1. Academic Senate Study Session: Part-Time Instructional Budget October 22, 2015 Presented by: Michelle Marquez Vice President, Administrative Services

2. Today’s Session What is the 50% Law? What is FON? How does the college budget for part-time faculty and # of sections? What impact does load have on our budget?

3. A Bit of History… Education Code 84362: 50% Law (1961) – Protecting K-12 classroom size 75/25 Ratio (1988) – Goal for a 75/25% ratio of FT to PT faculty FON (1989) – Faculty obligation number

4. Today’s Session What is the 50% Law? What is FON? How does the college budget for part-time faculty and # of sections? What impact does load have on our budget?

5. 50% Law Education Code 84362 and California Code of Regulations 59200 requires California Community College Districts to spend 50% of general funds each fiscal year on salaries of classroom instructors. The intent of the statute is to limit class size and contain the relative growth of administrative and non-instructional costs. Source: California Community Colleges Budget and Accounting Manual This is not a straightforward “50% of Fund 1” calculation. There are many exclusions we have to consider (student transportation, food services, external facility rentals, capital improvement projects, team sports, lottery expenditures, and a few others)

6. 50% Law Developed to protect K-12 class size, not to guarantee levels of compensation or funding to instruction Issues surrounding 50% Law: Has not been reviewed since 1961. Educational practices have evolved since then: Learning now takes place in multiple venues, inside and outside the classroom Support services are recognized as a critical component of student success Workload reductions during budget reductions Faculty release time counts against the 50% Librarians and counselors count against the 50% We report as a District (and District has $0 instructional expenses) Fun Fact: No other state in the U.S. has anything remotely close to the 50% Law

7. 50% Law Where did we end up for 2014/2015: Cañada College = 61.7% District = 50.1% Good Side of the 50 Percent Law  Salaries of classroom teachers  Instructional Aid Full-Time & Hourly  In-Classroom Tutors Wrong Side of the 50 Percent Law  Distance Education Coordinators  Instructional Designer  Counselors  Faculty Reassign Time  Faculty Director: EOPS, NSF, Transfer Center, Athletic Director  Faculty Compensation for Special Assignments  Librarians

8. Today’s Session What is the 50% Law? What is FON? How does the college budget for part-time faculty and # of sections? What impact does load have on our budget?

9. 75/25 The “75/25” is a goal to achieve a ratio of 75% Full-Time faculty to 25% Part-Time faculty Official calculation: #FT LHE/#PT LHE Common calculation: Total LHE/PT LHE = % PT 75/25 often does not account for release time Overload counts toward PT LHE

10. FON Faculty obligation number (FON) is the number of full-time faculty a district is required to employ as of Fall semester (Ed Code 87482.6, Title V 51025) FON was developed to help colleges meet the 75/25 goal FON does not include non-credit faculty, but does include librarians and counselors

11. FON FON calculation is very complicated. Our obligation is adjusted annually by the lower of: Projected fundable growth at budget adoption Actual percent change in funded credit FTES from the prior year P2 report Faculty Obligation (FON) Obligation 2014/2015 = 328 Actual = 334

12. What Happens if we Don’t Comply? 50% Law: No financial penalty, but there is a political price to pay (and gets reported to BOG) FON: Financial penalty # of faculty below FON * Avg replacement cost of faculty (4 faculty * $76,000 = $304,000) 75/25: No penalty (this is a goal, not a mandate)

13. Considerations These laws/mandates/goals were established individually as a response to specific issues No one has studied the collective impact of the 50% law, FON, and other mandates together

14. Today’s Session What is the 50% Law? What is FON? How does the college budget for part-time faculty and # of sections? What impact does load have on our budget?

15. FY 2015/2016 College Budget Cañada College 2015-2016 Unrestricted Budget Summary Expenses Unrestricted Allocation Regular Employees (salaries & benefits) $ 16,824,767 Hourly Salaries $ 4,167,310 Discretionary $ 788,293 Total Expenses $ 21,780,370

16. Nuts and Bolts – Some acronyms and calculations 1 FTEF = 15 LHE (lecture hour equivalent) 1 FTES = 525 contact hours FTES = (census day enrollment*wsch*term)/525 LHE: 1 hour lecture = 1 LHE 1 hour lab = 0.75 LHE WSCH (weekly student contact hours) WSCH = class enrollment * weekly hours 1310 = Refers to our hourly faculty budget

17. How is the 1310 Budget Developed? College budget developed as an average for the year Estimated targets are developed based on trend data and goals set for the year Monitored continuously through each semester to project any shortfalls and identify when and how adjustments should be made

