typically the governor in the state
won’t change the budget once it’s been approved however there
has been times where they have change the budget I think the the aspect and the economic
uncertainty that president oakley is referring to lies within the deficit factor that the
state imposes burn the community colleges and again a quick reminder the deficit
factor are funding is based upon the number of
FTEs that we generate and there’s three basically three sources now there’s four sources
of funding that we get to help come up to that total state prints were
Porsche miss I mentioned earlier that we’ve budgeted a hundred million three hundred fifty eight
thousand dollars therefore components to get to that it’s the local enrollment
fees that week lacks a 98 percent of those it’s the property taxes that and County collects 4s and remits to us its education protection account funding
that comes from the state and then there’s the state general
apportionment and so what the deficit factor is is if it anyone period of time when either the enrollment fees the
property taxes or now the education protection account
funds don’t come in at the level that they
have put into the state budget they don’t make up the difference with
the state general one portion it what they do is they apply a deficit
factor so we’ve built a1 percent deficit factor into our budget but that rate has fluctuated drastically in the last
two years in 1314 alone it went from 6.75 percent and March down to 3.7 percent in June and then when they did our
recalculation for the 13-14 year it was at 0.19 percent for this current
fiscal year in 1415 the state has re-imposed over a half percent deficit
factor on our advanced apportionment we’ve
built in a one-percent the light there’s I would say a strong
likelihood that both p1 and p2 it could be higher than 1
percent in so if it is higher than 1 percent
this economic uncertainties lines would come
into play would it be possible to get a break down as the and 6.0 63 you know million I’m on how that was calculated
in in ice is just the one persisted deficit
factored those things beyond net activist the remainder or like this
options that we take into play poor economic uncertainty they there’s not a breakdown the to break down is we take the 17 point eight million
dollars we back out the 6.1 billion dollars for
the board mandated reserve we back out the 1.8 million dollars for
the potential wrong shortfall you would back out the 576,000 on the reserve for the new faculty and
then we head back up to 2.6 for the vacation low banking and then
the balance is gonna be that 6.6 million dollars that you see there on economic uncertainties so there’s not a
breakdown have exactly what goes in there it’s
just the balancer what has not been assigned or part have the five and a half percent board
mandated reserve I just very quickly wanna moves along again to histories and
things of that nature but the question came up which is a good
question as far as with the budget the next budget really the peak in the process does not
begin until January personal click governor proposes a a.m. proposed state budget on in January as well as any revisions to the current
budget in January kept with the next time up into that the
answer the question trust his ears its it’s done tell me
when they start bring it back in second to review so
anyway I’m nyack I get that is when you deduct
in your you know you’re pretty much deducting
our the 17-point 8 the remainder 17.84 to you correct correct sorry you already know that you
gonna be a 17-point aid million that’s what the the budget that we’re bringing forward
is that are ending fund balance will be a 17-point eight million dollars
if we cease receive all the revenue that we put in
the budget and if we spend every single dollar that we put into budget thank you you know on so here’s a seven-year and summary that shows some other trends on the first line is the salaries and
benefits as a percentage of total expenses so you can see there that that has
fluctuated pretty significantly over the last few
years in 08 09 it was 86.7 percent and and both 11 12 and 12:30 net got up
to a high of 89 percent last year in 1314 dip down eighty-five
percent and then now what we’ve presented in
this budget am it would be back up to eighty seven and a half
percent and be used because this is the area where its were those that that I’ve looked at as trustee
there are certain destruction particular rule areas to get down to the
seventy-nine percent I’ll but that’s really it’s really not an appropriate way to
compare values City College San Francisco they’ve
gotten and the dangerous 92 93 percent but we’ve been doing a lot have I know
there’s a a reason for this but if you can explain it we’ve done a lot of things and yet it
still has gone up from 13-14 to 14:52 you just wanna elaborate why it went from eighty five
days 7.5 with all the things we’ve done was
primarily related to we hired 242 full-time faculty we increase the the classified positions our benefits went up I’m so even know I’m you know we we’ve increased as I
mentioned we increased our salaries and benefits by almost ten million
dollars and we only decreased everything else by
one and a half million so we had almost a half-million dollars increase
in expenditures firm between the two different years and and this number that we’re at eighty
a fiery some point five seems to be the best practices parameters for colleges similar to last
so it’s not anything to be alarmed about and my cues City
College San Francisco they certainly get in the low 90’s and
they do have start a problem so I just like to see it and I know ever
