1. College of the Sequoias
Tentative Budget
June 8, 2015

2. Budget Process Tentative Budget is created based on May Revise
Approval of Tentative Budget by Board in June authorizes expenditures over summer
Summer - Legislature proposes adjustments to state allocations, and Governor negotiates
State Budget is adopted by June 15th (legislature); Governor approves by June 30th
Staff account for final changes to income & expenditures
Final Budget is adopted by Board in September

3. Tentative Budget - Assumptions:
3.0% Access Funding (Growth) available
Budget includes 100 FTES, or 1.1% growth, due to third session summer 2015 appx $400,000
1.02% COLA = $474,000 COS (per-FTES, and base)
3.1% H&W cap increase (50%) for COSTA $76,752
Also includes 3.1% H&W cap increase (50%) for Management ($23,616) and CSEA ($71,340) as a placeholder. CSEA to be negotiated.
Actual increase received May 20th – 6.2% for PPO-4 RX-A

4. Tentative Budget - Assumptions:
Student Success/SSSP- additional $750K ongoing (+ additional 165K in beyond adopted budget)
Student Equity/SEP – additional $850K ongoing
Scheduled Maintenance
May Revise = $577K allocation (zero match required)
Instructional Equipment
May Revise = $577K allocation
COS budgets $276K per year out of these funds for annual computer refresh

5. Tentative Budget - Assumptions:
Increased STRS by $370K (GF Unrestricted) – employer contribution rate increased from 8.88% (14-15) to 10.73% (15-16)
Increased PERS by $98K - Employer contribution rate increased from % (GF budget) to 11.84%
Does not include possible $585,000 revenue for increased full-time faculty hiring
state has not determined methodology for allocation. COS has a higher full time/part time ratio, which may affect COS’s funding
Does not include appx $4 million+ in one-time mandate cost reimbursements – will budget when received

6. Description (Tentative Budget)
GFU
Combined
State Allocation
$49,559,186
Federal Revenues
$ ,000
$2,176,375
Other Income
$ 2,296,713
$12,202,789
Total Revenues
$51,862,899
$63,938,350
Certificated
$22,144,649
$23,593,159
Classified
$ 9,341,784
$12,899,867
Benefits
$11,674,421
$13,637,973
Materials & Supplies
$ ,394
$ 2,394,033
Contracted Services
$ 5,567,073
$ 6,848,156
Capital Expenditures
$ ,964
$ 2,771,919
Transfer Out/Other Outgo
$ ,964
$ ,593
Total Expenditures
$50,891,249
$62,966,700
Surplus/(Deficit)
$ ,650

7. Description 2015-16 Beginning Fund Balance $5,342,573
Surplus/(Deficit)
$ 971,650
(Does not include mandate reimb funds)
Ending Fund Balance
$6,314,223 *
6% Reserve for Economic Uncertainties
$3,053,475
Board Policy 6%
Additional Fund Balance
$3,260,748
= Projected 6/30/16 Gen Fund Balance
Board Priority 10% (~12.4%)
Note 1*: Additional funds expected to fall to fund balance at close of each year
Note 2: 2 weeks of GF expenditures
$2,050,000
4.0%
3 weeks of GF expenditures
$3,055,000
6.0%
1 month of GF expenditures
$4,240,000
8.3%
state average-CC Fund Balance
$8,650,000
17%

8. Links between Resource Allocations & District Goals/Objectives:
Nine (7+2) FT Faculty, 2 FT Counselors, 1 FT Faculty moved to GF, and 4 FT-Temporary Faculty:
Goal 1: Increase Student Enrollment
Goal 2: Improve the rate at which students complete degrees
DO 2.1 through 2.4: Increase number of students who transfer and earn degrees and certificates, including English, Math, ESL, and Career Tech Ed
Goal 3: Strategically tailor and implement programs and student services that match the unique needs of our student population
DO 3.1: Reduce achievement gap of disproportionately impacted student groups annually (per SEP)
Mission: Help our diverse student population achieve their transfer and/or occupational objectives; Support students’ mastery of basic skills, and provide programs and services that foster student success (e.g. new Math, English and Science Faculty)

9. Links between Resource Allocations & District Goals/Objectives:
Six new Student Success Coordinators (SEP)
Goal 2: Improve the rate at which students complete degrees
DO 2.1 through 2.4: Increase number of students who transfer and earn degrees and certificates, including English, Math, ESL, and Career Tech Ed
Goal 3: Strategically tailor and implement…student services that meet the needs and demands of students and the workforce
Ongoing funding for after-hours Library services ($7000)
Additional funds for Library books and periodicals (restricted lottery - $27,000)
Goal 3: Strategically tailor and implement…academic services that meet the needs and demands of students and the workforce

10. Links between Resource Allocations & District Goals/Objectives:
Above Base Resource Allocation Funding-Ongoing GF Unrestricted ($100,000):
Goal 4: Engage in best practices to sustain effective operational systems for continuous improvement
Increase summer school budget ($75,500)
Increase overload budget ($50,000)
Increase instructional aid budget for large student lecture classes ($6,360)
Goal 1: Increase student enrollment
Goal 2: improve the rate at which students complete degrees, certificates, and transfer objectives
DO 2.1 to 2.3 increase course success and completion

