ADOPTED BUDGET FOR YEAR ENDING JUNE 30TH, 2019 Peralta Community College District ADOPTED BUDGET FOR YEAR ENDING JUNE 30TH, 2019

I. Major Budget Assumptions General Assumptions The FY 2018-19 General Fund Unrestricted Beginning Fund Balance is projected at approximately $15.8 million representing an adequate reserve level of 10.90%. The FY 2018-19 Adopted Budget reflects a balanced budget as a result of the freezing of $4,500,000 in Vacant Positions. The FY 2018-19 Final Adopted Budget will have a Reserve (Ending Balance) of no less than 5%. The District and Colleges will use plans, planning documents, and planning processes as a basis for the development of their expenditure budgets. Recommendations from the BAM Task Force with respect to resource allocation will be implemented during the budget development process. The District does not intend to issue a Tax Revenue Anticipation Note (TRANs) in FY 2018-19 All State Apportionment deferrals have been eliminated. There will be a line item in the budget for facilities maintenance and repair.  Revenue Assumptions ENROLLMENT: Full Time Equivalent Students (FTES) target of 18,723 generated (Resident, for-credit) Funded base 18,623 credit FTES Funded base 100 non-credit FTES Enrollment growth funds of $57.8 Million system wide to fund 1.00% growth (average) 0% growth budgeted for PCCD in 2018-19 Statutory Cost of Living Adjustment (COLA) of 2.71% at $161.2 Million for FY2018-19 (used to fund step/column salary increases). Approximately $413,265 for PCCD Supplemental Allocation Student Equity $ 22.2 Million Student Success Allocation $ 11.6 Million Unrestricted lottery at $151 per FTES $2.8 Million for PCCD Scheduled Maintenance & Instructional Equipment allocation $143.5 Million state-wide PCCD allocation of $464,037, no match required Sixth Year of Parcel Tax- Measure B estimated to be $8,000,000 SSSP, Student Equity, Adult Education and Strong Workforce funding at 2016-17 levels  Expenditure Assumptions Step and column salary increases are included (funded with 2.71% COLA allocation of $413,265), PCCD costs approximately $1.4M Public Employee Retirement System employer contribution increase from 15.53% to 17.10%, an increase estimated at $245,000 to PCCD State Teachers Retirement System employer contribution increased from 14.43 to 16.28%, an increase estimated at $476,000 to PCCD. Maintain District contribution to DSPS program of approximately $1.2 Million OPEB Debt Service Payment of approximately $4.3 Million due to bond program restructuring Continued implementation of the new OPEB long term funding plan impacting Fund 01, Fund 69 and the OPEB Trust Fund Contribute to the new Irrevocable Trust in the amount of $250,000 as per OPEB long term funding plan Contribute $400,000 to Self-Insurance Fund to cover costs of Property and Liability Insurance Any restricted funding cuts or cost increases must be borne by the respective program Medical premiums – $15.3 Million Utilities to be budgeted at the campus level are based on prior year actuals with a 5% increase at approximately $555,000 Healthcare increase of $338,000

Full Time Equivalent Students (FTES) Full-Time Equivalent Students Fiscal Year 2014-15 2015-16 2016-17 2017-18 2018-19 Target   Stability 19,528 Hold Harmless Credit FTES 18,524 19,472 15,768 18,623 Non Credit FTES 41 30 55 100 Credit FTES Stability (63) (3,785) Non Credit FTES Stability 89 25 Credit FTES Restoration 948 2,900 Non Credit FTES Restoration (11) Adjusted Base 19,502 18,723 FY 2017-18 Attendance Report - Period 2 Full-Time Equivalent Students Summer 2017 1,746.94 Fall 2017 7,763.57 Spring 2018 7,204.99 Summer 2018 (Projections) 1,910.22 + Non-Credit 99.48 Total FTES 18,723 Change in FY17-18 Allocation Base Allocation 17-18 19,528 - Adjusted Base for FY17-18 18,723 Shortfall FTES (805) X Funding Rate Credit $ 5,072.11 Funding Shortfall ($4,083,049)

Restoration Stability Hold Harmless Hold Harmless Fiscal Year 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 Reported FTES 19,502 19,528 15,768* 18,723 Actual FTES 17,515* 18,723** 16,976 ? *Actual FTES includes Summer 2017 of 1,747 FTES, and the Reported FTES excludes Summer 2017 **Actual FTES includes borrowing of Summer 2017 of 1,747 FTES

Student Centered Funding Formula (SCFF) State apportionments is calculated using three allocations: Noncredit FTES will be funded at current rates. The SSFF rates are calculated to provide a three-year transition at the following percentage:   FY2018-19 FY2019-20** FY2020-21** 1 Base Allocation* Dollars per Credit FTES $ 3,727 $ 3,387 $ 3,046 2 Supplemental Allocation- Dollars per Point $ 919 $ 919 3 Student Success Allocation-Dollars per Point $ 111 $ 111 * Base Allocation is calculate based on the numbers of colleges and comprehensive center consistent with the current formula. ** The amount of the allocations in outgoing fiscal years will be adjusted by the changes in the cost-of-living in those years.   FY2018-19 FY2019-20 FY2020-21 1 Base Allocation 70% 65% 60% 2 Supplemental 20% 3 Student Success 10% 15%

