the other state revenue line 9 a.m. you
see there there’s a 5.4 million dollar
increase for what we’re expecting receiving the
current year and that’s that one time and eighty cost funding that I mention that’s coming
from the state in this will be the line item that will
see an even greater change when we get to adopted budget due to the increase in the one-time
funding so overall again our revenues we’re planning on receiving
about 120 1.3 million which is 12 1,000,000 more than what we
think will receive in the current fiscal year so now moving into the expenditure summary and the
expenditures are broken down by major classification so we have our academic salaries and you
see there that and we’re planning on having an increase
in our academic salaries have just under 3.5 million dollars that’s directly related to the 27 new
full-time faculty positions as well as the step increases and that
are in effect due to the Seca negotiations that was
ratified bout past November 2014 on the classified salaries am at this point we are budgeting about
1.7 million dollar increase for where we I think that will in the
year in 1415 this is related to the 44 positions that
have been reinstated as well as stepping column increases now
I will say that the a FT and her salary schedule that was
just ratified by the Board those testaments are not represented in any of these numbers because that was
done after the budget was finalized so and adopted budget are estimated actuals who are visually E increase due to the retroactive raise and then they
turned a budget will increase as well so you will see large change on the
crossfade salary line-item when we get to adopted budget the benefits are increasing by Justin or
4.8 million my already covered the significant benefit increases that we had their and then on the the services side there’s a 3.6 million dollar increase in
the services and that is primarily related to the my
mandated cost allocations and as well as the election expense for the upcoming
election that is underway for April 2016 under the capital outlay line an
increase of 1.6 million again this is related to the one-time
funding with the mandated costs and so that’s for the technology refresh program as
well as instructional equipment allocations that have been made and under the other alkaline 8 a.m. not
increase have to plea one million dollars is primarily related
to schedule maintenance projects that have been allocated on the mandated
costs fans so overall the tentative budget we’re
planning on spending 120 5.2 million which is a 17-point three million dollar
increase over what we’re spending in the 14-15 fiscal year so graphically what do our expenditures look like I’m you can see here that
we’re spending about forty percent under academic salaries 20 percent
unclassified salaries just under twenty-four person and
benefits which represents 83 way eight-percent on salaries and
benefits now if we were to take out that 6.2
million in one-time funds that percentage is
salary and benefits goes up to eighty 8.2 percent so you know this this looks artificially
low and you’ll see in a couple slides later where we look at the seven-year trend on
that this does look artificially low and so when you back out that one time money
it is back up to eighty eight point to which is little
bit closer to where we normally are with our salary and benefit percentages million people do we can offset by the
money though but that six million dollars so it
shouldn’t spike this chart because it’ll be offset by the
money see visited the one-time money this chart is representing expenditures
only I understand that but when you say it all spike once that one one-time money kicks in am the necessary
because you get off that didn’t they are bitterly gets upset too and spy to eighty-three percent but that
get back cost gets covered by the one time anyway my mistake in what this chart is doing is looking at
the the total of 220 120 5 point two million dollars in breaking it down by each of the major
classifications how much are we spending so if we backed out that 6.2 million from
the 120 5.2 million then the percentages would change web
internet should go up in our revenue side Shin since receiving money well yes we do spread it is there’s no impact on our ending fund
balance with the one-time money because the revenue amount is the exact same
amount as our expenditure amount but what this graph is trying to depict is where our
expenditures going and what classification are we spending our money so this includes the 6.2 million which I said is primarily going into the
services the capital outlay and the other outgo
categories and so if we were to back out those one-time funds a 6.2 million our salaries and benefits would now be
it and over 88 percent yes so if I can add just easier the point to this slide is
to show that there is very little room for discretionary spending so if you backed out that one time
infusion funds it would even get smaller so that
is a caution to the board that salaries and benefits are taking a bigger and bigger portion up the
overall expenditures so our ability to spend money on programs and services I am begins to shrink basically I appreciate that but you know
that’s 6.2 million dollars it seems like it’s pretty earlier when
we we’re talking about it seems like we’re
going to get it so it’s not that it’s uncertain nor a my missing something yes that the
point here is that that is a one time right now I
get that so you are raising salaries for the long term above the college you
are receiving one-time fun said shrinks inspired the
change is the outlook at this pipe but you have to keep in mind with the pie
looks like for the indefinite future the college
because we pay salaries and benefits every year so that 6.2 is only going to be in the
