Maricopa Financial Plan

Transcription

1 ChandlerGilbert Estrella Mountain GateWay Glendale Mesa Phoenix Paradise Valley Rio Salado Scottsdale South Mountain Maricopa Financial Plan Fiscal Years

2 Table of Contents Introduction and Summary of Purpose Page 1 MCCCD Planning Cycle Page 2 Key Components of Strategic & Financial Planning Page 3 Facts at a Glance (Table 2) Page 4 Major Assumptions (Table 3) Page 5 FTSE Estimates (Table 4) Page 6 General Fund Revenue Chart Page 7 General Fund Expenditure Projections (Table 5) Pages 8 & 9 Linkage Between Strategic Direction and FY05 Budget (Table 6) Page 10 Appendix Pages 11 21

3 /1 FTSE is an acronym for Full Time Student Equivelents INTRODUCTION AND SUMMARY OF PURPOSE The purpose of the Maricopa Financial Plan is to provide the leadership of the Maricopa Community Colleges with information to help it set resource levels and make allocations to achieve strategic directions and initiatives. The plan includes actual data for Fiscal Years through , budgeted data for FY and projections for Fiscal Years through This summary financial plan contains the data most pertinent to the decision making process. Although the primary focus is on the General Fund (Fund 1), summary data for all funds is provided in Appendix F. It should be noted that amounts in the plan are estimates made by the Budget and Financial Planning Department as part of the planning process and are subject to change by the MCCD administration and Governing Board as they deliberate on specific allocation issues. Fiscal Year presented the Maricopa Community Colleges with many financial challenges. The most notable was that for the second consecutive year, the District's state aid appropriation was reduced in midyear. Also, the District has entered the post 1994 General Obligation Bond era characterized by significantly fewer capital funds available to address ongoing capital needs. For FY , the District's state appropriations remain at reduced levels while expenditure pressures continue from flex benefit, retirement contribution rate and insurance premium increases. The Maricopa Financial Plan presents a holistic approach to the District's strategic and financial goals, however, the key components are the Strategic Planning Cycle (Figures 1 and 2), current adopted strategic initiatives (Table 1), major assumptions, (Table 3), FTSE estimates (Table 4) and General Fund revenue and expenditure projections (Table 5). Strategic Planning Figure 1 presents a birdseye view of the planning cycle. The continuous, unbroken loop demonstrates the symbiotic relationship shared by all parts of strategic and financial planning. The strategic planning process has been broken into five key components detailed in Figure 2. It is the intent of the District that all strategic and financial planning will support the board goals and the six strategic directions outline in Table 1. Financial Planning Table 2 describes a number of district financial Facts At A Glance. Changes in these areas, among others, have a very significant influence on the financial projections. Table 2 is provided as a means of demonstrating the scope of a number of very important planning elements by showing the amount of money involved in relatively small changes in these areas. Table 5 reflects the summary financial projections including the available new resources and anticipated expenditure commitments through FY 13. Strategic / Financial Linkage Table 6 defines the linkage between projected expenditure item categories in FY 05 and the adopted strategic directions. With a deliberate and concerted effort, the District will continue to align financial planning, budget development and resulting resource allocations to the established strategic directions in order to make the investments necessary for organizational success. Page 1

4 Strategic Planning Elements

5 DEMONSTRATES Figure 1 Actual Measured Outcomes and Accountability Strategic Planning & Directions LEADS TO MCCCD Planning Cycle D R I V E S Budget Development Process / Resource Allocation Financial Planning IMPACTS & SUPPORTS Page 2

6 Figure 2 KEY COMPONENTS OF STRATEGIC & FINANCIAL PLANNING Environmental Scanning: *Issues Facing MCCD *Data Trends *SWOT Analyses Developing Strategic Thinking: *Identifying Key Issues *Gap Analysis *Assumptions *Identifying the Directions Strategic Directions And Priorities (see below): *Approve and Adopt * Communicate Planning and Implementation: *Develop Directions & Operational Plans *Link Strategic & Financial Planning *Allocate to Priorities Accountability: *Assess & Implement Strategic and Financial Planning *Assess & Improve Directions *Review Planning Processes Table 1 Maricopa Community College District Adopted Strategic Directions Direction #1: Direction #2: Direction #3: Direction #4: Direction #5: Direction #6: MCCD will maximize stakeholder access to the Maricopa College's facilities, programs and services. MCCD will promote and support expansion of dynamic learning environments and delivery options. MCCD will maximize collaboration among the Maricopa Colleges and with external partners. MCCD will significantly enhance both new and existing revenue sources to promote growth and increase cost effectiveness. MCCD will recruit and retain a quality and diverse workforce. MCCD will develop a strong identity that reflects its educational leadership role in the community. Page 3

