Budget and Planning Subcommittees Meeting Agenda January 10, :15 pm Room 610 Haaren

Transcription

1 Budget and Planning Subcommittees Meeting Agenda January 10, :15 pm Room 610 Haaren 1. Approval of Minutes for November 10, Proposed minutes are attached. 2. Budget Presentation and Discussion. Steve and Mark will review the Powerpoint sent to all previously, and attached here. 3. New Business.

2 Joint Meeting: SPS FPS Minutes January 10, 2017 Present: Jane Bowers, James Llana (SPS Chair), Steven Titan (FPS Chair), Ric Anzaldua, Ned Benton, Jim Cauthen, Kinya Chandler, Angela Crossman, Sandrine Dikambi, Mark Flower, Jay Hamilton, Nikki Hancock - Nicholson, Ashley Hunte, Roman Gressier, Tom Kucharski, Karen Kaplowitz, Virginia Moreno, Charles Stone, and Alison Orlando (Recorder) 1. Approval of Minutes from November 10, Minutes were approved as proposed. 2. Enrollment Report. Jim L. gave a brief update on Spring 2017 enrollment. He feels that the college is reasonably on track to meet our targets for spring. We are ahead in both new graduate students and new transfer students compared to this time last year. However, we are behind in continuing students in comparison to last year. 3. Budget Presentation and Discussion. Steve T. introduced the budget presentation. He explained that the budget was approved in the fall for FY17 and there was a projected year-end balance of $17,426. However, there have been some changes that have resulted in a projected year-end deficit of $632,329. Steve T. also noted that there have been some positive changes, including a $2.5 million dollar deal with the Department of Corrections (DOC) that allows the DOC to use North Hall for their training program. Mark F. then went over the changes to the budget in more detail. He first explained that there has been a projected increase in revenue from $1,717,875 to $2,068,540. This is due to an increase in Fall FTE net worth of $80 per FTE, energy savings that resulted in increased CUTRA, and the DOC training program deal. The deal with the DOC is worth $1.45 million in FY17. Mark F. then went on to explain the changes to expenses. The plan approved by the BPC accounted for $97,400,487 in expenditures; however, there is now $103,166,288 in projected expenses. Some of the college s expenses went down such as actual faculty costs. Also, CA and NTA costs are lower than planned. OTPS was also below planned spending. However, most of the changes resulted in additional expenses. These changes include payment of the trade s collective bargaining retro which was not in the original budget, and additional public safety costs contributed to the DOC program. Adjunct expenses were also increased due to an increased number of sections because of the workload settlement agreement, the inability to achieve section reduction and additional CET costs due to the DOC program. 4. Mark F. moved on to talk about the status of the planned salary savings. The college expected to have around 90 separations for FY17 but there have only been 25 separations since 9/1/2016. Also, the replacement rates have been at the same rate as the separations; this has resulted in fewer savings then predicted. Ned B. asked about who made the decision to replace 25 vacancies as this should not have been done. Steve T. explained the process is that VP s review the vacancies and determine what vacancies are essential to be replaced. The positions the VP s disagree about are brought to the president. Ned B. said that representatives of this committee need to be part of this process. Tom K. said that there is a long-term agreement that the positions were always brought to this committee for approval and then were brought to the president. Karen K. commented that as a member of this committee she was able to explain to faculty why administrators were hired but now she won t be able to do that. Ned B. made a motion that all requests to hire or replace employees before the end of the fiscal year be presented to the SPS-FPS Committee as a package to be voted on as a recommendation to the President. There was some discussion on this motion. It was seconded, and approved unanimously. Mark F. then continued with the presentation and spoke about bursar holds. Progress has been

