2015-17 Biennial Operating Budget Request September 19, 2014 Overview Executive Office and Cabinet Directors October 23, 2014 Community/Technical College System ACT001 - Agency Activity Inventory by Agency Appropriation Period: 2015-17 Activity Version: A1 - 2015-17 Biennial Budget Request Sort By: Activity 699 - Community/Technical College System A001 Academic Transfer Instruction This activity offers educational course work and degree programs that facilitate a smooth transition from the Community and Technical College System to other institutions of higher education. Courses work and degrees offered are generally intended to move the student towards a baccalaureate degree. This activity serves students who may not otherwise be able to obtain a baccalaureate degree, including traditionally underrepresented populations. Current strategies to improve transfer and subsequent degree baccalaureate degree completion include; Common Course Numbering (across all institutions of higher education), inter-college reciprocity policies, credit for non-traditional learning and degrees that follow the Direct Transfer Agreement (DTA). FY 2016 FY 2017 FTE 996-Z Other FTE State 001-1 5,295.0 5,296.5 0.0 (1.7) (0.9) FTE Total 5,295.0 5,294.8 5,294.9 443 Institutions of Higher Education - Data Processing Account 443-6 Non-Appropriated $1,000 $0 $1,000 $16,962,000 $16,737,000 $33,699,000 $237,182,000 $253,338,000 $490,520,000 145 Institutions of Higher Education - Grant and Contracts Account 145-6 Non-Appropriated $25,661,000 $25,759,000 $51,420,000 $694,000 $625,000 $1,319,000 $113,125,000 $115,153,000 $228,278,000 Account 08A Education Legacy Trust Account 08A-1 State 001 General Fund 001-1 State 148 Institutions of Higher Education - Dedicated Local Account 148-6 Non-Appropriated 149 Inst of HI ED-Operating Fees Acct 149-6 Non-Appropriated Biennial Total 5,295.8 Statewide Result Area: World Class Education Statewide Strategy: Provide convenient and efficient post-secondary education Expected Results Increase the number of community and technical college students that can successfully transfer to 4-year colleges to complete baccalaureate degrees. A002 Administration (College and System) 1 ACT001 - Agency Activity Inventory by Agency Community/Technical College System Appropriation Period: 2015-17 Activity Version: A1 - 2015-17 Biennial Budget Request Sort By: Activity Administration of the Community and Technical College System includes Institution Management, Fiscal Operations, General Support Services (administrative data processing and employee personnel and records), Logistical Services (procurement and the movement and control of materials), Community Relations and Development (the maintenance of goodwill relationships with the general public, alumni, or other constituents), and the State Board office. FY 2016 FY 2017 FTE 996-Z Other FTE State 001-1 2,487.3 2,488.5 0.0 (0.3) (0.2) FTE Total 2,487.3 2,488.2 2,487.8 $8,774,000 $8,774,000 $17,548,000 $10,039,000 $10,039,000 $20,078,000 443 Institutions of Higher Education - Data Processing Account 443-6 Non-Appropriated $4,222,000 $4,151,000 $8,373,000 08A Education Legacy Trust Account 08A-1 State $8,556,000 $8,483,000 $17,039,000 $75,729,000 $79,757,000 $155,486,000 145 Institutions of Higher Education - Grant and Contracts Account 145-6 Non-Appropriated $34,313,000 $34,728,000 $69,041,000 $366,000 $241,000 $607,000 $56,336,000 $57,291,000 $113,627,000 Account 060 Community/Technical College Capital Projects Account 060-1 State 561 Comm/Tech College Innovation Account 561-6 Non-Appropriated 001 General Fund 001-1 State 148 Institutions of Higher Education - Dedicated Local Account 148-6 Non-Appropriated 149 Inst of HI ED-Operating Fees Acct 149-6 Non-Appropriated Biennial Total 2,487.9 Statewide Result Area: World Class Education Statewide Strategy: Provide convenient and efficient post-secondary education Expected Results Administrative costs are a necessary part of all public sector organizations. Administrative costs as a share of total expenditures are expected to decrease. A003 Basic Education for Adults 2 ACT001 - Agency Activity Inventory by Agency Community/Technical College System Appropriation Period: 2015-17 Activity Version: A1 - 2015-17 Biennial Budget Request Sort By: Activity Basic Education for Adults (BEdA) provides instruction in Adult Basic Education (ABE), English as a Second Language (ESL), and High School Completion (HSC) or High School Equivalency (HSE) test preparation. BEdA provides programs for students who are16 years of age and older, no longer in school, and are functioning below the high school level or have limited English language skills. BEdA programming provides students with college and career pathways that provide students the 21st Century reading, writing, speaking, listening, math and technology skills needed to complete high school diplomas and equivalency certificates and postsecondary certificates and degrees FY 2016 FY 2017 1,172.3 1,172.3 1,172.3 $2,809,000 $2,456,000 $5,265,000 $67,578,000 $83,456,000 $151,034,000 145 Institutions of Higher Education - Grant and Contracts Account 145-6 Non-Appropriated $39,241,000 $39,270,000 $78,511,000 $166,000 $155,000 $321,000 $26,279,000 $26,937,000 $53,216,000 Account FTE 996-Z Other 08A Education Legacy Trust Account 08A-1 State 001 General Fund 001-1 State 148 Institutions of Higher Education - Dedicated Local Account 148-6 Non-Appropriated 149 Inst of HI ED-Operating Fees Acct 149-6 Non-Appropriated Biennial Total Statewide Result Area: World Class Education Statewide Strategy: Increase access to high-quality post-secondary education programs Expected Results Students that have less than a high school level of education will acquire the reading, writing, speaking, listening, math and technology skills needed to transition to postsecondary education and family sustaining employment. A004 Community Services-Contract Funded Courses Community and technical colleges provide self-supporting educational programs through contract-funded courses paid for by employers or social service agencies for the benefit of their employees or clients. Examples of contract-funded courses include: the Running Start program for high school students; tuition and training for WorkFirst clients; prison inmate literacy and skills programs; instruction for international student organizations; and tailored job and skills training for local businesses. Federal student financial aid, such as Pell grants, Supplemental Education Opportunity Grants, federal work study, and Perkins vocational grants, is also included in this activity. (Institutions of Higher Education-Grants and Contracts-Nonappropriated) 3 ACT001 - Agency Activity Inventory by Agency Community/Technical College System Appropriation Period: 2015-17 Activity Version: A1 - 2015-17 Biennial Budget Request Sort By: Activity FY 2016 FY 2017 73.9 74.2 74.1 $180,000 $180,000 $360,000 145 Institutions of Higher Education - Grant and Contracts Account 145-6 Non-Appropriated $69,556,000 $71,099,000 $140,655,000 148 Institutions of Higher Education - Dedicated Local Account 148-6 Non-Appropriated $1,221,000 $1,295,000 $2,516,000 Account FTE 996-Z Other 11A Employment Training Finance Account 11A-6 Non-Appropriated Biennial Total Statewide Result Area: World Class Education Statewide Strategy: Provide convenient and efficient post-secondary education Expected Results The Community and Technical College System will continue to explore opportunities to expand contract training. A005 Precollege Education Precollege education courses are academic in nature and provide students with the skills necessary to be successful in college-level courses. The students in these courses are taking credits necessary to qualify for college-level math, English, etc. Approximately 55 percent of the students in these classes have been out of high school for more than three years. FY 2016 FY 2017 552.1 551.7 551.9 $2,740,000 $2,689,000 $5,429,000 $46,647,000 $49,436,000 $96,083,000 145 Institutions of Higher Education - Grant and Contracts Account 145-6 Non-Appropriated $7,492,000 $7,506,000 $14,998,000 $119,000 $102,000 $221,000 $18,424,000 $18,795,000 $37,219,000 Account FTE 996-Z Other 08A Education Legacy Trust Account 08A-1 State 001 General Fund 001-1 State 148 Institutions of Higher Education - Dedicated Local Account 148-6 Non-Appropriated 149 Inst of HI ED-Operating Fees Acct 149-6 Non-Appropriated 4 Biennial Total ACT001 - Agency Activity Inventory by Agency Community/Technical College System Appropriation Period: 2015-17 Activity Version: A1 - 2015-17 Biennial Budget Request Sort By: Activity Statewide Result Area: World Class Education Statewide Strategy: Increase access to high-quality post-secondary education programs Expected Results Students will transfer into college level courses in math and English. A006 Student-Funded Courses Community and technical colleges provide self-supporting educational programs through student-funded classes. Most of these courses are offered to students who are not attending college for the purpose of a degree or certificate. The courses are taken to supplement and enhance existing job skills or for personal enrichment. (Institutions of Higher Education-Dedicated Local Account-Nonappropriated) FY 2016 FY 2017 846.3 845.7 846.0 148 Institutions of Higher Education - Dedicated Local Account 148-6 Non-Appropriated $97,988,000 $96,103,000 $194,091,000 Account FTE 996-Z Other Biennial Total Statewide Result Area: World Class Education Statewide Strategy: Support career preparation beyond high school Expected Results The Community and Technical College System will continue to explore opportunities to expand student-funded courses. A007 Workforce Education Workforce Education provides education and training to prepare students for immediate employment in professional-technical fields. Working in partnership with businesses, this activity helps prepare students for employment while providing skilled workers needed to make Washington state businesses prosper in an ever-changing, competitive economy. In addition to traditional students, Workforce Education serves those wanting to upgrade their current knowledge and skills, those interested in a career change and displaced or unemployed workers that are in need of retraining. 5 Community/Technical College System ACT001 - Agency Activity Inventory by Agency Appropriation Period: 2015-17 Activity Version: A1 - 2015-17 Biennial Budget Request Sort By: Activity FY 2016 FY 2017 FTE 996-Z Other 5,170.6 5,170.4 5,170.5 443 Institutions of Higher Education - Data Processing Account 443-6 Non-Appropriated $1,000 $0 $1,000 $16,807,000 $17,508,000 $34,315,000 $259,550,000 $257,676,000 $517,226,000 145 Institutions of Higher Education - Grant and Contracts Account 145-6 Non-Appropriated $55,679,000 $55,755,000 $111,434,000 $674,000 $595,000 $1,269,000 $108,841,000 $110,505,000 $219,346,000 Account 08A Education Legacy Trust Account 08A-1 State 001 General Fund 001-1 State 148 Institutions of Higher Education - Dedicated Local Account 148-6 Non-Appropriated 149 Inst of HI ED-Operating Fees Acct 149-6 Non-Appropriated Statewide Result Area: World Class Education Statewide Strategy: Support career preparation beyond high school Expected Results Increase the number of student receiving certificates or degrees aligned with Washington employment needs. Grand Total FY 2016 FTE's GFS Other Total 15,597.5 $686,686,000 $727,266,000 $1,413,952,000 FY 2017 Biennial Total 15,597.3 $723,663,000 $732,931,000 $1,456,594,000 6 15,597.4 $1,410,349,000 $1,460,197,000 $2,870,546,000 Biennial Total 8:41:45AM 10/29/2014 Page 1 of 2 State of Washington Bass BRS/BDS038 Recommendation Summary Budget Period: 2015-17 Agency: Community/Technical College System Element Selection Agy-Activity: (None) Version: A1 Budget Level: (ALL) Program: (None) Sorted by: Decision Package Code Activity: Show Locked Only: No Include RecSum Text: No Sub-Activity: Dollars in Thousands Grp Selection Division: Branch: Section: Unit: Cost Center: Project: Sub-Project: Phase: (None) (None) (None) (None) (None) (None) (None) (None) Budget Unit: (None) Sub-Program: (None) Element Task: (None) (None) (None) Annual Average FTEs Grp General Fund State Other Funds Total Funds 2013-15 Current Biennium 15,598.4 1,133,142 1,450,122 2,583,264 CL 01 13-15 Carry-Forward Adjustments Total Carry Forward Level % Change from Current Biennium (1.0) 15,597.4 0.0% 49,952 1,183,094 4.4% 10,075 1,460,197 0.7% 60,027 2,643,291 2.3% M1 9C Initiative 732 COLA Carry Forward Plus Workload Changes % Change from Current Biennium 15,597.4 0.0% 27,400 1,210,494 6.8% 1,460,197 0.7% 27,400 2,670,691 3.4% 15,597.4 0.0% 3,357 1,376 (3,978) 22,425 39 1,233,713 8.9% 1,460,197 0.7% 3,357 1,376 (3,978) 22,425 39 2,693,910 4.3% 15,597.4 0.0% (195,000) 39,000 39,000 39,000 39,000 39,000 37,623 57,646 11,312 10,200 11,150 17,952 15,000 10,064 5,000 689 1,410,349 24.5% 1,460,197 0.7% (195,000) 39,000 39,000 39,000 39,000 39,000 37,623 57,646 11,312 10,200 11,150 17,952 15,000 10,064 5,000 689 2,870,546 11.1% M2 8L Lease Rate Adjustments M2 9V Oper costs for new capital projects M2 EA UCNPS Transfer M2 SI System Operating Increase M2 TC Technical Corrections to CFL Total Maintenance Level % Change from Current Biennium PL A0 15% Reduction