7 Financial Plan Summary Elements

8 Table 2: FY 05 FACTS AT A GLANCE (Comparisons intended to Demonstrate the Scope and Impact of Various Financial Changes) * A $1 tuition increase yields approximately $2.2 million in additional revenue. * Every $1 Billion Increase in Assessed Property Value yields approximately $9.4 million in increases tax receipts. * A $.01 increase in the primary property tax rate yields approximately $2.5 million in additional revenue. * FY 04 State Aid Incremental Funding Rate per FTSE was $0 for both Operating and Capital aid. /1 * A 1% COLA would cost approximately $2.9 million and a step would cost approximately $4.0 million. * Every 1% increase in the ASRS contribution rate costs the District approximately $2.0 million. * Every 1% loss in State Aid would amount to approximately $466,000 in operating and $83,000 in Capital. * Every 1% MCCD Budget Cut (Fund 1) amounts to approximately $3.1 million at the colleges. $340,000 at the District Office. /1 As measured against FY 03 after a midyear revertment. Page 4

9 FINANCIAL PLANNING Each year, the Budget Office puts together projections based on historic activity and economic data. There are several major assumptions in the Maricopa Financial Plan as listed in Table 3 below. Any changes to these assumptions would directly impact revenue forecasts. More specific details about Plan assumptions are contained in Appendix G. Table 3: Major Assumptions in the Maricopa Financial Plan Operating Budget Revenues Expenses * Continued growth in Property Tax revenues, based * Commitment to new faculty hiring. on trends and legal limits in increases on existing * Health benefit cost increases throughout the plan years. property. * Meet and Confer adjustments are estimated in each plan year. * Tuition revenue growth from both rate and These are illustrated, based on employee group proposals to fund enrollment increases. steps and measure salary adjustments against an inflation index. * Consistent Enrollment Growth throughout the * Phased in operating cost support for the new and renovated plan years. space constructed with 2004 Bond resources. * State Aid increased at FTSE Growth Rate after * Continued enrollment growth funding to the colleges at a level FY 06, reduced by 5%10% in FY 05 proportional to the changing tuition rate. * Continuing growth in Proposition 301 revenues. Capital Budget * Passage of a new G.O. Bond in 2004 authorizing $951 million in G.O. Bond Debt * Phased bond issuance per Dain Rauscher estimate of $190M in Jan, 05, 07, 09, 11 and 13. Note: See Appendix G for additional details about financial plan assumptions. Page 5

10 Full Time Student Equivelent (FTSE) Assumptions Table 4 shows five years of full time student equivelent (FTSE) history as well as projections for the upcoming ten years. The strong FTSE growth experienced in FY 03 is expected to continue through FY 04 and FY 05 with a more moderate growth rate estimated for years beyond FY 06. Table 4: Growth in FTSE Actuals FY 99 FY 00 FY 01 FY 02 FY 03 FTSE 51,871 53,633 56,434 59,779 64,826 Increase 3,996 1,762 2,801 3,345 5,047 % Increase 8.35% 3.40% 5.22% 5.93% 8.44% Projected FY 04 * FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FTSE 70,649 76,954 81,495 86,303 91,344 96, , , , ,421 Increase 5,823 6,305 4,541 4,808 5,041 5,341 5,658 5,995 6,352 6,731 % Increase 8.98% 8.92% 5.90% 5.90% 5.84% 5.85% 5.85% 5.86% 5.86% 5.87% * FY 04 FTSE level is revised up from the budgeted FTSE level of 67,476. Page 6

11 Chart 1 GENERAL FUND ACTUAL AND PROJECTED REVENUES FY99 FY05 (in millions) $500.0 FY0304 & FY0405: Projected $450.0 $400.0 $350.0 $300.0 $250.0 $200.0 $25.3 $44.0 $42.0 Other 9.2% T & F 16.1% State Approp. 15.3% $34.5 $45.7 $44.8 FY9899 to FY0203: Actual Other 11.5% T & F 15.2% State Approp. 14.9% $37.3 $48.9 $47.9 Other 11.5% T & F 15.1% State Approp. 14.8% $42.9 $55.0 $47.6 Other 12.2% T & F 15.6% State Approp. 13.5% $35.3 $66.6 $46.6 Other 10.2% T & F 17.8% State Approp. 12.4% $42.8 $78.6 $49.9 Other 10.3% T & F 18.9% State Approp $41.8 $93.9 $44.3 Other 9.4% T & F 21.2% State Approp. 10.0% /1 $150.0 $100.0 $162.6 Property Taxes 59.4% $174.9 Property $190.4 $206.9 Taxes Property 58.3% Taxes 58.7% Property Taxes 58.7% $223.1 Property Taxes 59.6% $243.9 Property Taxes 58.7% $263.2 Property Taxes 59.4% $50.0 $0.0 FY9899 FY9900 FY0001 FY0102 FY0203 FY0304 FY0405 Property taxes State Appropriation Tuition and Fees Other /1 Assumes a 5% cut in the state aid appropriation. The actual cut may be higher. Page 7