3 made but there is still $3.59 million owed to the school from Fall 16. He also spoke about an initiative the college has started with students who owe $500 or less for Fall 16. This program allows students to register for spring semester if they sign an agreement they will pay by a set time. Mark F. noted there has not been a high response rate. He also noted we are behind in collections compared to last year. Mark F. then talked about the capital projects. John Jay is currently engaged in 20 major projects through Steve T. explained that the lease is up on 54 th street in 2018, and a decision needs to be made on whether to stay in the current location or move closer to campus. Ned B. felt that SPS-FPS should participate in the space planning process and be informed about decisions to allocate space. Steve T. said that he has a survey of office space that he will share at the next meeting. Ned B. said that he felt we should know who the decision makers are, what the process is, and how decisions are made. Steve T. said facilities can share what they are proposing with the committee. Ned B. felt that others should participate as well and not only facilities. Tom K. agreed; he elaborated that he just found out about the possible move from 54 th street, and that the people there need to be taken into consideration. Jane B. said that she was in support of a more inclusive and transparent discussion of space. Mark F. then briefly talked about the town hall requests for space, and how they are looking to fulfill those needs. Mark F concluded the presentation by talking about the future financial situation. We are now facing a $7 million deficit for FY 2018, and a $10 million deficit for FY These numbers would be greatly reduced if CUNY s proposed tuition increase is put into effect. Mark F. then went over the required additional enrollment that would be needed to close the budget gap for the upcoming years.

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5 Budget Update FY 2016 Final FY17 Plan Approved By BPC FY17 Projection to include DOC Program BUDGET ALLOCATION AND REVENUE Final CUNY Values 12/12/2016 CUNY Revenue Target $86,683,359 $85,844,000 $85,619,000 Avg Enrollment ((Fall + Spring)/2) 11,201 10,794 10,895 Base Allocation: $89,996,351 $88,153,158 $86,732,237 Lump Sum Allocations $2,133,923 $2,516,987 $652,663 Additional Allocations $6,414,035 $4,588,474 $5,923,180 NYC Budget Initiatives $1,405,000 $2,862,918 Strategic Investments Initiative Tuition Increase Reserve $2,906,460 $2,906,460 $5,812,920 Current Year Gross Tuition Revenue above CUNY Target ($1,134,846) ($3,870,041) ($1,518,499) COMPACT FUNDING TOTAL BASE BUDGET ALLOCATION $100,315,923 $95,700,038 $100,465,419 Prior Year Cutra Balance $1,830,740 $1,717,875 $2,068,540 TOTAL ADDITIONAL REVENUES $1,830,740 $1,717,875 $2,068,540 TOTAL BUDGET ALLOCATION $102,146,663 $97,417,913 $102,533,959 EXPENDITURES Personnel Services (PS) : $71,956,400 $70,778,662 $72,500,967 Faculty $0 $36,410,518 $35,403,374 Administrative Staff $0 $30,648,206 $33,386,429 ECP $0 $3,719,938 $3,711,164 Adjuncts: $13,257,520 $11,770,649 $13,597,285 Teaching Adjuncts / CLTs $11,482,969 $12,898,359 CETs $287,680 $698,926 Temp Services: $5,435,840 $5,528,218 $5,044,708 College Assistants $4,625,616 $4,294,651 Non-Teaching Adjuncts $902,602 $750,057 Projected Collective Bargaining Increase $2,906,460 $5,812,920 TOTAL PS $90,649,760 $90,983,989 $96,955,880 OTPS $6,173,285 $5,967,195 Strategic Investments Initiative $243,213 $243,213 TOTAL OTPS $6,243,510 $6,416,498 $6,210,408 TOTAL FINANCIAL PLAN EXPENDITURES $96,893,270 $97,400,487 $103,166,288 YEAR END BALANCE $2,346,933 $17,426 ($632,329) 2