Scenario PL N0 3% Buyback #1 PL N1 3% Buyback #2 PL N2 3% Buyback #3 PL N3 3% Buyback #4 PL N4 3% Buyback #5 PL N5 Strengthening Basic Ed for Adults PL N6 Student Achievement Inititative PL N7 Employee Compensation PL N8 Faculty Increments PL N9 Expand Opportunity Grant Program PL O0 Academic and Career Advising PL O1 Dedicated Funding for I-BEST PL O2 Improve Success in Math PL O3 Workforce Program Improvements PL O4 M&O for non-state funded facilities 2015-17 Total Proposed Budget % Change from Current Biennium * Totals on this report may slightly differ from actual totals due to rounding. Decision Packages Maintenance Level Washington State Board for Community and Technical Colleges 2015-17 Operating Budget Maintenance Level Request I-732 Salary Increase M1 - 9C Brief Description: The State Board for Community and Technical Colleges requests $27.4 million for salary increases for community and technical college faculty and technical college classified staff as required by RCW 28B.50.465, 28B.50.468 and I-732. Under the provisions of I-732, eligible employees receive a cost-of-living adjustment based on the Seattle consumer price index (CPI). The estimated rates for the 2015-17 cost-of-living increase are 2.2 percent in FY 2016 and 2.1 percent in FY 2017. As these inflation numbers are adjusted in subsequent forecasts, the State Board requests corresponding adjustments to the funding request levels. Requested Funding by Fiscal Year FUND FY 2016 FY 2017 Total 001-1 $9,200,000 $18,200,000 $27,400,000 Support for Request: Dedicated, well-trained faculty and staff are essential to the community and technical colleges’ ability to fulfill their mission and continue being responsive to the educational and economic needs of their communities. Community and technical colleges have an excellent track record of responding to the changing needs of the state and its economy. Much of this success is due to the skills and dedication of faculty and staff. The last cost-of-living distribution was provided in 2008. In five subsequent years, inflation has been 7.3 percent (see table below). Year 2009 2010 2011 2012 2013 Ongoing vs. One-Time Costs: These costs are all ongoing. Percent 0.60% 0.30% 2.70% 2.50% 1.20% Washington State Board for Community and Technical Colleges 2015-17 Operating Budget Maintenance Level Request System Operating Increases – Inflation ML - SI Brief Description: The Washington State Board for Community and Technical Colleges requests $22.4 million for the 2015-17 biennium to offset the impact of marketplace inflation on the non-salary budget of the community and technical colleges. The inflation adjustment will allow colleges to maintain equal levels of service between the 2013-15 operating biennium and the upcoming 2015-17 biennium. Inflation is anticipated to be approximately 2.0 percent annually for the biennium. Requested Funding by Fiscal Year Ongoing vs. One-Time Costs: These costs are all ongoing. FUND FY 2016 FY 2017 Total 001-1 $7,475,000 $14,950,000 $22,425,000 Washington State Board for Community and Technical Colleges 2015-17 Operating Budget Maintenance Level Request Facilities Maintenance & Operations (state-funded) M2-9V Brief Description: The State Board for Community and Technical Colleges (CTCs) requests $1.4 million for the maintenance and operation (M&O) of new permanent facilities scheduled to be occupied before July 1, 2017. M&O funding covers utilities, custodial, and routine maintenance. This M&O funding request is for permanent, state-owned space constructed or expanded with direct financial support from the State. This request does not include locally funded projects or COP financed projects. Requested Funding by Fiscal Year FY 2016 FY 2017 $210,000 $1,166,000 Total $1,376,000 Support for Request: Predictable and stable M&O funding adds to the useful life of buildings and ultimately reduces capital costs to the State. As stated in the Joint Legislative Audit and Review Committee Higher Education Facilities and Preservation Study presented to the Senate Ways and Means Committee in 2003: “Ongoing and preventative maintenance funding in institutional operating budgets can reduce demand for major repairs and replacements.” CTCs have historically used their physical space well above recognized standards. When including Running Start and other contract students, the use rate increases further. CTC facilities experience heavy use from early morning to late into the evening and weekends. This level of use drives the need for janitorial services, general maintenance, and utilities in the facilities. New construction M&O funding is calculated at a rate of $6.27 per gross square foot for FY 2016 and FY 2017, as established by the Legislature in the 2013-15 budget. M&O costs for a facility are generally the total of utilities, custodial, and routine maintenance expenditures. A summary of the M&O funding request by district follows. College Columbia Basin Grays Harbor Peninsula Olympic Seattle (Central) Seattle (South) Renton Edmonds Whatcom Facility Name Social Science Center Science & Math Building Allied Health & Early Child Dev College Instruction Center Seattle Marine Academy Cascade Court Automotive Complex Renovation Science Engineering Tech Bldg Learning Commons Ongoing vs. One-Time Costs: These costs are all ongoing. GSF 51,335 33,548 25,787 74,040 23,138 36,072 5,055 69,910 64,747 Total FY16 $0 $210,000 $0 $0 $0 $0 $0 $0 $0 $210,000 FY17 $161,000 $210,000 $94,000 $37,000 $73,000 $112,000 $30,000 $145,000 $304,000 $1,166,000 2015-17 Funding Request $161,000 $420,000 $94,000 $37,000 $73,000 $112,000 $30,000 $145,000 $304,000 $1,376,000 Washington State Board for Community and Technical Colleges 2015-17 Operating Budget Maintenance Level Request Leases and Assessments M2-8L Brief Description: The State Board for Community and Technical Colleges requests approximately $3.4 million to cover the cost of new and increased leases and assessments across the community and technical college (CTC) system, effective prior to July 1, 2017. Requested Funding by Fiscal Year FY 2016 FY 2017 $1,676,000 $1,681,000 Total $3,357,000 Support for Request: Funding is requested to cover new and increased facility lease rates. These contractual obligations take two forms: (1) inflationary increases required by the landlord/building owner; and, (2) tenant/leasehold improvements required to maintain state standards and operational efficiencies of the building. The system’s total request for new and increased leases is $720,000 for the biennium. A summary of the leases funding request by district follows. College Bellingham Technical College Clark Edmonds Green River Spokane District Walla Walla Community College Total FY 16 FUNDING REQUEST $7,100 $81,000 $18,700 $153,900 $135,400 $3,900 $400,000 FY 17 FUNDING REQUEST $7,400 $81,000 $18,700 $46,400 $153,100 $13,400 $320,000 2015- 17 FUNDING REQUEST TOTAL $14,500 $162,000 $37,400 $200,300 $288,500 $17,300 $720,000 The new or increased assessments represent unavoidable costs imposed by local jurisdictions, including storm water, surface water, sewer and wastewater management, and for fire protection services experienced by the CTCs. These assessments are typically mandated by municipalities, local jurisdictions, or through LIDS (Local Improvement Districts). The system’s total request for increased assessments is $2,626,000 for the biennium. A summary of the assessments funding request by district follows. College Clark College Clover Park Technical College Edmonds Community College Green River Community College Pierce District Peninsula College Shoreline Community College Skagit Valley College Walla Walla Community College Total Ongoing vs. One-Time Costs: These costs are all ongoing. FY 16 FUNDING REQUEST $868,000 $244,000 $45,000 $42,000 $29,000 $1,000 $9,000 $28,000 $10,000 $1,276,000 FY 17 FUNDING REQUEST $873,000 $302,000 $46,000 $61,000 $29,000 $1,000 $11,000 $28,000 $10,000 $1,361,000 2015- 17 FUNDING REQUEST TOTAL $1,741,000 $546,000 $91,000 $103,000 $58,000 $2,000 $20,000 $56,000 $20,000 $2,637,000 Washington State Board for Community and Technical Colleges 2014 Operating Budget Maintenance Level Request Transfer UCNPS to WSU M2 - EA Brief Description: Second Substitute Senate Bill 5636, from the 2011 Regular Session, transferred the management of the University Center of North Puget Sound (UCNPS) from Everett Community College to Washington State University. Transfer of UCNPS was effective July 1, 2014. In light of this transfer, the State Board for Community and Technical Colleges (SBCTC) requests a reduction of $3,978,000 in its 2015-17 biennial budget. Washington State University will submit a request for a corresponding increase in their 2015-17 budget. The 2014 Supplemental Budget already adjusted the SBCTC enrollment target to reflect this transfer. This request is for the transfer of funds only. Requested Funding by Fiscal Year FY 2016 FY 2017 Total $-1,989,000 $-1,989,000 -$3,978,000 Support for Request: Second Substitute Senate Bill 5636, from the 2011 Regular Session, transferred the management of the University Center of North Puget Sound (UCNPS) from Everett Community College to Washington State University. Under terms of the bill, transfer included budget support and resources related to UCNPS. The transfer was to occur by July 1, 2014. The 2014 Supplemental Budget transferred Student FTE related to UCNPS, but did not transfer associated funds. This request is to transfer funding. Ongoing vs. One-Time Costs: This transfer is ongoing. Washington State Board for Community and Technical Colleges 2015-17 Operating Budget Maintenance Level Request Technical Correction to Carry-forward Level M2 - TC Brief Description: During 2015-17 budget development, the fiscal impact of policy decisions made in the 2013-15 budget cycle are updated to reflect the impact for a full biennium. Two technical adjustments are needed to reflect proper starting amounts for the 2015-17 budget. First, adjustments are required to reflect the proper amount of legislatively approved facility maintenance & operations funding. Step two would then balance between years to arrive at the proper 2015-17 starting point. Step two merely balances funds between years and does not increase funding on a biennial basis. The State Board for Community and Technical Colleges (SBCTC) requests $39,000 to make the necessary adjustments to SBCTC’s 2015-17 budget. Adjustments needed to correct the above mentioned items are shown below. Requested Funding by Fiscal Year Ongoing vs. One-Time Costs: These costs are all ongoing. FUND FY 2016 FY 2017 Total 001-1 $38,000 $1,000 $39,000 Policy Level Washington State Board for Community and Technical Colleges 2015-17 Operating Budget Policy Level Requests DP # A0 - N4 N5 N6 N7 N8 N9 O0 O1 O2 O3 O4 O5 O6 O7 Title Budget Reduction Scenarios Basic Ed for Adults Expanding Student Achievement Employee Compensation Faculty Increments Expanding Opportunity Grant Program Increase Academic, Completion & Career Planning Efforts Dedicated Funding for I-BEST Improve Success in Math Workforce Program Demand and Improvement Non-State M&O I-960 New Fees / Fee Increases (Revenue) YVVC Collective Bargaining Agreement Highline Collective Bargaining Agreement Washington State Board for Community and Technical Colleges 2015-17 Operating Budget Policy Level Request Potential impacts due to reductions in annual appropriations Brief Description: The following discussion will focus on how losing various amounts of annual state appropriations would impact the community and technical college (CTC) system. This decision package is being included with the 2015-17 biennial budget request for the State Board for Community and Technical Colleges (SBCTC) as requested by the Office of Financial Management (OFM) in June 2014.1 Requested Funding by Fiscal Year FY 2014 FY 2015 Total ($97,500,000) ($97,500,000) ($195,000,000) Impact: What follows is a brief analysis of what could occur if various levels of annual state funding were eliminated from the state CTC system. Beginning with a loss of 15 percent, the analysis reflects how the system would implement changes by translating the lost appropriation into reductions in enrollments. The description will estimate how the access reduction would impact the four generally regarded missions served by the CTC system: Academic Transfer, Basic Education for Adults, Workforce, and Precollege (see Table 1 for 2013 distribution share of actual enrollments). Community and technical college students are older (average age 26); they are likely to be employed and raising a family; they are possibly lacking transportation and place bound, limiting their ability to move for education; 34 percent are members of an ethnic minority; and many come from households earning less than $40,000 annually. In the next twenty years, this demographic age group (25-44) will be the fastest growing in the state and is the demographic most likely to look to the CTCs for education. For our students, the CTC system is the only viable pathway to attaining a higher quality of life. For businesses, the CTC system is the lead provider of workforce training, which results in the needed talent pool of skilled employees. Education is also a priority of Governor Inslee, whose “Results Washington” has as its number one goal providing a world-class education. The Legislature also established educational attainment as a priority when it set 2023 as a goal for bringing all adults aged 25 to 44 up to high school equivalency and 70 percent to a post-secondary credential. The analysis begins with estimates of what could happen if the SBCTC lost 15 percent of its annual state annual appropriation or approximately $97.5 million. A reduction of this magnitude would translate into the loss of approximately 21,000 full-time-equivalent enrollments (FTE). This represents access for approximately 42,000 individuals. The analysis then provides potential impacts by estimating reductions in progressively smaller $19.1 million increments, which is equal to three percent of annual appropriations (e.g., the 12 percent scenario impact in Table 2 represents a loss of funding equal to $97.5 million minus $19.1 million; the nine percent is $97.5 million minus $38.2 million; etc.). Each progressively smaller scenario removes 4,200 enrollments from the potential impact of 21,000 enrollments associated with the 15 percent scenario (i.e., $19.1 million funds access for 4,200 enrollments). 