budget this coming fiscal year what are we looking
at this a coming fiscal year’s budget to begin
with yes trust easier by academic salaries
benefits are ongoing expenditures so you you are obligated in the college
to those ongoing expenditures even though you only have one-time funds
available so moving into and I break down there are reserves as I
said the budget does have about a 3.9 million dollar deficit which will bring
your ending fund balance or reserve balance
down to just under 18 points 6 million you which apart which is 14 28 percent ever total expenditures and then there
you see the different term assignments in classifications over
reserves we have our board mandated reserve which is the five and a half
percent expenditures have 6.9 million we have the additional reserve for the
end institutional effectiveness goal term which is simply a million and then we have our assigned reserves
for the potential enrollment shortfall the 1.22 I’m naps equivalent to the growth revenue and as I said we
need to turn the growth revenue before we spend it so we want to set that aside
in our reserves to make sure we’ve turned it before we set spend it and we have our vacation
loading key reserve 2.6 million and so overall our total reserves again or just under
and 18 points six million dollars no additional reserve vice president
cable for institutional effectiveness cool is this a.m. mmm
something that was and recently me and been allocated a by the chancers
officers had always been the case know this is a new goal that
the chancellor’s office has required all the districts to establish and and they wanted us to establish an
institutional factors call for what our fund balance reserve should
be and as I mentioned both are budget Advisory Committee enter
college planning committee recommended that we have a 15 percent reserve amor a little bit under that firm and then there’s I categories a
funding excuse me did did you say a are budget
Advisory Committee recommend 15 percent for this line-item
or in totality it the entire reserves for unrestricted
general fund it would be in totality okay so how much is this
something that we set this percentage for this line-item just
what we did here is we were showing that term we have our are five and a half percent board
mandated reserve we have earned Roman shortfall on our vacation load by banking reserve so the balance then
would be going towards the institutional affected
effectiveness goals when in this presentation and in
actuality that’s only about 6.25 percent thank you so here is a seven-year trend a where we are on our salaries and benefits as a
percentage of our total expenses and other outgo who as I mentioned you know we we’re usually ranging around you know 87 89 percent historically with our salaries and benefits in the
15-16 year that was what we were discussing its currently at 83.8 percent
but i think thats artificially low due to the 6.2 million in one-time fun
so and that’s really technically around
eighty 8.2 percent is is where we are at this point in time
vice president cable for the adopted budget can you show both those numbers for the
board’s so that they know what the percentage is with six-percent or whatever the
number turns out to be firm and a cause and what is pulled out yes definitely and the surplus and deficit so you see here that we had Herman had two years an actual deficits and
then and we have four years a time surpluses and then in 15 16 we’re projecting a
deficit again the ending fund balance you see how
that’s ranged per min 910 from $13.25 million we’re projecting it to be it 18 points 6
within the standard budget and then the bottom line there is the and ending fund balance as a percentage
of the total expenses and other Alco and again that’s our ranging from 12 .4
percent in nineteen and to fourteen point eight
percent within the turn to budge in 1516 so some
other future budget challenges that we have on the horizon is on you know we’ve hired twenty seven new
full-time faculty on in actuality we’ve hired more the now but we’ve had to retire
reason so you know I think ur arnett go love what
we’re trying to reach is about 27 now we’re continuing to monitor our
full-time factly obligation now we won’t know until the fall whether
or not we matter full-time factly obligation for the fall 15 at this point I’m crossing my fingers
that we will meet it and not have another penalty I think
it’s going to be very close though so them we’re hoping that
we will get there there’s also the sunset a proposition 30
revenues that’s the education protection account
funding that comes in so as the border reacted
on our estimation fifteen-point eight
million coming in for the 15-16 year no nineteen percent have that money
comes from sales tax about eighty-one percent comes from into
income taxes the sales tax pieces going to terminate
at the end of 2016 so that’s about 20 percent that funding and we could lose in at the end of 2016 so in 1617 and then an income tax is set to
terminate at the end of 2018 so we don’t know if those taxes will be
extended we don’t know what the state budget is
going to look like when those taxes expire if they do
expired that it is just a cautionary note that
currently those taxes are set to expire and it’s a big chunk of money that comes
into our district clashes because the fact that propositioned her 30 was passed by the voters to extend
this with also take the people again if you
are going to extend proposition 30 would require boat by voters legislature could enact taxes but that chance of that happening
are slim to none and the governor as publicly stated that
he will not support an extension props 30 so from planning perspective families go away in all probability right and it’ll it’ll be gradual cuz remember