12 Table 5: Additional Potential Expenditures (General Fund) FY05 FY06 FY07 FY08 FY09 Projected Revenue Increases (see Appendix B): $ 34,709,725 $ 33,872,919 $ 37,586,199 $ 41,777,422 $ 43,464,109 Mandates/Externally Driven Expenditures Uncollected Tax Levy Contingency $ (175,557) $ (208,195) $ (224,779) $ (242,681) $ (262,007) ASRS Increase $ $ (800,000) $ $ $ Flex Benefit Increase (15% FY 0509, 5% FY 1013) $ (3,505,826) $ (4,031,700) $ (4,636,455) $ (5,331,923) $ (6,131,712) Insurance Premiums & Self Insured Loss Settlements $ (400,000) $ (200,000) $ (200,000) $ (200,000) $ (200,000) $ (4,081,383) $ (5,239,895) $ (5,061,234) $ (5,774,604) $ (6,593,718) Potential / Additional Dollars: Highest Priority Items: New Faculty 25 in FY 05 and 55 after assuming Phase 2 $ (1,825,550) $ (4,128,262) $ (4,243,441) $ (4,361,833) $ (4,483,528) Student Information System (Permanent Funding) $ (372,254) $ (93,917) $ $ $ Enrollment Growth Funding (see Appendix A for FY 05 detail) $ (16,768,447) $ (9,720,032) $ (10,583,612) $ (11,406,020) $ (12,615,100) Subtotal Priority Commitments $ (18,966,251) $ (13,942,211) $ (14,827,053) $ (15,767,852) $ (17,098,628) Other Items: Support for Fund 3 Grant (Indirect Cost) funded FTE $ (413,988) $ $ $ $ Operating Costs for 2004 Bond Program Capital Construction $ $ (3,618,000) $ (3,618,000) $ (3,618,000) $ (3,618,000) Operating Costs for 2004 Bond Program Technology $ $ (3,450,000) $ (3,450,000) $ (3,450,000) $ (3,450,000) Inflation and Business Costs $ (975,000) $ (994,500) $ (1,014,390) $ (1,034,678) $ (1,055,371) Bank Credit Card Charges (moved from Fund 2) $ $ (900,000) $ (900,000) $ $ Scholarships $ (200,000) $ (167,633) $ (155,504) $ (167,099) $ (215,485) Meet & Confer/$300k CPD (illustrative only) $ (8,917,365) $ (10,915,659) $ (11,233,305) $ (11,560,194) $ (11,896,595) Adjunct Faculty Rate increase at 5% $ (2,218,084) $ (1,870,927) $ (1,964,473) $ (2,062,697) $ (2,165,832) MCTV $ (273,400) $ $ $ $ Additional ABE /GED Funding $ (300,000) $ $ $ $ Active Retirement Program $ (600,000) $ $ $ $ Bid Costs for Benefits $ (130,000) $ $ $ $ MAT Reclassification $ (700,000) $ $ $ $ College / DO Decision Package Requests $ $ $ $ $ Subtotal Other Commitments $ (14,727,837) $ (21,916,719) $ (22,335,672) $ (21,892,668) $ (22,401,284) Net Funds Available (Assumes a 5% State Cut and 15% Flex Increase): $ (3,065,746) $ (7,225,907) $ (4,637,760) $ (1,657,702) $ (2,629,521) Other Potential Adjustments: Subtotal Mandates/Externally Driven Expenditures Potential Additional 7% Flex Benefit Increase $ (1,412,306) $ $ $ $ Potential Additional 5 % State Aid Reduction $ (2,300,000) $ $ $ $ Total Potential Balance $ (6,778,052) $ (7,225,907) $ (4,637,760) $ (1,657,702) $ (2,629,521) Note: All amounts are estimates and subject to change as the MCCD administration and Governing Board deliberate and approve specific commitments. Page 8

