Title: BUDGET DEVELOPMENT PROCESS
1BUDGET DEVELOPMENTPROCESS TENTATIVE
BUDGET
- BOARD OF TRUSTEES MEETING
- JUNE 25, 2007
2Resource Allocation
- DRAC District Resource Allocation Council
- Current process established by Board of Trustees
action May 1997 - Charged with the development and oversight of the
allocation process - Makes recommendations to the Chancellor
3Council Composition
- Nine voting members
- 2 Academic Senate Presidents or designee
- 2 Academic Senate faculty appointments
- 2 Directors of College Fiscal Services
- 2 Vice Presidents of Instruction
- 1 District representative appointed by Chancellor
- Chaired by Deputy Chancellor (non-voting)
4DRAC Revenue Allocation Model
- Location prior year ending balances carried
forward - Revenue calculations based on SB 361
- FTES is updated according to attendance reports
(CCFS-320) submitted to the State - State Budget Act
- COLA
- Growth
- Other
- Local College-based Revenue
- Non-resident tuition, facilities use fees,
student materials fees
5Allocations
- DRAC Model Distribution 2007-08
- Colleges 81.2 (split according to FTES)
- District 9.8 fixed
- General Expenses 2.5 (legal fees, audit fees,
IT priority projects, retiree benefits, property
liability insurance, election costs, etc.) - Contingency 6.5 fixed according to Board of
Trustees budget development guidelines
6Expenditure Budget Process
- District Fiscal Services updates all salaries
benefits - Step and Column movement
- Apply annual contractual increases
- Update Health Benefit Budget
- Update OPEB (Retiree Liability Costs)
- Revise Payroll Expense Rates
- STRS, PERS, Unemployment Insurance, Workers
Comp, etc. - Revise General Expense Budget Items
7District Services ATEP Expense Budget
- Budget Worksheets are Distributed to Departments
via the Vice Chancellor and Provost offices - Departments
- Review Budgets for Personnel Position Accuracy
- Allocate Supply and Operating Funds to Accounts
- Consult with Director of Fiscal Services and
Deputy Chancellor as appropriate
8District Services ATEP Expense Budget, contd.
- Budgets are Updated for Rising Costs
- Memberships
- Commission on Athletics, Community College League
- New Employee Fingerprinting
- Maintenance agreements for equipment software
- Copiers, Mail Machines, Fusion System (for
Capital Projects) - Deputy Chancellor Director of Fiscal Services
make recommendations to the Chancellor for all
district services
9Irvine Valley College Expense Budget
- Total Allocation established by DRAC model
- Budget Worksheets are Distributed to Departments
- Departments
- Review Budgets for Personnel Position Accuracy
- Propose Budgets for Discretionary Expenditures
- Supplies
- Contracts
- Propose Budgets for Mandatory Expenditures
- Maintenance agreements for equipment software
- Utilities
June 25, 2007
9
10 Irvine Valley College Expense Budget, contd.
- Director of College Fiscal Services reviews
departmental budgets in consultation with Vice
Presidents, Deans, and Directors - Significant new expenditure items are discussed
