TO: THE DISTRICT BOARD OF TRUSTEES OF VALENCIA COLLEGE · 2020-05-26 · May 27, 2020 . TO: THE...
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May 27, 2020 TO: THE DISTRICT BOARD OF TRUSTEES OF VALENCIA COLLEGE FROM: SANFORD C. SHUGART President RE: 2020-2021 OPERATING BUDGET FRAMEWORK Consistent with our annual process, the 2020-2021 budget framework is presented for preliminary review. The formal approval of the budget will follow on June 24, 2020. RECOMMENDED ACTION: The President recommends that the District Board of Trustees of Valencia College approve the 2020- 2021 Operating Budget framework. This formal approval of the budget will be conducted at the District Board of Trustees of Valencia College meeting on June 24, 2020. ____________________________________ President
Transcript of TO: THE DISTRICT BOARD OF TRUSTEES OF VALENCIA COLLEGE · 2020-05-26 · May 27, 2020 . TO: THE...
May 27, 2020 TO: THE DISTRICT BOARD OF TRUSTEES OF VALENCIA COLLEGE FROM: SANFORD C. SHUGART President RE: 2020-2021 OPERATING BUDGET FRAMEWORK Consistent with our annual process, the 2020-2021 budget framework is presented for preliminary review. The formal approval of the budget will follow on June 24, 2020.
RECOMMENDED ACTION:
The President recommends that the District Board of Trustees of Valencia College approve the 2020-2021 Operating Budget framework. This formal approval of the budget will be conducted at the District Board of Trustees of Valencia College meeting on June 24, 2020.
____________________________________ President
FY 2020-21 Preliminary Budget Summary
District Board of Trustees – May 27, 2020
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Budget Values
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Ability to serve an expected growth in enrollment
Supports long term initiatives
All facilities are available and usable
Applies learnings into budget from the current environment
Wage Increases for full time and part time employees
Enhanced sanitation and safety
Technology growth in service, support and innovation
CARE’s grant impact still evolving
Block Tuition & Fee Rates Structure
Fund 1 Fund 1 Fund 2 Fund 5 Fund 7
Lower Division Tuition Tech Fee Stu. Act. Fin Aid Fee Cap. Imp. Fee Total
2019-20 $82.66 $3.83 $7.07 $3.83 $5.67 $103.06
2020-21 $82.66 $3.83 $7.07 $3.83 $5.67 $103.06
Upper Division Tuition Tech Fee Stu. Act. Fin Aid Fee Cap. Imp. Fee Total
2019-20 $91.79 $3.83 $7.07 $3.83 $5.67 $112.19
2020-21 $91.79 $3.83 $7.07 $3.83 $5.67 $112.19
Out of State Tuition Tech Fee Stu. Act. Fin Aid Fee Cap. Imp. Fee Total
2019-20 $330.53 $15.34 $7.07 $15.34 $22.68 $390.96
2020-21 $330.53 $15.34 $7.07 $15.34 $22.68 $390.96
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No increases to block tuition & fees for the 2020-21 fiscal year
Recurring & Non-recurring State Support
4
$61$69 $67 $69
$80
$87 $86 $88 $90$95
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20PYE
2020-21Budget
Recurring Non-reccurring
Revenue Millions
Could it happen again - 2008 to 2011
5
4%
2%
-3%
0%
4%
10%11% 11%
6%
1%
-5%
-2%
1%1%
0%
3%
5%
3%
5%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
-6.0%
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
VALENCIA COLLEGE FTE & UNEMPLOYMENT RATE
FTE YOY Change Unemployment
