98 recalculation

Final State budget passage

Foothill-De Anza Enrollment

20,000! 22,000! 24,000! 26,000! 28,000! 30,000! 32,000! 34,000! 36,000! 38,000! 40,000! 06/07! 08/09 ! 10/11 ! 12/13! 14/15! 16/17 Budget!

Tot

• tal FTES!

Non-Resident! Resident!

Analysis of FTES

FHDA Productivity

480! 500! 520! 540! 560! 580! 600! 06/07! 08/09! 10/11! 12/13! 14/15! 16/17 Budget!

Productivity!

WSCH per FTE!

Next Steps

August 29, 2016 – Budget Hearing September 12, 2016 – The Board is scheduled to adopt the final

• budget. By this date,

ü It is expected that the state budget will have been signed ü Summer enrollment and the initial indicators of Fall 2016 enrollment will have been analyzed ü The 6/30/16 ending balance will have been finalized, including the analysis of the restricted and unrestricted funds In addition, our 2016/17 Adopted Budget will be updated as soon as there are any indications of changes that would have a material impact on our projections