Board Budget Study Session

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Milton Cory Holmes
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1 Board Budget Study Session September 11, 2012

2 Revised Budget Board of Trustees Meeting September 11, 2012

2011-2012 Revised Budget Summary Total General Fund Total General Fund Unrestricted Restricted Total Revenues

3 Revised Budget Summary Total General Fund Total General Fund Unrestricted Restricted Total Revenues 75,147,696 9,941,600 85,089,296 Expenses (77,077,535) (9,941,600) (87,019,135) Change in Fund Balance (1,929,839) 0 (1,929,839)

4 Budget Report-Out History Unrestricted General Fund Revenue Summary Adopted Budget Revised Budget Revised Budget Revised Budget Difference between Sep 13, 2011 Jan 10, 2012 Jun 11, 2012 Sep 11, 2012 Jun 11 & Sep 11 budget State Apportionment 10,279,144 10,279,144 8,865,279 9,272, ,838 Property Tax 53,869,663 53,869,663 54,736,081 54,435,668 (300,413) Enrollment Fees 5,674,307 5,674,307 5,537,799 5,484,450 (53,349) State Categorical Revenues 304, , , ,486 13,158 State Revenues 1,766,834 1,766,834 2,551,520 2,650,442 98,921 Federal Revenues 39,000 39,000 62,691 66,269 3,579 Local/Other Revenues 3,271,561 3,271,561 3,271,124 2,819,264 (451,861) May Revise-Unrealized Redevelopment Funding - - (1,500,000) - 1,500,000 Total Revenues 75,204,597 75,204,597 73,930,822 75,147,696 1,216,874 Expense Summary Certificated 33,046,150 33,048,148 32,719,531 32,477,829 (241,702) Classified 16,332,571 16,064,741 16,191,482 15,795,454 (396,027) Benefits 15,475,004 15,452,956 15,672,462 15,694,284 21, Supplies 1,616,210 1,645,249 1,770,969 1,234,417 (536,552) Other Operating 10,563,348 10,358,670 10,140,548 9,114,247 (1,026,301) Capital Outlay 245, , , ,113 (41,456) Debt Pmts/Transfers 2,465,305 2,273,937 2,275,217 2,561, , Unrestricted Contingencies 761, , ,964 - (345,964) Total Expenses 80,506,517 79,850,182 79,357,739 77,077,535 (2,280,205) Change in Fund Balance (5,301,920) (4,645,584) (5,426,918) (1,929,839) 3,497,079 Beginning Fund Balance 18,492,917 19,185,468 19,185,468 19,185, Change in Fund Balance (5,301,920) (4,645,584) (5,426,918) (1,929,839) Less: Nonspendable Funds: Prepaids and Inventory - - (200,000) (848,284) Less: Committed Fund Balance for Omniparty -F.U.S.E (242,000) (242,000) - - Less: Committed Fund Balance for Omniparty -SCMA (548,000) (548,000) (354,000) (354,000) Less: Committed Fund Balance for Omniparty -SCFA (2,570,000) (2,570,000) (1,217,000) (1,217,000) Less: Committed Fund Balance for Omniparty -Pooled (Benefits Reserves) (900,000) (750,000) (684,270) (684,270) Unrestricted Ending Fund Balance 8,930,998 10,429,884 11,303,280 14,152,075 Ending Fund Balance as a Percent of Expenses 9.86% 11.59% 12.65% 16.26%

5 Revenue Variances Unrestricted General Fund

6 Expense Variances Unrestricted General Fund

7 Supplies, Other Operating and Capital Outlay Expenditures Unrestricted General Fund

8 Budget for Adoption Board of Trustees September 11, 2012

9 Statewide Perspective State Budget Faced a $16 billion deficit Statewide Budget Fix Includes: $8 billion in spending cuts $8 billion in revenue increases

10 Statewide Perspective (con t) Revenue Increases mostly coming from Prop. 30 If Proposition 30 fails: CSU, UC, Community Colleges and K-12 face state funding cuts Community College Cut = $338 million