within various shared governance groups and
recommendations are made to the President - Strategic Planning Process
- Comprehensive report submitted to the Board of
Trustees in May 2007 - Involves Academic Senate, ASIVC, Classified
Management, Classified Senate, CSEA, Deans, and
Faculty Association
June 25, 2007
10
11 Irvine Valley College Expense Budget, contd.
- Budget Committee
- Makes recommendations to the President on fiscal
matters - Involves Academic Senate, ASIVC, Classified
Management, Classified Senate, CSEA, Deans and
Faculty Association - Vice Presidents Director of College Fiscal
Services make final recommendations to the
President for all departmental budgets - President makes final decisions on budgetary
matters
June 25, 2007
11
12Saddleback College Budget Process
- Revised Budget Allocation Process Two Years ago
- Previously - Planning and Budget Committees
Separate - Currently - Integrated Planning and Budget
Process - Planning and Budget Council (PBC)
- Membership
13Saddleback College Budget Process
- Four Strategic Planning Committees
- Governance Planning Groups provide input,
plans, recommendations -
14Saddleback College Budget Process
- Process
- PBC reviews all planning documents
- PBC establishes College Strategic Plan
- Director of College Fiscal Services provides
budget data - PBC reviews budget status
- PBC makes recommendations to College President
- President makes decision and informs College
Community - Overriding Planning and Budget Parameters
- Increase enrollment
- Safe and well maintained facilities and grounds
- Increase Student retention and persistence
- Culture of institutional effectiveness based on
assessment outcomes - Fiscal Stability (Strategic Plan, SB 361 impact)
15Saddleback College Budget Process
- College wide allocations established by Fiscal
Office - Associate Faculty/overload allocations
established by Office of Instruction - Deans/Directors provided with allocation amounts
for operations - Deans/Directors manage and distribute operational
funds based on Division plans - Fiscal Office approves all budget revisions
projects and monitors expenditures for fiscal
stability
16Saddleback College Budget Process
- Planning and budget revision
- PBC regularly makes recommendations to College
President in accordance with Strategic
Plan - State allocation revisions
- Local income adjustments
- Grants and contracts
- All budget adjustments coordinated through
Fiscal Office - Planning budget is a continual year round
process - President manages College budget process and
is - responsible for College fiscal stability
17SOCCCD2007-08 Tentative Budget
182007-08 Tentative Budget Assumptions
- Net SB361 Revenue Increase of 12.3 Million
- 7.5M 2006-07 FTES Increase to Base funding
- 4.9M Increase Based on 4.53 SB361 COLA
- 1.7M Increase Based on 1.50 Growth estimate
- (1.8M) One time block grant in 2006-07
- 5.4M GF Unrestricted Ending Balance carried
forward from 2006-07
19Assumptions Continued
- 6.5 Reserve for Economic Uncertainties
- 10.0 Estimated Increase for Health Welfare
Benefits and Property Liability coverage - Salary Increases
- CSEA 4.53 per existing contract
- Faculty, Classified Managers, Academic
Administrators, Police Officers Association to
be determined by negotiations board actions
20SOCCCD Overview of Fund Structure2007-08
Tentative Budget
- General Fund (GF) 200.4 Million, Including
- Unrestricted GF 179.9 Million
- Restricted GF 20.5 Million
- Other Funds 163.2 Million
- Total All Funds 363.6 Million
- Other Funds Include Community Education, Child
Development, - Capital Outlay (Including Basic Aid Projects),
Debt Service, - Self-Insurance, Retiree Benefit Funds
21COPS Debt Retirement
- 1996 Issue 18.9M
- Will Be Retired June 1, 2008
- Sufficient funds are available from prior year
Basic Aid allocations to retire the debt
22OPEB (Retiree Benefits Liability)
- Actuarial Study performed in May 2006
- Total obligation 80.2M
- Unfunded Liability is 58.3M
- 2007-08 Contribution to the Obligation is 5.1M
- Current Year Service 3.3M
- Past Service 1.8M
- Funded with Basic Aid
- Additional contributions 6.8M
- 5.0M formerly used to retire COPS debt
- 1.8M income from Promenade apartments
23Basic Aid Receipts
- 1999-2000 5,676,800
- 2000-2001 9,192,300
- 2001-2002 13,719,277
- 2002-2003 18,419,919
- 2003-2004 27,356,952
- 2004-2005 40,162,878
- 2005-2006 46,899,203
- 2006-2007 50,566,203
- 2007-2008 41,976,293
-
- Estimated (Exact Amounts Will not Be
Available Until the End of Each Fiscal Year). - Per OC Tax Assessor, Secured Property Taxes
were estimated to increase 9 in - 2006-07, 7 in 2007-08, and 5 thereafter. A
15 decline in Supplemental Taxes is - projected for 2007-08.
- Decline due to recovery of FTES at colleges in
2006-07
24Basic Aid Funds Included In Budget
- 10.1M OPEB (Retiree Benefits) Contribution
- 1.9M ATEP Operating Budget
- 3.8M Phase II for Student Information System
- 26k for Legislative Advocacy for Basic Aid
issues - 51.1M Currently Undesignated