Ohlone College 2019-2020 Tentative Budget · OHLONE COLLEGE 2019-2020 TENTATIVE BUDGET ... Stock...
Transcript of Ohlone College 2019-2020 Tentative Budget · OHLONE COLLEGE 2019-2020 TENTATIVE BUDGET ... Stock...
2
Agenda
• State Budget Update
• Community Colleges Proposals
• Ohlone College Tentative Budget
• CCC Sound Fiscal Management Self Assessment Checklist
• Q&A
State Budget Process
January Release of
Governor’s Budget
Jan thru May Legislature Budget
Subcommittee Hearings
May Governor’s May
Revisions
By June 15 Legislature agrees
on a Final State Budget Bill
By June 30 Governor acts on
State Budget
3
State Economic Outlook
• Economic growth expected to slow down
• California remained the 5th largest economy in 2018
• Main risks to outlook include: Stock Market Correction
Global Slow-down
Natural Disasters
Aging Population
Increasing Consumer debt level
• Emphasizes the need for fiscal prudence 4
State Budget Priorities Include:
• Building Rainy Day Reserves • Education • Early Childhood Education • Paying Down Debt/Liabilities • Housing Affordability • Earned Income Tax Credit • Fighting Homelessness
5
California State Budget Proposition 98 Funding
$49.7 $47.3
$58.1 $59.0
$67.1 $69.1 $71.6
$75.5 $78.1
$81.1
$45.0
$50.0
$55.0
$60.0
$65.0
$70.0
$75.0
$80.0
$85.0
Dol
lars
in B
illion
Community Colleges will receive 10.93% of total Prop 98 Funding 6
8
California State Budget – 2019/2020 Changes to Student Centered Funding Formula (SCFF)
• Extend Hold Harmless funding to 2021-22
• Maintain 2018-19 funding rates for 2019-20adjusted by COLA
• Cap growth in the Student SuccessOutcomes at 10%
• Transfer Outcome - Fund the student’sdistrict of residence only
8
The latest on SCFF- Compromise between Legislature and the Governor
Cap the student success allocation to 10% of the total formula allocation
For 2018-19, transfer data is based on publicly available info
Effective 2019-20, transfer data is based on recently enrolled students
Three-year rolling average for the student success metrics
Unduplicated count for the highest award obtained
*Source: School Services of California 9
California State Budget - 2019/2020 Major Revenue Assumptions
Unrestricted Programs State
Proposed Ohlone
Estimates
• Growth (0.55%)• COLA (3.26%)• Mandate Block Grant• Full Time Faculty Funding• Lottery Revenue
$25M $230M
$33M $50M
$151/FTES
∅
$1.6M $240K $324K $1.1M
10
California State Budget - 2019/2020 Major Revenue Assumptions
Restricted Programs State
Proposed Ohlone
Estimates
• Physical Plant and Instructional Equipment
• Student Equity and Achievement Program
• California College Promise Grant
• Student Success Completion Grant
• Strong Workforce Program
• COLA for Categorical Programs
$40M
$475M
$83M
$150M
$248M
$13M
$259K
$2.48M
$294K
$600K
TBD
TBD 11
2019-20 Tentative Budget Major Revenue Assumptions – Unrestricted General Fund (Fund 10)
Categories 2019/20 2020/21 2021/22 2022/23
Base Allocation:
FTES Target
Enrollment Growth
7,303
∅
7,522
3%
7,673
2%
7,673
∅
Supplemental Allocation - Growth ∅ 3% 2% ∅
Student Success Allocation - Growth ∅ 3% 2% ∅
13
2019-20 Tentative Budget Major Expenditures Assumptions – Unrestricted General Fund (Fund 10)
• Steps, Column and Longevity costs $429K
• PERS/STRS rate increases $560K
• Temporary expenditures reduction ($2.3M)
• OPEB cost charged 100% to Fund 10 $503K
• DSPS program backfill $930K
• Parking Fund backfill $200K 14
2019-2020 Tentative Budget Institutional Improvements Objectives (IIOs)
• General Fund (Fund 10): Noncredit Programs Program Review/Planning Tool
• Restricted Funds: First Year Student Experience Noncredit Programs Integrated Professional Development Planning Program Review/Planning Tool
Cost
$25,000 $25,000
TBD $75,000
TBD $25,000
15
Retirement Contributions (STRS/PERS) Unrestricted General Fund (Fund 10)
1.47M 1.87M
2.22M 2.66M
2.71M 2.98M 2.96M 3.00M 3.03M 3.07M 3.11M
1.27M 1.67M
2.04M 2.54M
3.05M 3.56M
3.81M 3.98M 4.14M 4.23M 4.26M
2.74M
3.53M
4.26M
5.20M
5.76M
6.54M 6.77M 6.98M 7.18M 7.30M 7.37M
1.00M
2.00M
3.00M
4.00M
5.00M
6.00M
7.00M
8.00M
0.00M
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 STRS PERS Total
16 *Based on tentative 2019/20 staffing levels and annual step/column increases. Amounts subject to change.
