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BUDGET DEVELOPMENT PROCESS

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Involves Academic Senate, ASIVC, Classified Management, Classified Senate, CSEA, ... Planning & budget is a continual year round process ... – PowerPoint PPT presentation

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Title: BUDGET DEVELOPMENT PROCESS


1
BUDGET DEVELOPMENTPROCESS TENTATIVE
BUDGET
  • BOARD OF TRUSTEES MEETING
  • JUNE 25, 2007

2
Resource 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

3
Council 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)

4
DRAC 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

5
Allocations
  • 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

6
Expenditure 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

7
District 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

8
District 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

9
Irvine 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
12
Saddleback 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

13
Saddleback College Budget Process
  • Four Strategic Planning Committees
  • Governance Planning Groups provide input,
    plans, recommendations

14
Saddleback 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)

15
Saddleback 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

16
Saddleback 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

17
SOCCCD2007-08 Tentative Budget
18
2007-08 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

19
Assumptions 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

20
SOCCCD 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

21
COPS 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

22
OPEB (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

23
Basic 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

24
Basic 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
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