FY2014-15Preliminary Budget Information

Board Budget Workshop

May 27, 2014

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Florida College System Program Fund

• $1.10 billion GR and Lottery– Fund shift of $50.03 million from GR to Lottery

• $841 million tuition and fees (est., no tuition increase)• $4.8 million to offset FRS employer contribution rate increases

• $15.5 million for equity/compression adjustments at 14 colleges

• $5 million distributed using the Funding Model Index

• $2.0 million to fully fund Operating Costs of New Facilities

• Reduction of $4.2 million to selected prior year non-recurring funding at 5 colleges (incl. Sumter Workforce Partnership -$1 million)

• Additional $3.3 million for new special projects at 4 colleges

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Other Funding Issues

• $9.0 million for the Florida Virtual Campus (split with State University System)

• $5.0 million for Performance Incentives based on Industry Certifications

• Elimination of Northwest Regional Data Center Funding

• $1.3 million for 1st Generation Matching Grants

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Major Policy Changes(HB 7015– Military and Veteran Support)

Education assistance:• Section 1 amends s. 250 10, F. S. to include post-secondary

institutions and technical centers in the education assistance program

• Extends the education assistance program to include training for industry certifications approved by the Florida Department of Education and continuing education to maintain license certifications or developmental education courses

Fee Waiver: • Section 36 implements the “Congressman C. W. Bill Young Veteran

Tuition Waiver Program” to waive out-of-state fees for honorably discharged veterans of the US Armed Forces, Reserve Forces or the National Guard who reside in the state while enrolled in a FCS institution, state university and/or technical career center.

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Major Policy Changes(HB 851– Postsecondary Education Tuition & Fees)

Tuition:• Section 2

Caps the standard tuition rate at $2.33/contact hour for residents and $6.99 for nonresidents for programs leading to a career certificate or an applied technology diploma

Eliminates the out-of-state fee for adult general education programs Eliminates statutory rate of inflation increase for workforce education

programs• Section 3

Maintains the standard tuition rate at $71.98/credit hour for residents and $215.94/credit hour for nonresidents for advanced, professional, postsecondary vocational, developmental education and education preparation institute programs

Eliminates statutory rate of inflation increase for FCS institutions

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Major Policy Changes(HB 851– Postsecondary Education Tuition & Fees)

Tuition:• Section 5

Requires waiver of out-of state fees for students including undocumented students for immigration purposes if they− Attended a secondary school in the state for 3 years immediately before

graduating from High School− Apply for enrollment in a Higher Education institution within 24 months after

High School graduation− Submit an official Florida High School transcript as evidence of attendance

and graduation• Section 6

Re-defines “parent” as either or both parents of a student, and now extends to any guardian of a student or any person in a parental relationship to the student

Revises the provision for residency purposes for a child to have lived with an adult relative from 5 years to 3 years immediately before enrollment in a higher education institution.

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Major Policy Changes(HB 851– Postsecondary Education Tuition & Fees)

Tuition:• Section 6 continued

Prohibits a child who is a US citizen from being denied classification as a resident for tuition purposes based solely upon the immigration status of his/her parent

Revises the provision to allow a person who physically resides in this state to be classified as a resident for tuition purposes if s/he marries a person who meets the 12-month residency requirement and is a legal resident of the State of Florida

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Major Policy Changes(HB 5005– State-administered Retirement Systems)

Retirement System

• Section 4 adjusts the Employer contribution rates paid to the Retiree Health Insurance Subsidy Trust from 1.20 to 1.26%.

• Section 5 sets the uniform employer contribution rates and the rates required to address the normal cost and unfunded actuarial liability for each class and subclass of the FRS

• No other FRS changes passed the Legislature

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Program Funds per FTE by Source

Source: http://www.flsenate.gov/UserContent/Topics/IntensiveBudgetReview/AED/DOEAgencyLBR.pdf

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

FTE-2A

2013-14 Final C

onfere...$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$3,269 $3,504$3,895 $3,741

$3,196$2,668 $2,747 $2,751 $2,983 $3,121

$1,545$1,625

$1,736 $1,802

$1,941

$2,194 $2,278 $2,401$2,474

$2,549

230221$4,814

$5,129

$5,631 $5,543

$5,137 $5,092$5,246 $5,152

$5,457$5,670

State Funds Tuition SFSF Funds

Note: Amounts reflect appropriations for CCPF (all years), upper level categorical appropriations (2004-05 through 2009-10) and Performance Based Incentives (through 2008-09). State funds include General Revenue and Educational Enhancement Trust Fund. Tuition includes tuition, out-of-state fees, and technology fees. Tuition amounts for 2012-13 are estimates based on FTE-2A. 2013-14 includes a 3% tuition increase and assumes no change from 2012-13 enrollment. Totals may not add due to rounding.