1 This discussion represents the decision package description for six individual items included with the budget data submitted to OFM as the SBCTC 2015-17 Budget Request. The codes included in this description are A0 and N0 through N4, which when their fiscal impacts are combined net to zero. Page 1 Washington State Board for Community and Technical Colleges 2015-17 Operating Budget Policy Level Request Potential impacts due to reductions in annual appropriations To fully appreciate the fiscal impact of a 15 percent reduction in state funding, lost tuition would need to be considered. After accounting for the type of enrollment lost, it is estimated that tuition collections in the first year would be reduced by approximately $70 million. When combined, the loss would represent a 17 percent reduction in state and tuition funding. To replace these lost resources with tuition would require a tuition increase in excess of 40 percent. Short-term gains in budget savings from reductions to CTCs would result in an impact felt by the state for years. In a formal analysis conducted on the economic and social impact community and technical colleges have on the state of Washington, a scenario was examined which outlined the impact of a 10 percent reduced annual investment in CTCs from the state. The report concludes: “Looking at the worst case scenario [10% reduction] the following consequences would unfold. State taxpayers would save…but the colleges would serve 33,053 fewer students. Taxable income in the state would be approximately $80.8 million lower each year, while social costs would increase by about $3.6 million each year (due to higher crime rates, increased health care costs, and a higher number of welfare and unemployment claims). And, finally, the Washington tax base would be approximately $7.3 million smaller each year, while the annual demand for government-supported social services would increase by $0.3 million.” 2 The magnitude of this level of change would have a significant impact on the state’s economy and the ability to reach its education goals of 100 percent high school equivalency and 70 percent postsecondary credentials for adults between 25 and 44 years of age. The 30 CTC districts across the state are each uniquely situated in their communities, enrolling different mixes of academic transfer, workforce, and adult basic education students. When implementing the reduction, each campus would evaluate the needs of their community and work to minimize the impact as much as possible. When evaluating and implementing reductions over the last two years, the colleges have engaged their entire campus communities in strategies to work within the new resource levels. In the current discussion of a 15 percent reduction, whole programs would be evaluated and targeted for elimination. Many students would feel the impact as a slowing of their progress, both through fewer classes offered and a fewer student support services. Student outcomes would be impacted with lower retention rates for first year students, currently averaging 64 percent from spring to fall. Still others would be stymied before they enroll for a single class, as what they were hoping to find either in offerings or environment isn’t available. The impact of 21,000 fewer FTE enrollments in the CTC system would have an impact throughout higher education. Community and technical college transfer students make up a large share of students accepted by our public four year partners and represent over 40 percent of their graduates. A cut of this magnitude would slow student progress and potentially lead to future enrollment issues at the public four year universities. 2 Economic Contribution of Washington’s Community and Technical Colleges: Analysis of Investment Effectiveness and Economic Growth. Economic Modeling Specialists, Inc. Moscow, Idaho. January 2011. Page 2 Washington State Board for Community and Technical Colleges 2015-17 Operating Budget Policy Level Request Potential impacts due to reductions in annual appropriations Finally, because the CTC system has become more dependent on tuition, colleges must deal with fiscal incentives that favor tuition-generating courses over those that yield little or no tuition revenue (e.g., Basic Education for Adults). 3 A similar disincentive exists when colleges are determining whether to offer programs with significantly higher instructional costs (e.g., Workforce). By reducing courses in Basic Education for Adults and Workforce training, colleges are able to maximize the amount of tuition collected per state dollar spent, which is used to maximize campus offerings. However, those reductions threaten to widen skill gaps in Washington, as businesses seek skilled workers. As seen in Table 1, when estimating the impact of a 15 percent reduction, the result would be deeper losses in access for adults seeking Basic Education and Workforce programming, when compared to Academic Transfer enrollments. Finally, as can be seen in in Table 2, the bias would be present at any level of reduction. (Note: Each scenario displayed in Table 2 represents a reduction that is $19.1 million smaller in total impact than the preceding scenario). Table 1 Academic Basic Skills Workforce Precollege Total 2013 Actual Enrollment Distribution 45.4% 14.6% 29.9% 10.0% 100.0% Estimated Distribution of Reduction 40.3% 16.7% 32.8% 10.1% 100.0% Cut to Estimated 1 mission target as % -13.3% -17.2% -16.5% -15.2% -15.0% 1 - Mission Targets are estimates based on 2014 actual enrollments by mission Table 2 Alternate Scenarios As percent of Mission Target Academic Basic Education Workforce Precollege Legislative Target 3 Total Legislative Target2 63,572 20,457 41,859 14,039 139,927 Scenario Levels (reductions) 12% 9% 6% -10.5% -7.6% -5.1% -14.9% -12.5% -8.3% -12.7% -8.9% -5.9% -12.8% -10.4% -6.9% -12.0% -9.0% -6.0% 3% -2.5% -4.2% -3.0% -3.5% -3.0% For an example of this disincentive on actual enrollments see discussion in Decision Package N5 – Strengthening Basic Education for Adults. Page 3 Washington State Board for Community and Technical Colleges 2015-17 Operating Budget Policy Level Request Strengthening Basic Education for Adults PL – N5 Brief Description: The following decision package proposes to strengthen the system, providing basic education for adults by establishing the mission area as a forecast caseload, with dedicated funding for students seeking this level of education. Additionally, the request seeks to establish a policy goal of increasing the annual average funding per full-time equivalent student annually until equal to the K12 basic education funding level, beginning with a 15 percent increase in fiscal years 2016 and 2017. Finally the decision package includes anticipated caseload growth resulting from the stabilization of the Basic Education system for adults. Requested Funding by Fiscal Year FY 2014 FY 2015 Total $12,159,000 $25,464,000 $37,623,000 Improve the basic education system for adults system by: 1. Identifying the workload (i.e., number of full-time equivalent (FTEs) students) of who presents to colleges for basic education services as requiring a consistent, periodic forecast of need (commonly referred to as a caseload) and establishing a process to project future caseload needs. 2. Along with the caseload, identify the current average per student state appropriation and use that level to determine state appropriation levels required to fund future caseload forecast of these students. 3. Provide appropriations which support a schedule of annual increases to the per student state appropriation for basic education for adults, beginning with 15 percent in the 2015-17 biennium, and establishing the goal of aligning with per student state appropriations for basic education for minors (i.e., K-12). 4. Finally, this request anticipates the policy, if implemented, would increase current caseload levels by approximately 1,000 FTE per fiscal year in the 2015-17 biennium. 5. The 2015-17 biennial budget request is $37.6 million. Background: Research shows that the fastest growing regions of the state are also the regions with the highest concentrations of people with less than high school credentials and whose English skills are lacking.1 At the same time, the educational bar to a living-wage job is getting higher. An estimated 650,000 to 700,000 Washington adults aged 18 and older lack basic education or have limited English language skills.2 While post-secondary attainment did increase as a percentage from 1990-2010, the proportion of the population with less than high school attainment did not substantially change and increased in absolute value by 16 percent (see Table 1). Washingtonians in this position have a long path to work on in order to reach a post-secondary credential. 1 SBCTC research findings: “Washington State Population and Employment Data 2010-2030, Implications for Community and Technical Colleges,” presented to House Higher Education Committee Jan. 14, 2014. 2 Calculated by SBCTC from 2008-12 five-year and 2010-12 three-year ACS estimates. Page 1 Washington State Board for Community and Technical Colleges 2015-17 Operating Budget Policy Level Request Strengthening Basic Education for Adults PL – N5 Table 1 Percent of age group with less than High School Attainment 18-24 years of age 28-34 38-44 Total # for listed age groups 1990 2000 2010 22.3% 11.7% 8.0% 224,140 24.7% 12.6% 10.6% 18.2% 11.2% 10.6% 259,700 At the same time the need for basic education for adults is growing, our state is seeing a clear and consistent pattern of decline in these services and programming due to a lack of a viable, permanent funding. This decline harms citizens’ ability to lead productive lives and employers’ ability to find qualified employees. It also hinders progress toward Washington’s educational attainment goal that 100 percent of Washington adults aged 25-44 have a postsecondary credential by 2023. In FY 2013, 19,900 FTE students received state supported basic education for adults and used approximately $53.2 million in state resources. The amount expended per student is approximately $2,650. This is contrasted with the current per student funding level for basic education for public schools which is approaching $5,800 annually. Unlike the traditional college effort on our campuses, the basic education effort for adults in the community and technical college system is not supported by tuition revenues. The racial and SES profile for adult students seeking basic education is not representative of Washington in general, with disproportionate representation by African-American and Hispanic residents with household incomes more likely to be within poverty-level than living wage. Their capacity to pay annual full-time tuition levels that would exceed five to ten percent of their annual income is non-existent.3 Further adding to the obstacles of these students, their efforts are not eligible for federal financial aid. Because the community and technical colleges are dependent on state resources to provide basic education services, the effort has suffered in recent years as state funding has decreased post-Great Recession. From a high of 23,899 FTEs served in FY 2009 prior to the economic crash, the impact of state budget reductions, in conjunction with tuition increases, have established disincentives at the local level that are at risk of setting this mission – and legal mandate4 -- on a progressively downward cycle where fewer resources are dedicated to mission, in favor of providing “traditional” higher education offerings which generate tuition revenue. This trend seems to be underway when examining recent enrollments, as the mission effort has decreased four percent on average since the dramatic reductions experienced during the recession years. 3 Based on $4,000 annual tuition for FTE in CTC (2015 tuition levels) and $20,000 - $40,000 salary level, the latter of which is the median income level of the 2nd lowest socio-economic quintile. 