Peralta Community College Budget Allocation Model BAM November 17, 2014
Modeled after SB 361 Used for funding apportionment for all California Community Colleges 3 fundamental revenue drivers Base allocation Credit Full Time Equivalent Students (FTES) Non-Credit FTES Apportionment funding from this formula represents more than 70% of the District s unrestricted revenue BAM
Simple and easy to understand Consistent with State s SB 361 model Provides Financial stability A reserve in accordance with PCCD Board Policy Clear Accountability Periodic review and revision Some services centralized at the District Office Utilizes conservative revenue projections Maintains autonomous decision making at the college level Is responsive to the district s and colleges planning processes Principles
Between the Colleges and the District Office To encourage and support collaboration Colleges have broad oversight of institutional responsibilities Primary authority over educational programs and student services functions Develops autonomous and individualized processes to meet state and accreditation standards District office primarily ensures compliance with applicable statue and regulatory compliance as well as essential support functions Staff responsibility to fulfill fiduciary role of providing appropriate oversight of District operations Partnership
Similar allocation to four Colleges as SB 361 allocation to District Allocates resources for Revenue, the District Office, District wide-services and regulatory costs based on percentage of 3 year rolling average of FTES Allocations
Applicable Revenue = Revenue less Exclusions Amount of revenue to be distributed to Colleges Centralized and District Office Expenses Amount of expenditures to be distributed to Colleges Three Year Rolling Averages 3 year Average of the Total funded Full Time Equivalent Students (FTES) for each College Components of Formula Used
Revenue Computational Revenue as determined by SB361 at the State Unrestricted Lottery Apprenticeship Student Health Fees Other Student Fees and Miscellaneous Transfers in from other sources Parcel Tax Budget Allocation Worksheet
Other Post Employment Benefits (OPEB) paid for retirees OPEB debt service payment Exclusions
Chancellors Office Board of Trustees General Counsel Information Technology Public Information Risk Management Education and Student Services Institutional Research Human Resources Finance and Purchasing General Services District Office Service Centers
DSPS Contribution Admissions and Records Facilities Financial Aid International Education Centralized Services
Revenue Allocations to Colleges Applicable revenue times the percentage represented by the 3 year rolling FTES average of the district wide 3 year rolling average District Office and Centralized Services Applicable cost of each service time the percentage represented by the 3 year rolling FTES average of the district wide 3 year rolling averages Total of these represent the revenue allocation to each College Formula
Budget Cycle Tentative Budget to board by June 30 Final Budget adopted by board by September 15 Budget Calendar Positions Discretionary Categorical/Grants Unrestricted Expenditure Budgets by College
Spreadsheet with prior year positions and coding sent to College for review and input Rates acquired by the issuing agency Cost for each employee computed This plus the part time faculty make up the non-discretionary portion of each budget Non-discretionary budgets
FTES targets established for each College based on funded growth from the State 17.5 productivity used to determine number of Full Time Equivalent Faculty (FTEF) needed to meet the FTES targets Full Time position for faculty subtracted from the number of FTEF needed to determine part time faculty budget FTEF calculation
Peralta Community College District 2014-15 1351 Budget 11/17/2014 COA Laney Merritt BCC Districtwide 1 Budget Projections FTEF - per position spreadsheets (includes new positions) 50.91 106.206 64.92 46.8 268.836 2 *2 for fall and spring 101.82 212.412 129.84 93.6 537.672 3 FTEF Targets per Ed. Svs - 19,055 ftes 216.22 466.64 226.99 236.14 1,146.00 a. Department Chair Release FTEF 2.74 6.44 2.84 3.28 15.30 Total FTEF for target 218.96 473.08 229.83 239.42 1,161.30 4 Difference between targets and contract instructional faculty (3-2) 117.14 260.67 99.99 145.82 623.63 5 Estimated cost at $22,000 (4*$22,000) $ 2,577,047 $ 5,734,791 $ 2,199,885 $ 3,208,093 $ 13,719,816 6 Summer Estimate $ 528,297 $ 957,483 $ 332,234 $ 590,875 $ 2,408,889 7 Projected salary savings on existing vacancies 390,889 538,098 466,052 507,650 $ 1,902,689 8 Amount to allocate ((5+6)-7) 2,714,455 6,154,176 2,066,067 3,291,319 14,226,016 Part-Time Faculty Calculation
Full time positions Part Time Faculty Calculation Related payroll liabilities Medical and Dental premiums On average, represents about 85% of College budget Non-Discretionary Budgets
Prior Year Allocation used for: Hourly personnel Supplies Materials Services Capital Equipment Include some fixed costs, such as utilities, rent, maintenance agreements, etc. Represents on average 15% of College funding Object codes 4xxx-7xxx 14xx and 13xx (except 1351) Discretionary Budget
Total of the Discretionary and Non- Discretionary budgets as allocated based on the previous two slides Unrestricted Expenditure Budget by College
As anticipated, there are delta s between the Revenue allocation by College and unrestricted expenditures by College Identified in the BAM are strategies for Transition Differences
Will require multiple years to avoid negative and sudden operational impacts to programs and services Options: Shifting FTES targets to provide additional apportionment to some colleges Deficit reduction plans Shifting growth money from one college to another Reductions in centralized support functions and services Utilization of international student tuition Strategies for Transition
Still sorting out remaining issues Evaluating the effectiveness of the procedures outlined Suggested review every 3 years Keeping the model up to date and responsive to the changing community college landscape Periodic Review
Questions / Comments