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Current % of Model Funded

Source: http://www.flsenate.gov/UserContent/Topics/IntensiveBudgetReview/AED/DOEAgencyLBR.pdf

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FY 2014-15 Appropriations

CollegeRecurring General

Revenue

Recurring Lottery

Recurring General Revenue (Special Projects)

Nonrecurring General

Revenue (Special

Projects)

Nonrecurring General Revenue

(Dual Enrolment)

Nonrecurring Lottery

Total

Lake-Sumter State College 10,302,526 3,013,897 0 0 69,389 0 13,385,812

Total Program Fund 869,361,501 254,972,113 200,000 3,100,000 4,790,125 0 1,132,423,739

FY2014-15 Recurring and Nonrecurring Program Fund Appropriations

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FY 2014-15 Appropriations – Capital Outlay

Division of Florida Colleges - Office of Financial PolicyFLORIDA COLLEGE SYSTEM

Fixed Capital Outlay Appropriations for 2014-15HB 5001

as of May 2, 2014 (Before Governor's Vetoes)

College Project Description Conference FinalLSSC Construct Science Labs - Clermont (pc) part 3,000,000

Total Capital projects from PECO 107,511,216

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FY 2014-15 Sum of the Digits Allocation System Critical

FLORIDA COLLEGES

AgencyCalculated Need [Sec. 1013.64(1),F.S.] Agency Percentage TOTAL Allocation

Lake Sumter $2,400,226 1.119430719 $167,915

SUBTOTAL - COLLEGES $214,414,877.00 100.000000000 $15,000,000.00

Florida College Data as of May 15,2014

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Overarching Goals & Strategies of the FY2014-2015 Annual Plan and Budget Priorities

• Empower students to Identify, Plan and Achieve their Goals Increase job placement and college transfer rates

• Collaborate and Partner to Achieve the College’s missionExpand Workforce Programs Improve/expand dual enrollment and early college partnerships

• Enrich the Quality of the Student Educational Experience Through Excellence in Programs and Services

Attract, hire and retain the most talented and qualified faculty and staff

• Promote Distinctiveness through Creative Thinking and InnovationIncrease and enhance the awareness of the value of the College throughout the

districtEncourage a culture of experimentation and new ideas in order to grow enrollment

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BUDGET PROCESS FY2014-15Overview:

• Starts with a review of existing budgets to identify potential savings/costs

• Program reviews facilitate budget alignment with Annual Plan Strategies

• Identification of Cost to Continue and Expansion Requests by division

• Managers make presentations to Cabinet (President & VP’s) & Planning Council (Faculty, Staff & Students Representatives)

• Cabinet & Planning Council set Annual Plan Priorities to be funded

• Budget recommendations to Board

• Budget Adoption

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BUDGET FACT SHEETFUND 1 – CURRENT OPERATING

Revenue1 Base Budget Revenue $22,577,4912 Increase from Senate Bill $ 774,5903 Funding for Sumter Partnership project (non-recurring) ($ 1,000,000)4 Reduction in gift from Foundation for Sumter Partnership project ($ 96,619)

Sub-Total Revenue $ 22,255,462Personnel Expense1 Base Budget Faculty & Staff $10,174,1562 Base Budget Personnel - Other Pooled Positions $ 2,438,248 3 Base Budget Personnel-Benefits FTE $ 3,198,409 4 Open Positions - Include Benefits $ 501,247 5 Temporary - include Benefits $ 473,230 6 Cost to Continue Requests - Includes Benefits $ 42,168 7 New Expansion incl. Academic Affairs Reorg. – incl. Benefits$ 215,9888 Faculty/Staff Compensation - 1% = $101,742 $ 231,572 9 Faculty Rank & Promotion - Includes Benefits $ 7,340 10 Pay Equity Adjustments - Includes Benefits $ 10,136 11 Compensation Study $ 83,408 12 Overload Increase -(1%=$6,299) $ 0 13 Adjunct Increase - (1%=14,596) $ 0 14 Health Insurance - (6 months of 1% = $6,837) $ 68,366 15 Affordable Care Act Compliance $ 25,000 16 Contingency for Personnel $ 122,516 17 Accrued Annual/Sick/Comp Time $ 99,000 18 Adjustment to Fund Balance for Accrued Time ($ 99,000)

Sub-Total Personnel Expense $ 17,591,784 79.04%

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Current Expense1 Base Budget Current Expense $4,604,940 2 Cost to Continue Request $ 15,495 3 New Expansion Request $ 29,000 4 Contingency for Current Expense $ 12,743