6 Summary of Changes Changes in Revenue Increased Revenue from DOC program 1436 Increased FTE 700 Increased FTE Worth 2300 Additional Allocations 300 Additional Energy Savings Increased Cutra 350 Change in PS Costs Change in Adjunct Costs Cost of Trades Collective bargaining retro not in budget -770 Increased cost for Facilities support and Public Safety as a result of DOC in North Hall -147 Staffing Levels Remained Constant Baseline adjustment for vacancy reduction being double counted -603 Actual Faculty Costs Lower than projected 1000 Cost of Faculty workload settlement agreement not budgeted -775 Additional CET costs related to DOC not in original Plan -300 Adjunct and CET run rates higher than budgeted -751 Collective Bargaining Adjustment Additional of FY17 Cost of Collective Bargaining Change in Temp Services Change in OTPS Actual run rate of temp services lower than originally projected 483 Reduce departmental OTPS costs by $250, Increase in North Hall Expenses from DOC in North Hall -44 Projected Year Ending Balance

7 Changes to Revenue FY 2016 Final FY17 Plan Approved By BPC FY17 Projection to include DOC Program BUDGET ALLOCATION AND REVENUE 12/12/2016 CUNY Revenue Target $86,683,359 $85,844,000 $85,619,000 Avg Enrollment ((Fall + Spring)/2) 11,201 10,794 10,895 Base Allocation: $89,996,351 $88,153,158 $86,732,237 Lump Sum Allocations $2,133,923 $2,516,987 $652,663 Additional Allocations $6,414,035 $4,588,474 $5,923,180 NYC Budget Initiatives $1,405,000 $2,862,918 Strategic Investments Initiative Tuition Increase Reserve $2,906,460 $2,906,460 $5,812,920 Current Year Gross Tuition Revenue above CUNY Target ($1,134,846) ($3,870,041) ($1,518,499) COMPACT FUNDING TOTAL BASE BUDGET ALLOCATION $100,315,923 $95,700,038 $100,465,419 Prior Year Cutra Balance $1,830,740 $1,717,875 $2,068,540 TOTAL ADDITIONAL REVENUES $1,830,740 $1,717,875 $2,068,540 TOTAL BUDGET ALLOCATION $102,146,663 $97,417,913 $102,533,959 4

8 Changes to Revenue Increase in Fall FTE enrollment worth an additional $735K Actual increase in FTE worth of $80 per FTE, lowered revenue target miss by $2.3M Actual FY16 Energy Savings increased CUTRA by $351K Addition of Department of Corrections Training Program worth $1.45 in FY17, $2.5M in total 5

9 Changes to Expenses FY 2016 Final FY17 Plan Approved By BPC FY17 Projection to include DOC Program BUDGET ALLOCATION AND REVENUE Final CUNY Values 12/12/2016 EXPENDITURES Personnel Services (PS) : $71,956,400 $70,778,662 $72,500,967 Faculty $0 $36,410,518 $35,403,374 Administrative Staff $0 $30,648,206 $33,386,429 ECP $0 $3,719,938 $3,711,164 Adjuncts: $13,257,520 $11,770,649 $13,597,285 Teaching Adjuncts / CLTs $11,482,969 $12,898,359 CETs $287,680 $698,926 Temp Services: $5,435,840 $5,528,218 $5,044,708 College Assistants $4,625,616 $4,294,651 Non-Teaching Adjuncts $902,602 $750,057 Projected Collective Bargaining Increase $2,906,460 $5,812,920 TOTAL PS $90,649,760 $90,983,989 $96,955,880 OTPS $6,173,285 $5,967,195 Strategic Investments Initiative $243,213 $243,213 TOTAL OTPS $6,243,510 $6,416,498 $6,210,408 TOTAL FINANCIAL PLAN EXPENDITURES $96,893,270 $97,400,487 $103,166,288 6

10 Changes to Expenses Changes to PS Faculty Actual Faculty costs less than projected Administrative Trades collective bargaining retro not in budget and currently not being covered by CUNY through any additional allocation, $770K Increase costs for Facilities and Public Safety staffing as a result of new DOC program in North Hall, $150K Staffing costs above projection 7

11 Changes to Expenses Changes to Adjunct Expenses Workload settlement agreement increased number of section after plan was developed, $775K Total section reduction not achieved Additional CET costs as a result of DOC program, $300K Changes to Temp Services Expenses CA and NTA costs are lower than originally planned, saving $500K 8