these terminate who mid fiscal year so at this point if the taxes continue to come in at the
rate they’re coming in you know we would lose one and a half
million in 1617 another one and a half million in 1718 and then we would lose 6.4 million in
each 1819 in 1918 so we have some time to plan but I think this is
that the cautionary note a for the board that it is something
that we need to continue to keep our eye on and moving
forward and horizon in 1617 is gonna be here before
we know it and isn’t the M stirs contribution rate also
going up and also purchased 0 sorry levy right in
the next slide I perfect question so you see there are our state pension obligations are
increasing as well and posters which is protected go up to
nineteen .1 percent by 2021 and purrs is projected to go up to 20 .4
percent by 2021 and so this last slide here shows the impact on the district by
fiscal year I’m so you see each in in 1617 you know we’re looking at and bada 1.2
million dollar increase in our expenditure just for those two line
items in seventeen 18 it’s much more
significant because the perjury has increased and considerably more so
that’s about 1.7 million increase but overall on within you know the next five years we’re looking at 6.2 million
dollar increases just firsters and purrs so that concludes my presentation on the
tuna budget opened up to the more questions anyway
may have members aboard questions this time to rate this is just
easier thank you vice president gable a fantastic job to
you and your team a few questions some style I’m trying to and summarize them so in the actual the tentative budget page 3 and there’s a reference am for unrestricted general funds and
the management reorganization there’s gonna be 290,000 if you could
speak to that and what that entails and also an so what that means as far as personalities concerned if any yes the the 290,000 for the man’s reorganization arm includes to differ reorganizations one within the college advancement in
economic development area and another one with an academic affairs
where we are hurled eliminating and an associate director Grant’s position
then we’re creating a director of instructional resource development
position under Academic Affairs term we r at this point in time defunding the
associate vice president the Pacific Coast campus in creating a
dean academic services we are also filling a vacancy that has
been vacant for several years and that’s the
director the superintendent president’s office
and then we have created a director have nursing and in accord
with the city a tentative agreement that was signed and ratified last fall now I will say Herman the director the super into the
president’s office is going to be grant funded and for at least the next one fiscal year
potentially to in how I see this is where I get a loss and
perhaps that the veteran members can help me understand
why is not coming to the board for our review this structural change am usually with budgets you know we get
the typically agencies that I’ve worked with public agencies have
organization charts that they submit and then again it could be and not
criticizing him just an asking you why it’s not coming to to us for approval and then am what each
line item what would how much are we talking about for each
person an why we defunding an associate vice
president at the PCC campus who’s going to be responsible for the campus is pretty fun
defunding that am position so to answer that question i
mean basically you charge super denim president with the
responsibility to oversee the college an within that its my responsibility to from to higher too who propose layoff to review organizational structure I am so that is all delegated to the
superintendent president it is the board’s role to
review the budget associated with the goals that the the
board sets and to question certainly i mean you are more than
welcome to question any line-item but the reason it does
income for rules because the organizational
structure is delegated to you toria superintendent president in that is also from an accreditation requirement that
the superintendent president has the ability to manage the
organization to ensure that the resources are deployed to om in alignment with the Tom the college’s instructional master
plan educational master planned as well as any other issues that come up with
regard to serving the mission the college by I have I
understand that in thank you for providing input about
accreditation I’m but you know aka some sort of an
organizational chart is there are any changes that would be
an nice to see that in the budget and II don’t particular semi woody finding this
is it what the rationale for defunding an
associate vice president IPCC years and having a director them at I think it’s called it would in 5
o’clock recluse which is that by supposing cable and correct me if I’m
wrong at college advancement economic development what’s the was a
thought process in doing so as you know as it is I’ve heard a lot at
PCC campus needs a lot of support and the and needs support from us is the
borden I don’t really get word that associate
vice president D funding comes from you can help me understand and
appreciate it and be happy to is been the recommendation I love the vice president on their new
organizational structure be considered and put in place I’m
actually you’ve led me to a Tom 0 an item that I was going to
highlight later on which is on our current associate VP the Pacific Coast campus doctor mean a
single today is her last board meeting in that role she is stepping down from that position
and it gives the vice president of academic
affairs who is responsible for that position the opportunity to look at her
organization and determine what is the best organizational structure to fulfil the