11. Links between Resource Allocations & District Goals/Objectives:
Additional restricted funds SSSP $750K and SEP $850K:
Goal 3: strategically tailor and implement academic programs and student services that match the unique needs of the student population
DO 3.1: Reduce the achievement gap of disproportionately impacted student groups annually, as identified in the student equity plan
Institute the extended police academy ($125,000)
Goal 1: Increase student enrollment relative to population growth and educational and workforce development needs
DO 2.4: Increase career technical education course success rates and program completion annually
Goal 3: Strategically tailor and implement academic programs that match the unique needs of its student population and the demands of ongoing changes in workforce development

12. Links between Resource Allocations and District Goals and Objectives: New classified/management Positions
Goal 2: Improve the rate at which students complete degrees, certificates, and transfer objectives
Goal 4: Engage in best practices to sustain effective operational systems
New Positions Added
Unrestricted/Restricted
Tulare Provost
Unrestricted
Payroll Specialist .5 FTE
Sr. Programmer Analyst
Athletic Trainer .5 FTE
Grounds Technician .5 FTE
Research Analyst .5 FTE
Clerical Assistant Police Academy .5 FTE
Program Coordinator Police Academy .5 FTE
Writing Center Instructional Assistant .6 FTE
Clerical Assistant .5 FTE AAC
Restricted/Categorical
Programmer Analyst SSSP

13. Links between Resource Allocations and District Goals and Objectives: New classified/management Positions
Goal 2: Improve the rate at which students complete degrees, certificates, and transfer objectives
Goal 4: Engage in best practices to sustain effective operational systems
New Positions Added
Unrestricted/Restricted
Sr. Clerical Assistant SSSP
Restricted/Categorical
Writing Center Instructional Assistant ELI .6 FTE
Student Success Coordinators SEP 6 FTE
Research Analyst SEP
Senior Lead Coordinator SEP 2 FTE
CTE Grant Manager CTE
Job Developer (2) .5 FTE Workability III
High Tech Manager AAC
Grant Program Specialist C6/CTE .5 FTE
Training Resources Center Specialist
Training Resource Center

14. FISCAL SOLVENCY PROJECTIONS
Annual Ongoing Increases
GFU
GFU
GFU
Step & Column
Included
$345,000
$360,000
H&W Benefits $0
PERS (11.847%, %, %)
$148,000
$185,000
STRS (10.73%, 12.58%, 14.43%)
$413,000
Utilities 3% Increase
$50,000
Insurance (WC/P&L) 5% Incr
WC Included
$30,000
Add FT –Estimated FON (2/yr?)
$200,000
Total Increased Expenditures
$1,186,000
$1,238,000
FTES Growth <1.75% 100 FTES
$ 472,400
Total Increased Revenues

15. Assumed 0% COLA and no growth 16-17 & 17-18
Fiscal Solvency Projection
GFU
GFU
GFU
State Allocation
$49,559,186
Federal Revenues
$ ,000
Other Income
$ 2,296,713
Total Revenues
$51,862,899
Certificated
$22,144,649
$22,498,649
$22,860,149
Classified
$ 9,341,784
$ 9,477,784
$ 9,619,784
Benefits
$11,674,421
$12,290,421
$12,944,921
Materials & Supplies
$ ,394
Contracted Services
$ 5,567,073
$ 5,647,073
$ 5,727,073
Capital Expenditures
$ ,964
Transfer Out/Other Outgo
$ ,964
$ ,964
Total Expenditures
$50,891,249
$52,077,249
$53,315,249
Surplus/(Deficit)
$ ,650
$ (214,350)
$ (1,452,350)

16. Assumed 1% COLA and 100 FTES growth 16-17 & 17-18
Fiscal Solvency Projection
GFU
GFU
GFU
State Allocation
$49,559,186
$50,533,861
$51,523,053
Federal Revenues
$ ,000
Other Income
$ 2,296,713
Total Revenues
$51,862,899
$52,837,574
$53,826,766
Certificated
$22,144,649
$22,498,649
$22,860,149
Classified
$ 9,341,784
$ 9,477,784
$ 9,619,784
Benefits
$11,674,421
$12,290,421
$12,944,921
Materials & Supplies
$ ,394
Contracted Services
$ 5,567,073
$ 5,647,073
$ 5,727,073
Capital Expenditures
$ ,964
Transfer Out/Other Outgo
$ ,964
$ ,964
Total Expenditures
$50,891,249
$52,077,249
$53,315,249
Surplus/(Deficit)
$ ,650
$ ,325
$ ,517

17. Items to watch for future years::
Loss of Prop 30 (EPA) .25% sales tax - 12/31/16 expiration = appx $1.2M to $1.5M for COS annually
Increased PERS & STRS costs of $566,000 annually :
Increased PERS & STRS costs of $608,000 annually :
Increased PERS & STRS costs of $625,500 annually
Loss of Prop 30 (EPA) increased high-earner income tax 12/31/18 expiration = appx $5M for COS annually
COS may wish to set aside ongoing funds to cover PERS/STRS in future years.