13 Table 5: Additional Potential Expenditures (General Fund) FY10 FY11 FY12 FY13 Projected Revenue Increases (see Appendix B): $ 46,616,180 $ 50,328,139 $ 54,327,767 $ 58,639,247 Mandates/Externally Driven Expenditures Uncollected Tax Levy Contingency $ (283,266) $ (305,845) $ (330,219) $ (356,532) ASRS Increase $ $ $ $ Flex Benefit Increase (15% FY 0509, 5% FY 1013) $ (2,146,099) $ (2,253,404) $ (2,366,074) $ (2,484,378) Insurance Premiums $ (200,000) $ (200,000) $ (200,000) $ (200,000) $ (2,629,365) $ (2,759,249) $ (2,896,293) $ (3,040,910) Potential / Additional Dollars: Highest Priority Items: New Faculty 25 in FY 05 and 55 after assuming Phase 2 $ (4,608,618) $ (4,737,199) $ (4,869,367) $ (5,005,222) Student Information System (Permanent Funding) $ $ $ $ Enrollment Growth Funding $ (13,926,600) $ (15,357,900) $ (16,910,300) $ (18,595,300) Subtotal Priority Commitments $ (18,535,218) $ (20,095,099) $ (21,779,667) $ (23,600,522) Other Items: Support for Fund 3 Grant (Indirect Cost) funded FTE $ $ $ $ Operating Costs for 2004 Bond Program Capital Construction $ (3,618,000) $ (3,618,000) $ (3,618,000) $ (3,618,000) Operating Costs for 2004 Bond Program Technology $ (3,450,000) $ (3,450,000) $ (3,450,000) $ (3,450,000) Scholarships $ (199,357) $ (215,639) $ (232,984) $ (74,638) Bank Credit Card Charges (moved from Fund 2) $ $ $ $ Inflation and Business Costs $ (1,076,479) $ (1,098,008) $ (1,119,969) $ (1,142,368) Meet & Confer/$300k CPD (illustrative only) $ (12,242,786) $ (12,599,051) $ (12,965,684) $ (13,342,985) Adjunct Faculty Rate increase at 5% $ (2,274,123) $ (2,387,830) $ (2,507,221) $ (2,632,582) MCTV $ $ $ $ Additional ABE /GED Funding $ $ $ $ Active Retirement Program $ $ $ $ Bid Costs for Benefits $ $ $ (200,000) $ MAT Reclassification $ $ $ $ College / DO Decision Package Requests $ $ $ $ Subtotal Other Commitments $ (22,860,746) $ (23,368,528) $ (24,093,858) $ (24,260,573) Net Funds Available (Assumes a 5% State Cut and 15% Flex Increase): $ 2,590,851 $ 4,105,263 $ 5,557,950 $ 7,737,242 Other Potential Adjustments: Subtotal Mandates/Externally Driven Expenditures Potential Additional 7% Flex Benefit Increase $ $ $ $ Potential Additional 5 % State Aid Reduction $ $ $ $ Total Potential Balance $ 2,590,851 $ 4,105,263 $ 5,557,950 $ 7,737,242 Note: All amounts are estimates and subject to change as the MCCD administration and Governing Board deliberate and approve specific commitments. Page 9

14 Strategic / Financial Plan Linkages

15 Direction #1: Direction #2: Direction #3: Direction #4: Direction #5: Direction #6: Maricopa Community College District Adopted Strategic Directions MCCD will maximize stakeholder access to the Maricopa College's facilities, programs and services. MCCD will promote and support expansion of dynamic learning environments and delivery options. MCCD will maximize collaboration among the Maricopa Colleges and with external partners. MCCD will significantly enhance both new and existing revenue sources to promote growth and increase cost effectiveness. MCCD will recruit and retain a quality and diverse workforce. MCCD will develop a strong identity that reflects its educational leadership role in the community. Table 6 Linkage between Strategic Directions and Potential FY 05 Budget Initiative Estimates Directions Direction Direction Business Potential FY 05 Budget Items # 1 & 2 #3 #5 Costs Uncollected Tax Levy $ 175,557 ASRS Contribution Rate $ Flex Benefits $ 3,505,826 Insurance Premiums $ 400,000 New Faculty $ 1,825,550 Student Information System $ 372,254 Enrollment Growth Funding $ 16,768,447 Support for Grant Funded FTE $ 413,988 Inflation and Business Costs $ 975,000 Scholarships $ 200,000 Meet and Confer $ 8,917,365 Adjunct Faculty Rate Increase $ 2,218,084 MCTV $ 273,400 ABE / GED Funding $ 300,000 Active Retirement Program $ 600,000 Bid Costs for Benefits $ 130,000 MAT Reclassification Implementation $ 700,000 $ 19,739,651 $ 413,988 $ 16,071,275 $ 1,550,557 Percent of Resource Total 52.3% 1.1% 42.5% 4.1% $ 37,775,471 Incremental Revenue Available for Allocation $ 34,709,725 Additional 7% health insurance increase $ (1,412,306) Additional 5% state aid cut $ (2,300,000) Surplus / (Deficit) $ (6,778,052) Note: Strategic Direction # 6 is an outcome of most, if not all resource commitments district wide. It is an overriding direction that creates a framework within which all MCCCD investments are made. Direction # 4 is not a part of the graph as it addresses new revenue sources while the graph shows incremental resource commitments. Page 10

