Notice of Tentative Budget. Finance & Audit Committee June 12, 2013

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Aleesha Matthews
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1 Notice of Tentative Budget Finance & Audit Committee June 12,

2 Total Tentative Budget All Funds 6 2

3 Proposed Tentative Budget All Funds =$3,181,503,141 APPROPRIATIONS Proposed Actual Final Budget Tentative Budget Unrestricted General Fund 515,254, ,670, ,819,093 Restricted General Fund 90,815,197 82,943,271 43,674,829 Cafeteria 2,364,281 2,506,327 2,298,974 Bookstore 21,780,325 27,792,132 28,103,298 Child Development Centers 8,672,212 4,134,381 2,123,752 Special Reserve 45,521,752 23,884,053 15,555,096 Building Fund 383,318,174 2,444,328,101 2,279,033,680 Debt Services 17,218,260 5,310,000 5,315,000 Student Financial Aid 239,594, ,705, ,827,643 Less Inter/Intra-fund Transfers (13,142,171) (8,017,064) (8,248,224) TOTAL BUDGET 1,311,397,325 3,470,257,827 3,181,503,141 3

4 PROPOSED TENTIVE BUDGET Summary of all Funds Three-Year Comparison 4

5 Finance and Audit Committee Presentation TOPICS FOR DISCUSSION State Budget Update and Effects on LACCD Budget Development Proposed Tentative Budget - Unrestricted General Fund 5

6 Governor s May Revise May Revise proposes Proposition 98 funding of $56.5 billion in fiscal and $55.3 billion in fiscal year for K-12 and Community Colleges. May Revise reflects a $2.8 billion increase in Proposition 98 funding in current year and a projected decrease of $1.8 billion in budget year for K-12 and Community Colleges. Governor proposes to use these one-time funds to reduce the deferrals of payments to schools and community colleges and to support the implementation of new academic standards. Governor proposes the following funding for California Community Colleges -- Current year $340 million deferral buy down -- Budget year approximately $300 million augmentation to community colleges -- Withdrawn - Adult Education Proposal, 90-unit Cap Proposal, and Census Proposal. 6

7 Impact on LACCD Budget Budget Year (about $300 million increase in funding) Apportionment $227 m for CCC (about $30 m more than January s Proposal) $87.5 m for COLA (1.57%) => LACCD = $7.3 m $89.5 m for Restore Access (1.63%) => LACCD = $7.1 m $50 m Increase for Student Access and Support (former Matriculation Program) => LACCD =$9 m (Restricted) Other Additional Funding $30 m for Adult Education (applied toward 2-yr planning and implementation) $16.9 m for Delivery of Online Courses through Technology $1.5 m additional in funding for Proposition 39 for total of $51 m $64.5 m additional deferral buy down LACCD $6 m reduction (from $76 m to $70 m) Other Proposal Policies: 90-unit cap proposal - withdrawn Adult Education Proposal - withdrawn Online proposal doesn t change Require FAFSA for Waiver Require BOG to develop process for determining student independence. Allow one term grace period for completion of FAFSA Current Year ($340 m deferral buy down) Additional deferral buy down - LACCD =$26 m (from $102 m to $76 million) State to backfill any shortage in property tax related to the dissolution of RDAs 7

8 State Budget Update Senate Version Assembly Version Conference Committee To be updated on Monday or Tuesday with comparison using the latest state budget update. 8

9 FY Budget Development Projected Balances and Current Reserves FTES Budget Assumptions Proposed Tentative Budget 9

10 FY Budget Development FY Projected Balance Projected Revenue Projected Expenditures Revenue over Expenditures $ m m $5.89 m Prior Year Adjustments 1.27 m Mid-year deficit (0.00 m) Balances Carried Forward for $74.68 m Projected Ending Balance $81.84 m % of Projected Expenditures 16.15% 10

11 FY Budget Development Current Reserves General Reserve = $23.49 m (5%) Contingency Reserve = $24.37 m (5%) Contingency Reserve (@7.5%) $35.24 m Uses of Contingency Reserve to date: Accreditation Planning Activities (0.738) m Redistributed to Colleges (2.5%) (9.988) m Faculty Hiring (FON) Subsidy (0.140) m Remaining Contingency Reserve $24.37 m Deferred Maintenance Reserve (0.5%) $ 2.35 m 11

12 FY Budget Development Contingency Reserve Funds Set Aside from new revenue May be used during current year, for example, mid-year budget corrections Requires Board Approval to be used General Reserve Funds set aside from the previous year s ending balance May not be used during the current year for appropriations or expenditures Ensures minimum level of balances available to be carried forward for future fiscal years 12

13 FY Budget Development FTES Second Period FTES = 97,759 FTES Funded FTES = 96,840 FTES 936 unfunded FTES or about 1% over cap Budget Year Targets = 98,776 FTES Planning Growth Target = 2% or 1,936 FTES 13

14 Budget Development Revenue Assumptions Revenue Adjustments Reduce COLA and Restoration/Growth based on May Revise: COLA 1.57% Restoration/Growth 1.63% Allocation Assumptions: Maintain college and district allocations at the Preliminary Budget Level based on the Governor s Proposed Budget No COLA and Growth Reduction/Adjustments to locations pending State s Adopted Budget Maintain a 5% General Reserve Reserve and a 5% Contingency Reserve No distribution of the projected balances until year end. 14

15 PROPOSED TENTIVE BUDGET Unrestricted General Fund 15

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18 PROPOSED TENTIVE BUDGET Budget Planning for Final Budget Budget Development Revenue Assumptions are based on the Governor s May Revise, potential changes will be made for Final Budget when State Budget is adopted. Increase funding for categorical programs and one-time funding programs. Open Orders and Balances. 18

19 Supplemental Information 19

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Santa Barbara City College Budget Forum

Santa Barbara City College Budget Forum February 2014 February 20, 2014 IDC 220 8:30 9:30 am February 26, 2014 PS 128 2:10 3:30 pm BUDGET FORUM Full Time Equivalent Student Restoration Projection Comparison