use this in the past different ways is one week were fine just wonder explained as a thank you me
if I can complicate that explanation Tom were fine but we’re not fine it is a
high number I am it’s something that we have to except if we’re going to continue to
operate to comprehensive campuses on and it’s a
choice that we make from we have duplicate
Stafford both campuses that provide services to
our students that’s not something that is normally done in a single College
District on and so it is a number we have to
watch it is higher than it normally is foreseen College District but there’s a reason for it and it’s a
choice that with me is this a number that triggers certain
regulatory agencies is those those figures a look at extremely
close it I’m at this point there’s not a magic
number that triggers the chancellor’s office
but it does impact are from our rating agency from are for bonds borrowing costs a because rating agencies will look at
our ability to manage some ongoing fix costs and this this number we typically have to explain
why it’s as high as it is thank you probs begin drawdown are other expenses I may be a
help in this number actually if you drive down the other
expenses then that person it will go higher so you tell me we should increase earned
expenses no I just to was just something that
does 11 we had an injured and the other expenditures this percentage would go
higher well going to increase our revenue then hopefully the state with the hat for the next line that we have on here is
just add a surplus or deficit so term remember this is representing
six years have actual and then one year but opted budget so
over the six years have actual three of those years resulted in the deficit 38 years
resulted in a surplus but as I mentioned we are proposing a
deficit budget in the 14-15 year and there’s the history of the ending
balances and the percentage of the ending balances firm as a percentage of the total
expenses so the next two slides is just too give
the board a little bit of history of where we’ve been with the cuts so and no in 910 workers win the state started
cutting our revenue it so what we’ve provided
here is each fiscal year how much revenue was either last or firm was earned based upon the state budget so if we go down and just focus there on
the bottom the six year total the total increase or decrease we have lost 6.9 million dollars in funding term due to the state actions or about 6.7 percent now comparing that
to the changes in our expenditures here’s the slide for the expenditures
you see there at the six year total we’ve only decreased our expenditures by
1.4 million dollars so we’ve lost 6.99 dollars in revenue our expenditures have only gone down by
1.4 million dollars overall mom from where they were and NEC
we have an amount of cuts they’re that was the
amount over cuts that were made in each fiscal
year budget year to budget year so had we not
made those difficult decisions and difficult cuts think we would be in a lot worse off
than where we are today moving on to the slide this is a projection I love if we don’t change anything and and we just roll over our budget on what things might look like moving into
15 16 so that’s in your column that’s the
adopted budget for 14-15 BC they’re down at the bottom ending
fund balance is a 17 point eight million dollars if we assume on that we’re going to
receive all the revenue that we put into the budget that we’re
gonna spend everything that’s in the budget then our starting point on july first to
15 will be the 17-point eight million dollars we do a roll over budget which means
that whatever we budgeted in 1415 will be budgeted in 1516 as our starting
point so since we budgeted deficit up 3.3
million dollars were showing that deficit begin in that on the second line under the
projected 15-16 column the apportionment changes that we’ve put
here this is assuming that we would receive
colour at a 2.1 percent that’s what school
services is estimating that the statutory colour
would be in 1516 that doesn’t mean that the
governor’s gonna funded we just put that number in there on to show if we were to receive it again arm the other changes that we’ve
made on here the new and restored positions that’s the 576,000 as for the six new faculty that’s the
minimum number that we would need to hire salary rate increases this includes the 1.05 percent Cola that has been approved her mom for chai a and managers in what has been
offered to classified NCCA and then the other salary and benefit
changes is really are stepping column increases as well
and as are earn help the welfare increases
purrs increases and stirs increases were estimating those would be and then what we’re adding back in are
the one time expenditures that we’ve made in 1415 term as poorer like the instructional
equipment funding the technology refresh running those
types of things so those are the known changes that we
would need to make to the 15-16 budget if we were developing it right now her which would mean that we would have
a deficit three-point eight million dollars which would bring are ending fund
balance down to just under fourteen million dollars so that’s really but this is trying to
show is if we continue down the path of where we
are today in only made those known changes that we
know about right now and we will continue deficit spending
and will be eroding into to economic uncertainties line-item okay so um so that we don’t end up in a situation
what is our plan to increase revenue i c0 I’m not happy with that this is not me looking you more than ninety percent have our
revenue budget comes from apportionment so it is very difficult to increase revenue appreciably term to make a huge difference you know some