16 Appendix

17 Appendix A General Fund Actual Revenues Fiscal Years Actuals Actuals Actuals Actuals Actuals FY9899 FY9900 FY0001 FY0102 FY0203 Property taxes $ 156,997,681 $ 169,540,072 $ 185,770,777 $ 202,530,355 $ 218,867,745 State aid $ 41,481,500 $ 43,464,500 $ 47,945,800 $ 47,592,900 $ 46,613,700 capital transfer $ 526,147 $ initiatives one time $ $ 1,340,400 $ SRP in lieu $ 5,625,374 $ 5,369,108 $ 4,643,252 $ 4,367,298 $ 4,267,166 Tuition and fees volume incr. $ 43,953,992 $ 45,709,110 $ 48,858,899 $ 55,039,461 $ 66,602,442 rate incr. $ $ $ $ Out of county $ 807,959 $ 917,911 $ 927,780 $ 820,054 $ 916,554 Out of state $ 5,069,240 $ 5,937,447 $ 6,406,267 $ 6,674,201 $ 7,930,559 Other fees and charges $ 1,791,039 $ 1,818,046 $ 1,927,105 $ 2,156,479 $ 806,680 Interest $ 3,216,332 $ 2,991,966 $ 4,025,240 $ 3,065,003 $ (1,577,585) Int trf from F2growth $ $ 501,042 $ $ Other $ 239,482 $ 324,438 $ 404,789 $ 523,305 $ 415,687 Transfers From F3 (indirect costs) $ 1,265,395 $ 308,674 $ 375,878 $ 467,150 $ 435,396 From F2 (FTSE growth reserve) $ 945,650 $ 2,455,920 $ 1,954,358 $ 1,851,000 $ 1,849,963 From F6 (Cigna reserve) $ $ $ 810,854 $ 680,000 $ 521,080 Fund balance $ 11,925,943 $ 17,780,976 $ 20,468,520 $ 26,617,662 $ 23,983,719 Fund balance for operating costs $ $ $ $ $ Fund balance for T & F rebate $ $ 1,485,362 $ $ $ Grand Total $ 273,845,734 $ 299,944,972 $ 324,519,519 $ 352,384,868 $ 371,633,106 Actual Revenue Increase $ 19,806,099 $ 26,099,238 $ 24,574,547 $ 27,865,349 $ 19,248,238 Page 11

18 Appendix B General Fund Projected Revenues FY04 FY08 Budget Projections Projections Projections Projections FY0304 FY0405 FY0506 FY0607 FY0708 Property taxes $ 239,464,278 $ 258,654,822 $ 279,406,076 $ 301,814,772 $ 326,012,774 State aid Appropriation $ 49,932,900 $ 44,283,015 $ 46,613,700 $ 50,522,506 $ 55,031,289 SRP in lieu $ 4,479,644 $ 4,546,557 $ 4,614,847 $ 4,684,048 $ 4,754,171 Tuition and fees volume incr. $ 78,559,042 $ 89,424,878 $ 94,796,330 $ 100,490,472 $ 106,526,891 rate incr. $ $ 4,436,268 $ 9,405,480 $ 14,955,660 $ 21,138,720 Out of county $ 400,000 $ 410,000 $ 420,250 $ 430,756 $ 441,525 Out of state $ 8,206,625 $ 8,534,889 $ 8,876,286 $ 9,231,337 $ 9,600,591 Other fees and charges $ 2,006,236 $ 2,435,838 $ 2,593,193 $ 2,760,713 $ 2,939,055 Interest $ 1,800,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 Other $ 305,563 $ 292,743 $ 292,743 $ 292,743 $ 292,743 Transfers From F3 (indirect costs) $ 488,988 $ $ $ $ From F2 (FTSE growth reserve) $ 2,854,500 $ 4,410,302 $ 4,283,328 $ 3,705,424 $ 3,928,095 From F6 (Cigna reserve) $ 850,000 $ $ $ $ Fund balance $ 21,565,776 $ 23,404,005 $ 24,058,036 $ 21,009,328 $ 21,489,576 Fund balance for operating costs $ 4,353,394 $ 1,312,060 $ 376,627 $ $ Grand Total $ 415,266,946 $ 443,145,378 $ 476,736,895 $ 510,897,759 $ 553,155,429 Projected Revenue Increase $ 36,454,552 $ 27,878,432 $ 33,591,518 $ 34,160,864 $ 42,257,670 Page 12

19 Appendix B General Fund Projected Revenues FY09 FY13 Projections Projections Projections Projections Projections FY0809 FY0910 FY1011 FY1112 FY1213 Property taxes $ 352,142,405 $ 380,396,518 $ 410,907,517 $ 443,854,975 $ 479,432,702 State aid Appropriation $ 58,277,997 $ 61,682,043 $ 65,288,670 $ 69,109,359 $ 73,157,615 SRP in lieu $ 4,825,229 $ 4,897,737 $ 4,971,213 $ 5,045,669 $ 5,121,117 Tuition and fees volume incr. $ 112,926,148 $ 119,708,804 $ 126,899,049 $ 134,521,071 $ 142,601,479 rate incr. $ 28,010,700 $ 35,631,720 $ 44,067,240 $ 53,387,520 $ 63,668,700 Out of county $ 452,563 $ 463,877 $ 475,474 $ 487,361 $ 499,545 Out of state $ 9,600,591 $ 9,600,591 $ 9,600,591 $ 9,600,591 $ 9,600,591 Other fees and charges $ 3,128,917 $ 3,331,044 $ 3,546,229 $ 3,775,315 $ 4,019,200 Interest $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 Other $ 292,743 $ 292,743 $ 292,743 $ 292,743 $ 292,743 Transfers From F3 (indirect costs) $ $ $ $ $ From F2 (FTSE growth reserve) $ 4,472,670 $ 4,741,065 $ 5,025,555 $ 5,327,445 $ 5,647,605 From F6 (Cigna reserve) $ $ $ $ $ Fund balance $ 21,908,976 $ 22,448,976 $ 23,019,576 $ 23,626,176 $ 24,268,776 Fund balance for operating costs $ $ $ $ $ Grand Total $ 597,038,938 $ 644,195,118 $ 695,093,858 $ 750,028,225 $ 809,310,072 Projected Revenue Increase $ 43,883,509 $ 47,156,180 $ 50,898,739 $ 54,934,367 $ 59,281,847 Page 13

