Santa Rosa Junior College Adopted Budget

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Zoe Francis
5 years ago
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1 Santa Rosa Junior College Adopted Budget

2 SRJC Funds The District receives funds from a number of sources. However, much of that money is restricted and can only be spent for restricted purposes. To account for these various sources of funding, and their associated expenditures, the District has established specific Funds.

3 Restricted Funds Some of the District s Restricted Funds are: Measures A & H General Obligation Bond Fund Capital Projects Fund Bookstore Parking Fund College Farm Student Representation Fee Fund

4 Unrestricted General Fund Even within the District s General Fund there is a subset of revenue that can only be used for the purposes for which it was received Examples of this are: State categorical funds (EOPS, Student Success, etc.) Grants (Child Development, HEP) Student Health Fees These funds are held in the Restricted General Fund

5 Unrestricted General Fund This is the fund under which the District carries out it s primary mission. Revenue-wise approximately 53% of the District s revenue comes from local sources The primary sources are... Local Property Taxes & Student Enrollment Fees The remaining 47% comes from state funding

6 Unrestricted General Fund Major Revenue Assumptions Budgeted District 19,528 FTES (-1%) $ (916,000) Increase for General Operations (4.65%) 4,400, COLA (1.02%) 968,000 Funding to Increase Statewide F-T Faculty 950,000 Deficit on State Apportionment Funding (0.5%) (501,000) Increase in Lottery Funding 422,000 Increase in CDCP Rate 823,000 One-time Mandated Cost Funding 10,200,000

7 Revenue Components of the Unrestricted General Fund Total General Apportionment* $ 99,791, % Mandated Cost Claims* 10,784, % Lottery Funding* 3,324, % Materials, Course & Pass-thru Fees 2,006, % Non-resident Tuition & Fees 1,200, % Other State Revenues 2,472, % Other Local Revenues 3,488, % Total Revenue $ 123,067,808 * Revenue directly tied to reported enrollment (or... FTES )

8 Planning and Budget Framework Ø In support of its mission and initiatives, and in the interest of long-term fiscal health, District planning will include the following broad budget parameters with regards to its Unrestricted General Fund: The District will develop a budget that will maintain at least a 5-percent reserve within the ending fund balance. To the extent possible, the District will budget ongoing expenditures within the confines of the District s on-going revenues. To the extent possible, the District will budget competitive salaries, wages and benefits for its employees.

9 Planning and Budget Framework One-time resources, such as one-time state allocations and fund balance, will be used only for one-time expenditures, and/or to mitigate temporary funding shortfalls. The District will budget sufficient funds to afford its on-going obligations to regular employees and retirees. In order to maximize state apportionment revenues, the District will budget sufficient funds, and hire an appropriate number of adjunct faculty, which, in conjunction with the regular faculty staff, will produce the Full Time Equivalent Students (FTES) for which the state will provide remuneration.

10 Planning and Budget Framework The District will budget sufficient funds to afford the total cost of ownership for all District facilities and sites. The District will budget sufficient funds to afford utilities, insurance and other necessary operational costs. The District will allocate discretionary funds, and make revisions to all other expenditure budgets, based on negotiated contractual agreements, prior year requirements, departmental review, and the Program and Resource Planning Process (PRPP).

11 Budgeting As soon as total resources are calculated, the District can begin budgeting expenditures. (Total Resources = Beginning Fund Balance + Current Year Revenues) From the total resources available, the District makes budgetary allocations to fund the following: Regular Employee Salaries & Benefits Adjunct Faculty Salaries & Benefits Retiree Health Benefits Operational Expenses * * includes expenditures for: supplies, equipment, contracted services, leases, insurance, utilities, classified (STNC) & student hourly staff, etc. Fund Balance / Reserve (State Minimum is 5% of expenditures) If total District resources do not cover total uses, then expenditure-cuts are required.

12 Unrestricted General Fund Major Expenditure Assumptions Budgeted Salary Increases ( %) $ 2,171,600 Step/Column Salary Adjustments 670,000 Net New Classified Positions 995,000 Net New Management Positions 296,000 Net New F-T Faculty Positions 605,000 Salary Savings for Slowdown in Hiring (600,000) STRS Rate Increase 683,000 PERS Rate Increase 20,000 Increased Access (2% Increase in Course Offerings) 650,000 Increased Utilities 200,000

13 Expenditure Components of the Unrestricted General Fund Ø Academic Salaries * $ 53,061, % Ø Classified Salaries * 26,460, % Ø Benefits * 23,131, % Ø Utilities 3,370, % Ø Supplies and Materials 2,738, % Ø Consultants & Lecturers 1,695, % Ø Contracts, Leases, Equipment Repair 2,168, % Ø Insurance, Legal, Audit & Elections 1,315, % Ø Conferences, Dues, Memberships & Mileage 622, % Ø Other 5/6/7 Expenses & Transfers 4,268, % Ø Total Expenditures $ 118,833,327 Ø * Salaries & Benefits comprise 86.4 % of total expenditures

14 Ending Fund Balance (Reserves)

15 Improving District Revenues So, how does a District increase its revenues? Given that apportionment revenue is roughly 90% of all revenue sources, and, given the traditional apportionment formula + COLA Base Revenue +/- Growth/Decline + Stability Funding - Deficit Funding = Total General Apportionment COLA and Growth have generally been the primary ways to significantly increase a district s revenues... (... and both of these are controlled by the State)

16 Historic & Projected FTES

17 Improving District Revenues As seen in , the State increased ongoing community college funding in a couple of new areas (areas that had not received on-going increases in the past) Increased CDCP FTES Rate Funding to Increase the Number of Statewide F-T Faculty A General Operating Increase The State also delivered some one-time funding Mandated Cost Claims Deferred Revenues It is hoped that the State will increase ongoing funding perhaps by converting some of the one-time monies. A lot will depend on the State s Economy.

18 State Revenues The majority of the State s General Fund revenue comes from three sources Personal Income Tax 65% Sales and Use Tax 22% Corporate Tax 8% Other 5% Of Personal Income Tax, between 40% and 50% of all personal income tax payments come from the top 1% of Income Earners And, depending on the year, around 10% of all of State s General Fund come from taxes paid on Capital Gains. So, how is the stock market doing?

19 Looking Ahead Currently, the State s budgetary good news is the result of a strong economy, and enhanced State revenues It should be noted that some of that State revenue is directly due to Prop. 30 which created a couple temporary tax increases. It should also be noted that the sales tax element of Prop. 30 expires at the end of 2016 and the personal income tax element expires at the end of 2018.

20 Looking Ahead The District has some time to deal with its new structural imbalance but the recommendation from the Accreditation Report was clear In order to meet fiscal accreditation standards, the District needs to bring its ongoing expenditure within its ongoing revenues and maintain a healthy fund balance especially if it is to be prepared to deal with future economic uncertainties.

21 Looking Ahead To that end The District will be looking at ways to: reduce costs, and increase revenues as the District continues to make the College's long-term fiscal health its top priority.

22 QUESTIONS?

Linking Strategic Planning to Budget

1 District Mission Linking Strategic Planning to Budget GCCCD 2016-2022 Mission, Vision, Goals Provide outstanding diverse learning opportunities that prepare students to meet community needs, promotes