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 fund ing � $ 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 $ 0

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: District Priorities to be Determined (unallocated $ 7,119,132 balance of 15/16 one-time mandated backlog payment) Adopted Budget Reserves @ 5% (restricted) 9,504,640 Subtotal $ 16,623,772 Stability Fund $ 17,148,334

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

Analysis of FTES

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

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 signe d 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