other things that we’re doing is we are really focusing on trying to get more
grants mom when those grants allow it we do
charge in indirect cost rate and that helps to free the costs and provide funding to the
unrestricted general fund on as are the plans allow for because
most the grounds have seen in the budget has been the restricted general fund are you saying that there’s 0 debt I can
be them are located under the unrestricted for or some other grants they allow
either we call an indirect cost rate to be
charged or administrative costs allowance that can be charged in when that’s allowed we do charge that
back in so you will see those indirect commas not so much on the revenue side but I
knew you can see it on page 20 of the adopted
budget book the last next the last line there this
is in direct costs so in the adopted budget we’ve built in and that we’re gonna
receive $1 million seventy nine thousand dollars in indirect costs and that’s coming from
the grants that we serve within the restricted
general fund but today to be clear on her question you cannot book those grants in the unrestricted general fun correct okay thank you am this indirect cost
those issues as the deficit and a Palm Beach 29 assists and right that’s because the budget accounting man
you know firm since on honor CCF s03e11 report
which is the next board item we show the unrestricted general fund
and the restricted your fun to come to a total general fund and mount that goes to the state so
since those indirect koster shown as an expenditure in the services in the restricted ralph and then we show
it as an abatement have an expenditure and the unrestricted you’ll find so when you total the general fund
between the unrestricted and restricted that comes 20 I got shipment what’s our plan to Inc increase it is it merely just Inc as
its predominantly increasing enrollment and
getting abortion are as vice president Gail stated the unrestricted general fund is
primarily funded by FTS I am we have attempted to work with the
legislature to allow us to find other ways to generate income on that has not come to fruition I am so we continue to fun operations outside the
general fund through grants and a um that’s why you see are categorical funds growing because at
this point in time the governor and the legislature are
increasing our budgets in categorical funding which are for
specific outcomes Tom so although larger are overall budget is increasing are unrestricted general fund continues
to be relatively flat because there are no other sources that
the governor or legislature is putting in to the unrestricted general fund the
governor could choose to fund the tired Kohler governor could choose to to add those funds to the inner circle
general fund but at this point in time we’re being asked to deliver specific
outcomes in the categorical areas though we can and focus on increasing enrollment
however that always are our choice I mean that I
should be our commitment and I’m assuming it is T can continue of course of course it is but we’re not going to increase
enrollment for the sake give increase in enrollment weariness increase in Roman where
students actually have need and where the taxpayer dollar actually
goes to work so mom we could certainly find a some you know any class so you can
think up and throw it on the the class schedule but that doesn’t
serve the students need I am toma FTEs rosso might I am so so yes on we’re going to continue to focus on student needs and we’re
going to continue to do everything we can to grow and romance but at the same time
have it after recognize that in within the district the k12 on enrollments are decline a so that
directly impacts are moment a.m. so then we’re were forced to look outside the district
for additional aromas which we are doing a and work creating a plan now to continue to
market the quality education that we deliver to students outside the district but
that’s where the additional Roman would have to come from right to which usually referring to the
funded FTEs increasing that amounts those shown on slide 14 an real that was recalled to yes what
i’m talking about. and I’m glad you mention this because that
was E a question for me it’s a sore subject
revenue for us and we don’t we I i certainly going to be kinda at the
mercy of the state in these fluctuations and if there’s something
they were in control in sounds like this is where we are okay let me take a step back vice president gable his re- included
all the revenue that we could possibly get from the
state California to apportion we don’t believe that we’re going to
make that target but that number is shown in in the budget document what that
ultimate I am funded enrollment would be the state will not fund is beyond that
enrollment we are in control and so far that we are we try to get to the target the state
may not fun that enrollment the state may not from that aroma under
percent in may find that ninety percent in May funded eighty percent we won’t know that until next year after
the enrollment has been done because if every College District in the state grows to that altman Roman
number state does not have enough funding to
meet enrollment I really appreciate you explaining that
it was a mystery to me and thank you it’s a mystery I’ll state budgets
welcome welcome to the world of higher education state the Californian funding and I passed my initiation this it doesn’t get any better than us
they don’t feel bad okay so just quickly moving in December
our future budget challenges over t mention a full-time factly obligation
number terms I won’t cover that again
proposition 30 revenues this is the education
protection account funding and you know we need to keep in mind
