Adopted Budget Fiscal Year 2012/2013 D. Smith September 11, 2012
The year finished! FY2011-2012 Actuals Beginning Fund Balance $8,503,688 10.99% Revenues $74,981,832 Expenditures $75,896,366 (Deficit)/Surplus ($914,534) Ending Fund Balance $7,589,154 10.00%
The year ahead! FY2012-2013 Adopted Beginning Fund Balance $ 7,589,154 10.00% Revenues $75,816,097 Expenditures $76,567,918 (Deficit)/Surplus ($715,821) Ending Fund Balance $6,837,333 8.93%
As Our Books Closed The Standard: 1-2% Variance usually positive Revenues $579,372 0.7% Expenditures $1,264,997 1.6% San Jose City $403,050 1.3% Evergreen Valley $348,439 1.1% District Office $159,100 1.6% Districtwide $354,408 6.1% All positive! Well done!
Ending Fund Balance 16.00% 14.80% 14.00% 13.00% 12.00% 10.00% 8.00% 10.50% 8.39% 7.81% 10.99% 10.00% 8.93% 6.00% 6.22% 4.00% 2.00% 0.00% 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 Actual 2012-2013 Adopted Budget
About the Adopted Budget FY2012-2013 Projected Finish $6.8M 8.93% Balanced with one-time and on-going savings. 1. Bookstore Transfer-in $200,000 * 2. Enrollment Strategies $880,000 * 3. Defunding Positions $1.04M * *One-time adjustments
About the Adopted Budget FY2012-2013 Balanced with one-time and on-going savings. 4. Statutory Benefits $670,000 5. Health Benefits $1.6M 6. OPEB Refinancing $300,000 7. Growth Revenue $700,000 Achieved FY2012-2013 balance by drawing $715,821 from reserves. Preserves 8.9% EFB, achieves Board required 7% minimum. Well done!
About the Adopted Budget FY2012-2013 Major Assumptions Assumes State Tax Measure (Prop 30) passes Assumes spend all budget $ s Assumes no COLA, 1.11% growth, 1% deficit factor Enrollment fees $36 $46 Parking permits $40 $45, daily $2 $3 Health fee $17 $18
About the Adopted Budget FY2012-2013 Major Assumptions Assumes enrollment cap 14,042 FTES Targets 300 FTES over-cap SJCC FTES target 7,276 EVC FTES target 6,997 Non-Credit FTES 69
Enrollment History 2000 1279 1508 Over Cap 1000 605 595 510 300? 0 16000 15000 14000 13000 14785 15211 14648 Funded Cap 15043 13890 14042 12896 12000 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 Tax Passes 2012-2013 Tax Fails
About the Adopted Budget FY2012-2013 Variables aka Wildcards If Prop 30 tax measure fails: Downside risk! Workload reduction 1,167 FTES Reduced apportionment $4.0M San Jose/Evergreen becomes fifth Basic Aid community college district in California estimated loss approximately $400,000
About the Adopted Budget FY2012-2013 Variables aka Wildcards The Basic Aid Effect! 1% deficit no longer applies Solely dependent on student fee revenue and local property taxes collected FTES cap from 14,042 to 12,876 Funding less predictable, more vulnerable to local economy
Total Assessed Valuation (in Billions) $110 $105.9 $105 $100 $100.8 $102.4 $99.4 $99.7 $101.5 $95 $93.1 $90 $85 $85.4 $80 $78.6 $75 $70 FY 2004-2005 FY 2005-2006 FY 2006-2007 FY 2007-2008 FY 2008-2009 FY 2009-2010 FY 2010-2011 FY 2011-2012 FY 2012-2013
Total Apportionment, Enrollment Fees and Property Taxes (Assuming Tax Measure Passes in November 2012) $80,000,000 $75,000,000 $70,000,000 $65,000,000 $60,000,000 $55,000,000 $50,000,000 $45,000,000 $40,000,000 $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $- $2,656,080 $69,068,069 $4,309,355 $9,018,375 $64,908,348 $62,316,196 $3,572,740 $4,102,749 $3,850,161 $4,351,586 FY08-09 Total Apportionment Funding Sources: $75,296,889 FY09-10 Total Apportionment Funding Sources: $73,320,452 FY10-11 Total Apportionment Funding Sources: $75,184,732 Resident Enrollment fees Property Taxes State Apportionment $253,921 $620,551 $63,915,560 $63,915,560 $63,915,560 FY11-12 Total Apportionment Funding Sources: $68,521,067 $5,631,300 $5,152,278 FY12-13 Total Apportionment Funding Sources: $70,167,411 Tax Measure Passes FY12-13 Total Apportionment Funding Sources: $69,067,838 Tax Measure Fails
If the tax measure passes No change to adopted budget Watch changeable deficit factor State overestimates revenue Unclear regarding FY2013-2014, FY2014-2015, new revenue, or not? 4% or not?
Deficit Factor Changes During Fiscal Year $0 $(500,000) $(1,000,000) $(1,500,000) $(2,000,000) $(983,887) FY 2008-2009 FY 2009-2010 FY 2010-2011 FY 2011-2012 $(1,132,869) $(906,731) $0 $(82,983) $0 $(611,791) $(400,121) $(243,756) P R O J E C T E D $(1,648,595) $(1,745,053) $(2,500,000) $(2,399,448) $(3,000,000) First Principal Apportionment Second Principal Apportionment Recalculation Apportionment
A look ahead FY2013-14 Depends on tax measure 4% growth/restoration? $2.5M $2.1M FY2012-13 rebalancing one-timers new deficit in FY2013-14 Fund 10 OPEB debt service contribution increases $1.1M Health and Welfare, other increases new deficit
A look ahead FY2013-14 Property taxes, AV growth FY2012-13 greater than 0% FY2013-14 greater than 1% State budget picture Very uncertain Very changeable Our status depends on tax measure and AV growth
And Finally the Summary FY2011-12: Strong finish, positive balances, reserves at 10.00%. FY2012-13: Made necessary corrections, need Prop 30 to pass, moderate downside risk, adopted at 8.93%. FY2013-14: Compounding effect of tax measure, Basic Aid and one-time cuts reoccurring, OPEB, Health & Welfare, likely a challenging budget so want to go into FY2013-14 with another strong finish.