PROPOSED BUDGET San Jacinto Community College District Budget Hearing August 4, 2014

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1 PROPOSED BUDGET San Jacinto Community College District Budget Hearing August 4,

2 Highlights of the Proposed Budget State Revenue Major Revenue Assumptions No change in rate FY15, as this is the second year of the biennium Tuition and Fees Total Budgeted increase in category is $2.5 million Tuition rate increase, effective Fall 2014 $4 per semester credit hour increase for in-district $5 per semester credit hour increase for out-of-district $8 per semester credit hour increase for non-resident Budgeted $2.34 million increase (T&F only) over FY14 Increase of $100K in course and lab fees Decrease of $640K due to Dual Credit Exemption & Waivers increase from 55% to 70% Increase of $731k in Continuing & Professional Development due to increased offerings and higher corporate training. 2

3 Highlights of the Proposed Budget Major Revenue Assumptions Property Tax Revenue budgeted using same total rate as FY 14 Slightly higher TAV expected producing: Lower debt service rate allowing Shift upward in M&O rate $2.9 million expected increase in M&O tax revenue $858,495 increase for higher bond payments Interest Income increase of $243,000 Increase reflects a slight improvement in historic low interest rates and portfolio shift toward collateralized money market funds and away from municipal securities due to the low supply and high prices (low yield) of municipal securities. 3

4 35% 1% Major Revenue Sources Unrestricted FY 2015 FY % 3% 24% 1% 0% 3% 35% 25% 36% 36% State Allocation Maintenance Ad Valorem Taxes Tuition and Fees Sales, Services and Other Interest Income Auxiliary Services State Allocation Maintenance Ad Valorem Taxes Tuition and Fees Sales, Services and Other Interest Income Auxiliary Services 4

5 Sources of Revenue Comparison Revenues Budget FY 2015 Amended Budget FY 2014 Increase/ (Decrease) % Change Unrestricted State Allocation $ 37,142,000 $ 37,142,000 $ - 0.0% Maintenance Ad Valorem Taxes 55,125,000 52,192,000 2,933, % Tuition and Fees 54,001,000 51,470,000 2,531, % Sales, Services and Other 1,507,900 1,667,800 (159,900) -9.6% Interest Income 638, , , % Auxiliary Services 4,160,000 4,182,000 (22,000) -0.5% Subtotal 152,573, ,048,800 5,525, % Restricted Financial Aid 59,516,165 58,890, , % Federal, State, and Local Grants 15,045,990 18,012,028 (2,966,038) -16.5% Debt Service 24,967,000 24,108, , % Subtotal 99,529, ,011,117 (1,481,962) -1.5% Total Revenue $ 252,103,055 $ 248,059,917 $ 4,043, % 5

6 Highlights of the Proposed Budget Major Expenditure Assumptions Instructional budget increased $0.9 million 7 new FT faculty; conversions of 5 FT Temp faculty to FT New instructional staff positions: simulation lab supervisor, child development lab teacher assistants and facilities coordinator Establishment of Associates Degree Nursing program at North Campus Increased allocations for pipefitting, biomedical, welding and other strategic program costs Department Chair leadership structure reserve Continuing & Professional Development budget increased $731k to match increased program revenues Academic Support budget increased $0.5 million Additional support for enrollment, registration, library, graduation & honors program 6

7 Highlights of the Proposed Budget Major Expenditure Assumptions Student Services budget increased $0.7 million New staff: educational planners, test examiners, and enrollment specialists Additional support in testing and student life activities Institutional Support increased by $2.5 million Increased marketing and advertising efforts Telephone system software upgrades Replacement of obsolete server and firewall equipment Purchase of malware detection software Increases for end of life computer leases New Staff: administrative support, alumni development, emergency preparedness, safety, internal audit, information technology, police officers, and conversion of bond positions Reduction of $700k from prior year non-recurring items Repurposed funds of $300k to support the 2015 Building Program and Planning 7

8 Highlights of the Proposed Budget Major Expenditure Assumptions To Be Allocated of $1.15 million Banner Revitalization Project Phase III (decrease of $950k from FY14) Compensation Pool $2.4 million (FY 14 $2.2 million included in VCFA Contingency) Depreciation $15.6 million (increase of $4.5 million) Capital Outlay $5 million District Annex West Building Renovation Maintenance & Police Vehicles Information Technology Upgrades & Replacements 8

9 Expense Comparison Budget FY 2015 Amended Budget FY 2014 Increase/ (Decrease) % Change Expenses Other Unrestricted Instruction 54,948,416 54,041, , % Public Service - Cont Profess Dev 4,171,673 3,562, , % Academic Support 12,250,426 11,740, , % Student Services 11,473,371 10,796, , % Institutional Support 35,530,843 32,960,308 2,570, % Operation & Maintenance 17,062,609 16,897, , % Staff Benefits 12,769,441 12,620, , % Local Cash Match 207, ,197 (40,077) -16.2% To Be Allocated 1,150,000 2,100,000 (950,000) -45.2% Auxiliary Enterprises 4,160,000 4,182,000 (22,000) -0.5% Subtotal 153,723, ,148,800 4,575, % Restricted Financial Aid 59,516,165 58,890, , % Federal, State, and Local Grants 15,045,990 18,012,028 (2,966,038) -16.5% Debt Service 24,967,000 24,108, , % Subtotal 99,529, ,011,117 (1,481,962) -1.5% Depreciation 15,587,244 11,095,000 4,492, % Capital 5,005,325-5,005, % Total Expenses $ 273,845,623 $ 261,254,917 $ 12,590, % 9

10 Budget by Manager FY 2015 FY 2014 Central Campus $ 32,563,141 $ 32,381,015 North Campus 16,156,456 15,565,631 South Campus 19,848,369 19,885,896 Continuing and Professional Development 6,445,000 5,714,000 Facilities and Construction 16,299,774 16,076,539 Chancellor's Office 596, ,754 Fiscal Affairs 18,347,339 18,844,612 Human Resources 2,863,673 2,351,329 Information Technology Services 13,768,230 11,744,321 Deputy Chancellor and President 6,685,008 6,552,974 Marketing 3,715,019 3,356,911 Strategic Initiatives 428, ,691 Student Services 11,847,106 11,493,130 Auxiliaries 4,160,000 4,182,000 Depreciation 15,587,244 11,095,000 Capital 5,005,325 - Debt Service Payments 16,222,000 14,437,815 GO Bond Principal Payments 8,745,000 9,670,720 Total Unrestricted & Interest 199,283, ,352,335 Restricted Grants and State Benefits 74,562,155 76,902,582 Total Expenses $ 273,845,623 $ 261,254,917 10

11 11% 8% 0% 1% 3% Expense Category Unrestricted FY 2015 FY % 10% 8% 1% 3% 32% 23% 7% 8% 3% 10% 21% 6% 7% 2% Instruction Public Service - Cont Profess Dev Academic Support Student Services Institutional Support Operation & Maintenance Staff Benefits Local Cash Match To Be Allocated Auxiliary Enterprises Instruction Public Service - Cont Profess Dev Academic Support Student Services Institutional Support Operation & Maintenance Staff Benefits Local Cash Match To Be Allocated Auxiliary Enterprises 11

12 Next Steps Approve budget on or before Adopt tax rate in September/October 12