1. Financial Overview Linn-Benton Community College August 2, 2010

2. Community College Finance More students = less $$ per student More students = less $$ per student How a 3% increase in taxes can equal no additional funds How a 3% increase in taxes can equal no additional funds 3+5=4+4 3+5=4+4 National and Oregon economies slow recovery = A new normal National and Oregon economies slow recovery = A new normal

3. Micro Economics Cows –B/E 3 years Cows –B/E 3 years Pigs – B/E 2 years Pigs – B/E 2 years Sheep- B/E 1 year Sheep- B/E 1 year Options Options Stay same Stay same Finance growth “pay as you go” Finance growth “pay as you go” Finance growth with borrowing Finance growth with borrowing

4. Micro Economics-The Commons

5. Macro Economics- The Commons

6. Macro Finance

7. Distribution formula The CCSF “Commons” ABC Calculation of Amount Available per FTE: CC Support Fund Available =$218,864,080.24 Property Taxes Available =$135,465,104.00 Total Available =$354,329,184.24 Total Amount for Base =$14,064,684.73 Available for FTE Distribution =$340,264,499.51 Equity Available per FTE =$3664.99 TOTAL Available per FTE =$3,664.99 Base Amount =$720.00

8. Distribution formula ABCFGIJ College Weighted Average FTE Preliminary Base Payment Final College Size Factor Final Base Payment with Size Adjustment Factor Prelim TPR (W/out Base) at 100% Equity Prelim Total TPR (W/Base) at 100% Equity Blue Mountain2,090.95$792,000.001.1347$898,682.40$7,663,311.57$8,561,993.97 Central4,254.76$792,000.001.0027$794,138.40$15,593,675.44$16,387,813.84 Chemeketa10,962.02$792,000.001.0000$792,000.00$40,175,734.83$40,967,734.83 Clackamas7,489.32$792,000.001.0000$792,000.00$27,448,288.74$28,240,288.74 Clatsop1,360.89$792,000.001.2062$955,310.40$4,987,657.96$5,942,968.36 Columbia Gorge995.86$754,510.391.2784$964,566.08$3,649,827.71$4,614,393.79 Klamath1,404.09$792,000.001.2062$955,310.40$5,145,995.94$6,101,306.34 Lane11,798.39$792,000.001.0000$792,000.00$43,241,005.69$44,033,005.69 Linn Benton6,563.69$792,000.001.0000$792,000.00$24,055,892.58$24,847,892.58 Mt. Hood8,725.18$792,000.001.0000$792,000.00$31,977,738.42$32,769,738.42 Oregon Coast442.60$555,334.291.3513$750,423.23$1,622,108.42$2,372,531.65 Portland23,489.59$792,000.001.0000$792,000.00$86,089,175.17$86,881,175.17 Rogue4,537.65$792,000.001.0027$794,138.40$16,630,463.74$17,424,602.14 Southwestern3,068.13$792,000.001.0108$800,553.60$11,244,660.98$12,045,214.58 Tillamook Bay344.01$519,843.281.3513$702,464.22$1,260,790.89$1,963,255.11 Treasure Valley1,829.47$792,000.001.1347$898,682.40$6,704,988.68$7,603,671.08 Umpqua3,485.19$792,000.001.0081$798,415.20$12,773,182.75$13,571,597.95 Totals92,841.79$12,917,687.96 $14,064,684.73$340,264,499.51$354,329,184.24

9. Back to the Farm New assumptions-growth has over utilized the commons New assumptions-growth has over utilized the commons Not enough grass to feed everyone's herds Not enough grass to feed everyone's herds What was once thought to be a drought is now “climate change” What was once thought to be a drought is now “climate change” Response must change Response must change

10. Macro Finance

11. TPR per FTE

12. TPR per FTE-Inflation adjusted

13. Two sides of the coin Public good – Private Good Public good – Private Good

14. Continuing Service Level 2009-11 General Fund appropriation $ 450,500,000 2009-11 Phase-ins, phase-outs, one-time expenditures - 2009-11 Timber tax estimate 25,308 2009-11 Property tax estimate 264,300,000 2009-11 General Operating Revenues $ 714,825,308 Percent of budgetGrowth PERS2.9%79.1% 16,448,355 Health insurance9.4%14.5% 9,728,585 Pension obligation bonds4.2%10.3% 3,099,697 Remainder Personal Services67.0%3.1% 14,835,842 Remainder Services and Supplies16.5%2.4% 2,834,139 Increase in General Operating Revenues6.6% $ 46,946,618 2011-13 General Operating Revenues 761,771,926 2011-13 Timber tax revenues (25,308) 2011-13 Property tax estimate (284,200,000) 2011-13 Current Service Level $ 477,546,618 Increase in General Fund from 2009-11 LAB6.0%

