Presentation on theme: "PBIM SUMMIT August 29, 2014. TODAYS INFORMATION State Budget Highlights Peralta’s 2014-15 Final Budget Funding Sources Unrestricted General Fund."— Presentation transcript:
TODAYS INFORMATION State Budget Highlights Peralta’s 2014-15 Final Budget Funding Sources Unrestricted General Fund Parcel Tax Fund
2014-15 STATE BUDGET 4th Consecutive Year the budget passed on time Based on the Governor’s conservative forecast Progress made toward paying down deferrals Down to $94 million from $592 million before passage of Prop 30 Governor has clearly laid out his path Protect against boom and bust cycles Retire Debt Focus new money on education Includes a reserve of $1.4 million Includes a Rainy Day Fund
2014-15 STATE BUDGET Wall of Debt Budget eliminates $10 Billion in debt Mid year positive trigger would further reduce deferrals to schools and colleges Rain Day Fund on November Ballot When capital gains exceed 8% of GF revenues, a deposit to the RDF is required Half used to pay off debt and liabilities for the first 15 years Allows for withdrawal for disasters or if spending is at or below highest level of spending of the prior 3 years CalSTRS – 30 Year obligation of $74.4 billion State GF contribution increase from 3% to 6.3% in 2016-17 Employee rate increase from 8% to 10.25% as of 2016-17 Employer rate increase from 8.25% to 19.1% as of 2021
2014-15 STATE BUDGET The Budget Bill contained the following community college provisions: Access funds (growth) of $140.4 million (2.75%) Cost of Living Adjustment (COLA) of $47.3 million (.85%) $100 million for Student Success and Support (SSSP) Match of 2:1 on entire amount $30 million increase for DSPS $70 million increase for Student Equity Plans $50 million one time increase for the Economic and Workforce Development program $49.5 million to pay down mandates $148 million for deferred maintenance and instructional equipment. Flexible locally and specified as one-time.
COMMUNITY COLLEGE WHAT’S NEW Technical Assistance for Chancellors Office $1.1 million and 9 positions for goal setting and monitoring of institutional effectiveness $2.5 million for technical assistance to support implementation of effective practices at college State funding for Career Development and College Program (CDCP) Rate per FTES to be increased to be equal to Credit Rate as of 2015-16 Positive Trigger – Department of Finance can pay down deferrals during the year if Proposition 98 guarantee is higher than estimated New formula for Growth allocation is effective in 15-16 Proposal to be out late summer/early fall
CAUTIONS AND CONCERNS Proposition 30 is temporary Sales tax increase terminates at the end of 2016 (Approximately 21% of Prop 30 revenues) Income tax increase terminates at end of 2018 STRS obligation Deficits Continued exposure to shortfalls in property taxes and fees
OUR DISTRICT - PCCD Access funds (growth) $2.2 million (increase in funded FTES of 430) Cost of Living Adjustment (COLA) $846,989 (.085%) Categorical increases – awaiting on allocations from the State Chancellors Office $2,366,996 for scheduled maintenance/instructional equipment Flexible locally and specified as one-time No match except if the funds are used for Architectural Barrier Removal State Retirement increases to employer rates: STRS.63% increase ; $198,600 PERS.329% increase ; $73,563 Increase in Medical Premiums $979,893 Kaiser 0%; Traditional PPO 26% Lite PPO 24.9% Traditional PPO (Local 39) 22.1% Lite PPO (Local 39) 17.5% Increase in Workers Compensation rate of.1% estimated cost of $54,500 Increase in OPEB Debt service payment of $1,642,666
ADDITIONAL ASSUMPTIONS USED TO DEVELOP THE BUDGET FTES – Target of 19,355 Residence FTES with funded FTES from the state of 19,055 Productivity level of 17.5 Unrestricted Lottery dollars funded at $124.25 per funded FTES State Apportionment deficit factor of 2% Parcel Tax revenue estimated to be $8,053,385
STATE APPORTIONMENT REVENUE State Apportionment Revenue is calculated in the following manner: Basic Allocation Based on the type and size of your college We have 4 colleges with less than 9,375 FTES and therefore our basic allocation is $13,286,180 ($3,321,545 per college) Funded Base Full Time Equivalent Students (FTES) Prior year funded FTES Funded FTES Prior year funded FTES times the growth percentage passed in the State Budget
STATE APPORTIONMENT CALCULATION Funding per FTES Base Funding Amount per FTES from prior year ($4,636.492854 for credit FTES; $2,788.053637 for non- credit FTES) Marginal Funding Base funding multiplied by the Cost of Living Adjustment (COLA) COLA for 2014-15 is.85% (%4,675.90 for credit FTES; $2,811.75 for non-credit FTES) Multiply the Marginal Funding times the number of funded FTES reported Add the Basic Allocation plus the Funding Per FTES to calculate your State apportionment revenue, also referred to as the computational revenue.
FUNDING FOR COMPUTATIONAL REVENUE Sources are Local Property Tax 98% of Student Enrollment Fees State Aid State General Fund Apportionment Prop 30 Education Protection Account (EPA) Deficit Computational Revenue accounts for approximately 80% of our General fund operating budget each year