Mt. San Jacinto Community College District Board of Trustees Eugene V. Kadow Dorothy J. McGargill...

Mt. San Jacinto Community College District

Board of Trustees

Eugene V. KadowDorothy J. McGargillAnn MotteGwendolyn SchlangeJoan F. Sparkman

Interim Superintendent/President

Dr. Jon Tyler, DPA

2007-2008 Adopted Budget

PRESENTATION

September 13, 2007

Business Services, September 13, 2007

Mt. San Jacinto College 2007-08 Adopted Budget

PRESENTATION OUTLINE

• Economic Profile

• 2007-08 State Budget for Community Colleges

• MSJC Budget Planning Assumptions

Impact of State Budget

Budget Process Planning Assumptions

Enrollment Summary

Major funding issues

• Adopted Budget 2007-08 Recommendation

ECONOMIC PROFILE

Federal

• Job growth slowed slightly in August, but private-sector growth continued for a 48th straight month.

• Unemployment rate is at 4.6% in August, decreased or held steady in 24 states over the year ending in July 2007.

• Consumer spending weakened but growing incomes reported in August should continue to support household consumption.



ECONOMIC PROFILE

Federal

• Business investment on commercial structures and equipment strengthened in the second quarter.

• Strong global growth is boosting U.S. exports, which grew by 7.1% over the past four quarters.

• Tax receipts in FY 2006 increased 11.8% over FY 2005, increasing trend is expected for FY 2007.



ECONOMIC PROFILE

State

• In June 2007, California unemployment rate held steady at 5.2%; the national unemployment rate was unchanged at 4.9%.

• Residential and commercial construction continued to slow from prior year increases, especially during the first half of 2007.

• State revenue collections from July 2007 to-date showed mixed results.

Personal income tax = $137 million below forecast



ECONOMIC PROFILE

State

Sales and use tax = $31 million above forecast

Corporation tax = $12 million above forecast

Other revenues = $123 million below forecast

• State revenue fluctuations affect Proposition 98 decision making.



ECONOMIC PROFILE

Local

• Inland Empire economic growth was strong in fiscal 2006 but rates continue to slow for 2007.

• Population composition has changed since 2004 and reflects growing diversity.

• Substantial differences in educational attainment levels have resulted with the change in population.

• New and existing home prices show decline with sales volume off 29.1% for 2007.

• Projections for the Inland Empire housing markets suggest sales volume and prices will continue to fall.



The California Budget Bill signed on August 24, 2007• Authorized General Fund spending of $102.3 billion,

essentially the same as revenues.• Assumes year-end reserve equivalent to 2006-07 reserve

of $4.1 billion, but state spending exceeded revenues by more than $5 billion in 2006-07.

• Operating shortfalls projected at more than $5 billion in 2008-09 and 2009-10; many of the solutions in budget plan are one-time in nature. Lower 2007-08 minimum guarantee for Prop. 98 Use of $1.3 billion in Public Transportation funds to

reduce General Fund expenditures.

STATE BUDGET FOR CALIFORNIA COMMUNITY COLLEGES



$1 billion one-time revenues: sale of EdFund, amended tribal gambling compacts, accelerated transfer of $600 million in tobacco securitization funds.

Savings in Social Services CalWORKs COLA for one year and State SSI COLA for five months.

Vetoes for $703 million, mainly $332 million Medi-Cal program, $72 million higher state employee compensation, $47 million CCC initiatives, $12 million K12 education.




On-going Changes:• 4.53% Cost-of-living Adjustment (COLA)• 2% Enrollment Growth• EOPS Textbook Assistance Program, FCMAT Audits,

Foster Care/Kinship• Rebenching base apportionment• Reduction of Basic Skills base augmentation• Reduction of Career Development/College Preparation

(CDCP ) enhanced non-credit funding augmentation

Total on-going augmentation to the system is approximately $289.4 million.




One-time Changes:• Instructional Equipment/Facilities• Nursing /Allied Health Equipment• New Nursing Programs• Cal-PASS Faculty Councils

Total one-time monies to the system is approximately $21.2 million.




CCC MSJCCost of Living Adjust (COLA) 4.53% $ 263,300,000 $ 2,227,595Student Access (Growth) 2% 136,200,000 2,225,181 *EOPS Textbook Assistance 1,900,000 TBDFoster Care/Kinship, FCMAT Audits 1,100,000 TBD Rebenching apportionments (80,000,000) TBDBasic Skills base reduction (33,100,000) TBD

The 2007-08 State budget includes line item on-going appropriations detailed above with direct fiscal impact on MSJC. The allocation mechanism for certain budget line items have not been disclosed and are to be determined (TBD) with system office notification. These will be treated as budget modifications during the fiscal year. * At 5.2% growth

IMPACT OF STATE BUDGET



CCC MSJCPhysical Plant and Instructional Equip. $ 8,100,000 $ 75,000Nursing/Allied Health Equipment 8,100,000 TBDNew Nursing Program Simulators 4,000,000 TBD

The 2007-08 State budget includes one-time appropriations detailed above with direct fiscal impact on MSJC. These allocations are the result of SB 78 as signed by the Governor.