- FTE data extracted from The Florida College System Enrollment Estimating Conference August 1, 2018 Meeting packet- Unemployment Rate in Orlando-Kissimmee-Sanford, FL (MSA), Percent, Monthly, Not Seasonally Adjusted data extracted from https://fred.stlouisfed.org
FTE YOY Change Unemployment Rate
Revenue Perspective on Course Modality Shift
6
$3.2
$4.6
715,853
596,620 575,000
470,000
155,924
287,594
410,000
580,000
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
$4.5
$5.0
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20PYE
2020-21Budget
2019-20 Revenue PYE 2020-21 Revenue Budget Face to Face / On site Online
Credit Hours Revenues in Millions
Continuing Education and Language Programs
7
$2.5
$3.1
$3.5 $3.5
$4.3
$3.4$3.6
$0.4
$1.1$1.3
$1.9 $2.0
$2.4
$3.2
$0.5 $0.6$0.9
$1.1 $1.1$0.9 $1.0
$0.3
$0.7 $0.7 $0.8 $0.8$0.5
$0.8
$0.2$0.3 $0.3 $0.3 $0.3 $0.4 $0.4
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
2014-15$3.9M
2015-16$5.7M
2016-17$6.7M
2017-18$7.6M
2018-19$8.5M
2019-20 PYE$7.5M
2020-21 Budget$9.0M
Languages AST Business Agreements Fire Program Other ProgramsRevenue Millions
12.7% 7 year CAGR
In-State Revenues / In-State Tuition Rate
8
$68 $67 $68 $70 $71 $70 $71 $71 $72 $74$76.66 $78.66 $78.66
$82.66 $82.66 $82.66 $82.66 $82.66 $82.66 $82.66
$0
$20
$40
$60
$80
$100
$0
$20
$40
$60
$80
$100
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20PYE
2020-21Budget
In-state Tuition Revenues In-state Tuition RateRevenue Millions
In-state Tuition Rate
0.9% CAGR
Out-of-State Revenues / Out-of-State Fee Rate
9
$8 $8$9
$10
$11$12 $13 $12
$14
$11
$230.13 $236.13 $236.13$247.87 $247.87 $247.87 $247.87 $247.87 $247.87 $247.87
$0
$60
$120
$180
$240
$300
$0
$4
$8
$12
$16
$20
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20PYE
2020-21Budget
Out-of-State Revenues Out-of-State Fee RateRevenue Millions
Out-of-State Fee Rate
3.7% CAGR
10
Operating Revenue BudgetFY 2020-21
Proposed BudgetFY 2019-20 Revenue PYE $212.0
AdjustmentsFederal/private grants, misc. revenue, and investment income ($1.6)
FY 2020-21 Revenue Baseline $210.4
State Appropriations / Internal FundsState funding $4.7
Distance Learning volume $1.4
Operational support $0.2
Enrollment AssumptionsContinuing Education $1.5
Domestic enrollment growth $4.0
Out of State fee revenue ($2.7)
FY 2020-21 Proposed Revenue Budget $219.5
Fund Balance Downside Risk Coverage
$1.2 $2.0
-$3.9
$0.8 $0.4 $0.5
$4.7 $4.0
-$2.7
$1.5 $1.4
$8.9
State Funding25%
Student Enrollment50%
Out-of-State / Intl Enrollments75%
Continuing Education50%
Distance Learning30%
Total
Risk Factor Model Assumptions(Millions)
Risk Adjusted Estimate Budget
FUND BALANCE CALCULATOR
2020-21 RISK ADJUSTED FUND BALANCE PYE $15.5M
2020-21 RISK ADJUSTED FUND BALANCE % 6.8%
How fund balances grow:
• Revenues exceed expenses within a fiscal year
• Investments do not reduce fund balances
Need for fund balances:
• Funding of projects (CAT, CIT, LN)
• Risk coverage • Expense exceed revenues• Unusual/unexpected issues
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Expenditures - Operating Fund
12
81% 83% 84% 84% 83%
15% 15% 14% 14% 16%
4% 2% 2% 2% 1%
0%10%20%30%40%50%60%70%80%90%
100%
2016-17 2017-18 2018-19 2019-20 PYE 2020-21 Budget
Personnel Expenditures Current Expenditures Capital Outlay