20 Appendix C General Fund Actual Expenditures Fiscal Years Actual Actual Actual Actual Actual Expenditures by Object Code FY9899 FY9900 FY0001 FY0102 FY0203 Personal Services $ 181,911,100 $ 192,005,078 $ 207,766,203 $ 225,501,220 $ 241,505,406 Employee Benefits $ 26,501,759 $ 30,536,087 $ 32,616,943 $ 38,281,156 $ 41,461,101 Contractual Services $ 19,849,337 $ 21,953,125 $ 24,176,440 $ 26,223,520 $ 25,435,200 Supplies & Materials $ 6,689,201 $ 7,653,355 $ 8,708,210 $ 8,220,161 $ 8,768,295 Current Fixed Charges $ 3,254,473 $ 3,886,695 $ 3,818,885 $ 4,956,311 $ 5,491,092 Utilities/Comm/Travel $ 10,681,010 $ 12,146,534 $ 13,591,336 $ 14,101,568 $ 14,090,804 Capital Outlay $ $ $ $ 580,888 $ 896,215 Std Aid/Transfers/Other $ 5,804,032 $ 8,213,585 $ 8,182,883 $ 11,605,955 $ 9,928,274 Grand Total $ 254,690,913 $ 276,394,460 $ 298,860,901 $ 329,470,780 $ 347,576,387 Actual Actual Actual Actual Actual Expenditures By Function FY9899 FY9900 FY0001 FY0102 FY0203 Public Service $ 182,485 $ 212,890 $ 202,370 $ 254,237 $ 444,284 Instruction $ 132,489,629 $ 139,249,238 $ 152,291,279 $ 163,467,951 $ 175,704,409 Academic Support $ 27,848,374 $ 31,854,651 $ 33,065,610 $ 36,341,620 $ 37,067,228 Administration $ 36,244,109 $ 38,055,780 $ 41,623,071 $ 47,826,089 $ 50,192,792 Student Services $ 20,198,641 $ 21,289,158 $ 22,969,248 $ 25,263,240 $ 26,035,222 Operations/Maintenance $ 20,979,618 $ 23,578,452 $ 25,882,157 $ 27,785,378 $ 29,010,628 General Institutional $ 16,748,058 $ 21,985,290 $ 22,506,197 $ 27,218,721 $ 28,917,561 Contingency $ $ 169,000 $ 320,969 $ 1,313,544 $ 269,528 Grand Total $ 254,690,913 $ 276,394,460 $ 298,860,901 $ 329,470,780 $ 347,641,653 Page 14

21 Appendix D General Fund Projected Expenditures Fiscal Years Adopted Projections Projections Projections Projections Expenditures by Object Code FY0304 FY0405 FY0506 FY0607 FY0708 Personal Services $ 242,401,911 $ 308,716,789 $ 332,118,287 $ 355,916,419 $ 385,355,183 Employee Benefits $ 53,297,557 $ 49,554,818 $ 53,311,196 $ 57,131,241 $ 61,856,713 Contractual Services $ 21,238,315 $ 34,655,293 $ 37,282,250 $ 39,953,731 $ 43,258,407 Supplies & Materials $ 7,346,179 $ 11,811,046 $ 12,706,353 $ 13,616,834 $ 14,743,117 Current Fixed Charges $ 6,627,729 $ 6,244,531 $ 6,717,882 $ 7,199,256 $ 7,794,724 Utilities/Comm/Travel $ 13,881,043 $ 19,028,119 $ 20,470,498 $ 21,937,323 $ 23,751,816 Capital Outlay $ $ 401,385 $ 431,811 $ 462,753 $ 501,028 Std Aid/Transfers/Other $ 70,474,212 $ 12,733,397 $ 13,698,620 $ 14,680,203 $ 15,894,440 Grand Total $ 415,266,946 $ 443,145,378 $ 476,736,895 $ 510,897,759 $ 553,155,429 Adopted Projections Projections Projections Projections Expenditures By Function FY0304 FY0405 FY0506 FY0607 FY0708 Public Service $ 365,656 $ 376,234 $ 404,754 $ 433,757 $ 469,634 Instruction $ 186,220,986 $ 220,360,275 $ 237,064,129 $ 254,051,100 $ 275,064,321 Academic Support $ 42,446,919 $ 48,330,553 $ 51,994,129 $ 55,719,799 $ 60,328,527 Administration $ 57,219,685 $ 62,527,548 $ 67,267,291 $ 72,087,368 $ 78,049,900 Student Services $ 29,005,957 $ 33,576,030 $ 36,121,176 $ 38,709,461 $ 41,911,220 Operations/Maintenance $ 30,534,292 $ 36,603,459 $ 39,378,092 $ 42,199,752 $ 45,690,202 General Institutional $ 45,936,218 $ 36,708,849 $ 39,491,471 $ 42,321,255 $ 45,821,755 Contingency $ 23,537,233 $ 4,662,430 $ 5,015,854 $ 5,375,268 $ 5,819,870 Grand Total $ 415,266,946 $ 443,145,378 $ 476,736,895 $ 510,897,759 $ 553,155,429 Page 15