18. Hourly Teaching Budget Projected Hourly Teaching Budget, FY 2015/2016 FTES Convert to WSCH WSCH/ FTEF Prod TOTAL # FTEF Needed # FTEF Available # FTEF Needed (PT) Average Cost per PT FTEF 1310 Budget Needed 4,19562,925500125.8558.1767.68$56,963$3,855,256 # of FTEF available = The total number of FT Faculty minus release/reassign time, medical leave

19. Historical 1310 Costs HOURLY FACULTY SUMMARY FY 2012/13 - Fall 2015 Division2012-20132013-20142014-2015FL 2015 ESTIMATE Counseling $18,395 $10,104 $2,439 $3,564 Business $882,891 $495,677 $532,464 $328,331 Humanities $812,908 $535,501 $684,253 $571,108 Science $749,128 $495,515 $629,158 $515,934 ALL-- $200,192 $100,661 Office of Instruction $8,923 $254,065-- Total $2,472,247 $1,790,864 $2,048,507 $1,519,600 Note: Measure G not included in this summary FY 2014/2015 = $1,576,490; 133 sections

20. Today’s Session What is the 50% Law? What is FON? How does the college budget for part-time faculty and # of sections? What impact does load have on our budget?

21. How Does Load Impact Budget? Load, productivity, and efficiency are often used interchangeably Higher productivity means more students served per FTE Lower productivity means fewer students are served per FTE Type of class has to be considered in evaluating productivity The state “standard” productivity level is 525 This number represents the break-even point for a course

22. 1310 Budget Based on Load LoadAmount Financial Impact 525 $ 3,513,885$341,371 520 $ 3,579,533$275,723 515 $ 3,646,456$208,800 510 $ 3,714,691$140,565 500 $ 3,855,256- 490 $ 4,001,558$146,302 480 $ 4,153,956$298,700 475 $ 4,232,561$377,305 470 $ 4,312,838$457,582 465 $ 4,394,842$539,586 State Standard FY 2015/2016 Goal Where we are Fall semester 2015

23. Historical Enrollments - Summer COMPARISON OF SUMMER ENROLLMENTS FY1213 - FY1415 Census EnrollmentFTESFTEFWSCHCRNAvg Class SizeLoad SUM 20124,099459.8924.8913,79715626554 SUM 20134,455484.9427.6214,54816028527 SUM 20144,701516.6830.4815,50117028508

24. Historical Enrollments - Fall COMPARISON OF FALL ENROLLMENTS FY1213 - FY1415 Census EnrollmentFTESFTEFWSCHCRNAvg Class SizeLoad FL 201216,9241,994.60118.1459,83864526506 FL 201316,0781,901.54115.7357,04663725493 FL 201415,6731,806.25109.4854,18758327495 FL 201514,8371,810.38113.2454,31160525480

25. Historical Enrollments - Spring COMPARISON OF SPRING ENROLLMENTS FY1213 - FY1415 Census EnrollmentFTESFTEFWSCHCRNAvg Class SizeLoad SPR 201316,7791,946.51119.0158,39565626491 SPR 201416,2811,837.87118.9655,123665925463 SPR 201515,3331,778.94112.1053,36862225476

26. Impact of Not Meeting Targets Our 1310 budget is the largest variable expense in the college budget Hourly faculty represent roughly 18% of our general fund Perspective: Our current load projects needing an additional $298,700 for part time faculty Current discretionary budget is $788,293 Could we stand to lose 38% of our discretionary budget? On average, it costs an additional $15,500 for each productivity point 9 productivity points = $139,500 Average cost of a new full-time faculty = $109,000

27. How Is Productivity Improved? Ways to improve: Offering fewer sections (tightening the core schedule) Get a strong sense of enrollment patterns, rates of return, and develop a base schedule that is specific to each discipline (and monitor every semester) Increase the number of students in sections Restructure of scheduling (curriculum/program offerings, times that sections are offered) Working across departments to identify load targets that are appropriate and pedagogically sound Things to avoid: Rolling schedules and hoping course enrollment targets are met Setting enrollment targets that are unrealistic for the type of course or discipline Assuming things should be done across the board (ie, 5% less courses, 5% more enrollment)

28. Questions/Discussion

29. Last Thought We will never have enough funding to do everything we want. Managing a budget has more to do with managing needs and values than being proficient in Banner or Excel. How we allocate our resources (inclusion vs dark room approach) and what values influence these allocation decisions (do we fund administrative support vs. athletics vs. librarians?) is an indication of our fiscal competencies as an institution.