2019-20 Tentative Budget - Unrestricted General Fund (Fund 10) Description
2019-2020 2020-2021 Projected Budget
2021-2022 Projected Budget
2022-2023 Projected Budget Tentative Budget
17Revenue: Apportionment per SCFF Hold Harmless One-time Funds Other Sources
43,814,606 46,818,212 6,452,145 7,655,752
48,295,593 6,466,334 7,690,864
50,479,527 -
7,699,380 7,904,187 7,608,004
Revenue Total 59,326,797 60,926,109 62,452,791 58,178,908
Expenditures Temporary Exp. Reduction
60,353,504 61,785,802 (3,758,727)
62,373,878 (3,758,727)
63,257,351 (3,758,727) (2,349,872)
Expenditures Total 58,003,632 58,027,075 58,615,151 59,498,624
Net Increase/Decrease 1,323,164 2,899,034 3,837,640 (1,319,717)
Beginning Fund Balance 9,975,317 11,298,482 14,197,516 18,035,156
Ending Fund Balance 11,298,482 14,197,516 18,035,156 16,715,440
Fund Balance % of Expenditures 19.48% 24.47% 30.77% 28.09% *Expenditures does not include negotiated settlements. 17
2019-20 Tentative Budget GF Fund 10 Components of the Ending Balance
Description 2018-19
Estimated Actuals Changes 2019-20
Tentative Budget Assigned to: 5% Contingency Reserve 2,983,033 (82,852) 2,900,182 Rainy Day Reserve 4,000,000 1,323,164 5,323,164 Institutional Improvement 768,236 - 768,236
Part Time Faculty Office Hrs. 149,996 (149,996) -Sabbaticals 140,000 - 140,000
Unassigned 1,934,052 232,848 2,166,899
Total Fund Balance 9,975,317 1,323,164 11,298,481 18
2019-20 Tentative Budget Unrestricted General Fund (Fund 10-18) Summary
Fund 10 Fund 12 Unrestricted Program
Description General Distribution
Fund 13 Community Education
Fund 14 Contract
Education
Fund 15 Smith Center
Fund 18 Civic Center
Rentals
Total Unrestricted General Fund
Revenues 59,326,797 15,000 1,521,164 100,000 262,500 358,800 61,584,261
Expenditures 58,003,632 23,942 1,483,036 89,100 262,250 227,000 60,088,960
Net Activity 1,323,164 (8,942)
Beginning Fund Balance 9,975,317 8,942
38,128
204,902
10,900
411,117
250
61,330
131,800
1,039,677
1,495,301
11,701,284
Ending Fund Balance 11,298,481 - 243,030 422,017 61,580 1,171,477 13,196,584
19.48% 21.96% 19
2019-20 Tentative Budget Restricted General Fund and All Other Funds (Fund 20-69) Summary
Description
Fund 20 Categorical
Fund 21 Grants
Fund 25 Parking
Fund 26 Health
Services
Fund 41 Capital Outlay
Fund 43 Measure G
Bond
Fund 69 Internal
Services Fund
Revenues 10,850,735 10,606,354 861,776 325,000 159,500 350,000 503,196
Expenditures 10,850,735 10,606,354 861,776 341,222 279,500 39,700,000 503,196
- - - (16,222) (120,000) (39,350,000) -
- - 136,728 47,488 3,600,217 39,350,000 3,707,038
Net Activity
Beginning FB Ending
Fund Balance - - 136,728 31,266 3,480,217 - 3,707,03820
1. Deficit Spending – Is this area acceptable? YES Is the district spending within their revenue budget in the current year? Has the district controlled deficit spending over multiple years? Is deficit spending addressed by fund balance, ongoing revenue increases, or expenditure reductions?
