Fiscal Year Proposed Budget: Strategic Renewal

Transcription

1 Fiscal Year Proposed Budget: Strategic Renewal Board of Governor s Meeting Presented by David Bea, Ph.D. May 14, 2014 Dan Suzio / Photo Researchers / Universal Images Group Saguaro blooming (Carnegiea Gigantea) in Organ Pipe Cactus National Monument, Arizona

2 Fiscal Year Budget Calendar January 2014 Preliminary fiscal year budget parameters, presented and approved Fiscal year 2013 Comprehensive Annual Financial Report, presented February 2014 Property tax levy letter is received from Pima County March 2014 Board of Governors working session on the fiscal year budget Proposed Academic Year tuition and fees, presented and approved Proposed employee medical and pharmacy benefits for fiscal year , presented and approved April 2014 Proposed employee life insurance contract for fiscal year , approved May 2014 Proposed fiscal year 2015 and 2016 Capital Budget and Projects are presented to the Board of Governors Proposed employee salary increases are presented to the Board of Governors Proposed fiscal year preliminary budget, tax rate, and tax levy with a request for approval to allow publication according to statutory guidelines are presented to the Board of Governors The proposed budget and 'Truth in Taxation Notice of Tax Increase' are published as required and a press release is distributed as required by Arizona Revised Statutes. June 2014 The proposed budget and 'Truth in Taxation Notice of Tax Increase' are published for a second time as required by Arizona Revised Statutes A Public Hearing is scheduled on the proposed fiscal year budget, property tax rates and levies A Special Meeting is scheduled to vote on property tax levies and rates and budget by a roll call vote to levy the proposed property tax and vote to approve the proposed budget. The documents are transmitted to the Property Tax Oversight Commission as required by Arizona Revised Statutes July 2014 On July 1, 2014 the fiscal year budget is implemented for the new fiscal year

3 FY Budget Revenues Summary $284 million (all funds, in $ millions) State Aid $7.1 4% College Equity $ % Other Revenue $6.1 2% Property Tax Revenue $ % Tuition & Fees $ % Grants, Contracts, Financial Aid $ %

4 FY Budget Expenditures Summary $284 million (all funds, in $ millions) Student Financial Aid $ % Capital Equipment $ % Contingency and Reserves $18.5 6% Administrative Personnel $7.0 2% Faculty $24.4 9% Additional Compensation Faculty $1.4 0% Adjunct Faculty $13.6 5% Classified Staff $ % Other Expenditures $2.6 1% Current Fixed Charges $2.3 1% Supplies and Materials $14.4 5% Contractual Services $13.3 5% Travel $2.5 1% Fringe Benefits $ % Communications and Utilities $5.8 2% Other Compensation $5.4 2% Student Employment $0.7 0%

5 Revenues New Northwest Building G

6 FY 2015 Revenue Outlook State Funding: $643,300 decrease in Operating State Aid $600,000 increase in STEM and Workforce programs State Aid $100,000 increase in Prop 301 Tuition and Fees Increase in state tuition from $65.50 per unit to $70.50 per unit No increase to base out of state tuition rate Tax Levy Primary Growth of 2.09%, $2.0 million Levy Increase of 2.0%, $1.9 million Secondary Decrease of $1.4 million Federal Financial Aid $10.0 million decrease in student financial aid

7 Budgeted Revenue and Fund Balance by Source (all funds, in $ thousands) $325,000 $300,000 $275,000 $250,000 $225,000 $200,000 $175,000 $150,000 $125,000 $100,000 Fund Balance Grants, Contracts & Financial Aid Other Revenue State Aid (Operations + Capital) Tution & Fees Property Taxes $75,000 $50,000 $25,000 $ FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

8 Arizona State Appropriations to Community Colleges per FTSE $3,500 $3,000 $2,500 $2,524 $2,000 $1,787 $1,500 $1,119 $1,000 $960 $500 $ $364 $ Fiscal Year Pima Maricopa Average, excluding Pima and Maricopa Notes: 1. Excludes provisional and tribal colleges

9 2015 State Appropriations for AZ Community Colleges $20,000,000 $18,000,000 $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 Graham Cochise Maricopa Navajo Pima Yuma/La Paz Pinal Coconino Mohave Yavapai Operations Funding Equalization Funding STEM + Workforce Programs Funding FY 2013 FTSE: 3,107 7,766 81,218 1,962 19,514 5,537 4,822 2,099 2,987 3,984 % of Total: 2% 6% 61% 1% 15% 4% 4% 2% 2% 3% % of Total Funding: 27% 16% 13% 11% 11% 5% 5% 3% 3% 3% Note: Excludes provisional and tribal colleges

10 Budgeted General Fund Revenue Sources as a percent of Total Revenue 70% 60% 50% 40% 30% 20% 10% 0% FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 State Aid 17% 16% 15% 13% 13% 11% 5% 5% 5% 4% Property Tax 57% 57% 59% 61% 62% 60% 62% 62% 64% 66% Other 0% 1% 2% 1% 1% 0% 1% 1% 1% 1% Tuition 26% 25% 24% 24% 24% 28% 32% 32% 31% 29%