4 Per RCW 28B.50.090(3)(a) Page 2 Washington State Board for Community and Technical Colleges 2015-17 Operating Budget Policy Level Request Strengthening Basic Education for Adults PL – N5 Basic Ed for Adult FTEs FTEs 2009 2010 2011 2012 2013 2014 23,899 23,271 21,661 19,734 19,912 19,510 percent change -3% -7% -9% 1% -2% The impact of the inconsistent and reduced effort over the past five years has caused the educational experience of students in the program to suffer. Inability to dedicate funding for full-time staff can result in an itinerant experience between the student and the educator. The timing and location of programming can be inconsistent, further exacerbating this experience. Finally, the lack of sufficient funding creates a roadblock in a basic education for adults system that, unlike many other state programs, uses strategies that move the finish line from passing the GED to obtaining higher education and family-wage jobs. Proposal To solidify the foundation of basic education for adults, the State Board for Community and Technical Colleges proposes a multi-faceted, multi-year plan designed to identify and dedicate state efforts to the provision of basic education for adults to ensure that 25-44 year olds will have reached a basic level of educational attainment by 2024. (See Figure 1 below for the detailed fiscal summary.) The first step of this budget and policy request is to identify the current basic education effort in the community and technical college system, as identified by the enrollment workload and expenditure effort5 using 2013 actual data. In FY 2013, 19,900 FTE students received state supported basic education for adults services. This level of FTE effort was supported by approximately $53 million in state resources annually, approximately $2,650 per FTE. To support the identification of the workload, the budget proposal will be supported by Agency Request legislation which will seek to: 1) identify the FTE workload associated with the Basic Education for Adults program as a forecast of need, and 2) establish the routine process by which the forecast will be determined (for biennial budgeting purposes). After the identification of the workload, the proposal will sets in place a multi-year goal to achieve parity between the basic education funding level for minors and adults. Beginning with the 2013 average expenditure rate of $2,650, the budget proposes 15 percent increases to this level in each fiscal year of the 2015-17 biennium (FY 2017 final per student funding would equal $3,600). The biennial request for appropriation related to this element of the proposal is $27,376,000. 5 The 2013 Average Expenditure per student FTE, as compiled for the Office of Financial Management. Page 3 Washington State Board for Community and Technical Colleges 2015-17 Operating Budget Policy Level Request Strengthening Basic Education for Adults PL – N5 The implementation of the proposed plan for Basic Education for Adults would ripple through the system and impact it in a number of ways. First, it is anticipated that consistent, steady funding for the level of participation experienced will remove the disincentives campuses currently face when developing their annual course offerings. With permanent funding and a dedication to an increasing rate of per student funding, districts would have the confidence to expand offerings, use new resources to modify pathways to improve and expedite student movement through the program and into postsecondary offerings, and hire more full-time faculty to teach classes. Students would encounter a program with an outward presence that is more consistent from one year to the next. Outreach would be employed to expand awareness within communities about the benefits of and opportunities for increasing educational attainment. Navigation and career counseling could be developed to provide hands-on guidance to help students take the next step in their educational career. Finally, it is anticipated that establishing the proposed plan would eliminate current barriers that are currently causing the program to shrink in enrollment size, to allow it to increase each year instead. The budget proposal conservatively assumes that the Basic Education for Adults caseload would grow each fiscal year by 1,000 FTE, for an anticipated FY 2017 caseload of 21,900 FTE. The biennial request for appropriation related to this element of the proposal is $10,247,000. Page 4 Washington State Board for Community and Technical Colleges 2015-17 Operating Budget Policy Level Request Strengthening Basic Education for Adults PL – N5 Figure 1 Fund Basic Education for Adult as a Caseload 1. Establish a policy to fund Adult Basic Education enrollments as they increase, or decrease, in a fashion similar to other caseloads forecasted and funded in the state budget (e.g., K12 caseload). 2. Implement a mulit-year plan to increase Basic Education For Adult per student funding level with the goal of reaching parity with the K12 Basic Education Rate. 3. Provide additional funding to reflect projected increased enrollment levels (as the result of policy implementation). 2016 Step One: Identify the Current Adult Basic Education - State Effort $52,735,000 2017 $52,735,000 2015-17 $105,470,000 Step Two: Increase per student funding to reach parity with K12 Basic Ed funding. Baseline Current $ per FTE $ 2,650 FTEs Proposal: Reach the 19,900 $ 5,800 K12 Basic Ed New Budget Request $ 9,054,000 $ 18,322,000 $ Phased in 15% increase in FY 16 and FY 17 $ 3,105 $ 3,571 Rates: increased rate amt $ 455 $ 466 Step Three: 27,376,000 Adult Basic Education enrollments will increase due to removal of disincentive from instability of funding model. Enrollments will increase by 1,000 per fiscal year 1,000 2,000 New Budget Request $ 3,105,000 $ 7,142,000 $ $ per add'l student $ 3,105 $ 3,571 Total New Investments $ 12,159,000 $ 25,464,000 $ 10,247,000 37,623,000 Outcomes related to this increased investment will be monitored in a number of ways. As has been mentioned, the current pathways that lead to high school diplomas and equivalencies will still be monitored and will be tracked for growth as the program expands. More importantly, the community and technical college system will use the Student Achievement Initiative (SAI) to monitor the traditional milestone of achieving the equivalency, as well as track Basic Education students’ progress through college level programming. SAI assigns a point for each education milestone a student passes during a year. These milestones have been researched and proven to demonstrate momentum that, when the tipping point is reached, increases the probability for success dramatically. Points earned by students beginning in the Basic Education mission are given additional weight to represent the additional effort required to generate education momentum for these students. As the outcomes of SAI are increasingly used to distribute state appropriations (see Decision Package N6 – Performance Funding – SAI), the value of the weighted points earned by former Basic Education students will further solidify the Basic Education for Adults program. Page 5 Washington State Board for Community and Technical Colleges 2015-17 Operating Budget Policy Level Request Expand Student Achievement Initiative PL – N6 Brief Description: In the 2014 legislative session, the Legislature passed ESSB 2626, establishing statewide educational attainment goals: By 2023, all Washington adults between the ages of 25-44 will have a high school diploma or equivalent and 70 percent will have a postsecondary credential. Increasing student retention and completion rates are key to achieving these goals. The State Board for Community and Technical Colleges (SBCTC) requests approximately $57.6 million to expand SBCTC’s performance based funding system, known as the Student Achievement Initiative (SAI). Key academic benchmarks have been identified that students must meet to successfully complete degrees and certificates. SAI measures student progress in areas related to these benchmarks. SAI rewards institutions for improvements related to student progress and degree/certificate completion or transfer. Requested Funding by Fiscal Year FY 2014 FY 2015 Total $28,823,000 $28,823,000 $57,646,000 Support for Request: In the 2014 legislative session, the Legislature passed ESSB 2626, establishing statewide educational attainment goals. The two goals listed were: 1) All adults in Washington ages 25-44 will have a high school diploma or equivalent by 2023, and 2) At least 70 percent of adults ages 25-44 will have a postsecondary credential by 2023. In 2013, only 89 percent of Washington adults between the ages of 25-44 had a high school diploma or equivalent and less than 50 percent had a post-secondary certificate, credential, or degree. Any push to increase the rate of educational attainment in our state will face a demographic challenge. Over the next twenty years, the state’s projected growth in the traditional college-age group will be much slower than in previous decades. This change in demographics creates a scenario of slow overall enrollment growth for the community and technical college system. To reach the educational attainment goals set by the Legislature, we cannot rely solely on growth in the traditional college-aged population. The pathway to reaching statewide education goals within the projected student population is to increase our system’s student retention and completion rates. Key academic benchmarks have been identified that students must meet to successfully complete degrees and certificates. Certain points in student progress have been identified that, once accomplished, substantially improve students’ chances of completing degrees and certificates. There are four categories of achievement measures: 1. Building towards college level skills (basic skills gains, passing precollege writing or math) 2. First year retention (earning 15 then 30 college level credits) Page 1 Washington State Board for Community and Technical Colleges 2015-17 Operating Budget Policy Level Request Expand Student Achievement Initiative PL – N6 3. Completing college level math (passing math courses required for either technical or academic associate degrees) 4. Completions (degrees, certificates, apprenticeship training) These measures focus students and institutions on outcomes that provide meaningful momentum towards degree and certificate completion for all students, no matter where they start. The Student Achievement Initiative financially rewards institutions for improvements related to student progress and degree/certificate completion (or transfer). Ongoing vs. One-Time Costs: These costs are all ongoing. Page 2 Washington State Board for Community and Technical Colleges 2015-17 Operating Budget Policy Level Request Employee Compensation PL - N7 Brief Description: The State Board for Community and Technical Colleges requests approximately $11.3 million for compensation adjustments for all exempt community and technical college staff. The amount requested is based on the same percentage increase proposed in the 2015-17 collective bargaining agreement between community college classified employees and the Governor’s Office. The proposed increase is three percent in FY 2016 and 1.8 percent in FY 2017. Requested Funding by Fiscal Year FY 2014 FY 2015 Total $4,321,000 $6,991,000 $11,312,000 Support for Request: Dedicated, well-trained faculty and staff are essential to the community and technical colleges’ ability to fulfill their mission and continue being responsive to the educational and economic needs of their communities. Community and technical colleges have an excellent track record of responding to the changing needs of the State and its economy. Much of this success is due to the skills and dedication of faculty and staff. The last salary increase was in 2008. In the past five years, inflation equaled 7.3 percent (see Table 1). This kind of basic compensation lag becomes a drag on the institutions’ ability to deliver services to meet their mission. Table 1 Year 2009 2010 2011 2012 2013 Percent 0.60% 0.30% 2.70% 2.50% 1.20% Ongoing vs. One-Time Costs: These costs are all ongoing. Page 1 Washington State Board for Community and Technical Colleges 2015-17 Operating Budget Policy Level Request Faculty Increments PL – N8 Brief Description: The State Board for Community and Technical Colleges requests $10.2 million for faculty increments. To stay effective, full- and part-time faculty must continuously update their knowledge, skills, and abilities to stay current with the latest innovations and advance their professional development. For such efforts, a faculty member earns a salary step increase typically called an “increment”. However, increments can be paid only if authorized by the Legislature. Increments for the 2015-17 biennium would be funded through a combination of salary and benefit savings due to faculty turnover, plus the amount noted in this request. Requested Funding by Fiscal Year FY 2014 FY 2015 Total $3,400,000 $6,800,000 $10,200,000 Support for Request: A reasonable and predictable incentive system must be in place to encourage faculty to improve their knowledge, skills, and abilities in the rapidly evolving knowledge-based economy. The two-year college system requests the Legislature appropriate 0.8 percent of the faculty salary base plus related benefits for the purpose of paying faculty