$189.0M $198.6M $203.4M $207.0M $219.5M
Excludes Net Pension expense and Non-mandatory Transfers Out
Expenditures - All Categories
13
$214.0
$189.0
$198.6
$203.4
$207.0
$0.0 $50.0 $100.0 $150.0 $200.0 $250.0
2016-17
2017-18
2018-19
2019-20
Budget Actual
Labor54%
Other Services12%
Travel8%
Materials & Supplies
8%
Capital Outlay6%
Professional Fees5%
Utilities4%
Printing & Duplicating
3%
Areas of Favorability
Excludes Net Pension expense and Non-mandatory Transfers Out
2019-20 PYE to 2020-21 Baseline
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$207.0 ($0.2) ($0.1) ($0.1) $0.2
$0.8
$1.7
$200.0
$202.0
$204.0
$206.0
$208.0
$210.0
$212.0
$214.0
2019-20 PYE Travel Printing &Duplicating
Materials &Supplies
Other Services Utilities Equipment Labor 2020-21Baseline
$209.7
$0.4
Select Facultyand Staff positions
15
Operating ExpendituresFY 2020-21
Proposed Budget
FY 2019-20 Expenditures PYE $207.0
Adjustments
Personnel and operating adjustments to PYE $2.7
FY 2020-21 Expenditures Baseline $209.7
Operating Requests
Wage Increase $3.1
FRS Benefits Growth $1.7
Volume $1.4
Grants (CFEED, Title V OSC/EAC, LSAMP) $1.0
Part Time Faculty $0.8
Sanitation and safety (PPE, supplies) $0.8
Strategic Plan Initiatives
CRM $0.4
IT Security $0.3
Baccalaureate Programs $0.3
FY 2020-21 Proposed Expenditures Budget $219.5
Budget Summary
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A. Revenues
• Enrollment growth of 5% built in• No tuition rate changes • State funding adjustments may occur • International and out of state risk• Continuing education growth expected • Modality shift driving distance learning revenue• Fund balance used as a risk mitigation tool
B. Expenses
• Wage increases for both full time and part time• Building off favorability in current year• Faculty growth to support enrollment growth• Initiatives supported • Ability to generate expense savings if volume is not achieved
FY 2020-21 Preliminary Budget Summary
District Board of Trustees – May 27, 2020
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Backup Slides
FY 2020-21 Preliminary Budget Summary
District Board of Trustees – May 27, 2020
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19
$103.06$94.80
$105.23
$115.22
$0.00
$20.00
$40.00
$60.00
$80.00
$100.00
$120.00
$140.00
Tuition Student Financial Aid Student Activity Capital Improvement Technology
FCS 2019-20 Resident Lower Level Tuition and Fees per Credit Hour
FCS 2019-20 Total Tuition and Fees – Upper Level
20
$0.00
$112.00 $112.19$116.85
$129.27
$0.00
$20.00
$40.00
$60.00
$80.00
$100.00
$120.00
$140.00
FCS 2019-20 Tuition Rate – Lower Level
21
$72.92
$79.83
$82.66 $82.78
$66.00
$68.00
$70.00
$72.00
$74.00
$76.00
$78.00
$80.00
$82.00
$84.00
FCS 2019-20 Financial Aid Fee – Lower Level
22
$3.00
$3.83$4.15
$5.54
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
FCS 2019-20 Student Activity Fee – Lower Level
23
$0.00
$4.15
$6.99 $7.07
$8.28
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
$8.00
$9.00
FCS 2019-20 Technology Fee – Lower Level
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$3.50
$3.83
$3.93
$4.14
$3.00
$3.20
$3.40
$3.60
$3.80
$4.00
$4.20
FCS 2019-20 Capital Improvement Fee – Lower Level
25
$5.67
$10.33
$15.88
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
$16.00
$18.00