18. FTES Update Historical Perspective
Year
Actual FTES
Funded FTES
8,204.79
8,149.45
8,419.17
8,506.82
8,510.76
8,620.16
7,582.27
8,929.55
8,209.56
10,160.04
9,042.35
10,614.57
8,696.69
10,561.93
8,945.00
9,033.30
8,261.13
8,646.55
8,408.26
9,448.98
8,697.10
8,919.00
8,986.00
9,019.00?
9,010.00

19. Major Categorical Program
Revenues
Revenues
Basic Skills
$147,144
BFAP Financial Aid
$437,634
EOP&S
$859,235
$867,999
CARE
$127,487
$128,787
DRC
$1,200,564
$1,212,810
CalWorks
$362,388
$366,084
Student Success
$1,262,102
$2,012,102
Student Equity
$692,650
$1,542,650
Adjunct Parity
$172,899
TANF
$ 84,311
$80,095
Scheduled Maintenance
$911,872
$577,200
Instructional Equipment
$276,873
Total
$6,535,159
$8,122,604

20. Mandate Reimbursement Funds for COS:
Currently Estimated at $4.8M for COS in
The District never budgets mandate reimbursement funds until they are actually received
When/if received, options for possible board direction:
Transfer $ to Capital Projects for Facility needs (Bond funds are completely expended)
Fund OPEB (Other Post Employment Benefits) Trust
Hold a Reserve for PERS & STRS increased costs
Pay toward General Fund 2004 COP $3M balance (student center trust, health center, and District)
Additional funding available for Hanford Quad?

21. Legislature’s Budget Proposals – may indicate slight increases in June Budget:
$3B additional state revenue = $80M allocation to Community Colleges
Funding for Growth to stay at 3% (= 5.72% COS?)
Clarification and allocation of $75 million state funding for increased full-time faculty hiring
Adult Education remains the most contentious policy area yet to be settled

22. Agriculture Technology Unit
Farm Budgets
Agriculture Technology Unit
Equine Unit
20000
Classified Salary Expense
150
11,000
30000
Benefit Expense 25
350
40000
Supplies
1,850
20,500
50000
Services &Other Op Expenses
1,000
Services & Other Op Expenses
12,750
Total Expense
3,025
44,600
88000
Local Revenue
12,000
Restricted Lottery Supplies Support
15,500
Alfalfa Unit
Farm Overhead Unit
16,000
33,000
50,500
27,000
66,500
9,000
91,000
Crops Unit
60000
Capital Outlay
4,000
17,500
164,000
188,300
205,800
2,250
238,000

23. Farm Budgets Beef Unit Dairy Unit 50000 Services &Other Op Expenses
600
Services & Other Op Expenses
14,000
Total Expense
6,450
88000
Local Revenue
5,000
45,000
Restricted Lottery Supplies Support
2,000

24. Ornamental Horticulture Unit
Farm Budgets
Ornamental Horticulture Unit
Sheep Unit
20000
Classified Salary Expense
18,000
3,500
30000
Benefit Expense
450
100
40000
Supplies
6,100
1,900
50000
Services & Other Op Expenses
700
625
Total Expense
25,250
6,125
88000
Local Revenue
8,000
2,500
Restricted Lottery Supplies Support
1,250
1,000
Residence - Farm
Swine Unit
12,000
500 50
28,000
8,400
TOTAL FARM UNIT
350
557,050
9,300
3,000
Total Revenue
369,500
4,000
Total Restricted Lottery Supplies Support
27,000

25. Other Funds Farm Special Reserve Banked Leave 88000 Local Revenue
13,400
9,500
Linwood Reserve
Hanford General Obligation (GO) Debt Service
15,000
50000
Services & Other Operation Expense
816,581
70000
Other Outgo
105,419
Capital Projects
Total Expense
922,000
647,200
60000
Capital Outlay
30,000
677,200
86000
State Revenue
577,200
Hanford General Oblign. (GO) Debt Service 2nd Issue
Hispanic Serving Institute Trust
166,763
335,000
501,763
10,000

26. Other Funds Hanford General Obligation Bond Retiree Health & Welfare
40000
Supplies
10,000
88000
Local Revenue
5,000
50000
Services & Other Operation Expense
55,000
60000
Capital Outlay
653,264
Visalia General Obligation (GO) Debt Service 2nd Issue
Total Expense
718,264
232,500
Visalia General Obligation (GO) Debt Service
738,300
70000
Other Outgo
630,000
1,368,300
Visalia General Obligation (GO) Debt Service 3rd Issue
206,525
Tulare General Obligation (GO) Debt Service 3rd Issue
63,075

27. Other Funds Visalia General Obligation Bond
Tulare General Obligation Bond
60000
Capital Outlay
568,377
70000
Other Outgo
2,973,860
Tulare General Obligation (GO) Debt Service
50000
Services & Other Operation Expense
764,313
665,000
Total Expense
1,429,313
88000
Local Revenue
Tulare General Obligation (GO) Debt Service 2nd Issue
178,625
220,000
398,625

28. Questions or Comments?
For Board Approval