that these are temporary tax increases so the sales tax terminates at the end
of 2016 income tax increase terminates at the
end of 2018 so I think every community college in K 12 district
in the state is hoping that by the time we get to the
end of 2016 the state economy has rebounded
sufficiently to wear this will not result in cuts to are funding again but there is
that huge uncertainty that it could very well
result in cuts to our funding who we get to term the termination as those increase
taxes so that’s just something that I liked it continue to remind the board have down the road we may have further challenges and a continuation prop 30 is a for the
people not legislature correct so it’s not
something that the legislature can just do on their own they’re going to have to go back to the
voters have to and maintains little funny correct the other I although the legislature could always vote to
increase tax sister his reg occasional furniture alright the other item is and are
discretionary funding earned as a just easier was referring we need additional discretionary funding
president ok liaising very well described do that most to the
funding that has been coming through our budgets recently is tied up in a categorical programs and
there isn’t a whole lotta and restricted or what we call
discretionary revenue coming so that is going to be a concern moving forward if
that trend continues again as explain the
deficit factor fluctuates term each reporting period so we don’t
know what’s going to happen with that and then the big one are is the state
pension obligations and so the employer contributions your schedule
to increase your posters and purrs a substantially over the next seven
years so here’s a slide that shows how much it will increase each year from the previous year so starting with 13:14 the rates for 8.25
percent firsters and they were at 11.44 percent for
purchase in 1459 mentioned that the increased so the dollar amount have the increase was 295,000 firsters per person with
78,000 moving into the 15-16 year on the rate goes up substantially for
both of those so are incremental cost increase on stirs is a
hundred sixty-five thousand dollars in 1516 and a hundred ninety seven thousand
dollars for hers over the seven-year period and again these dollar amounts are based
upon the salaries that we budgeted in 1415 so over a seven-year period for salary
amounts for to stay the same we’re looking at a five million dollar
increase in stirs alone in another two million
dollar increase in Purdue’s so these are gonna be substantial
increases that amor going to affect are available
funding that we have on for any augmentations or anything that we want
to do on the expenditure side so best yeah nothin like a great but a report to keep us excited at
this hour I get a second wind out and about you guys strong up alright any other questions members the
board and so people wonder why this cuts scheduled I wasn’t trying to be mean but we’re
required by law to get this approved for it to the states that’s why it did
find itself on this agenda in conflict with another very long items my apologies that was my question
shabazz and the only question I was that was why
I wasn’t trying to be mean spirited but this is required for the by Sept 15 is the date its to be said and this next
budget I’m will be over so just to be clear we
need to if we’re gonna go past twelve o’clock we will need a new board meeting
so well we have 30 minutes so that there’s
not a question launch in motion to approve this item which is the 2014-15 adopted
budget by the way in your PowerPoint on because I’d for
the question came up about our retreat and I saw that in there where the air is we’re also talking
about energy is our board goals so thank you for reminding me in that
one as well there is a motion and the second already on the floor it
is another question members the board madam secretary keepers call the roll on
item 12.52 president callum I ice has an auto I member Baxter I members see a II thank you that motion
carries had a csection now to 12 points 6 and
this is simply the open this is required this is the form the
ghost the the state a californian the chancellor’s office so if they’re entertain a motion to
approve for in this application are this form to the appropriate us soons is much much just checked on a
sec my trusty Baxter questions board see and Madam Secretary
please call the roll I’d 0.6 president Kauai vice president on make number Baxter I members area I ocean carriers without
objection to 0.7 the general obligation refunding bond sale 2014 series ee this
is an informational I am only which means there’s no vote to what
information is being present the bar at this time as an Oakley I’ll
turn over vice president gable right so we just recently finalized the refinancing and have some love our
bonds term so this was a but the board had
approved and the resolution on June 24 2014 we refinance forty 3.2 million dollars have some of our bonds and that closed
on August 28 in so you’ll see there on the second
page within you’re bored docket that term all too the reason that we
refinanced was so that we could save our taxpayers money on their obligation to repay the general obligation bonds
and so the total savings to the taxpayers families the three million one hundred
and forty nine thousand dollars the present value that is a two million
two hundred and sixty-eight thousand dollars for term an overall 5.2 percent savings for the taxpayers and again remember are general obligation bonds are assessed to
our local property homeowners comes through on
their property taxes and so will we refinance we are lowering the amount interest that we’re paying on
