1. California Community College Funding and Budgeting
Allocation Model Review
December 12, 2014

2. BAM Questions
Q: Can you review the BAM and new growth funding formula (High Level)? A: Yes, see the following WEB site for advance information on proposed growth funding formula. Q: How will the base allocation thresholds be impacted by additional state funds? A: At this point the impact will be no different than in the past. Whatever statutory COLA is adopted will impact the base allocations. Q: Do you foresee any adjustment to the Rural College Threshold and $500,000 allocation? A: No, however this is an area being examined by Statewide Funding group. Q: How will the expiration of Prop 30 funds impact KCCD? A: Not sure. Waiting to see what LAO says this winter regarding that subject. We are relying on $16 million in Prop 30 funds in our base unrestricted funds so if there is no backfill for those revenues things could get really interesting for KCCD when the taxes generating those funds sunset.

3. Funding Model
State
Revenue
District
TCR
The State General Apportionment amount will be the amount necessary so that total district revenue sources equal the district’s Total Computational Revenue (TCR).
If the State’s appropriation for general apportionment is insufficient to meet the statewide amount needed, all district amounts for state general apportionment will be prorated lower such that total state general apportionment equals the appropriation.

4. District Revenue
Property tax revenues - Apportionments are based on the estimated annual property tax disbursements to the districts provided by each local county auditors office.
Student enrollment fees - Annualized” to reflect the complete annual amount to which the district is entitled.
Must report 100% of all enrollment fee revenue of which it is entitled to collect. Failure to collect all entitled fee revenue does NOT affect the amount of fee revenue reported.

5. State Base Revenue

6. Base Adjustments Restoration of Prior Workload Reductions
Stability-Restoration of Prior Declines
Basic Allocation COLA Adjustments

7. Workload Questions
Q: Where do you see COLA be funded for FY15-16? How will the District pass on the allocation in a fair and equitable manner? A: 1.3% to 1.5%. Allocation model will allocate consistent with past COLA allocations. Q: What is PC’s projected FY15-16 FTES target? A: Not yet determined Q: Where is Cerro Coso in their stabilization/ FTES and what is the projection for FY15-16? A: They have been stabilized for a 100 FTES reduction. Further changes have not been determined yet.

8. 35 weeks = 17.5 x 2 Semesters; 15 units = Full Time
Workload
What is FTES?
Full Time Equivalent Students
Students are counted on the basis of enrollment, not on actual attendance.
Census Date -The count is taken on the Monday that is closest to 20% of the way through the semester (usually in the 4th week).
FTES=# of students x # hours per week x 35 weeks divided by 525
35 weeks = 17.5 x 2 Semesters; 15 units = Full Time
Workload reductions are authorized when it is known at the adoption of the State Budget Act that revenues are not sufficient to fully fund base revenues. (Title 5, §58772)

9. KCCD Comprehensive Target
Bakersfield
13,361.0
12,648.6
12,618.1
Cero Coso
3,034.6
3,033.0
3,282.9
Porterville
3,213.6
3,071.9
3,074.2
Stabilization
Districts receive stability funding only in the initial year of decline in FTES in an amount equaling the revenue loss associated with the FTES reduction for that year. (Title 5, §58776)
Standard: Districts are entitled to revenue equal to at least the prior year’s total computational revenue. (Title 5, §58770(a)(2)
Effect of Stability: Although revenue is supported in the year of decline, base revenue for the subsequent year is reduced by the amount of PY stability. This is the situation with Cero Coso in FY Therefore, growth was allocated to PC and BC.

10. Cost of Living Allowance (COLA)
Any Inflation Adjustment authorized by the Legislature is normally communicated via the education trailer bill for that specific year.
Last (FY )%, year in which we were authorized a cost of living adjustment (COLA), the specific information of that authorization was included in that year’s education trailer bill, Section 36 of SB 80, Chapter 174 of the Statutes of 2007.

11. Stabilization
Districts receive stability funding only in the initial year of decline in FTES in an amount equaling the revenue loss associated with the FTES reduction for that year. (Title 5, §58776)
Standard: Districts are entitled to revenue equal to at least the prior year’s total computational revenue. (Title 5, §58770(a)(2)
Effect of Stability: Although revenue is supported in the year of decline, base revenue for the subsequent year is reduced by the amount of PY stability.

12. Other Funding Sources Federal Funding Sources
Student Financial Aid – Pell, SEOG, Workstudy
Grants – TRIO & Upward Bound
California State Funding Sources
Categorical Programs
Instructional & Library Materials and Equipment
Capital Outlay – Scheduled Maintenance & Construction
Financial Aid Trust Funds – Cal Grants
Child Development Funds – CDC
Grants – Title III & V
Local Funding Sources
Student fees – ASB & Student Center

13. Categorical Program Questions
Q: How are/will SSSP & Equity Funding and Adult Education impact the Basic Skills Initiative? A: At this point, SSSP and Equity funding should not have any negative impact on the Basic Skills Initiative at PC. PC has threaded Basic Skills best practices in both plans and also included the expansion of our ESL offerings. Our efforts in SSSP and Equity look to support the campus BSI efforts. Additionally, I believe AB 86 will not have a negative impact on the college's BSI efforts either. Depending on the direction the KCCD Consortium plan, AB 86 efforts at PC could help to expand PC's BSI efforts especially in the ESL arena. (response provided by Val Garcia VP Student Services Porterville College) Q: How would the shift of Adult Education from K-12 to Community Colleges impact PC’s budget (Credit/Non-Credit FTES Funding)? A: I would assume via increased funding but that has not yet been fully flushed out yet at the State level. Q: Are there any efforts to address the SSSP match requirement from a District prospective (District grant initiatives)? A: We have identified District functions that meet match requirements and have advised the colleges accordingly. There is currently no efforts to identify grants to assist with match requirements.

14. Categorical Programs Displayed (County ---> District)
Each Categorical Program – Annualized Budgets

15. CalSTRS Funding Plan Proposition 2
Looking Ahead
CalSTRS Funding Plan
Proposition 2