12 Cost Savings Efforts Class Section Reduction Sections Taught By Adjuncts/CLT's Actual Target Fall 2013 Spring 2014 Fall 2014 Spring 2015 Fall 2015 Spring 2016 Fall 2016 Spring

13 Changes to Expenses Changes to OTPS Currently in CUNYfirst Based upon Revised Financial Plan Budget: 5,179,650 6,210,408 Expense: 1,654,835 1,654,835 Encumbrance: 1,325,643 1,325,643 Pre-Encumbrance: 693, ,420 Budget Balance: 1,505,752 2,536,510 Available Budget: 1,505,752 2,536,510 With spending below planned levels there is an opportunity to reduce the OPTS allocation by $250K OPTS for opening North Hall worth $44K Net Reduction in OTPS $206K 10

14 Status of Planned Salary Savings Planned salary savings $900K in reduced number of administrative positions $1.1M in accrued savings Actual Savings Savings are less than projected due to two primary reasons: Separations are lower than last year, there were 87 separations in FY16 and only 25 separations since 9/1/2016 Replacement rates (25) are at the same rate of separations. 11

15 Fall FY16 Students with Bursar Holds by Amount Owed 700 Total Amount Owed: $5.358M, $460K higher than FY16 data as of 12/13/ Frequency Frequency More $ amount owed 12

16 Total Dollar Amounts Owed by Range of Balance Due on Student Account $2,500,000 $2,000,000 $2,058,737 $1,500,000 $1,000,000 $1,035,043 $1,095,527 $592,031 $500,000 $158,758 $252,208 $165,491 $ >

17 Spring 17 Enrollment Projections Daily Enrollment Tracking Spirng 2017 (as of January 9, 2017) Projected Spring 2017 % Progress of SP 2016 Enrollment % Target Accomplished /8/2016 1/9/2017 Actual Spring 2016 Freshmen Total Freshmen Non-SEEK New Transfer Total New Transfer , Non-SEEK , SEEK New Graduate Total New Graduate New Degree Graduate New Non-degree Graduate Readmitted Undergraduate Regular Undergraduate SEEK Graduate Other New Non-degree Undergrad High School Programs Permit-in Unclassified Undergraduate 4 7 Unclassified Graduate 3 7 Continuing Student Total Continuing Students 10,436 9,923 11,862 11, Undergraduate Degree Regular 8,399 7,945 9,603 9, Undergraduate Degree SEEK Undergraduate Nondegree Graduate Degree 1,125 1,140 1,274 1, Graduate Nondegree Total Headcount Total Undergraduate 9,859 9,707 12,155 11, Total Graduate 1,395 1,452 1,695 1, Total College 11,254 11,159 13,850 13, Total FTE Total Undergraduate 8,121 7,954 9,786 9, Total Graduate ,045 1, Total College 8,983 8,819 10,831 10,

18 DOC in North Hall (Classes be Offered) Training: # of Sections DOC Supervisory Skills and Management (Capt/ADW) 4 Oral and Effective Communication 4 Investigative Report Writing 4 Fire Safety (ADW/Captains) 4 Conflict Resolution/Crisis Intervention 4 Basic Course for CO Written Communication 48 Basic Course for CO Procedural Justice* 48 Basic Course for CO Security Risk Groups 48 Basic Course for CO Oral and Effective Communications 48 Basic Course for CO Conflict Resolution 48 Basic Course for CO Mental Health Overview 48 Basic Course for CO Mental Health First Aid 48 Basic Course for CO Suicide Awareness and Prevention 48 Basic Course for CO Working Effectively with Teams 48 Managing for Perfomance for supervisors 48 15

19 Capital Projects John Jay is currently engaged with The University and DASNY on appx. 20 major capital projects going into During the last round of capital projects with the University because of the volume of current projects, John Jay decided to focus on the library upgrade and phase 2 of the athletics facility renovation. 16