Positions in FY 2019 Proposed Budget Proposed Budget Vacancy Freeze for General Fund $4,475,853 Vacancy Freeze by Location Locations Accepted Savings ($) COA 403,997 Laney 1,487,225 Merritt 755,586 BCC 665,661 District 1,163,384 Totals $4,475,853   Total Position Vacancies Savings Positions in FY 2019 Proposed Budget Category (FTE) FTE Salaries Benefits Total Full-time Academic 332 $ 26,240,943 $ 11,987,480 $ 38,228,423 (15) $ (1,089,356) $ (625,123) $ (1,714,479) 317 $ 25,151,587 $ 11,362,357 $ 36,513,944 Academic Administrator 37 5,424,834 2,068,040 7,492,874 - Other Faculty 73 4,684,629 2,551,417 7,236,046 (5) (447,952) (257,139) (705,091) 68 4,236,677 2,294,278 6,530,955 Classified 382 28,417,205 26,253,655 54,670,860 (16) (1,268,325) (787,958) (2,056,283) 366 27,148,880 25,465,697 52,614,577 Totals (1-18) 824 $ 64,767,611 $ 42,860,592 $ 107,628,203 (36) $ (2,805,633) $ (1,670,220) $ (4,475,853) 788 $ 61,961,978 $ 41,190,372 $ 103,152,350 Part-Time 243 11,677,624 748,096 12,425,720 Totals (Part-Time and Subs $ 11,677,624 $ 748,096 $ 12,425,720 $ - $ - $ - $ 11,677,624 $ 748,096 GRAND TOTAL 1,067 $76,445,235 $ 43,608,688 $ 120,053,923 1,031 $ 73,639,602 $ 41,938,468 $ 115,578,070

PCCD FY 18-19 Adopted Budget w/Reductions Actual 16,976 FTES   FY18-19 Budget w/Meas. B Expenses Included Subtract Measure B Expenses FY18-19 Final Budget Revenue Federal Revenue $ - $ - $ - State Revenue 58,711,416 - Local Revenue 70,787,368 Trans Res Revenue 9,650,000 Revenue Total $ 139,148,784 $ 139,148,784 Expenses Full Time Academic 25,151,587 Academic Admin 5,424,834 Other Faculty 5,138,978 902,301 4,236,677 Part Time Academic 14,942,111 3,264,488 11,677,623 Classified Salary 29,214,688 1,938,250 27,276,438 Fringe Benefits 43,839,191 1,894,961 41,944,230 Bad Debts 1,050,000 DGS Books, Supplies, Svcs 19,121,578 Equipment Cap Outlay 274,071 Other Outgo 6,309,000 Total Expenditures $ 150,466,038 $ 8,000,000 $ 142,466,038 Beginning Fund Balance $ 15,830,544 $ 15,830,544 Net Increase(Decrease) (11,317,254) 8,000,000 (3,317,254) Ending Fund Balance $ 4,513,290 $ 12,513,290 Ending Fund Balance % 3.00% 0.00% 8.78%

PCCD FY 18-19 Adopted Budget w/Reductions Hold Harmless 18,723 FTES   FY18-19 Budget w/Meas. B Expenses Included Subtract Measure B Expenses FY18-19 Final Budget Revenue Federal Revenue $ - $ - $ - State Revenue 65,486,282 - Local Revenue 70,787,368 Trans Res Revenue 9,650,000 Revenue Total $ 145,923,650 $ 145,923,650 Expenses Full Time Academic 25,151,587 Academic Admin 5,424,834 Other Faculty 5,138,978 902,301 4,236,677 Part Time Academic 14,942,111 3,264,488 11,677,623 Classified Salary 29,214,688 1,938,250 27,276,438 Fringe Benefits 43,839,191 1,894,961 41,944,230 Bad Debts 1,050,000 DGS Books, Supplies, Svcs 19,121,578 Equipment Cap Outlay 274,071 Other Outgo 6,309,000 Total Expenditures $ 150,466,038 $ 8,000,000 $ 142,466,038 Beginning Fund Balance $ 15,830,544 $ 15,830,544 Net Increase(Decrease) (4,542,388) 8,000,000 3,457,612 Ending Fund Balance $ 11,288,156 $ 19,288,156 Ending Fund Balance % 7.50% 0.00% 13.54%

Recommended Next Steps District must define what is a healthy fund balance? To support Mission & Vision of District To support unforeseen spending in the area of operating and capital expenditures To support cash flow of District Short/Long Strategic Plan must be in place to address : Impact of New Funding Formula Reorganization/Restructuring (Centralized/Decentralized) Enrollment Projections (Is District growing, declining, or stabilizing?) Possible additional Revenue streams Possible Budget Realignment/Reductions Facilities Plan Energy Management Plan Continual Fostering of an Collaborative /Participatory Environment with all our constituents

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