Campus Budget

Campus Budget

Meeting Notes - June 13, 2017

 

Cheu welcomed the team to the last meeting of the AY. She thanked the team for the work done throughout the year and especially on the  accreditation report.

 

FY16/17 District Third Quarter Report

Cheu summarized the information on the third quarter report drawing special attention the the continuing downward pressure on enrollment.

Resident Enrollment The P-2 320 attendance report filed in April estimates that we will report a decrease of approximately 1,170 FTES by the end of this fiscal year (see Table 2). Due to the stabilization component included in Senate Bill 361, we will still receive apportionment for 2016/17 based on the 27,143 resident FTES generated in 2015/16. However, our funding base will be lower for 2017/18 if the decline in FTES in the P-2 reporting calculations does not change at P-Annual.  The colleges and the enrollment management team continue to carefully monitor student enrollment, analyze course offerings, and heighten marketing and recruitment efforts to maximize access for students and to restore the FTES decline from 2015/16.However, given that this is the sixth year of resident FTES decline, the colleges and district are making plans to adjust expenditures on a permanent basis to this lower level of apportionment revenue.

Non-Resident Enrollment We are currently estimating a decrease of $300,000 to our budgeted revenue for 2016/17, the net of a projected 276 FTES decline in non-resident enrollment and an increase in the non-resident tuition fee for 2016/17 (see Table 2). Because this revenue stream can be more volatile and is dependent on many external factors, such as access to visas and exchange rates, we closely monitor our non-resident revenue throughout the year.

Salaries: we are projecting an approximate $1.07 million in net additional expense in certificated salaries.

Operating expenses:We are currently projecting an increase of $819,800 to the Operating Expenses category.

Fund Balance: The net change to fund balance is the result of the combination of increases and decreases to revenue and expenses as explained in each line item noted above. Based on all assumptions o f re venue and expenses, the 2016/17 budget is forecast at third quarter to end the fiscal year with a deficit of approximately $8.6 million (see Table 1). At Adopted Budget, a one -time stability fund of $32. 4 million was set aside, as designated by the Board of Trustees, in anticipation of out -year operating cost increases and potential reductions in state revenue in the coming years due to state economic corrections. This stability fund is projected to decrease to $24.58 million, the net result of expenses exceeding revenue. We are projecting to end the fiscal year with a $49. 4 million fund balance, of which $ 24.9 million is designated as follows: $14. 8 million for college, Central Services and district-wide carryover, and $10 million for the 5% mandatory reserve.

 

FY 17/18 Tentative Budget

Cheu summarized the information in the 2017/18 tentative budget.

The projected 2017-18 ongoing structural deficit is $12.3M. This will be covered by one-time allocation from the stability fund. This deficit includes the projected $6M loss in revenue due to declining enrollment. The stability fund is projected to have a $13.8M balance as of June 2018.

The colleges and the enrollment management team continue to carefully monitor student enrollment, analyze course offerings, and heighten marketing and recruitment efforts to maximize access for students and to restore the FTES decline from 2015/16.However, given that this is the sixth year of resident FTES decline, the colleges and district are making plans to adjust expenditures on a permanent basis to this lower level of apportionment revenue.

 

Quick News

The flint garage is scheduled to open in time for Fall quarter. The Baseball field project is out to bid with anticipated construction over summer 2017.



Governance
Building: Administration
Contact: Pippa Gibson
Phone: 408.864.8936
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Last Updated: 6/27/17