the Barnes meaning that we won’t have to charge the
homeowners as much to repay that debt all right thank you is an informational
item only no action required by the Board so we will move on was facing questions
questions sorry as trustees and just a for my understanding how with the tax savings
be a.m. realized iight Air Force gonna get
it I’ll a break on their homeowners tax and still so how’s that gonna has again
manifest yes so an each year annually the and County will determine what the
rates are going to be in so ultimately this will decrease the
amount is char that is charged to the individual
homeowners for this particular series iv: funds ended a.m. state what the reason is in its due to know it just has a dollar amount that’s
assessed on the property taxes to attack were detected taxpayers won’t
nason know that it’s because we save them money correct okay well let it be known for the record that
we save them money about this item hi it a good job thank
you are moving on no action required to have
there is no I’m for Pacific Coast campus correct a college advancement economic
development no items correct I mean on to reports a communications academic senate president Cain how are
you doing really well I just be very short and and said like to am announce and congratulate three faculty members
who have stepped into faculty leadership roles a our new curriculum chairs can hellman
our new faculty professional development coordinators Jerry Florence and our new honors coordinator is doctor
Jeff wheeler very good I and also in the borders
people working with you I’m trying to develop some things regard economics at tackling okay cuz that’s
two weeks away getting closer less last two weeks souvenir press report as an Oakley if
they keep our president Kelly only have about a 45-minute report Terry good but it’s all covered in my hand out for the board that covers all the reason
activities that we want to highlight for the poor so I won’t go into any detail I have a questionnaire for whose disk in
his hut and movie many ways my pictures are was that intentional or unintentional
I’m she was an intense a wet grip everybody’s picture by mine you were not
there you and now I wasn’t even invited to those sessions but that’s ok next time yep 0 okay that isn’t in there either you were in very them alright its but Roberto was the it was pardue boorda die was cast i doing whose
are then used as UN prior to the report the incident I thank you president I ok least interested cinch St route I
give it up to speak at the very beginning he said no i misstated the
meeting so congratulations is yours but my mouth I realize that now I’ll one
thing to say there’s been a rumor going around campus that I was going to resign
my position that rumor is not true I’m stuck here you’re stuck with me to quote
the late great Joan Rivers I’m not going anywhere
you’re stuck with me very and mr. thank you we’re happy to have you trust me aboard
a trust is a need for the trustees have any comment at this time I have Porsche
recognises just easier okay thank you for staying
in sticking around and I am it’s a pleasure having you on the boards
to interest you in a damn suggested quick update am that the interest you back strain I will be
starting a scholarship fund for students to scholarship fund and it’ll be for and students who are underserved and don’t get bach waivers you know get
qualified for Bach waivers so that’s one one scholarship and one for four-time
ESL students so I encourage students to her yes you can apply then her and I increase students to inquire about how
to go about it where I’m thrilled to have my partner
and doing this said trustee Baxter and them can’t wait it’ll be released when well soon it will be awarded at the a
May scholarship reception the first from will be given out next
year and I just happened to bring for you yes tonite only I criteria sheet and a payroll deduction
form and envelopes for making donations just
in case so passive right down your day just
easier thank you I a.m. gladly accepts and
can’t wait to contributes my step into 10 percent of
our stipend 137 will go to these funds and home welcome your input your suggestions
anything we could do better on the scholarships and beyond thank you
all right thank you to members aboard passionate TriCaster and Baxter a a quick report I we the let me check out foundation is
going to invite the new faculty to our October 16 board meeting I the vice presidents in
the student trustee and all their elected trustees will also be invited and so what we’re going to do
is we’re going to start the meeting at 7 a.m. UK students need to
leave get students and caseback the needle
leaving get to their classes before are normally starting time love 7:30 so you’ll all be getting invitations am
a we’re just gonna say welcome to the
collagen glad you’re here thank you members NHA future reports I none report out at
this time will be having public comment on on
agenda items then shower alright there’s no other no other speakers Adams stereotype aren’t very good then I there’s no the
business for them the report this time we are them we will be a journey in in our next
being will be this Thursday special meaty here in the chamber at 6 p.m. II and you’ll be notifying the the five individuals very good so and
then the retreat is going to be is scheduled and we’re again play in that gym
together as well there’s no objections i’d doubt there will be the I’ll
entertain a motion to adjourn much in a second without objection the
media sharing and thank you all very much this was a very long meeting but
you all deserve a round of applause so good job everyone this meeting is
adjourned thank you tonight 6 a.m.