2. Fund Balance – Is this area acceptable? YES Is the district’s fund balance stable or consistently increasing? Is the fund balance increasing due to on-going revenue increases and/or expenditure reductions?
3. Enrollment – Is this area acceptable? YES/NO Has the district’s enrollment been stable or increasing over the past few years? Are the district’s enrollment projections updated at least semiannually? Are staffing adjustments consistent with enrollment trends? Does the district analyze enrollment and FTES data? Has the district avoided stabilization funding?
22
4. Unrestricted General Fund Balance – Is this area acceptable? YES
Is the district’s unrestricted general fund balance consistently maintained at or above the required reserve minimum of 5%?
5. Cash Flow Borrowing – Is this area acceptable? YES
Can the district manage its cash flow without interfund borrowing? Is the district repaying any TRANs and/or borrowed funds within the required statutory period?
6. Bargaining Agreement – Is this area acceptable? YES
Has the district settled bargaining agreements within new revenue sources during the past three years? Did the district address any budget reductions necessary to sustain total compensation increases (step, column, longevity, etc)?
23
7. Unrestricted General Fund Staffing – Is this area acceptable? YES
Is the district ensuring that it is not using one-time funds to pay for permanent staff or other ongoing expenses? Is the % of the district’s GFU budget allocated to compensation at or less than the statewide average?
8. Internal Controls – Is this area acceptable? YES
Does the district have adequate internal controls to insure the integrity of the general ledger? … to safeguard district assets?
9. Management Information Systems – Is this area acceptable? YES
Is the district data timely and accurate? Are required reports filed in a timely manner? Are key fiscal reports readily available and understandable?
24
10. Position Control– Is this area acceptable? YES / NO Is position control integrated with payroll? Does the district control unauthorized hiring? Does the district have controls over part-time academic staff hiring?
11. Budget Monitoring – Is this area acceptable? YES Is there sufficient consideration to budget related to long-term bargaining agreements? Are budget revisions completed in a timely manner? Does the district openly discuss the impact of budget revisions at the board level? Does the district compile annualized revenue and expenditure projections throughout the year? Are long term debt levels manageable?
12. Retiree Health Benefits – Is this area acceptable? YES Has the district completed a recent actuarial study to determine its unfunded liability? Does the district have a plan for addressing the retiree benefits liabilities?
25
13. Leadership / Stability– Is this area acceptable? YES Has the district experienced recent turnover in its management team (including CEO, CBO, and/or Board of Trustees)?
14. District Liability – Is this area acceptable? YES Has the district performed the proper legal analysis regarding potential litigation that may require the district to increase reserve levels? Has the district set up contingent liabilities for anticipated settlements, legal fees, etc.?
15. Financial Reporting – Is this area acceptable? YES Has the district consistently filed the annual audit report with the Chancellor’s Office on time? Has the district taken appropriate action to address any material findings cited in the annual audit report? Has the district met the 50% Law consistently? Have Quarterly reports been filed on or before stated deadlines? Were they accurate?
26
What is next?
• State Budget by June 30th
• Ohlone 2019-20 Final Budget to the Board on September 11th
27