January 24, 2017 Prepared by: Ed Maduli Board Budget Workshop January 24, 2017 Prepared by: Ed Maduli

2017/18 State Budget Governor releases State Budget on January 10, 2017 $122.5 billion general fund budget $14.6 billion for community colleges

2017/18 Community College Budget $94.1 million for a 1.48% COLA $79.3 million for a 1.34% growth $23.6 million for a base increase $150 million for implementation of Guided Pathways (one-time) $20 million for Innovation Awards Program (one-time) $5.4 million for a 1.48% COLA for Apprenticeship, EOPS, DSPS, CalWorks and Child Care $3.1 million for enrollment growth in the full-time Student Success Grant program $10 million for Online Education Initiative $6 million for procurement of an Integrated Library System $43.7 million for Physical Plant and Instructional Equipment Program (one-time) $52.3 million for energy efficiency projects (one-time)

What Is Not Funded (No Additional Augmentation) Student Success Student Equity Workforce/CTE Pathways Basic Skills Adult Education 24 BOG-approved Capital Outlay Projects

State Revenue Impact on Community Support Districts No State apportionment Continue to receive funding for: Lottery EPA Mandated costs Student Categorical Funds Other State/Federal Grants

2017/18 District Budget Major assumptions 1.48% State COLA No growth or restoration funds WSCH: 530 FTES Target: 14,000 5% reserve and no more than 3% contingency reserve 309.0 FTE faculty funded Student categorical funding same as 2016/17 Proposition 30 funded at $100/FTES Meet statutory obligations Faculty hiring funding

Budget Development Approach Maintain community support status Stabilize enrollment Use Resource Allocation Model Balanced Budget

2017/18 FTES Target

18 – 22 year olds/California

District Liabilities Banked Leave Vacation and Comp Time Lease Revenue Bonds OPEB CalPERS CalSTRS

Banked Leave Liability

Vacation and Comp Time Liability

Lease Revenue Bonds – 2009

2016 Lease Revenue Bonds Debt – 2009A1 Refunding comparison Total debt prior to refunding = $80,157,674 Total debt after refunding = $69,333,131 Total savings from refunding = $10,824,543

Lease Revenue Bonds Debt– 2011

OPEB

CalSTRS and CalPERS Summary of Employer Contribution Rate   2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 PERS 2014-15 @ 11.77% (Incr. 0.33%) 44,693 PERS 2015-16 @ 11.85% (Incr. 0.08%) 13,149 PERS 2016-17 @ 13.89% (Incr. 2.04%) 371,598 PERS 2017-18 @ 15.50% (Incr. 1.61%) 323,863 PERS 2018-19 @ 17.10% (Incr. 1.60%) 329,641 PERS 2019-20 @ 18.60% (Incr. 1.50%) 317,290 PERS 2020-21 @ 19.80% (Incr. 1.20%) 258,908 STRS 2014-15 @ 8.88% (Incr. 0.63%) 158,633 STRS 2015-16 @ 10.73% (Incr. 1.85%) 475,199 STRS 2016-17 @ 12.58% (Incr. 1.85%) 498,277 STRS 2017-18 @ 14.43% (Incr. 1.85%) 557,883 STRS 2018-19 @ 16.28% (Incr. 1.85%) 566,516 STRS 2019-20 @ 18.13% (Incr. 1.85%) 581,772 STRS 2020-21 @ 19.10% (Incr. 0.97%) 311,189 Total Cost 203,326 691,674 1,561,549 2,443,295 3,339,452 4,238,514 4,808,611

CalSTRS and CalPERS Rate Increase

50% Law

Faculty Obligation Number Fall 2012 Fall 2013 Fall 2014 Fall 2015 Fall 2016 FON Obligation 315.1* 279.1 276.1 270.1 FTE Faculty Actual 310 311 305 300 MC % 68.42 69.52 69.5 71.87 70.21 WVC % 68.44 73.63 74.7 72.90 72.4 District % 68.43 71.65 72.16 72.41 71.4 *FON Frozen

Factors affecting District Budget in the Out Years Possible recession Federal Grants

Summary of Cost for Banner Implementation Actual Total 7/1/15-6/30/2016 7/1/16-1/20/2017 Backfill/OT for Banner Project Backfills/OT: Finance Module 188,865 24,105 212,970 Backfills/OT: Student Module 115,810 442,675 558,485 Backfills/OT: HR Module 61,575 105,584 167,159 Backfills/OT: Technical Support 66,611 86,641 153,252 Total for Backfill/OT 432,861 659,005 1,091,866 Ellucian 4,151,938 2,823,633 6,975,571 Strata Information Group (SIG) 265,655 222,779 488,434 Other: Software and Equipment 247,195 5,040 252,235 Total for Consultants/Software/Equipment 4,664,788 3,051,452 7,716,240 Grand Total 5,097,649 3,710,457 8,808,106