11 Statewide Perspective (con t) Sierra s Share of this Cut = $4.8 million This equals a loss of 1,058 Full-Time Equivalent Students (FTES) Funded Students FTES decline from 14,401 to 13,343

2012-2013 Summary Budget for Adoption Total General Fund

71,632,082 10,150,000 81,782,082 Expenses (77,069,765)

12 Summary Budget for Adoption Total General Fund Total General Fund Unrestricted Restricted Total Revenues 71,632,082 10,150,000 81,782,082 Expenses (77,069,765) (10,150,000) (87,219,765) Change in Fund Balance (5,437,683) 0 (5,437,683)

13 Budget for Adoption Total General Fund

14 Budget Assumptions-Revenue Unrestricted General Fund 1.) Proposition 30 tax increase does not pass 2.) System-wide Mid-Year Funding Reduction: ($338M) 3.) Additional mid-year Workload Reduction from State: ($4.8M) 4.) Budgeted District enrollment: 13,342 5.) 2012/13 COLA (0%): $0 6.) 2012/13 enrollment growth at State level 0% 7.) Deficit Factor on State Funding - Property tax (1%): ($660K) 8.) BFAF 2% Admin Fee increase: $118K 9.) Lottery Revenue decrease: ($189K) 10.) Mandated Cost Grant Block Funding ($28 x 13,342) $374K 11.) Enrollment Fee: $46/unit

15 Budget Assumptions-Expenses Unrestricted General Fund 1.) Budgeted salary increases / COLA $0 2.) Step/Column adjustments (full-time employees) $374K 3.) Longevity adjustments (full-time employees) ($41K) 4.) Health insurance premiums stable (same as 11/12) $0 5.) PERS rate increase (10.923% to %) $87K 6.) Unemployment insurance decrease (1.61% to 1.1%) ($189K) 7.) Worker's Compensation rate stable (same as 11/12) $0 8.) Seven (7) furlough days Classified and Management ($625K) 9.) Retiree Medical Benefit Increase (4.5%): $170K 10.) Operating costs increase (rent/utilities/election/insurance) $582K 11.) Schedule Reductions ($1M) 12.) Unrestricted Contingency: $600K

16 Risks and Opportunities Unrestricted General Fund The 2011/2012 fiscal year's books have not been audited as of the date of this package presentation. The 2012/2013 beginning unrestricted general fund reserve balance could increase or decrease due to unanticipated but potential audit adjustments. The beginning unrestricted general fund reserve balance is the best estimate of what the 2011/2012 ending balance will be but could be higher or lower if there are audit adjustments. The Omniparty balances are as of June 30, 2012 but include a reduction for the SCFA payout that occurred in August These balances could increase or decrease due to compensation formula negotiations taking place in the 2012/2013 fiscal year. Proposition 30 passes. If it passes, forecasted revenue will increase by $5.5M ($5.4M in apportionment, $147K in lottery revenues and $33K in mandated block grant revenue, reduced by $47K in deficit factor) The deficit factor is currently forecasted at.99, which reduces base revenue by ~$660K. The actual deficit factor could change resulting in additional revenue or a reduction current projected revenues. The District currently owes the State approximately $400K for previously denied mandated health cost claims. The 12/13 mandated cost block grant estimates at $374K could be reduced or eliminated due to the amount owed to the State. Approximately $600K in unrestricted contingencies included in forecasted expenditures might not be needed. Departments with unspent budgets at year end could increase the ending fund balance. Unrestricted general fund budget balances do not roll into the next year. Overall forecast risk/opportunities from unforeseen events.

17 Historical Reserves Unrestricted General Fund

18 Historical Data Unrestricted General Fund

19 Revenues Breakdown Unrestricted General Fund

20 Expenditure Breakdown Unrestricted General Fund

21 Capital Projects Fund

22 Student Financial Aid Trust

23 Student Financial Aid Trust

24 Other Post Employment Benefits (OPEB) Trust

BOARD OF TRUSTEES MEETING August 22, 2016

BOARD OF TRUSTEES MEETING August 22, 2016 Board Budget Development Guidelines Guiding Principles: The following guiding principles are provided to the District Resources Allocation Council (DRAC) and the