increments. This level is based on the historical average of annually earned increment obligations after use of turnover savings. When combined with turn-over savings generated in the system, CTCs will have resources adequate to pay for the increments earned in the 2015-17 biennium. To this end, it is important to retain the authority to use turn-over savings for faculty increments as currently provided in the appropriations act (2013 Session Law, Chapter 4 [Section 601, subsection 4a]). “…the state board for community and technical colleges may use salary and benefit savings from faculty turnover to provide salary increments and associated benefits for faculty who qualify through professional development and training.” Faculty Increments FY 2016 FY 2017 2015 - 17 Salaries 2,900,000 5,800,000 8,700,000 Benefits 500,000 1,000,000 1,500,000 3,400,000 6,800,000 10,200,000 Total Ongoing vs. One-Time Costs: These costs are all ongoing. Page 1 Washington State Board for Community and Technical Colleges 2015-17 Operating Budget Policy Level Request Expand and Enhance the Opportunity Grant Program PL – N9 Brief Description: The State Board for Community and Technical Colleges (SBCTC) requests approximately $11.2 million to expand the Opportunity Grant program by 600 full time equivalent students (FTES) and increase the per FTES award amount. The Opportunity Grant program provides student support services and financial assistance to low-income individuals pursuing an education in approved high-wage, high-demand career pathways. Requested Funding by Fiscal Year FY 2016 $5,575,000 FY 2017 $5,575,000 Total $11,150,000 Support for Request: The Opportunity Grant program helps low-income adults train for high wage / high demand careers while also providing Washington State businesses with skilled workers. The program brings together low-income students, colleges, and businesses to create skilled employees, respond to employer identified workforce gaps, and meet the students’ financial needs. Low-income adults who enter highwage, high-demand career pathways are eligible for financial support for up to 45 credits, to be used within three years of enrollment. The goal of the program is to help low-income students reach specific educational milestones that increase their chance of earning a family living wage. For Opportunity Grant students who also received Pell Grants, completion rates were 18 percent higher than for those receiving Pell Grants only. The initial Opportunity Grant pilot programs showed excellent results with 73 percent retention. Retention rates in successive years have continued to improve, with current retention rates exceeding 80 percent. When the Opportunity Grant program was fully implemented in 2007, the goal was to serve 2,000 FTEs. Since that year, the demand for Opportunity Grants has more than doubled. The program served approximately 3,300 FTES in the 2013-14 school year with another 750 students on waiting lists. The SBCTC is requesting funding to increase the number of Opportunity Grant recipients by 600 FTES in the 2015-17 biennium. Approximately half of the community and technical colleges (CTCs) maintain waiting lists for the program. Estimated unmet demand within the CTC system is over 1,000 students. These students either delay enrollment or enroll at a slower pace due to fewer student financial aid resources. These delays can jeopardize completion rates. In addition to serving more students, the request would increase the average funding per student FTE by 25 percent to $4,425. In 2007, annual tuition and fees at the community and technical colleges were $2,676 per year. Since then, annual tuition and fees have increased by 50 percent to $4,000, while funding for the Opportunity Grant program funding has not increased. In the 2014 school year, the Opportunity Grant program served 3,300 FTES, for average funding of $3,540 per FTES. The current value of the statutorily allowed support services is $6,950. This package will increase the average per student funding amount for the Opportunity Grant program by 25 percent, from $3,540 per FTES to $4,425 per FTES. Page 1 Washington State Board for Community and Technical Colleges 2015-17 Operating Budget Policy Level Request Expand and Enhance the Opportunity Grant Program PL – N9 Increasing the funding per FTES will bring the award amount closer to current tuition rates and maintain current funding levels for books/supplies, wrap-around services, and mandatory student fees. Students enrolled in the state’s approved Integrated Basic Education and Skills Training (I-BEST) programs automatically qualify for Opportunity Grant funding. Recent changes to federal student aid eligibility rules have decreased the amount of financial aid available to I-BEST students. As of July 1, 2012, students who lack a high school diploma or GED can no longer demonstrate their ability to do college-level work and, therefore, do not qualify for financial aid. In the past, students proved their ability to benefit by either passing a federally-approved ability-to-benefit test or successfully completing six credit hours of college-level courses. This federal student aid change disproportionally impacts the lowest-skilled adults, working poor, dislocated workers, students of color, and immigrants. Elimination of the federal financial aid source has significantly increased the demands for Opportunity Grant funds. Increasing Opportunity Grant funding will allow these students to continue progress toward meaningful credentials and a viable pathway to living wage jobs. Background In 2006, the Washington State Legislature appropriated $4 million to the State Board for Community and Technical Colleges to create the Opportunity Grant pilot program. The ten pilot programs had approximately 843 low-income students participating in training for high-wage, high-demand career pathways. The next year, the Legislature expanded the Opportunity Grant program to all 34 community and technical colleges, providing an additional $7.5 million for a total of $11.5 million per year, with a goal of serving at least 2,000 FTES. Demand for the program has been high, with approximately 3,300 FTES served during the 2013-14 school year. Because of the high demand, in 2009 the State Board for Community and Technical Colleges merged $1 million from the Work-Based Learning Program into the Opportunity Grant Program. The Opportunity Grant program is a statutory program (RCW 28B.50.271-28B.50.272) and provides students enrolled in the program funding for tuition and mandatory fees. In addition, students can receive up to one thousand dollars per academic year for books, tools, and supplies. Based on current costs, students would be funded up to $6,950 per year. Colleges have used the program in combination with other financial aid (e.g. Pell Grant), to serve as many students as possible. This has meant the average funding available per student ($3,540) has been approximately 50 percent of current maximum amount allowed. Currently funded at $25 million per biennium, the Opportunity Grant program addresses the immediate financial needs of low-income adults pursuing education and employers seeking skilled workers. To receive an Opportunity Grant, a student must be: ï‚· A Washington resident student ï‚· Enrolled in an Opportunity Grant-eligible program of study ï‚· Part of a family with an income at or below 200 percent of the federal poverty level ï‚· Complete a Free Application for Federal Student Aid (FAFSA) Page 2 Washington State Board for Community and Technical Colleges 2015-17 Operating Budget Policy Level Request Expand and Enhance the Opportunity Grant Program PL – N9 ï‚· Once attending, maintain a cumulative 2.0 grade point average Eligible program pathways include: accounting, aviation, office/administrative/business management, allied health/nursing, automotive technology, truck driving, information technology, construction management, criminal justice, early childhood education, manufacturing, engineering, and welding. Currently, allied health is the most popular field of study for students in the Opportunity Grant program. Results from the program continue to show high rates of student retention and success in targeting funding to students most in need. Opportunity Grant participants are typically older and more diverse than their peers receiving Pell Grants or who come from similarly challenged socio-economic backgrounds. The goal of the Opportunity Grant program is to increase student retention rates to help low-income students reach the educational “tipping point” of 45 credits and a credential. These milestones have been shown to increase a student’s chance of earning a family living wage. Increasing retention and completion rates is accomplished in two primary ways: • Addressing the immediate needs of low-income students by providing financial assistance for tuition, fees, books, and supplies for up to 45 college credits, PLUS • Providing essential support services such as, mentoring, advising, counseling, tutoring, and college success workshops or classes. Ongoing vs. One-Time Costs: These costs are all ongoing. Page 3 Washington State Board for Community and Technical Colleges 2015-17 Operating Budget Policy Level Request Increase Academic, Completion, and Career Advising and Planning Efforts PL – O0 Brief Description: This decision package proposes to strengthen the current efforts of academic, completion, and career advising and planning in the community and technical college system. The request would fund an average of four advising staff at each college along with support strategies that increase first-year students’ academic and career preparedness. The requested funding would improve persistence and momentum of students toward completion and entry into the workplace. Requested Funding by Fiscal Year FY 2014 FY 2015 Total $8,976,000 $8,976,000 $17,952,000 Students that seek to increase their educational attainment through Washington’s community and technical colleges do not fit in the same demographic as an average first-year student at the four-year universities in our state. Community and technical college students are older (average age 26); they are likely to be employed and raising a family, making them place bound and limiting their ability to move for education; 34 percent are members of an ethnic minority; and many come from households earning less than $40,000 annually. Many struggle to reach placement in college math and English. The purpose of this decision package is to support students by providing funding for colleges to increase academic and career advising staffing levels, and to develop intrusive programs designed to engage first-year students in identifying their educational and career pathways. Too many students are failing to persist through and beyond their first year at community and technical colleges. The fall-to-spring retention rate for first-year students in the fall 2012 cohort (the most recent year for which this statistic is available) was 64.5 percent. This means that more than one-third of our entering students are sidetracked on the way to earning a credential or degree they need for career success and Washington needs for a stronger economy along the “Washington Roadmap.” Students who are unsure of their career goals, and thus have not identified career pathways, make up a large percentage of non-persisting students. Rather than attempting a thorough career assessment at the time of initial enrollment, a much more effective process – one that will lead to greater clarification of career goals and the necessary program and career pathways to support those goals – integrates assessment and specially designed programs into a student’s first-year experience and then provides for student testing of career choices and development of career pathways. This approach increases completion and shortens time-to-degree. The requested funds will be distributed to the campuses for staffing, program development (career assessment and exploration components integrated into the first-year experience), and leveraging of technology to connect students with career resources such as labor market and occupational information and career assessment tools. Given the complexities of the student population at each community and technical college, flexibility will be needed to determine the proper staffing, programming, and technology combinations for their unique campus environments. Each, however, will create student cohort groups using a common assessment designed to identify students with low career confidence. The students served will complete the same assessment at the end of their first year (in spring term). It is anticipated that students will demonstrate significantly higher career confidence. The resulting clarification of career goals and pathways will in turn contribute to an increase in the first-year fall-to-spring retention rate, to 67 percent in 2015-16 and 69 percent in 2016-17. Page 1 Washington State Board for Community and Technical Colleges 2015-17 Operating Budget Policy Level Request Dedicated Funding for Integrated Basic Education Skills Training (I-BEST) PL – O1 Brief Description: Integrated Basic Education Skills Training (I-BEST) is a nationally recognized program1 designed to combine basic