Sub-total Current Expense $4,662,178 21.95%

Capital Outlay1 Base Budget Capital Outlay $ 1,500

Sub-total Capital Outlay $ 1,500 0.01%

TOTAL BUDGET NEEDS $22,255,462 100.00%

(DEFICIT)/SURPLUS Estimated ($0)

BUDGET FACT SHEET FUND 1 – CURRENT OPERATING CONTINUED

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PROPOSED LSSC ACADEMIC AFFAIRS REORGANIZATION

Dr. C. Mojock,President

Dr. M. Searle, VP

Enrollment/Student Affairs

Dr. B. Howard,Senior VP Academic

Affairs

Dick Scott,Senior VP Business

Affairs

OpenAssociate Dean

South Lake Campus

Dr. G. SlighDean Gen Ed &

Transfer Programs

Dr. MJ RagerAssociate VP

Workforce & Bacc Programs

Dr. E. Jones, Associate Dean

Worforce Programs

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PROPOSED EMPLOYEE COMPENSATION PLAN

Compensation Cost

Faculty/Staff $500 + 1% of Base $ 231,572

Compensation Study $ 83,408

Equity and FR & P $ 17,476

Total $ 332,456

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LSSC HISTORY OF TUITION AND FEESCREDIT COURSES (IN-STATE)

Fee FY0910 FY1011 FY1112 FY1213 FY1314 Fund Description

Tuition $66.88 $72.26 $78.84 $81.20 $81.20 Fund 1 Operating

Financial Aid 4.68 4.88 4.88 5.03 5.03 Fund 5 Scholarship

Student Activity Fee 6.69 6.37 6.37 6.56 7.56 Fund 2 Grants

Technology Fee 1.89 2.76 3.94 4.06 4.06 Fund 1 Operating

Capital Improvement Fee 5.06 5.73 5.88 7.88 7.88 Fund 7 Capital

Total $85.20 $92.00 $99.91 $104.73 $105.73

$ Increase $7.68 $6.80 $7.91 $4.82 $1.00

% Increase 9.91% 7.98% 8.60% 4.28% 0.95%

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DIVISION OF FLORIDA COLLEGESRESIDENT STUDENT FEES FOR FY2013-14

CREDIT PROGRAMS

COLLEGE TUITION

STUDENT FINANCIAL

AID FEE

STUDENT ACTIVITY

FEE

CAPITAL IMPROVEM

ENT FEETECHNOLO

GY FEE TOTAL

% OF FEE INCREASE

OVER FY2012-13

% OF FEE INCREASE

OVER FY2011-12

CENTRAL FLORIDA 79.60 3.98 7.96 9.58 3.98 105.10 0.00% 6.66%

LAKE SUMTER 81.20 5.03 7.56 7.88 4.06 105.73 0.95% 4.82%

POLK 82.78 4.14 8.28 11.88 4.14 111.22 1.91% 6.50%SAINT JOHNS RIVER 78.84 3.51 7.88 11.83 3.94 106.00 1.92% 1.96%

SEMINOLE 79.78 3.00 7.88 7.88 3.94 102.48 0.00% 0.00%

VALENCIA 78.66 3.83 7.07 5.67 3.83 99.06 0.00% 0.00%

Max. Fees allowed(% of Tuition) 82.78 5.79 8.28 16.56 4.14 117.55

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DIVISION OF FLORIDA COLLEGESRESIDENT STUDENT FEES FOR FY2013-14

BACCALAUREATE PROGRAMS

COLLEGE TUITION

STUDENT FINANCIAL

AID FEE

STUDENT ACTIVITY

FEE

CAPITAL IMPROVEM

ENT FEETECHNOLO

GY FEE TOTAL

CENTRAL FLORIDA 91.79 4.59 9.18 10.74 4.59 120.89

LAKE SUMTER 91.79 6.43 9.18 18.36 4.59 130.35

POLK 91.79 4.59 9.18 12.74 4.59 122.89 SAINT JOHNS RIVER 91.79 4.51 9.18 12.68 4.59 122.75

SEMINOLE 91.79 4.37 8.74 8.74 4.37 118.01

VALENCIA 91.79 3.83 7.07 5.67 3.83 112.19

Max. Fees allowed(% of Tuition) 91.79 6.43 9.18 18.36 4.59 130.35

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Capital Improvement Fund – Status quo with current Capital Improvement Fee Rate

Beginning Fund Balance 07/01/2013 $ 913,307

Capital Improvement Fee Revenue $ 629,588

Expenditures Capital Outlay ($ 781,630)

