Prepared by: Ed Maduli SEPTEMBER 1, 2015 FY 15/16 FINAL Budget Prepared by: Ed Maduli SEPTEMBER 1, 2015

FY 14/15 ACTUAL ending balance Prepaids - $46,828 Assigned to Banked Leave Liability - $5,683,749 Assigned to Fund 001/017 - $63,447 Assigned to Travel/Conference - $34,694 Reserve at 5% - $4,897,805 Contingency Reserve - $2,734,086 Community Support Funds - $15,835,535 Debt Service Reserve - $39,930 Board Elections - $152,023 Total: $29,488,097

FY 15/16 State Budget Governor released State Budget on January 5, 2015 Governor released May Revision on May 14, 2015 Governor signs $115 billion State Budget on June 24, 2015 Includes a reserve of $3.4 billion Based on Governor’s conservative revenue forecast Eliminates over $7 billion in debt

FY 15/16 Community College Budget ITEM JANUARY MAY REVISE STATE BUDGET COLA $92.4 million $61 million Growth $106.9 million $156.5 million Base Allocation $125 million $266.7 million Student Success $100 million Student Equity Plan $115 million $85 million Categorical Program COLA $0 $2.5 million Full Time Faculty $75 million $62.3 million Basic Skills $60 million Institutional Effectiveness $15 million Deferred Maintenance & Instructional Equipment $148 million

FY 15/16 Community College Budget ITEM JANUARY MAY REVISE STATE BUDGET CTE $48 million Proposition 39 $39.6 million $38.7 million Pay Off Deferrals $94.5 million Mandate Claims $351 million $626 million $604 million Adult Education Block Grant $500 million Apprenticeship $29.1 million CDCP Rate Equalization $49 million EOPS $0 $33.7 million Full Time Cal Grant B $39 million

Major Budget Issues FON Increase Budget provides $62.3 million to increase full-time faculty percentage Funds allocated on an FTES basis Report normal obligation adjustment and FON and FON increase in Fall 2016 FON increase will not be rounded Community support districts do not receive any funding

Major Budget Issues Growth formula Budget provides $156.5 million for access SB 860 required a new growth formula and specified primary “need” factors that must be included: Number of people who do not have college degree Number of people who are unemployed, have limited English skills, who are in poverty, or who exhibit other signs of being disadvantaged Both within District’s boundaries Attempts to blend “need” factors with actual growth patterns Community support districts do not receive any funding

Major Budget Issues Base Increase Budget provides $266.7 million to increase workload and basic allocation rates $410 million in PERS/STRS by 2020-21 Community support districts do not receive any funding

PERS and STRS Cost Analysis

SSSP & Student Equity SSSP Funding 2015-16 $100 million ($3.6 million est.) 1.3 to 1.0 match 2014-15 $100 million ($2.3 million) 2.0 to 1.0 match 2013-14 $ 50 million ($1.0 million) 3.0 to 1.0 match 2012-13 $ 49 million ($0.6 million) 3.0 to 1.0 match Student Equity Funding (no match required) 2015-16 $85 million ($1.4 million est.) 2014-15 $70 million ($0.7 million)

Proposition 39 Energy Efficiency & Renewable Generation Project Annual funding for 5 years, beginning 2013-14 District’s annual funding: * 2015-16 $412,970 -WVC replace chillers/cooling towers (AAS, Math and Science) * 2014-15 $403,502 -MC HVAC replacement (LRC, Campus Cntr) * 2013-14 $581,910 -WVC LED lighting retrofits (Parking Lot, PE)

Adult Education $500 million allocation for Adult Education Block Grant program Maximum of $375 million intended to maintain recent levels of expenditures in adult education Remainder to be allocated to consortia through need-based formula Also provides $25 million for development or improvement of local district data systems

FTES Summary

Integrated Budget Model Land Corp Funds Fundraising General Fund Restricted Funds Community Support Funds Categorical Funds

FY 15/16 District Budget Major Budget Assumptions 1.02% COLA (statutory) Additional 0.98% salary improvement No growth or restoration No Deficit Factor WSCH – 550 FTES target – 14,897 5% reserve and no more than 3% contingency reserve 305.0 FTE faculty funded Budget is balanced

Funded Rate per Credit FTES: State vs Local

District Liabilities Banked Leave - $12,747,401 $551,535 short-term $12,195,866 long-term Vacation and Comp. Time - $3,361,736 $139,152 short-term $3,222,584 long-term 2009 Lease Revenue Bonds - $3,181,106 (FY 15/16) 2011 Lease Revenue Bonds - $844,481(Covered by Rebates in FY 15/16) OPEB Unfunded Liability - $55,570,908 CalPERS - $13,149 (FY 15/16) CalSTRS - $475,199 (FY 15/16)

Full-time Faculty Obligation chart Fall 2011 Fall 2012 Fall 2013 Fall 2014 Fall 2015 (projected) FON Obligation 232.1 315.1 279.1 285.8 FTE faculty funded 310 311 305 MC % 67.98 68.42 69.52 69.5 WVC % 68.46 68.44 73.63 74.7 District % 68.23 68.43 71.65 72.16

50% Law Compliance

Property Tax History & Projection

Multi-year Community Support Analysis

Moving Forward Maintain “Community Support” status Comply with FON and 50% Law Manage enrollment Plan for matching requirements for SSSP Plan for statutory COLA Budget for CalSTRS and CalPERS employer rate increases Budget for “sunset” of Prop 30 Budget for long-term liabilities Plan for recession