education and workforce training into a single, articulated path to a workforce degree or credential. The program has been shown to improve the likelihood that a Basic Education student will earn college credit and college credential. The proposal is to provide $15.0 million in dedicated state funding to support 1,250 enrollments (FTEs) annually, for the 2015-17 biennium. Requested Funding by Fiscal Year FY 2014 FY 2015 Total $7,500,000 $7,500,000 $15,000,000 Students who seek to increase their educational attainment through Washington’s community and technical colleges do not fit in the same demographic as an average first year student at the four year universities in our state. Community and Technical college students are older (average age 26); they are likely to be employed and raising a family, making them place bound, limiting their ability to move for education; 34 percent are members of an ethnic minority and many come from households earning less than $40,000 annually. Research shows that math continues to be a stumbling block for too many students and is a significant barrier to college completion.2 Background: The I-BEST model is based upon combining both the basic education and the workforce education environment, to develop a single, articulated pathway for students to move from basic education to a post-secondary credential. Within the curriculum the basic education components are integrated into the process of training for the workforce credential. The program uses a dual-faculty model, which adds additional support for the participating students.3 I-BEST students are three times more likely to earn college credits and nine times more likely to earn a workforce credential than are students in traditional adult basic education programs who must complete basic skills first, before training for a job. 4 This level of ‘increased momentum’ is a key component to improving outcomes for students and is essential for reaching our state education goals. As the impact of the budget reductions between 2009 and 2012 have settled in, enrollment offerings in this program peaked in 2010 and have declined by 10 percent since then.5 This decline is not due to the lack of demand for the program; rather it is the result of business choices made by campuses that resemble the disincentives discussed in the Basic Education environment. The program does require more fiscal resources than are normally spent in a classroom, primarily due to the dual-faculty approach. As the CTC campuses become more dependent on tuition revenue to fund program offerings, programs like IBEST with costs that are high relative to the revenue they generate are less likely to be offered than programs with a more favorable cost to revenue ratio. 1 IBEST was named a Bright Idea by Harvard’s JFK School of Government in 2011. 2 There are many terms used to refer this level of instruction. Pre-college, Remediation and Development Education are synonymously used in the system. Please see Decision Package O2: Improving Math Success for a description of this obstacle for students. 3 See the SBCTC Web-site for more information regarding the IBEST program. http://www.sbctc.edu/college/e_integratedbasiceducationandskillstraining.aspx. 4 SBCTC research calculations from “Educational Outcomes of I-BEST, WA State Community and Technical College System’s Integrated Basic Education and Skills Training Program,” May 2009 by Community College Research Center, Columbia University. 5 In 2013 1,580 FTEs received IBEST instruction. Page 1 Washington State Board for Community and Technical Colleges 2015-17 Operating Budget Policy Level Request Dedicated Funding for Integrated Basic Education Skills Training (I-BEST) PL – O1 Budget Proposal: To improve accessibility to the IBEST pathway for students, funding for 1,250 enrollments (FTEs) is requested for FY 2016 and 2017. The cost per student is estimated at approximately $6,000 per student. This cost represents the average state expenditure per workforce FTE in FY 2013, with the instructional component approximately doubled to represent the faculty model used by the program. The biennial request for appropriation is $15,000,000. As with the all of the proposals in SBCTC’s biennial budget request, the outcomes of this program and for students involved will be monitored by the Student Achievement Initiative (SAI). SAI assigns a point for each education milestone a student passes during a year. These milestones have been proven to show momentum that when met, increases the student’s probability for completing degrees and certificates. Points earned by students beginning in the Basic Education mission are given additional weight to represent the additional effort required to generate education momentum for these students. As the outcomes of SAI are increasingly used to distribute state appropriations (see Decision Package N6 – Increasing Performance Funding – SAI), the value of the weighted points earned by former basic education students will further solidify the use of I-BEST as a way for campuses to increase performance funding. Page 2 Washington State Board for Community and Technical Colleges 2015-17 Operating Budget Policy Level Request Improve Success in Math PL – O2 Brief Description: This decision package requests appropriations to support efforts to improve math outcomes for community and technical college (CTC) students. With an average age of 26, CTC students are usually years out of high school. One of the largest obstacles confronting these students is completing a college level math course, with many students facing a minimum of one quarter in a pre-college course of study. Evidence shows that students who continuously struggle in math are more likely to end their pursuit of a degree or credential than students who successfully complete their math requirements. The first element of the request is to provide funding to implement best practices for improving pre-college math curriculum, with goals of improving the time required for students to reach college math competency. The second portion of the request is to expand the presence of and increase funding for the MESA Community College program. The total biennial request is $10.1 million. Requested Funding by Fiscal Year FY 2016 FY 2017 Total $5,032,000 $5,032,000 $10,064,000 Support for Request: One of the primary pillars in the growing knowledge economy is mathematics. Competency in math has become a prerequisite in an ever growing percentage of high wage, high demand jobs. Having a workforce proficient in mathematics will be key in filling many of the skills gaps that exist in our workforce. One of the most challenging obstacles for many incoming student is the lack of math proficiency. This is especially true for students coming to the community and technical colleges. Our students are older (average age 26); they are likely to be employed and raising a family, making them place bound and limiting their ability to move for education; over 34 percent are members of an ethnic minority and many come from households earning less than $40,000 annually. Most of them have been out of high school for years and many take precollege math courses before they can start working on the college level math that will be required for their degree or credential. The decision package requests $2,750,000 annually to work with the Charles A. Dana Center at the University of Texas at Austin to determine a New Math Pathway model for the state of Washington. The pathway will provide a coherent and systematic approach to the length and appropriateness of content. The second element of this budget request is to expand the MESA Community College Program (CCP) in the Community and Technical College system. The program is a support services model that is aimed primarily toward providing support services for traditionally under-represented populations enrolled in Science, Technology, Engineering and Mathematics pathways.1 The program provides students with academic advising, professional development, Academic Excellence Workshops (AEW’s) and a student study center (STEM Center) with a dedicated director at each participating campus. The MESA CCP is currently located on six community and technical college campuses with a base funding of approximately $58,000 per year. The proposal would increase the funded annual amount per campus to $125,000 (i.e., $67,000 increase per existing site) and expand the number of districts with MESA CCP programs 1 Please see the MESA CCP website at http://depts.washington.edu/mesaweb/mccp/ for more detailed information. Page 1 Washington State Board for Community and Technical Colleges 2015-17 Operating Budget Policy Level Request Improve Success in Math PL – O2 by 14. The total annual value for the increase to the program would be $2,152,000 per year. In addition, the request includes $130,000 for administrative costs required to administer the program at the expanded size of 20 campuses. The administrative functions work with the campus sites to establish consistent application of the program’s goals and structures. Ongoing vs. One-Time Costs: These costs are all ongoing. Page 2 Washington State Board for Community and Technical Colleges 2015-17 Operating Budget Policy Level Request Workforce Program Demand and Improvement PL – O3 Brief Description: The State Board for Community and Technical Colleges (SBCTC) requests $5 million to establish a rapidresponse fund that will allow colleges to act even faster when a business need emerges in a local community. This ongoing funding will be used to provide a one-time cash infusion to colleges on an asneeded basis to update or start a program on-demand. These funds will help align current and future training programs with emerging industry skill requirements and help meet employer demand to fill skill gaps. Requested Funding by Fiscal Year FY 2016 FY 2017 Total $2,500,000 $2,500,000 $5,000,000 Support for Request: Funding this request will allow SBCTC and the colleges to keep abreast of emerging industry trends and help implement workforce education initiatives that enable students to attain high demand / high wage jobs. Every two years a Washington employer survey is conducted by the Workforce Training and Education Coordinating Board in cooperation with the Association of Washington Business and the Washington Chamber of Commerce Executives. Results of the most recent survey concluded that worker skill gaps continue to affect the state’s employers and impact workers’ ability to take advantage of well-paying employment opportunities. The report noted that, among the approximately 60,000 employers who hired in the previous year, 21 percent experienced difficulties finding qualified applicants. The credentials most frequently reported as difficult to find in applicants included vocational diplomas or certificates (59 percent). The skill categories listed most frequently by employers as lacking in applicants included occupation-specific skills (85 percent). Another recent report issued by the Washington Roundtable highlighted the state’s growing job skills gap. Employers expressed increasing concern over difficulties finding employees here in Washington with the requisite skills they need to fill job openings. The report concludes that if this gap persists, companies could decide to relocate out of state in order to find qualified employees. This could have a dampening effect on the state’s economic vitality and reduce employment opportunities for workers. The report recommends a range of actions to address this problem, including improving the alignment of community college and technical school degree and certification programs with employer needs. Ongoing vs. One-Time Costs: These costs are all ongoing. Page 1 Washington State Board for Community and Technical Colleges 2015-17 Operating Budget Maintenance Level Request Facilities Maintenance & Operations (non-state-funded) PL-O4 Brief Description: The State Board for Community and Technical Colleges requests $689,000 for the maintenance and operation (M&O) of new instructional facilities constructed with non-state funds, in which prior authorization from the state has been provided in the capital budget. Each facility is scheduled to be occupied before July 1, 2017. M&O funding covers utilities, custodial, and routine maintenance. Requested Funding by Fiscal Year FY 2016 FY 2017 Total $262,000 $427,000 $689,000 Support for Request: Predictable and stable M&O funding adds to the useful life of buildings and ultimately reduces capital costs to the state. As stated in the Joint Legislative Audit and Review Committee (JLARC) Higher Education Facilities and Preservation Study presented to the Senate Ways and Means Committee in 2003: “Ongoing and preventative maintenance funding in institutional operating budgets can reduce demand for major repairs and replacements.” Community and technical colleges have historically used their physical space well above recognized standards. When including Running Start and other contract students, the use rate increases further. Our facilities experience heavy use from early morning late into the evening and weekends. This level of use drives the need for janitorial services, general maintenance, and utilities in community and technical college facilities. Financial