Projected Ending Fund Balance 06/30/14 $ 821,273

Requested Expenditure FY 2014/15 ~ $ 978,300

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Capital Improvement Fund – OPTIONS

• Option 1: Continue investing and reduce Fund Balance, potentially limiting ability to perform necessary maintenance

• Option 2: No change in Capital Improvement Fee and forego Capital Improvements

• Option 3: Increase Capital Improvement Fee to help counteract reduction in Fund Balance

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RECOMMENDATION CAPITAL IMPROVEMENT FEEFY2014-15

Capital Improvement Fee:

Increase of $2.00 generates ~$164,800 additional revenue for a total of $794,388 annual revenue

1. Provides Funding for Tech Plan Enhancements for students –e.g. Wi Fi, computer labs, classroom AV.

2. Replaces unfunded PECO maintenance dollars over the last three years

3. Allows for minor renovations to accommodate new IT Center4. Helps to maintain status quo/stabilize CIF fund balance

( Note: Foundation lease agreement for the Facilities Building Balloon note is due December 2015 - $775,000)

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PROPOSED STUDENT TUITION & FEE RATES

Fee Current Rate SAF + CIF Increase % Change

Tuition $ 81.20 $ 81.20 0.00 0%

Financial Aid 5.03 5.03 0.00 0%

Student Activity Fee 7.56 7.56 0.00 0%

Technology Fee 4.06 4.06 0.00 0%

Capital Improvement Fee 7.88 9.88* 2.00 25%

Total $ 105.73 $ 107.73 $ 2.00 1.89%

*Proposed reduction of the Capital Improvement Fee for the Baccalaureate Program from $18.36 to $9.88.The new total Rate/Credit hour for the Baccalaureate Program would be $121.87 (reduction of 54% for the Capital Improvement Fee resp. 7% overall reduction)

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SUMTER WORKFORCE PARTNERSHIPBase Budget RevenueRoll-over funding for Sumter Partnership State $ 784,733Board Reserves $ 500,000Foundation $ 50,000

$1,334,733

Personnel ExpenseBase Budget Faculty & Staff $ 144,240Base Budget Pooled Positions $ 18,500Base Budget Benefits $ 40,685Base Budget Open Positions 5 FT Faculty incl. Benefits $ 263,525Base Budget Open Position Asst. Director incl. Benefits $ 25,000Base Budget Open Position FT Admin Support incl. Benefits $ 33,750

$ 525,700Current ExpenseBase Budget Current Expense $ 192,033

Capital Outlay Expense $ 192,033Base Budget Capital Outlay $ 65,000

$ 65,000

Total Budget Needs $ 784,733

(Deficit) / Surplus Estimated $ 550,000

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SOUTH LAKE HEALTH PARTNERSHIP Base Budget RevenueBase Budget Revenue –Capital Outlay Appropriations $3,000,000South Lake Hospital Partnership $1,000,000LSSC Foundation $1,000,000LSSC Board Reserves $ 600,000

$5,600,000Personnel ExpenseBase Budget Staff: New Director SL Health Partnership $ 60,000

$

60,000Current ExpenseBase Budget Current Expense $ 5,000

$

5,000Capital Outlay ExpenseBase Budget Capital Outlay $ 600,000

$

600,000

Total Budget Needs $ 665,000

(Deficit) / Surplus Estimated $4,935,000

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$545,747

Old Rate $7.56 $23,515

New Rate $7.56 $569,262

$0 Remaining Unbudgeted Funding

FY 2014-2015

Budget Request Forms

Proposed Budget

Recommendation

Contingency $0 $19,577 $7,679

TOTAL REQUESTS $543,109 $569,262 $569,262

College wide Grants $10,000 $12,000 $12,000

Contingency Proposed Raises $11,898

Positions Sub-Total $360,041 $357,703 $357,703

Stipends Sub-Total $6,868 $6,607 $6,607

Group Requesting Funds Budget 2013-14 Submitted to SA Budget Committee SA Budget Committee Recommendations

Student Activities Sub-Total $166,200 $173,875 $173,375

Projected Revenues:

Student Activity & Service Fee Recurring Revenue Estimate

Non-Recurring Projected Carryover from 13/14

Projected Total Revenue Available

per .10 cent increase = $7,498

FY 2014-15 PROPOSED STUDENT ACTIVITY FEES

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FUTURE ACTION FOR BOARD MEETING JUNE 17TH 2014

Approve

• Current Operating (Fund 1) Budget for FY2014-15 including:Tuition and Fees

•Classification and Salary Schedule for FY2014-15

• Capital Projects (Fund 7) Budget for FY2014-15

• Student Activity Budget FY 2014-15

Questions ?