11 Primary Property Tax Levy Detail Proposed FY 14 FY 15 Levy Neutral FY 15 Proposed Net Taxable Value Current Year ($100s) $ 75,591,291 $ 75,184,820 $ 75,184,820 Overall Change in Valuation 6.4% 0.5% 0.5% Change from New Property 1.9% 2.09% 2.09% Estimated Primary Tax Rate Authorization (per $100 net assessed valuation) Primary Tax Levy $ 96,348,660 Change from previous fiscal year Truth in Taxation Levy Increase $ 98,364,300 $ 2,015,640 $ 100,326,624 $ 3,977,964 $ 1,962,324

12 Property Tax Levy Detail Proposed (per $100 net assessed valuation) FY 14 FY 15 Levy Neutral FY 15 Proposed Primary Tax Rate $ $ $ % Change in Tax Rate 11.0% 2.6% 4.7% Secondary Tax Rate $ $ $ % Change in Tax Rate 27.2% 100.0% 100.0% Combined Primary and Secondary Rates $ $ $ % Change in Tax Rates 10.2% 1.2% 3.2% Difference in Combined Tax Rates $ $

13 Estimated Property Tax Impact FY13 FY14 FY15 Proposed FY15 Reassessed Residential Property Summary Property Value Assessment Ratio Assessed Value $ 100, ,000 $ 100, ,000 $ 100, ,000 $ 97, ,743 PCC Combined Taxes Due Change $ % $ % $ % $ % Commercial Property Summary Property Value Assessment Ratio Assessed Value $ 100, ,000 $ 100, ,500 $ 100, ,000 $ 97, ,512 PCC Combined Taxes Due Change $ % $ % $ % $ % *Assumes FCV and Limited Value are identical for both residential and commercial property examples

14

15 PCC Tuition and Fee Charges per Unit (in state rates) Year Per Unit $ Change % Change 05/ % 06/ % 07/08 ** % 08/09 *** % 09/ % 10/11 **** % 11/ % 12/ % 13/14 # % 14/ % $120 $100 $80 $60 $40 $20 $0 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 ** Technology Fee added, $2.00 per unit *** Student Services Fee reduced by $0.50 to $2.00 **** Student Services Fee increased by $0.50 to $2.50 per unit # Student Services Fee increased by $0.50 to $3.00 per unit, and Technology Fee increased by $0.50 to $2.50 per unit PCC $ per unit Avg. of AZ Community Colleges $ per unit Indexed Avg. of AZ Universities Indexed Avg. of AZ Community Colleges

16 FY 2015 AZ Community Colleges Tuition + Fees per unit $ $90.00 $80.00 $70.00 $60.00 $50.00 $40.00 $30.00 $20.00 $10.00 $0.00 Coconino Mohave Maricopa Pinal Central Yuma/La Paz AZ Western Pima Cochise Yavapai Graham Eastern Navajo Northland Pioneer FY 15 Fees Per Unit $5.00 $7.00 $2.00 $0.00 $0.00 $5.50 $0.00 $0.00 $0.00 $0.00 FY 15 Tuition Per Unit $89.00 $80.00 $82.00 $80.00 $76.00 $70.50 $75.00 $72.00 $67.00 $66.00

17 All Funds Revenues by Source (in $ millions) Proposed FY14 % of Total FY15 % of Total Change Property Tax Levy $ % $ % $2.5 State Aid Appropriation 7.1 2% 7.1 3% 0.0 Tuition and Fees % % 1.7 Other Revenue 4.3 2% 4.7 2% 0.4 Investment Income 0.8 0% 0.8 0% 0.0 Grants and Contracts % % 14.6 College Equity General Funds % 5.5 2% 5.3 Designated Funds 4.6 2% 5.2 2% 0.6 Auxiliary Funds 0.1 0% 0.6 0% 0.5 Restricted Funds 0.6 0% 0.6 0% 0.0 Capital Funds % % 0.2 Total College Equity % % 4.4 Total Resources $284.0 $266.2 $17.8

18 Expenditures

19 Draft Strategic Plan pima/strategic plan/docs/ pccdraftstrategicplan.pdf 1. Reaffirm HLC accreditation and fully commit to the HLC guiding values 2. Improve access and student success 3. Foster partnerships to strengthen educational opportunities in response to community needs 4. Improve responsiveness to the needs of business community and economic development opportunities 5. Increase diversity, inclusion, and global education 6. Develop a culture of organizational learning and employee development

