2014-15FINAL BUDGET

September 9, 2014

AGENDA

State Budget Highlights Peralta’s 2014-15 Final Budget

Funding Sources Unrestricted General Fund Parcel Tax Fund

2014-15 Budget Allocation Model Summary

2014-15 STATE BUDGET

4th Consecutive Year the budget passed on time Includes a reserve of $1.4 billion Based on the Governor’s conservative forecast Progress made toward paying down deferrals

Down to $94 million from $592 million before passage of Prop 30

Governor has clearly laid out his path Protect against boom and bust cycles Retire Debt Focus new money on education

Includes a Rainy Day Fund

2014-15 STATE BUDGET Wall of Debt

Budget eliminates $10 Billion in debt Mid year positive trigger would further reduce deferrals to schools

and colleges

Rain Day Fund on November Ballot When capital gains exceed 8% of GF revenues, a deposit to the RDF

is required Half used to pay off debt and liabilities for the first 15 years Allows for withdrawal for disasters or if spending is at or below

highest level of spending of the prior 3 years

CalSTRS – 30 Year obligation of $74.4 billion State GF contribution increase from 3% to 6.3% in 2016-17 Employee rate increase from 8% to 10.25% as of 2016-17 Employer rate increase from 8.25% to 19.1% as of 2021

2014-15 STATE BUDGETThe Budget Bill contained the following community college provisions: Access funds (growth) of $140.4 million (2.75%) Cost of Living Adjustment (COLA) of $47.3 million (.85%) $100 million for Student Success and Support (SSSP)

Match of 2:1 on entire amount

$30 million increase for DSPS $70 million increase for Student Equity Plans $50 million one time increase for the Economic and

Workforce Development program $49.5 million to pay down mandates $148 million for deferred maintenance and instructional

equipment. Flexible locally and specified as one-time.

COMMUNITY COLLEGE WHAT’S NEW Technical Assistance for Chancellors Office

$1.1 million and 9 positions for goal setting and monitoring of institutional effectiveness

$2.5 million for technical assistance to support implementation of effective practices at college

State funding for Career Development and College Program (CDCP) Rate per FTES to be increased to be equal to Credit Rate as of 2015-16

Positive Trigger – Department of Finance can pay down deferrals during the year if Proposition

98 guarantee is higher than estimated

New formula for Growth allocation is effective in 15-16 Proposal to be out late summer/early fall

CAUTIONS AND CONCERNS

Proposition 30 is temporary Sales tax increase terminates at the end of 2016

(Approximately 21% of Prop 30 revenues) Income tax increase terminates at end of 2018

STRS obligation Deficits

Continued exposure to shortfalls in property taxes and fees

OUR DISTRICT - PCCD Access funds (growth) $2.2 million (increase in funded FTES of 430) Cost of Living Adjustment (COLA) $846,989 (.085%) Categorical increases – awaiting on allocations from the State Chancellors

Office $2,366,996 for scheduled maintenance/instructional equipment

Flexible locally and specified as one-time No match except if the funds are used for Architectural Barrier Removal

State Retirement increases to employer rates: STRS .63% increase ; $198,600 PERS .329% increase ; $73,563

Increase in Medical Premiums $979,893 Kaiser 0%; Traditional PPO 26% Lite PPO 24.9% Traditional PPO (Local 39) 22.1% Lite PPO (Local 39) 17.5%

Increase in Workers Compensation rate of .1% estimated cost of $54,500 Increase in OPEB Debt service payment of $1,642,666

ADDITIONAL ASSUMPTIONS USED TO DEVELOP THE BUDGET FTES – Target of 19,355 Residence FTES with funded FTES

from the state of 19,055 Productivity level of 17.5 Unrestricted Lottery dollars funded at $124.25 per funded

FTES State Apportionment deficit factor of 2% Parcel Tax revenue estimated to be $8,053,385

2013-14 UNRESTRICTED GENERAL FUND FINAL BUDGET SUMMARY

Revenue

2014-15Final

Budget

2013-14 Estimated

Actuals

2012-13 Actuals

  Federal Revenue $ - $ - $ - State Revenue $ 67,396,913 $ 65,270,981 $ 64,346,744

  Local Revenue $ 46,682,083 $ 45,137,518 $ 47,174,459Transfer In Revenue $ 13,128,094 $ 11,691,939 $ 9,152,116

  Revenue Total $ 127,207,090 $ 122,100,438 $ 120,673,319Expenses      

  Full Time Academic $ 21,353,690 $ 18,252,185 $ 16,233,586Academic Admin $ 4,864,416 $ 4,214,079 $ 3,466,038