contracts may be used to acquire or develop property paid for from operating revenues, pursuant to Chapter 39.94 RCW. These projects represent a combination of investment options to secure needed space. Colleges have identified sources of funding ranging from cash, enterprise fund balances, and State Treasurer Certificates of Participation (COPs) secured by student Services and Activity (S&A) fees or other local revenue. These projects are on community college campuses and represent major investments in instructional space. Alternative financing and direct acquisition have provided opportunities to address critical programmatic and student support service needs that have been difficult to acquire with capital budget funding levels. New construction M&O funding is calculated at a rate, established by the Legislature in the 2013-15 budget, of $6.27 per gross square foot for FY 2016 and FY 2017. M&O costs for a facility are generally the total of utilities, custodial, and routine maintenance expenditures. A summary of the M&O funding request by district follows. College Green River Green River Peninsula Skagit Valley Tacoma Walla Walla Whatcom Facility Name Trades & Industry Bldg Auburn Center Forks Satellite Bldg Child Care Center Annette Weyerhaeuser ELC Workforce & Bus Dev Campus Pavilion & Student Recreation Center Total GSF 28,987 14,095 12,452 2,233 845 12,800 7,791 79,203 FY16 $167,000 $0 $78,000 $12,000 $5,000 $0 $0 $262,000 FY17 $182,000 $88,000 $78,000 $14,000 $5,000 $40,000 $20,000 $427,000 2015-17 Funding Request $349,000 $88,000 $156,000 $26,000 $10,000 $40,000 $20,000 $689,000 Ongoing vs. One-Time Costs: These costs are all ongoing. Page 1 Washington State Board for Community and Technical Colleges 2015-17 Operating Budget Policy Level Request New or Increased Fees PL – O5 Brief Description: The State Board for Community and Technical Colleges requests the authority to adopt or increase fees falling under the provisions of RCW 43.135.055 (Fee Restrictions). In the 2013-15 Biennial Budget, the Legislature provided the community college system the authority to adopt or increase fees by amounts judged reasonable and necessary by the Trustees. Increased revenue estimates are based on the FY 2016 and FY 2017 fiscal growth factor as estimated by the Washington State Expenditure Limit Committee. Requested Funding by Fiscal Year FY 2014 FY 2015 Total $3,850,000 $4,270,000 $8,120,000 Page 1 Washington State Board for Community and Technical Colleges 2015-17 Operating Budget Policy Level Request Yakima Valley Community College Collective Bargaining PL – O6 Brief Description: This is a placeholder for appropriations that may be needed to implement the Chapter 41.80 RCW collective bargaining agreements (CBA) for the 2015-17 biennium applicable to Yakima Valley Community College. OFM budget instructions require the State Board to submit a decision package for Yakima Valley Community College, however, the September 19, 2014 submission due date is out of cycle with the CBA due date of October 1, 2014. Requested Funding by Fiscal Year FY 2016 FY 2017 Total TBD TBD TBD Support for Request: Under the Personnel System Reform Act of 2002, RCW 41.80.010(4), for the purposes of negotiating collective bargaining agreements, when the agency employer is an institution of higher education, the employer may be represented by their governing boards or the Governor or Governor’s designee. Yakima Valley Community College elected to be represented by its Board of Trustees; with the exception of Highline Community College (see decision package O7 – Highline Community College Collective Bargaining Agreement), the remaining community colleges are represented by the Governor’s Labor Relations Office. Under RCW 41.80.010(3), the collective bargaining agreement must be submitted to the Director of the Office of Financial Management by October 1st. Additionally, under RCW 41.80.010(4), if appropriations are necessary to implement the compensation and fringe benefits provisions of the bargaining agreements, the Governor shall submit a request for such funds to the Legislature. OFM budget instructions require a decision package for each collective bargaining agreement not negotiated by the Labor Relations Office. This is a placeholder for appropriations that may be needed to implement the Chapter 41.80 RCW collective bargaining agreement for Yakima Valley Community College, which is due October 1, 2014 – two weeks after the September 19, 2014 operating budget request submission deadline. Ongoing vs. One-Time Costs: These costs are all ongoing. Page 1 Washington State Board for Community and Technical Colleges 2015-17 Operating Budget Policy Level Request Highline Community College Collective Bargaining PL – O7 Brief Description: This is a placeholder for appropriations that may be needed to implement the Chapter 41.80 RCW collective bargaining agreements (CBA) for the 2015-17 biennium applicable to Highline Community College. OFM budget instructions require the State Board to submit a decision package for Highline Community College, however, the September 19, 2014 submission due date is out of cycle with the CBA due date of October 1, 2014. Requested Funding by Fiscal Year FY 2016 FY 2017 Total TBD TBD TBD Support for Request: Under the Personnel System Reform Act of 2002, RCW 41.80.010(4), for the purposes of negotiating collective bargaining agreements, when the agency employer is an institution of higher education, the employer may be represented by their governing boards or the Governor or Governor’s designee. Highline Community College elected to be represented by its Board of Trustees; with the exception of Yakima Valley Community College (see decision package O6 – Yakima Valley Community College Collective Bargaining Agreement), the remaining community colleges are represented by the Governor’s Labor Relations Office. Under RCW 41.80.010(3), the collective bargaining agreement must be submitted to the Director of the Office of Financial Management by October 1st. Additionally, under RCW 41.80.010(4), if appropriations are necessary to implement the compensation and fringe benefits provisions of the bargaining agreements, the Governor shall submit a request for such funds to the Legislature. OFM budget instructions require a decision package for each collective bargaining agreement not negotiated by the Labor Relations Office. This is a placeholder for appropriations that may be needed to implement the Chapter 41.80 RCW collective bargaining agreement for Highline Community College, which is due October 1, 2014 – two weeks after the September 19, 2014 operating budget request submission deadline. Ongoing vs. One-Time Costs: These costs are all ongoing. Page 1 Revenue Washington State Board for Community and Technical Colleges 2015-17 Operating Budget Request Accounts and Revenue Descriptions Included in this budget submittal are 2015-17 revenue projections for budgeted and non-budgeted accounts. Descriptions of the accounts are included below, and revenue summaries in the following pages. Please note: These summaries report the projections for the system as a whole, and summarize specific revenues that will accrue individually to the colleges. The system does not allocate these funds to the colleges. Instead, as specified by statute, the revenues are retained by the college and dedicated for specific purposes. They are not transferrable among the different institutions. Included in this budget submittal are 2015-17 revenue projections (B9’s) for the following budgeted accounts (estimates based on historical patterns): Fund 11A – Employment Training Finance Account. These funds are used to pay employer’s upfront training costs for employees participating in a college’s Customized Employment Workforce Training program. Employers are eligible when they locate or expand within Washington State. At the completion of the training period, employers must pay one-fourth of the cost of training into the account, and repay the remaining three-fourths within 18 months. Funds may also include gifts, grants, fees, and endowments provided for the Customized Employment Workforce Training program (RCW 28B.67). Fund 060 – Community and Technical College Capital Projects Account. This is a General Fund capital project account to be used for repayment of bonds and for current capital projects. Revenues in this account are from deposits of the building fee portion of tuition paid by students attending the community and technical colleges and from the proceeds from the sale of bond issues. Fund 145 – Higher Education - Grants and Contracts Account. These are funds received from governmental or private sources that are dedicated for specific purposes and including reimbursement for Running Start and contract international students. Federal contracts and grants make up the major portion of revenues. Fund 147 – Higher Education - Plant Account. This account has no dedicated revenue source. Colleges transfer available funds from other local and enterprise funds as available for expenditure for capital improvements. Contributing enterprise funds include bookstore revenues, vending commissions, parking fees, etc. Fund 148 – Higher Education - Dedicated Local Account. Dedicated revenues are those that have been assessed to cover specific related costs and are not available to support general institutional functions. Examples of dedicated revenues are from excess enrolled students, special laboratory and course fee charges, charges to offset ancillary support services related to instruction (e.g. auto repair services), business enterprise receipts, and pass-through fees. Fund 149 – Higher Education - Operating Fees Account. The operating fee portion of student tuition is deposited in this account. Expenditures support general institutional functions along with appropriations from the State General Fund. Fund 443 – Data Processing Fund. This fund is used to account for expenditures and income derived from providing data processing supplies and services to the operating programs of the institution through the Information Technology Division as well as data processing activities at the colleges. (RCW 43.88.195) This fund is listed in the OFM Fund Manual as “NonBudgeted”. However, this fund has been budgeted by the Legislature as far back as 1991. Fund 561 – Community/Technical College Innovation Account. This fund is used to implement the college board's strategic technology plan to improve student achievement, student services, and increase systemwide administrative efficiencies. May also be used to pay prinicipal and interest on financing contracts. (RCW 28B.50.515) This account is currently being used to implement new information technology systems for the community and technical colleges. Washington State Board for Community and Technical Colleges 2015-17 Operating Budget Request Accounts and Revenue Descriptions Included in this budget submittal are 2015-17 revenue projections (B9’s) for the following non-budgeted local funds (estimates based on historical patterns): Fund 440 – Stores Fund. This fund is used to account for the costs of furnishing supplies, materials, and other services to the operating programs of the institution. (RCW 43.88.195) Fund 448 – Printing Fund. This fund is used to account for expenditures and income derived from providing printing supplies and services to the operating programs of the institution. (RCW 43.88.195) Fund 450 – Other Services Fund. This fund is used to account for expenditures and income derived from miscellaneous services to the operating programs of the institution. (RCW 43.88.195) Fund 460 – Motor Pool Fund. This fund is used to account for expenditures and income derived from providing automotive services to the institution. (RCW 43.88.195) Fund 522 – Associated Students’ Fund. This fund is used to account for the resources and functions associated with student activities. (RCW 43.88.195) Fund 524 – Bookstore Fund. This fund is used to account for the expenditures and revenue derived from operating a bookstore for use by students and faculty. (RCW 43.88.195) Fund 528 – Parking Fund. This fund provides for the construction and maintenance of parking areas. Revenue is provided by parking permit fees, meter receipts, and parking fines. (RCW 43.88.195) Fund 569 – Food Service Fund. This fund is used to account for the expenditures and revenue derived from operating a food service for use by students and faculty. (RCW 43.88.195) Fund 570 – Other Enterprise Fund. This fund is used to account for expenditures and revenue derived from operating business enterprises other than student activities (account 522), bookstores (account 524), food service (account 569), housing & food service (account 573). (RCW 43.88.195) Fund 573 – Housing and Food Services Fund. This fund is used to account for expenditures and revenue from providing housing and food services to students. (RCW 43.88.195) Fund 843 – Exceptional Faculty Awards Endowment. This fund consists of the endowed principle and interest earnings for the exceptional faculty award program. (RCW 28B.050.839) Fund 846 – Scholarship Fund. This fund consists of gifts for the support of fellowships and scholarships. (RCW 43.88.195). Fund 849 – Loan Fund. This fund consists of balances in accounts