22 Appendix D General Fund Projected Expenditures Fiscal Years Projections Projections Projections Projections Projections Expenditures by Object Code FY0809 FY0910 FY1011 FY1112 FY1213 Personal Services $ 415,926,586 $ 448,777,892 $ 484,236,449 $ 522,506,421 $ 563,805,061 Employee Benefits $ 66,763,995 $ 72,037,244 $ 77,729,005 $ 83,872,051 $ 90,501,255 Contractual Services $ 46,690,229 $ 50,377,983 $ 54,358,416 $ 58,654,448 $ 63,290,466 Supplies & Materials $ 15,912,734 $ 17,169,576 $ 18,526,168 $ 19,990,320 $ 21,570,345 Current Fixed Charges $ 8,413,104 $ 9,077,600 $ 9,794,833 $ 10,568,934 $ 11,404,297 Utilities/Comm/Travel $ 25,636,120 $ 27,660,949 $ 29,846,478 $ 32,205,293 $ 34,750,782 Capital Outlay $ 540,776 $ 583,488 $ 629,591 $ 679,348 $ 733,043 Std Aid/Transfers/Other $ 17,155,395 $ 18,510,387 $ 19,972,918 $ 21,551,409 $ 23,254,822 Grand Total $ 597,038,938 $ 644,195,118 $ 695,093,858 $ 750,028,225 $ 809,310,072 Projections Projections Projections Projections Projections Expenditures By Function FY0809 FY0910 FY1011 FY1112 FY1213 Public Service $ 506,891 $ 546,927 $ 590,141 $ 636,781 $ 687,111 Instruction $ 296,886,013 $ 320,335,087 $ 345,645,202 $ 372,962,089 $ 402,440,821 Academic Support $ 65,114,573 $ 70,257,545 $ 75,808,690 $ 81,799,971 $ 88,265,398 Administration $ 84,241,837 $ 90,895,546 $ 98,077,328 $ 105,828,534 $ 114,193,167 Student Services $ 45,236,165 $ 48,809,072 $ 52,665,544 $ 56,827,785 $ 61,319,424 Operations/Maintenance $ 49,314,946 $ 53,210,009 $ 57,414,205 $ 61,951,740 $ 66,848,374 General Institutional $ 49,456,935 $ 53,363,213 $ 57,579,514 $ 62,130,114 $ 67,040,846 Contingency $ 6,281,578 $ 6,777,718 $ 7,313,235 $ 7,891,212 $ 8,514,929 Grand Total $ 597,038,938 $ 644,195,118 $ 695,093,858 $ 750,028,225 $ 809,310,072 Page 16

23 Appendix E Potential Commitment / Additional Dollars (General Fund) FY0405 FY0506 FY0607 FY0708 FY0809 Projected Revenue Increases: 27,878,432 33,591,517 34,160,864 42,257,670 43,883,509 (see Table 9) Potential Commitments / Additional Dollars: Carryforward Adjustment (1,838,229) (654,031) 3,048,708 (480,248) (419,400) Eliminate Dual Enrollment Reserve 2,273,000 Reduce Interest and State Aid reserve 1,846,200 Eliminate Grant Admin Transfer 458,988 Reduced Fund Balance for Op Costs 3,041, , ,627 Eliminate Revenue Supplements 200,000 Cigna Reserve 850,000 TOTAL 6,831, ,402 3,425,335 (480,248) (419,400) Net Funds Available for Allocation 34,709,725 33,872,919 37,586,199 41,777,422 43,464,109 FY0910 FY1011 FY1112 FY1213 Projected Revenue Increases: 47,156,180 50,898,739 54,934,367 59,281,847 (see Table 9) Potential Commitments / Additional Dollars: Carryforward Adjustment (540,000) (570,600) (606,600) (642,600) Eliminate Dual Enrollment Reserve Reduce Interest and State Aid reserve Eliminate Grant Admin Transfer Reduced Fund Balance for Op Costs Cigna Reserve TOTAL (540,000) (570,600) (606,600) (642,600) Net Funds Available for Allocation 46,616,180 50,328,139 54,327,767 58,639,247 Page 17