  Other Faculty $ 5,679,831 $ 5,388,306 $ 4,002,127Part Time Academic $ 8,226,114 $ 12,310,320 $ 13,723,964

  Classified Salary $ 24,469,094 $ 21,974,337 $ 20,070,280Fringe Benefits $ 38,598,080 $ 36,409,122 $ 37,216,997

  Books, Supplies, Services $ 15,954,977 $ 14,561,377 $ 12,576,388Equipment Capital Outlay $ 175,836 $ 327,151 $ 148,456

  Debt Service / Transfers $ 7,885,052 $ 7,053,604 $ 9,613,258

  Expense Total $ 127,207,090 $ 120,490,481 $ 117,051,094

Revenue over Expenditures $ 1,609,957 $ 3,622,225  Beginning Fund Balance $ 14,209,208 $ 12,599,251 $ 10,017,896

Audit Adjustments $ - $ - $ -1,040,870

  Ending Fund Balance $ 14,209,208 $ 14,209,208 $ 12,599,251

GENERAL FUND REVENUE SOURCES

Computational Revenue

79%

Out of State/International4%

Other State3%

Other Local3%

Transfer In from OPEB10%

COMPUTATIONAL REVENUE SOURCES

2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 -

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

Student Enrollment FeesProperty TaxProp 30State Aid

2013-14 GENERAL FUND EXPENDITURES

Full Time Academic17%

Academic Admin4%

Other Faculty4%

Part Time Academic6%

Classified Salary19%

Fringe Benefits30%

Books, Supplies, Services13%

Equipment Capital Outlay0%

Debt Service / Transfers6%

MEASURE B – PARCEL TAX

Revenue

2014-15 Final

Budget

2013-14 Estimated Actuals

2012-13 Actuals

  Local Revenue $ 8,055,785 $ 8,056,883 $ 7,683,197

  Revenue Total $ 8,055,785 $ 8,056,883 $ 7,683,197

Expenses      

  Full Time Academic $ - $ - $ -

Academic Admin $ - $ - $ -

  Other Faculty $ - $ - $ -

Part Time Academic $ 6,500,000 $ 5,586,364 $ 3,222,024

  Classified Salary $ 369,702 $ 747,079 $ 247,511

Fringe Benefits $ 624,511 $ 738,164 $ 610,737

  Books, Supplies, Services $ $ 369,470 $ 1,372,129

Equipment Capital Outlay $ - $ 135,600 $ 55,156

  Expense Total $ 7,494,213 $ 7,576,677 $ 5,507,567

Beginning Fund Balance $ 2,655,836 $ 2,175,630

Revenue over Expenditures $ 561,572 $ 480,206 $ 2,175,630

Ending Fund Balance $ 3,217,408 $ 2,655,836 $ 2,175,630

IMPLEMENTATION OF THE BUDGET ALLOCATION MODEL In August of 2010, the Planning and Budgeting Council began

working on the creation of and recommendation to the Chancellor a Budget Allocation Model (BAM)

Purpose to: Move from the existing model to a model that would better serve the

Colleges and District Fully respond to previous Accreditation recommendations

Core Principles: Provide financial stability Consistent with the State’s SB361 funding model Simple and easy to understand Provide for a reserve in accordance with Peralta’s Board Policy Maintain autonomous decision making at the college level Responsive to the District’s and Colleges’ planning processes

BUDGET ALLOCATION MODEL2014-15 Budget Allocation Model Worksheet

Base Allocation:

Total Revenue Allocation $ 128,791,119

Total Exclusions (18,754,797)

Applicable Revenue $ 110,036,322

Alameda Berkeley Laney Merritt

Three Year FTE Rolling Averages 3,534.73

3,683.22

7,524.21

3,784.08

Percentage 19.36% 19.54% 40.66% 20.44%

Revenue Allocation by College $

20,994,479 $

21,876,414 $

44,689,920 $

22,475,510

Out of State and International Allocation 679,856

1,538,321 1,847,239

524,754

DO Service Center Budgets

(4,050,934)

(4,221,105)

(8,623,024)

(4,336,702)

Centralized Services Budgets

(1,181,076)

(1,230,690)

(2,514,098)

(1,264,393)

Net Revenue Allocation by College $

16,442,326 $

17,962,939 $

35,400,036 $

17,399,168

Unrestricted Expenditure Budgets $

15,523,535 $

15,684,256 $

30,961,345 $

17,475,512

Parcel Tax expenditure budgets $

1,448,823 $

1,464,996 $

2,777,320 $

1,442,750

Total Expenditures $

16,972,358 $

17,149,252 $

33,738,665 $

18,918,262

Expenditures (over)/under Net Revenue Allocations by College

(530,032) 813,687

1,661,371

(1,519,094)

Thank you for your time!

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