Meeting Notes - November 25, 2014
Welcome & Introduction
Cruz did an icebreaker exercise to promote team bonding
Budget Update from District
McElroy summarized the information in the four documents he distributed:
Property and income taxes are projected to be stable and this will help with stabilizing Community College apportionment. This is the second year of stable State funding, however the new funding comes with spending provisos.
FHDA is still projecting a $2M deficit based on the adopted budget. The Board has approved using stability dollars to fund this deficit. If COLA is allocated it would add to the projected $2M deficit. FHDA carry forward at 2013-14 year end was approximately $14.5M.
Proposed increases mandated by CalSTRS and CalPERS to fund the unfunded retirement liability would result in FHDA paying approx. $11M more for the same employees by 2020-21.
This presentation reflected the potential long-term impacts with a 0.85% COLA with no further revenue.
Veronica Neal, Rowena Tomaneng & Mallory Newell are the tri-chairs of the Equity Action Council. Neal and Tomaneng reviewed the presentation in detail explaining the purpose, progress, goals and outcomes. SSSP, Equity and Basic Skills initiatives intersect in many areas. The Equity report will be submitted to the State in December prior to the January deadline. The full plan is posted online and is on the Board of Trustees agenda for December 8, 2014.
A transparent funding allocation process would go through the PBTs and Campus Budget.
The EAC requested that Campus Budget approve the funding allocations as per below for the 2014-15 year only.
Total amount allocated is approx. $670,000.
The committee approved the request by consensus.
Cheu explained how the new growth formula would work and how it would impact FHDA and De Anza. The maximum growth rate is 1 and FHDA would come in at approx. 1.02.
The new growth formula will likely negatively impact FHDA. It will be based on district boundaries rather than service areas. As many of our students come from outside our District boundaries FHDA anticipates this will negatively impact both colleges. There will be five assessing factors:
Factor 1: Educational Attainment - Individuals over 25 years old without a bachelor’s degree
Factor 2: Unemployment
Factor 3: Poverty Percentage of students in District receiving Pell grants
Added by Chancellor’s Office
Factor 4: Participation Rate - Ratio of unduplicated headcount vs. census estimate of individuals
Factor 5: Unfunded FTES - 3-Year average with at least 1% increase per year
Other CCDs in our area are basic aid so will not be impacted by this new formula.
The need for increased revenue to close achievement gaps and increase access is important but it is not the only key factor.
There is a great deal of discussion and anxiousness surrounding this proposal. There is a general consensus that this proposed new funding formula reflects a lack of understanding from the department of finance.
Cheu will bring more information on the growth formula to the next meeting.
The December meeting will be canceled. The next meeting will be in January 2015.
Quick News/ Other Announcements
Present: Cheu, Cruz, Joseph, Kirkpatrick, Neal, McElroy, Tomaneng, Watson. Quang Nguyen DASB. Notes: Gibson.