mission and also the college and so I support that recommendation and
that’s why we are defunding it and creating Dean love a.m. academic service came I’m my if you keep in mind that I
campuses them meets some care as well as this campus them would be great I’m sure you will
and I always do yes and how much do you eat it does each member what are we talking about as far
as the total 290,000 how much for each person
we we talking about at that is before I S well the 290,000 is the net
impact a eliminating some other positions that
are on the books in in creating the new position so that’s
the the net impact a those 6 7 changes the six changes that are being
made I understand that a it would be nice to
see a detailed line-item some point what that entails some so page for the next page I’m you have them leave its about 3 Emily and yet think it’s in this I am through talking about health
benefits and I think in last board meeting am a couple a board meetings they were
am Burnham did a report dead because Sabres three million dollars so is that
something that is going to be factored in at some point or was that just assume
conservative leaders were not going to get the savings and we’re gonna assume we don’t have a savings even
though it was reported by then met by our own broker well I think what you’re referring to what
was publicly announced to the board was done so by herm the CTA president at the time
doctor lynn Shah where she had sat in on health and
welfare benefits committee meeting where Burnham benefits are broker had
done a comparison I love our plan verses on both calpers and I believe it was Sisk Witcher either
a trustor a GPA I’m so other plans that are out there
and they did a line item by line item comparison on and could the district save money if
we were to enter into a joint powers authority or a trust for our health benefits
rather than I’m contracting ourselves right now we
have our own plan and the results have that side by side
comparison were that we could potentially save three million dollars by going into that
trust or GPA but our plans would change pretty
significantly especially on the PP 0 side so any change that we would want to do
to our health and welfare benefits that our offer to our employees
are something that would have to be negotiated with both afte and with CCAA term and so we just are to the point yet on whether or not either I love those
parties you’re interested in entering into
negotiations to reduce the benefits that the
employees currently have because it would definitely on increase I would say our employees out-of-pocket
expenses for those employees that are in the PP 0 plan and so we will that’s kinda wait and see
to see if the unions you’re interested in trying to negotiate
that and but it would be some pretty substantial
changes to what we currently offer well in also just to be clear on your
question just easier there was never a recommendation to the Board on there was never a report done for the
board these discussions if only been taking
place with in the health and welfare benefit
committee which has representation by all the employees group and it would require all those employees
group to either one agree that we wanted to make
those changes and then we would Tom begin the process negotiating those
changes or be the board would have to suggest next time the benefits are open
for negotiations to put that on the table fair enough I’m so it I see interaction roles estimated axles in 2014-15 page 5 for the contracting services
operating expenses a.m. mmm item is because he speaks to that and and why it’s we have to change or that
increase that was as I mentioned on the and presentation and the reason that
both those line items are increasing as primarily related to the 6.2 million and
mandated costs on that we have allocated on a one-time
basis so can you provide a little bit more
clearly with the breakdown of that six-point at the amounts they were talking about
here I’m how much is for scheduled maintenance projects and how much for technology or any other I’m item that to me have so it’s both
contracting services and either outgo is what I am referring to
on that page page 5 attended budget right so their is 2.3 million that is allocated for
scheduled maintenance projects there’s over two million dollars that
has been allocated for the technology refresh there’s five hundred and thirteen
thousand dollars that was allocated for instruction equipment there’s a two hundred thousand dollars
it’s been allocated for professional development you know there’s another two hundred
thousand dollars for the community communication plan implementation two
hundred thousand dollars for the website design and implementation we have fifty thousand dollars for title
mind compliance implementation hundred thousand dollars for innovative
so can now another hundred thousand dollars for educational master plan
development and there’s been five hundred eighty-one
thousand dollars allocated across-the-board to all the departments
that represents a 10 percent increase in the discretionary budget okay and wouldn’t with those numbers
based on water membered is it something that is based
on past expenditures or pass I’m deficits are in need areas that need state am numbers are based upon the vice
president level plans that were initiated on the schedule
maintenance side that’s our five-year and deferred maintenance plan
that cemented in October and the technology refresh came directly
from the I 80 s division planned as well as every item that was listed was a request for an augmentation and that
was developed from the department plans up three
division plans that then led into the vice president planned
so it’s the planning that Stan college wide have how the numbers are
too right in with that ten percent across the board based on