20 Town Hall Requests John Jay is in the process of reviewing several requests for space including student lounges and meditation room. The space fit is about completed and a plan will be developed to utilize some space on the 1 st floor of NH to meet these needs. 17

21 Looking into the Future FY 2017 Financial Plan Projection Assumes DOC program in North Hall continues for 5/12ths of the year FY 2018 with $250 Tutition Increase, Includes 10.41% Collective Bargining Increase FY 2019 No Tutition Increase, Includes 10.41% Collective Bargining Increase FY 2019 with $250 Tutition Increase, Includes 10.41% Collective Bargining Increase FY 2018 No Tutition Increase, Includes 10.41% Collective Bargining Increase BUDGET ALLOCATION AND REVENUE CUNY Revenue Target $85,844,000 $88,530,046 $85,844,000 $91,540,068 Avg Enrollment ((Fall + Spring)/2) 10,888 10,888 10,931 10,931 Base Allocation: $86,732,237 $86,732,237 $86,732,237 $86,732,237 Lump Sum Allocations $652,663 $652,663 $652,663 $652,663 Additional Allocations $5,751,581 $5,751,581 $5,751,581 $5,751,581 NYC Budget Initiatives $2,446,370 $2,446,370 $1,405,000 $1,405,000 Strategic Investments Initiative Tuition Increase Reserve $2,906,460 $2,906,460 $2,906,460 $2,906,460 Current Year Gross Tuition Revenue above CUNY Target ($1,261,726) ($1,050,264) ($2,230,281) ($1,136,514) COMPACT FUNDING $3,122,508 $0 $7,014,835 TOTAL BASE BUDGET ALLOCATION $97,227,585 $100,561,555 $95,217,660 $103,326,261 Prior Year Cutra Balance $83,072 $83,072 $0 $0 TOTAL ADDITIONAL REVENUES $83,072 $83,072 $0 $0 TOTAL BUDGET ALLOCATION $97,310,657 $100,644,628 $95,217,660 $103,326,261 EXPENDITURES Personnel Services (PS) : $79,333,132 $79,333,132 $79,733,132 $79,733,132 Faculty $38,898,773 $38,898,773 $38,898,773 $38,898,773 Administrative Staff $36,324,765 $36,324,765 $36,724,765 $36,724,765 ECP $4,109,593 $4,109,593 $4,109,593 $4,109,593 Adjuncts: $13,773,215 $13,773,215 $13,773,215 $13,773,215 Teaching Adjuncts / CLTs $13,300,949 $13,300,949 $13,300,949 $13,300,949 CETs $472,265 $472,265 $472,265 $472,265 Temp Services: $5,853,680 $5,853,680 $5,853,680 $5,853,680 College Assistants $4,857,117 $4,857,117 $4,857,117 $4,857,117 Non-Teaching Adjuncts $996,563 $996,563 $996,563 $996,563 Projected Collective Bargaining Increase TOTAL PS $98,960,026 $98,960,026 $99,360,026 $99,360,026 OTPS $6,173,285 $6,173,285 $6,173,285 $6,173,285 Strategic Investments Initiative TOTAL OTPS $6,173,285 $6,173,285 $6,173,285 $6,173,285 TOTAL FINANCIAL PLAN EXPENDITURES $105,133,311 $105,133,311 $105,533,311 $105,533,311 YEAR END BALANCE ($7,822,654) ($4,488,683) ($10,315,651) ($2,207,050) 18

22 Closing the Gap by Increasing Enrollment FY 2018 No Tutition Increase, Includes 10.41% FY 2018 with $250 Tutition Increase, Includes 10.41% Collective Bargining Collective Bargining Increase Increase FY 2019 No Tutition Increase, Includes 10.41% Collective Bargining Increase FY 2019 with $250 Tutition Increase, Includes 10.41% Collective Bargining Increase YEAR END BALANCE ($7,822,654) ($4,488,683) ($10,315,651) ($2,207,050) Required additional enrollment to balance the budget 1, , Assumes a Fall FTE worth of $3562, Spring $3608 and a 96% collection rate 19