San Juan College March 29 Budget Presentation for Board

8/18/2019 San Juan College March 29 Budget Presentation for Board

1/16

Follow-Up Conversation -FY 2016 Year-End Budget an

Approach to FY 2017 Budge

March 29, 2016


2/16

Take Aways from

March 1, 2016 Budget Discussion

• Oil and Gas Production Tax Revenue is decreasing.

• Enrollments have decreased.

• NM State Budget is experiencing reductions; cuts in

appropriations are expected.

• Changes in Property Tax Revenue are uncertain.


3/16

It’s not just FY 2017

These circumstances are impacting our

budget estimates…


4/16

Impact on Current Year - FY 2016 General Fund

• Oil & Gas Production Tax Revenue is estimated to fall sho

budget by $

•

Tuition, General Fee and Workforce Development Revenestimated to fall short of budget by $

• NM Appropriation will be cut at year end by $

• Sales & Services Revenues are estimated to fall short of b

amounts by $

• Property Tax Revenue is estimated to exceed budget by $

• Decrease in Resources for FY 2016 $1


5/16

Revenues Changes FY2015 to FY 2016

FY15 Year End FY16 Mid-Year

Actual Approved BAR Reco

Tuition & Fees 11,618,389 13,334,854

NM State Appropriations 25,170,340 25,220,300

Local Taxes - Property & Production 14,880,095 14,115,131

Sales & Services 817,567 825,079

Total 52,486,391 53,495,364

Decrease from Mid-Year BAR


6/16

A note about the following recommended measu

• These recommendations were formulated to achieve the following obje

– Prevent overspending of resources at year end, 6/30/2016

– Provide for continued operations for summer semester and lead-in to FY 2017

minimize instructional and service disruptions)

• With only three months remaining in the fiscal year, most of our resour

spent or are committed.

• Most of these tactics are to be considered one-shot measures.

R d i Off D i


7/16

Recommendations to Offset Decrease in

Current Year - FY 2016 General Fund Revenue

• Forego budgeted increase in Fund Balance $

• Reduce transfer to R&R funds –

Defer a large portion of Technology purchases $250,000 –Use undesignated R&R fund balance for

currently planned physical plant projects $251,973 $

• Reduce transfer to 3% Scholarships $

• Charge Auxiliary Enterprise Operations for IT services

and space use (utilities, maintenance, custodial) $

• Zero-out remaining contingency for pay/benefits $

• Other minor changes $

• Total - Measures Recommended to Offset Shortfall $1,


8/16

Moving On To FY 2017 –

Revenue Assumptions

• No increase in tuition or general fee rates

•

Enrollment Level: another 10% decline in headcounanother 2% decline in semester credit hours

• Little or no change in property values

• Possible further decrease in Production Tax Revenue

• Another cut in NM appropriation is anticipated

• Most of the FY2016 year-end revenue decreases wilcarryforward to FY2017 and exacerbate the impact oabove listed assumptions


9/16

Estimated Changes in FY 2017 Revenue

• Decrease in Revenue from Tuition and General Fees $

• Increase in Property Tax Revenue (

• Decrease in Oil & Gas Production Tax Revenue $• Reduction in NM Appropriation $

• Carryforward of FY2016 year-end revenue changes: – Oil & Gas Production Tax Revenue Shortfall $350,000

– Tuition, General Fee & Workforce Dev. Revenue Shortfall $722,134

– Reduced Sales & Service Revenue $291,530

– Increase in Property Tax Revenue ($232,455) $1

• Total Estimated Change in FY2017 Revenue $2


10/16

Revenue Changes FY2015 to FY2017

FY15 Y.E. FY16 Mid-Year FY16 Year End

Actual Approved BAR Recommended B

Tuition & Fees 11,618,389 13,334,854 12,512,72

NM State Appropriations 25,170,340 25,220,300 25,069,30

Local Taxes - Property & Production 14,880,095 14,115,131 13,997,58

Sales & Services 817,567 825,079 533,54

Total 52,486,391 53,495,364 52,113,15

Decrease from Previous Budget (1,382,209

Total Decrease - FY16 Mid-Year to FY17


11/16

Cost and Expenditures Assumptions

• No increase in wage and salary rates

• Change in health benefit cost unknown until July or la

•

We must make changes in the way we do things, deciwe cannot do and stay focused on our mission and co

programs and services.


12/16


13/16

Recommended Changes in FY 2017 Expenditures t

Projected Reductions in Revenue

• Reduced Cost of new IT Management & Services contract

• Sunset KSJE (net of redeployment of 1 employee)

• Change in Herbarium Operation

• Savings from turnover - currently known retirements

• Reduction of 3% Scholarship transfer

• Energy Savings Initiatives

• Improvements in Ancillary Staffing Issues & Efficiencies $

• Other smaller and minor cost reduction measures

• Total – Measures to Reduce Costs and Offset Reduction in Revenue $


14/16

Improvements in Ancillary Staffing Issues & Effic

Possible Areas of Exploration And Evaluatio

•

Class Size• Faculty Load

• Overloads

• Savings From Retirement Turnover

•

Selective reduction in staffing levels through attritionstrategic redeployment of talent

• Program ROI and Viability


15/16

Changing the Way We Do Things to Reduc

• Establish Contract Pricing Agreement for Office Supplies

• Restrict and Reduce Cell Phone Reimbursements

• Explore feasibility of wide-spread use of thin client technology

• Evaluate P-card program

• Evaluate efficiency and cost effectiveness of motor pool

• Reduce travel (cost benefit)

• Negotiate lower credit card fees• Reduce or sunset student print credit (encourage electronic docum

• Establish guidelines for institutionally coordinated technology acq


16/16

Outlook for FY2018

• No further decline in enrollment. Grow enrollment.

• Change in property values uncertain. Stability may be anticip

• No further decrease in Oil & Gas Production Tax Revenue? Smdecrease?

• May anticipate further reduction in NM state appropriation.

San Juan College March 29 Budget Presentation for Board

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