24 Appendix F Total Revenue Projections FY 05 FY 13 FY 05 FY 06 FY 07 FY 08 FY 09 General Fund $ 443,145,378 $ 476,736,894 $ 510,897,758 $ 553,155,428 $ 597,038,937 Auxiliary Fund $ 93,532,298 $ 100,553,269 $ 105,794,998 $ 111,313,994 $ 119,631,729 Restricted Fund $ 109,703,459 $ 113,109,522 $ 115,714,670 $ 119,492,750 $ 123,489,510 Plant Fund $ $ 116,194,354 $ $ 180,202,013 $ $ 223,199,166 $ $ 203,755,290 $ $ 243,917,834 Total $ 762,575,489 $ 870,601,698 $ 955,606,592 $ 987,717,462 $ 1,084,078,010 FY 10 FY 11 FY 12 FY 13 General Fund $ 644,195,117 $ 695,093,857 $ 750,028,224 $ 809,310,071 Auxiliary Fund $ 125,880,595 $ 132,459,466 $ 139,385,339 $ 141,696,796 Restricted Fund $ 127,724,703 $ 132,212,997 $ 136,962,075 $ 141,995,502 Plant Fund $ $ 227,285,172 $ $ 259,842,003 $ $ 250,698,813 $ $ 441,141,738 Total $ 1,125,085,587 $ 1,219,608,323 $ 1,277,074,451 $ 1,534,144,107 Page 18

25 Appendix G Major Assumptions Inherent in the Projections Operating Budget Revenues General Fund Property Taxes Assumes maximization of the tax levy as provided in law at 2% along with a 5.9% valuation growth from new property resulting in an overall 8% increase in property tax receipts. Tuition and Fees tuition increase is assumed at $2 per credit hour each year in accordance with the Tuition Pricing Plan endorsed as a tuition setting guiding by the MCCD. In addition, tuition revenue increases based upon the almost 9 % growth in enrollment estimated for FY 05. FY enrollment growth at just under 6% contributes to escalating tuition revenue over the plan years. Also, an increase of $1 in the student activity fee is assumed in FY 06 and FY 09. State Aid FY 05 assumes a revenue cut of 5% in anticipation of a budget reduction from the State Appropriation. A contingent expense is also included in FY 05 in the event the cut reaches 10% which is looking increasingly likely. Auxiliary Fund Assumes growth in student activity fee revenues due to increased enrollment as well as a $1 increase in the student activity fee in in FY 06 and FY 09. Assumes continued growth in non credit course fee revenues and other auxiliary fund revenues. Restricted Fund Assumes continued receipt of Proposition 301 revenues along with a reduced expectation from Indirect Cost funds. Page 19

26 Appendix G Major Assumptions Inherent in the Projections Operating Budget Expenses New Faculty The Plan includes the commitment to hire 25 additional faculty in FY 05 and 55 from FY 06 FY 13 to continue the MCCD commitment to this initiative. Faculty allocations are made based on the approved Faculty allocation formula which measures FTSE change over 2 years and funds colleges proportionally based upon FTSE growth. The Plan assumes a Phase II allocation of 30 faculty to match college reallocations in FY 06 FY13. Health Benefits Increases reflect an assumed increase of 22% in FY 05 based on deliberations with BC/BS with a 15% increase from FY 06 FY 09 also based on the advice of our insurer. FY assume a 5% increase. Meet and Confer Assumes a Step increase in each year along with a 1.95% COLA in FY 05 and a 2.91% COLA in all other years. Increases are based upon proposals made by employee groups which consistently request a step increase and in some cases request the COLA at published inflationary rates. As a result, a step is assumed each year and the COLA in FY 05 is at the latest year western region CPI increase of 1.95% and the remaining years are assumed at the 5 year average rate of 2.91% Please note that Meet and Confer estimates are illustrative and are set apart from this planning process by the Governing Board. Bond Operating Costs The Plan assumes passage of a $951 million General Obligation Bond Program in FY 05 and includes the related commitment to operating costs to support the bond capital program. Operating costs of approximately $56 million are committed at $15 per square foot for newly constructed space, $3.13 per square foot for renovated space along with a commitment of for technology investments at 9.19% of the capital expenditure. Page 20

27 Appendix G Major Assumptions Inherent in the Projections Capital Budget Revenue State Aid State capital aid is estimated to decline from 510% in FY 05 based on current estimates of possible cut levels needed to balance the state budget. In the remaining plan years, capital aid is projected to increase at the current statutory funding rate of $160 per FTSE. Bond Proceeds the Financial Plan assumes passage of a $951 million G.O. Bond program in FY 05 with those resources phased in with the issuance of approxiamately $190 million in debt five times by FY 13. In addition, several additional revenue bond issuances are planned for Performing Arts Center construction at several colleges. Life Without the Bond program This program is scheduled to conclude after FY 05. This program has allowed the district to maintain a commitment to equipment purchase and replacement at a level that would otherwise have not been possible. Its intent was to ease the transition from the years when 1994 G.O. Bond resources where available and "bridge" the gap until the 2004 bond proceeds are available if the new bond is passed by voters in November Bond Program the Plan assumes passage of the 2004 Bond Program which would make $951 million in capital resources available to the district. The capital program related to the bond election includes plans to construct 1.1 million square feet of new building space as well as the renovation of 600,000 square feet of existing space. In addition, the bond program would allow for the purchase of land for future growth, funds for technology, occupational education, major maintenance and other initiatives. (see operational cost impact under Operating Budget assumptions) Page 21