15. What is the budget? General Fund General Fund Auxiliary Fund Auxiliary Fund Special Revenue Fund Special Revenue Fund Debt Debt Capital Projects/Reserves Capital Projects/Reserves Financial Aid Financial Aid Enterprise Enterprise

16. All Funds Budget

17. What about General Fund budget? State Community College Support Fund State Community College Support Fund Property Taxes Property Taxes Tuition Tuition Other Other Interest Interest Transfers-In Transfers-In Miscellaneous Miscellaneous

18. General Fund Budget- Revenues

19. General Fund Budget- Resources

20. Delayed Payment Cash vs Accrual QTR 1QTR 2QTR 3QTR 4QTR 5QTR 6QTR 7QTR 8 $$$$ QTR 1QTR 2QTR 3QTR 4QTR 5QTR 6QTR 7QTR 8 $$$$ CASH ACCRUAL or RESERVE EVEN FISCAL YEAR ODD FISCAL YEAR

21. Cut in FY10-11 (estimated) College Impact of 50/50 across the board reduction and through the formula reduction to the CCSF's Biennial Budget of $450.5 Million Prior CCSF FY 11 Payment No Reduction Estimated Reduction % Change Blue Mountain 4,296,398 (436,066)-10.1% Central 3,899,946 (683,600)-17.5% Chemeketa 24,290,203 (2,352,422)-9.7% Clackamas 13,309,670 (1,458,912)-11.0% Clatsop 2,115,405 (255,518)-12.1% Columbia Gorge 3,771,438 (288,980)-7.7% Klamath 4,373,434 (359,976)-8.2% Lane 28,080,189 (2,605,287)-9.3% Linn Benton 18,271,665 (1,570,789)-8.6% Mt. Hood 22,795,797 (2,016,375)-8.8% Oregon Coast 1,339,193 (111,308)-8.3% Portland 60,537,114 (5,400,500)-8.9% Rogue 6,262,662 (809,022)-12.9% Southwestern Oregon 6,923,937 (662,975)-9.6% Tillamook Bay 893,350 (79,163)-8.9% Treasure Valley 5,869,440 (476,649)-8.1% Umpqua 10,664,595 (880,579)-8.3% Total 217,694,437 $ (20,448,120)-9.4%

22. August 2008 Planning

23. Why the “New Normal” National unemployment National unemployment Reported 9.5% Reported 9.5% Estimated when adding discouraged 16% Estimated when adding discouraged 16% Labor Force Labor Force Grows 120,000 per month Grows 120,000 per month Private Sector adding 140,000 jobs a month Private Sector adding 140,000 jobs a month Gap between peak and today 11,000,000 Gap between peak and today 11,000,000 If 200,000 jobs added per month- 12 year recovery If 200,000 jobs added per month- 12 year recovery If jobs were added at pace of 1990’s- 4 years If jobs were added at pace of 1990’s- 4 years

24. State Expenses vs. Revenue Billions

25. Values, Commitments and Strategic plan Create opportunities for success-Value Ability to respond to emerging needs-Strategic Plan Results Ability to respond to opportunities Flexibility & shifting resources Excess budget capacity Dedicated to Growth- Instruction-pay as you go Designated Contingency- General Fund-one time $1.1M FY1011 Auxiliary Revenue Program-pay as you go Special Revenue Program- pay as you go

26. Values, Commitments and Strategic plan Create fiscal, physical, and social environments that support student success and a positive workplace climate.- Commitment Diversify and expand revenue sources, while maintaining conservative spending practices.-Strategic Plan Results Physical Madrone Hall White Oak Hall Parking Improvements Fiscal Overall decline in General Fund and grant revenues Spent over 100% of GF salary budget in FY10 Shift of cost from state to student Drew down reserves Cost per FTE is declining Bubble

27. Grant and Contracts Revenue

28. Grant and contract Revenues Diversify Sources

29. Cost per FTE by Program

30. Values, Commitments and Strategic plan Any available resources should first be invested in efforts related to the strategic plan. Results FY10-11 Investments Learners -$100K First year experience Advising Assessment Special accreditation Enrollment On-line services improvement -$150K Revenue Bond election planning and architectural development -$100K