IMPACT OF STATE BUDGET



BUDGETING PROCESS PLANNING ASSUMPTIONS

• Fiscal Stability is Highest Priority– Prudent Reserve of 5.1%, or $2.9 million

• Resource Allocation Linked to Formal Planning– Education Plan, Master Plan, Facility Master Plan

• Budget Committee Recommendations– Compliance to 50% Law and Full-time Faculty Obligation– Hire 13 FT faculty, 5 interim faculty, 13 FT classified

support staff– Fund for enrollment growth and efficiency – Increase materials, service and equipment budgets by five

percent – Provide technology upgrades for stability, quality – Continue with physical plant maintenance and repair

projects for deteriorating infrastructure systems



2006-07 at P2

•All districts were funded to actual enrollment

•No unfunded enrollment in the System•MSJC credit enrollment growth was funded at 8.7% growth. The 320 Attendance Report filed in July shows credit enrollment growth at 10.3% (Actual certification will be received in February 2008.)

2007-08

•All districts in growth mode•Revised growth rates issued by Chancellor’s

Office September 4, 2007.

ENROLLMENT SUMMARY

usiness Services, September 14, 2006



ENROLLMENT SUMMARY

• 2007-08 calculated growth rate for MSJC is 4.58%

• MSJC Fall 2007 credit enrollments are up 11% at census compared to Fall 2006

• Chancellor’s Office Budget Workshop scheduled for September 18, 2007

• Updates will be given after Workshop and staff review



ENROLLMENT TRENDMt. San Jacinto College 2007-08 Adopted Budget


Mt. San Jacinto Community College

Ten-Year FTES Comparison

-2

0

2

4

6

8

10

12

14

FY 98-99 FY 99-00 FY 00-01 FY 01-02 FY 02-03 FY 03-04 FY 04-05 FY 05-06 FY 06-07 BUD07-08

FTES % of Increase State FTES % of Increase Target

MAJOR FUNDING ISSUES

• Mandated safety and security systems: fire alarm and energy management

• Ongoing outreach that requires expansion in Southwest Corridor

• Mandatory reserves for GASB 43/45 required in fiscal 2008-09.

• Ongoing Technology upgrade, repair and expansion to provide stable and quality service to students and staff.

• Maintenance of physical plant that requires replacement and/or repair.




Budgeted Augmentations: Unrestricted General Fund

On-going revenue $ 8,452,776One-time revenue -0-

Total Augmentations $ 8,452,776

Budgeted RequirementsCertificated, Classified Positions $ 4,368,405 *

Technology Center Match (100%) 2,256,048Property Acquisition 788,848SJC Cooling Tower and MVC Boiler 523,206Learning Resource Center HVAC 500,000Modular Construction and Leases 371,640 Other Capital Outlay Expenses 15,258

Total Budget Requirements $ 8,823,405

Budget Change Proposals $ 15,115,000 * Includes estimated COLA




As in every cycle, budget requests exceed resources available. The budget prioritization process will determine final distribution of budget augmentations.

Formal planning documents such as the Master Plan, Facility Master Plan, Education Plan and program review will be used to determine funded requests. In addition, Chancellor’s Office expenditure criteria will be followed for all appropriations.

Safety, program stability and compliance will be determining factors for final allocations.



LEASE REVENUE BOND $8,000,000

First Draw (April 27, 2004) 2,975,072 Second Draw (June 23, 2004) 600,089 Total 3,575,161

Interest Earned (thru June 30, 2007) 173,980

First Payment FY0304 (Funds 12 & 41) 467,498 Second Payment FY0405 (Funds 12 & 41) 462,509 Third Payment FY0506 (Fund 41 only) 452,377 Fourth Payment FY0607 (Fund 41 only) 439,975 Fifth Payment FY0708 (Fund 41 only) 467,498

LEASE REVENUE BOND



MSJC 2007-08 Adopted Budget REVENUE AND EXPENSE SUMMARY-ALL FUNDS

FUND NAME FUND# BEGINNING

BALANCE

REVENUE EXPENSE INTERFUND TRANSFER

RESERVE/ CARRYOVER

GENERAL FUND 11 $634,085 $56,658,788 $52,161,635 ($4,823,724) $307,514

SPECIAL RESERVE 11 2,400,000 -0- -0- 200,000 2,600,000

INSTR EQUIPMENT 12 86,047 104,224 225,012 34,741 -0-

PARKING FUND 12 153,787 439,000 556,321 -0- 36,466

RESTRICTED FUND 12 -0- 6,469,857 6,469,857 -0- -0-

CHILD DEVELOMENT 33 -0- 1,835,816 1,909,799 73,983 -0-

CAPITAL OUTLAY 41 7,658,234 4,962,865 10,609,071 4,455,000 6,467,028

SELF INSURANCE 61 142,370 88,508 208,958 60,000 81,920

ASSOC STUDENT BODY 71 56,225 229,182 195,220 -0- 90,187

STUDENT FINANCIAL AID 74 67,654 7,173,855 7,189,288 -0- 52,221

STUDENT REP FEE 72 3,333 1,059 4,392 -0- -0-

FOUNDATION 79 3,293,964 689,532 659,014 -0- 3,324,482

BOOKSTORE 51 1,585,691 4,563,550 4,302,550 (35,000) 1,811,691

CAFETERIA 52 -0- 331,100 366,100 35,000 -0-

GRAND TOTAL $16,081,390 $83,547,336 $84,857,217 -0- $14,771,509


RECOMMENDATION

• Enrollment target set at 9,871 credit, 176 basic non-credit, and 123 enhanced non-credit FTES, or 7.356% growth

• Adopted Budget based on 9,673 credit, 172 basic non-credit, and 120 enhanced non-credit FTES, or 5.2% growth

• Budget Base/Revenue Limit = $53.6 million • Compliance with statutory requirements of the 50

Percent Law and FT Faculty Obligation• 5.1% Contingency & Reserve = $2,900,000



The Adopted Budget for fiscal year 2007-08 is recommended with the following:

QUESTIONS



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