held for the purpose of granting loans to qualified students in accordance with the donor’s instructions or as recommended by other agencies authorized to grant loans. (RCW 43.88.195) Fund 850 – Work Study Fund. This fund consists of federal work-study funds held for the purpose of funding student work study payments. (RCW 43.88.195) Fund 859 – Endowment Fund. This fund accounts for the assets received by the institution to be held in trust according to the terms of the endowment agreements, whereby the principal usually remains intact and the earnings are utilized for institutional activities. (RCW 43.88.195) Washington State Board for Community and Technical Colleges 2015-17 Operating Budget Request Accounts and Revenue Descriptions Fund 860 – Institutional Financial Aid Fund. This fund is used to account for revenues generated from 3.5 percent (enacted by the 1981 Legislature - Chapter 257) of student tuition, services, and activities fee to establish an institutional financial aid fund. Moneys in this fund are to be used for guaranteed loans or grants to eligible students. (RCW 28B.15.820) BASS - BDS029 State of Washington Summarized Revenue by Account and Source Budget Period: 2015-17 Dollars in thousands 699 - Community/Technical College System Agency Level A1 - 2015-17 Biennial Budget Request Supporting Text Excluded 10/29/2014 9:28AM Maintenance Level FY2016 FY2017 Performance Level FY2016 FY2017 Biennium Totals FY2016 FY2017 Total 060 - Comm/Tech Cap Proj A Total - 0424 - Tuition and Fees - S 44,115 44,115 44,115 44,115 88,230 060 - Comm/Tech Cap Proj A - State Total - 060 - Comm/Tech Cap Proj A 44,115 44,115 44,115 44,115 44,115 44,115 44,115 44,115 88,230 88,230 11A - Employment Training Total - 0597 - Reimburs Contracts - P/L 155 155 155 155 310 11A - Employment Training - Private/Local Total - 11A - Employment Training 155 155 155 155 155 155 155 155 310 310 145 - H E - Grants/Contrct Total - 0310 - Dept of Agriculture - F 69 69 69 69 138 Total - 0311 - Dept of Commerce - F 86 86 86 86 172 223 223 223 223 446 Total - 0314 - Dept of Hud - F 11 11 11 11 22 Total - 0315 - Dept of Interior - F 12 12 12 12 24 Total - 0317 - Dept of Labor - F 12,620 12,620 12,620 12,620 25,240 Total - 0319 - Dept of State - F 1,796 1,796 1,796 1,796 3,592 Total - 0347 - Nat Science Foundati - F 3,642 3,642 3,642 3,642 7,284 85 85 85 85 170 4 4 4 4 8 Total - 0312 - Dept of Defense - F Total - 0355 - Fed Rev Non-Assist - F Total - 0359 - Small Business Admin - F 1 OFMDBALC213.bass_budget_pr BASS - BDS029 State of Washington Summarized Revenue by Account and Source Budget Period: 2015-17 Dollars in thousands 699 - Community/Technical College System Agency Level A1 - 2015-17 Biennial Budget Request Supporting Text Excluded 10/29/2014 9:28AM Maintenance Level FY2016 FY2017 Performance Level FY2016 FY2017 Biennium Totals FY2016 FY2017 Total 145 - H E - Grants/Contrct Total - 0364 - Veterans Administrat - F 49 49 49 49 98 Total - 0377 - Nuclear Regulatory C - F 39 39 39 39 78 1,435 1,435 1,435 1,435 2,870 Total - 0384 - Dept of Education - F 29,415 29,415 29,415 29,415 58,830 Total - 0393 - Health & Human Svc - F 21,860 21,860 21,860 21,860 43,720 Total - 0394 - Corp for Nat Comm Sv - F 50 50 50 50 100 Total - 0402 - Income From Property - S 176 176 176 176 352 Total - 0405 - Fines, Forfeits - S 25 25 25 25 50 Total - 0409 - Interest Income - S 1 1 1 1 2 Total - 0416 - Sale of Prop/Other - S 1 1 1 1 2 7,620 7,620 7,620 7,620 15,240 21 21 21 21 42 Total - 0430 - Dedicated Stu Fees - S 75,015 75,015 75,015 75,015 150,030 Total - 0440 - Indirect Cost Reimb - S 108 108 108 108 216 Total - 0441 - Contr & Grants - S 182 182 182 182 364 Total - 0499 - Other Revenue - S 2,490 2,490 2,490 2,490 4,980 118,814 118,814 118,814 118,814 237,628 3,430 3,430 3,430 3,430 6,860 552 552 552 552 1,104 Total - 0381 - Dept of Energy - F Total - 0420 - Charges for Services - S Total - 0421 - Publicatns/Documents - S Total - 0541 - Contributions Grants - P/L Total - 0546 - Federal Revenue - P/L Total - 0597 - Reimburs Contracts - P/L 2 OFMDBALC213.bass_budget_pr BASS - BDS029 State of Washington Summarized Revenue by Account and Source Budget Period: 2015-17 Dollars in thousands 699 - Community/Technical College System Agency Level A1 - 2015-17 Biennial Budget Request Supporting Text Excluded 10/29/2014 9:28AM Maintenance Level FY2016 FY2017 145 - H E - Grants/Contrct Total - 0621 - Operating Trans In - S Performance Level FY2016 FY2017 Biennium Totals FY2016 FY2017 Total 7,112 7,112 7,112 7,112 14,224 Total - 0622 - Operating Trans Out - S (54,743) (54,743) (54,743) (54,743) (109,486) 145 - H E - Grants/Contrct - State 145 - H E - Grants/Contrct - Federal 145 - H E - Grants/Contrct - Private/Local Total - 145 - H E - Grants/Contrct 38,008 71,396 122,796 232,200 38,008 71,396 122,796 232,200 38,008 71,396 122,796 232,200 38,008 71,396 122,796 232,200 76,016 142,792 245,592 464,400 46 46 46 46 92 Total - 0409 - Interest Income - S 2 2 2 2 4 Total - 0416 - Sale of Prop/Other - S 1 1 1 1 2 Total - 0430 - Dedicated Stu Fees - S 21 21 21 21 42 186 110 186 110 296 4,210 4,210 4,210 4,210 8,420 Total - 0621 - Operating Trans In - S 53,562 53,562 53,562 53,562 107,124 Total - 0622 - Operating Trans Out - S (8,541) (8,541) (8,541) (8,541) (17,082) 147 - HE Plant Accounts - State 147 - HE Plant Accounts - Federal 147 - HE Plant Accounts - Private/Local Total - 147 - HE Plant Accounts 45,231 46 4,210 49,487 45,155 46 4,210 49,411 45,231 46 4,210 49,487 45,155 46 4,210 49,411 90,386 92 8,420 98,898 147 - HE Plant Accounts Total - 0311 - Dept of Commerce - F Total - 0499 - Other Revenue - S Total - 0541 - Contributions Grants - P/L 3 OFMDBALC213.bass_budget_pr BASS - BDS029 State of Washington Summarized Revenue by Account and Source Budget Period: 2015-17 Dollars in thousands 699 - Community/Technical College System Agency Level A1 - 2015-17 Biennial Budget Request Supporting Text Excluded 10/29/2014 9:28AM Maintenance Level FY2016 FY2017 Performance Level FY2016 FY2017 Biennium Totals FY2016 FY2017 Total 148 - HE - Dedicated Locl Total - 0364 - Veterans Administrat - F 21 21 21 21 42 Total - 0384 - Dept of Education - F 86 107 86 107 193 Total - 0402 - Income From Property - S 1,634 1,389 1,634 1,389 3,023 Total - 0405 - Fines, Forfeits - S 1,306 1,371 1,306 1,371 2,677 16 16 16 16 32 769 769 769 769 1,538 10,511 10,826 10,511 10,826 21,337 28 28 28 28 56 1,380 1,380 1,380 1,380 2,760 131,755 132,170 263,925 50 50 100 Total - 0409 - Interest Income - S Total - 0416 - Sale of Prop/Other - S Total - 0420 - Charges for Services - S Total - 0421 - Publicatns/Documents - S Total - 0424 - Tuition and Fees - S 0430 - Dedicated Stu Fees - S O5 - New or Increased Fees Total - 0430 - Dedicated Stu Fees - S 128,000 128,000 128,000 128,000 Total - 0440 - Indirect Cost Reimb - S 50 50 0499 - Other Revenue - S O5 - New or Increased Fees Total - 0499 - Other Revenue - S 3,486 3,486 3,486 3,486 0541 - Contributions Grants - P/L O5 - New or Increased Fees Total - 0541 - Contributions Grants - P/L 1,963 1,963 1,963 1,963 21,500 Total - 0622 - Operating Trans Out - S 148 - HE - Dedicated Locl - State Total - 0621 - Operating Trans In - S 3,755 3,755 4,170 4,170 20 20 20 20 3,506 3,506 7,012 75 75 80 80 2,038 2,043 4,081 11,650 21,500 11,650 33,150 (15,600) (14,100) (15,600) (14,100) (29,700) 153,080 144,865 156,855 149,055 305,910 4 3,775 4,190 OFMDBALC213.bass_budget_pr BASS - BDS029 State of Washington Summarized Revenue by Account and Source Budget Period: 2015-17 Dollars in thousands 699 - Community/Technical College System Agency Level A1 - 2015-17 Biennial Budget Request Supporting Text Excluded 10/29/2014 9:28AM Maintenance Level FY2016 FY2017 107 1,963 155,150 128 1,963 146,956 37 Total - 0424 - Tuition and Fees - S 149 - Inst of HI ED-Operat - State Total - 149 - Inst of HI ED-Operat 148 - HE - Dedicated Locl - Federal 148 - HE - Dedicated Locl - Private/Local Total - 148 - HE - Dedicated Locl Performance Level FY2016 FY2017 Biennium Totals FY2016 FY2017 Total 107 2,038 159,000 128 2,043 151,226 235 4,081 310,226 37 37 37 74 362,932 362,932 362,932 362,932 725,864 362,969 362,969 362,969 362,969 362,969 362,969 362,969 362,969 725,938 725,938 7 7 7 7 14 7,700 7,700 7,700 7,700 15,400 830 830 830 830 1,660 3,280 3,280 3,280 3,280 6,560 (6,000) (6,000) (6,000) (6,000) (12,000) 443 - Data Proc - Hi Educ - State Total - 443 - Data Proc - Hi Educ 5,817 5,817 5,817 5,817 5,817 5,817 5,817 5,817 11,634 11,634 561 - Comm/Tech College In Total - 0424 - Tuition and Fees - S 12,430 12,430 12,430 12,430 24,860 561 - Comm/Tech College In - State 12,430 12,430 12,430 12,430 24,860 149 - Inst of HI ED-Operat Total - 0409 - Interest Income - S 443 - Data Proc - Hi Educ Total - 0402 - Income From Property - S Total - 0420 - Charges for Services - S Total - 0430 - Dedicated Stu Fees - S Total - 0621 - Operating Trans In - S Total - 0622 - Operating Trans Out - S 5 75 3,850 80 4,270 OFMDBALC213.bass_budget_pr BASS - BDS029 State of Washington Summarized Revenue by Account and Source Budget Period: 2015-17 Dollars in thousands 699 - Community/Technical College System Agency Level A1 - 2015-17 Biennial Budget Request Supporting Text Excluded 10/29/2014 9:28AM Maintenance Level FY2016 FY2017 Total - 561 - Comm/Tech College In 699 - Community/Technical College System - State 699 - Community/Technical College System - Federal 699 - Community/Technical College System - Private/Local Total - 699 - Community/Technical College System 12,430 12,430 661,650 71,549 129,124 862,323 653,359 71,570 129,124 854,053 6 Performance Level FY2016 FY2017 3,775 4,190 75 3,850 80 4,270 Biennium Totals FY2016 FY2017 Total 12,430 12,430 24,860 665,425 71,549 129,199 866,173 657,549 71,570 129,204 858,323 1,322,974 143,119 258,403 1,724,496 OFMDBALC213.bass_budget_pr Page State of Washington Request for Fees 2015-17 Biennium Code AGENCY 699 Title State Board for Community & Tech Colleges Incremental Revenue Dollars in Thousands GF-S Agy # 699 699 699 699 699 699 Agency Name SBCTC SBCTC SBCTC SBCTC SBCTC SBCTC Fee Code Name of Fee 5240 Administrative Fees 3310 Course Fees Fee-based Self-Sustaining 5240 Administrative Fees 3310 Course Fees 5230 Transcript Fees Is a bill required? No No No No No No Z-Draft # (or Pending) New, Increased, Continued? Increased Increased Increased New New New FY 2016 Other Funds FY 2017 Additional Comments 1 FY 2016 640 818 1,186 338 851 17 FY 2017 661 846 1,227 657 861 18 Tied to Expenditure Change? Covers costs Covers costs Covers costs Fee Payer Position Unknown Unknown Unknown Unknown Unknown Unknown Explanation of Change See Instructions Based on Fiscal Growth Factor Based on Fiscal Growth Factor Based on Fiscal Growth Factor Replaces other fees AGENCY Code 699 Title State Board for Community and Technical Colleges NON-BUDGETED LOCAL FUND SUMMARY Note: These summaries report the projections for the system as a whole, and summarize specific revenues that will accrue individually to the colleges. The system does not allocate these funds to the colleges. Instead, as specified by statute, the revenues are retained by the college and dedicated for specific purposes. They are not transferrable among different institutions. Additionally, this chart, in the format requested, does not differentiate between restricted or reserved fund balance and unrestricted or unreserved fund balance. Assumption used to derive the revenues and expenditure projections, along with the detail of the restricted/reserved funds, are provided on the adjacent tabs. FUND CODE 440 448 450 460 522 524 528 569 570 573 843 846 849 850 859 860 FUND NAME Stores Fund, Institutions of Higher Education Printing Fund, Institutions of Higher Education Other Services Fund, Institutions of Higher Ed. Motor Pool Fund, Insitutions of Higher Education Student Activities Fund, Institutions of Higher Ed. Bookstore Fund, Insitutions of Higher Education Parking Fund, Institutions of Higher Education Food Service Fund, Institutions of Higher Ed. Other Enterprise Funds, Institutions of Higher Ed. Housing and Food Services Fund, Inst of Hi Ed Exceptional Faculty Awards Endowment Scholarship Fund Loan Fund, Institutions of Higher Education Work Study Fund, Institutions of Higher Ed. Endowment Fund, Institutions of Higher Ed. Institutional Financial Aid Fund, Inst of Hi. Ed. 7/1/13 6/30/15 FUND ESTIMATED FUND BALANCE BALANCE $636,521 $575,000 $3,202,773 $3,880,000 $3,802,589 $5,271,000 $1,355,641 $1,694,000 $66,633,397 $92,937,000 $47,345,528 $48,065,000 $23,744,852 $28,463,000 $355,249 $737,000 $83,318,088 $98,037,000 $4,396,933 $6,513,000 $1,172,966 $1,175,000 $6,026,431 $7,484,000 $3,659,608 $3,844,000 $42,252 $41,000 $1,694,883 $1,359,000 $14,086,978 $17,774,000 2015-17 ESTIMATED REVENUES $500,000 $7,948,000 $2,600,000 $2,194,000 $107,638,000 $73,573,000 $33,704,000 $20,474,000 $69,867,000 $18,091,000 $4,000 $776,215,000 $2,442,000 $1,000,000 $200,000 $37,749,000 2015-17 6/30/17 ESTIMATED ESTIMATED FUND EXPENDITURES BALANCE $500,000 $575,000 $7,312,000 $4,516,000 $1,300,000 $6,571,000 $1,821,000 $2,067,000 $88,263,000 $112,312,000 $72,838,000 $48,800,000 $30,333,000 $31,834,000 $20,269,000 $942,000 $63,087,000 $104,817,000 $16,282,000 $8,322,000 $2,000 $1,177,000 $776,215,000 $7,484,000 $2,442,000 $3,844,000 $990,000 $51,000 $400,000 $1,159,000 $34,352,000 $21,171,000