20 Strategic Priorities for FY 2015 (with 5/8/14 Draft Strategic Plan Direction #) Joint Planning Advisory Council (JPAC) Sun Corridor Map 1. Contractual Obligations (1, 6) 2. Adjunct Faculty Load Rate (6) 3. Student support service enhancement (2) Veteran student support Financial aid Advising Recruitment 4. Developmental education support (2) Full time instructors, coordination 5. Program enhancement and new initiatives Distance education (2, 4) New/innovative program development (3, 4) Globalization, diversity initiatives (5) 6. Records management and Complaints resolution (1) 7. Reallocate resources from District Office to Campuses (2, 6) 8. Classrooms for the 21st Century (2, 3, 4) 9. STEM Funding (3, 4) 10.Salary Pool Increases (6)

21 FY 2014 Adjunct Faculty Load Hour Rates $1,000 $900 $800 $700 $600 $854 $806 $737 $735 $698 $710 $670 $696 $694 $675 $672 $598 $650 $500 $400 $300 $200 $100 $ Maricopa Graham Coconino Pima Navajo Yavapai Pinal Cochise Yuma Mohave

22 FY Proposed Budget Summary $ million (all funds, in $ millions) Restricted Fund $ % Capital Fund $23.1 9% Designated Fund $15.0 6% Auxiliary Fund $2.7 1% General Fund $ %

23 FY General Fund Revenues by Source (in $ millions) FY14 Proposed FY15 Change Property Tax Levy $ 96.4 $ $ 3.9 State Aid Tuition and Fees Tuition and Fees 28.4% State Aid 4.1% College Equity 3.5% Other Revenue 0.7% Other Revenue College Equity Total Resources $ $ $ 3.3 Property Tax Levy 63.3%

24 General Fund Expenditures (in $ millions) Admin Faculty Staff Classified Other Compensation / Adjunct Faculty Fringe Subtotal FY14 $ Proposed FY15 $ Change $ Operations Capital Transfers (net) Reserves Total $ $ $ 3.3

25 General Fund Expenditures Summary (in $ thousands) $200,000 $180,000 $160,000 $140,000 $120,000 $100,000 $80,000 Transfers Contingency & Reserves Capital Equipment Services & Supplies Personal Services $60,000 $40,000 $20,000 $ FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

26 Designated Fund Budget Detail by Program (in $ millions) FY14 Proposed FY15 Change Professional Development $1.0 $ 0.9 $ 0.1 Athletics Course Fees Academic Programs Center for Training & Development Contract Training Prison Program Public Safety Institute Community Education Other Reserves Total $ 15.1 $ 15.0 $ 0.1

27 Auxiliary Fund Summary (in $ millions) FY14 Proposed FY15 Change Revenues $ 2.1 $ 2.7 $ 0.6 Food Service Business Relations Rentals Transfers Reserves and Other Total $ 2.1 $ 2.7 $ 0.6

28 Restricted Fund Summary (in $ millions) FY14 Proposed FY 15 Change Student Financial Aid $ 57.4 $ 47.3 $ 10.1 Workforce Development (Prop 301) State Aid STEM Grants Health Prof Opportunity Grant Adult Education Title III Improving graduation rates, particularly STEM Title V Developing Hispanic Serving Institutions TRIO (Upward Bound, Student Support Svcs, Talent Search) Adelante Performance Based Award Trade Adjustment Assistance Other New Grants Total $ 80.0 $ 67.0 $ 13.0

29 Capital Fund Summary (in $ millions) Budget Year Projects FY 14 Proposed FY 15 General Capital Projects $ 10.8 $ 10.2 Technology Fee Projects Proposition 301 Projects Grant Funded Projects Contract/Auxiliary Projects STEM (Science, Technology, Engineering, Math) Total Budget Year Projects $ 14.7 $ 18.6 Carry Forward Projects Reserves Less Transfers from Other Funds Total All Projects $ 36.9 $ 33.9 Proposition 301 Funding General Fund Transfer Other Funds Support (including grants) Net Budget $ 23.6 $ 23.2

30 Debt Service Budget (in $ millions) FY14 Proposed FY15 Change Total Budget $ 1.4 $ 0.0 $ 1.4 Outstanding Debt (in $ thousands) $90,000 $14,000 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 Capital Lease Pledged Revenue Refunding Revenue Bonds General Obligation Bonds Annual Debt Service $ FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 $0

31 FY Proposed Budget Revenues $266.2 million (all funds, in $ millions) College Equity $ % State Aid $7.1 3% Other Revenue $5.5 2% Property Tax Revenue $ % Tuition & Fees $ % Grants, Contracts, Financial Aid $ %

32 FY Proposed Budget Expenditures $266.2 million (all funds, in $ millions) Capital Equipment $ % Contingency and Reserves $15.9 6% Administrative Personnel $7.2 3% Faculty $25.0 9% Additional Compensation Faculty $1.5 1% Adjunct Faculty $13.7 5% Student Financial Aid $ % Classified Staff $ % Other Expenditures $1.1 0% Current Fixed Charges $2.5 1% Supplies and Materials $12.9 5% Contractual Services $12.7 5% Travel $2.7 1% Communications and Utilities $6.1 2% Fringe Benefits $ % Other Compensation $4.4 2% Student Employment $0.6 0%

33 Questions?