5/11/2015
• All colleges appearing in this work are
purely fictitious. Any resemblance to real
colleges, living or dead, is purely
coincidental.
•
•
Slides 7-14 – Source: Leading from the Middle presentation
Slide 15 – Source: Operating Budget presentation at BAC
John Ginther
Accounting &
Business Services
May 11, 2015
NORTHWEST COLLEGE
(FICTITIOUS COLLEGE)
BUDGET BASICS (SHOW ME THE MONEY)
1
5/11/2015
Higher Education Share
Of State Operating Budget
• Where does College money come from?
• How does the College spend its money?
• How do we get new buildings or remodel old
buildings?
• How do I understand my budget?
2
5/11/2015
Higher Education Share Of State Operating Budget
Other Human
Governmental Services
Operations
19.0%
Judicial 1.4%
2011-13
0.7%
Legislative
0.4%
DSHS
17.2%
Special
Appropriations
7.6%
Other Education
0.5%
Transportation
0.3%
Public Schools
43.2%
Higher
Education
8.7%
33,631,274,000
Natural
Resources
1.0%
Governmental Other Human
Services
Operations
1.4% Judicial 18.2%
2013-15
Legislative 0.7%
0.4%
Special
Appropriations
6.2%
31,472,172,000
DSHS
17.2%
Natural
Resources
0.8%
Transportation
0.2%
Public Schools
45.2%
Other Education
0.6%
Higher
Education
9.1%
Community College Share Of HE Operating Budget
Eastern
Washington
Western
Univ
Washington
3%
Univ
3%
Washington
State Univ
12%
Univ of
Washington
17%
2011-13
HECB/Fin Aid
18%
2,734,640,000
Central
Washington
Univ
2%
The Evergreen
State College
1%
3,073,070,000
Community &
Technical
College System
44%
Eastern
Washington
Univ
Western
3%
Washington
Univ
3%
Washington
State Univ
11%
Univ of
Washington
17%
Student
Achievement
22%
2013-15
Central
Washington
Univ
3%
The Evergreen
State College
1%
Community &
Technical
College System
40%
3
5/11/2015
Who Has The Money?
….the State Board has the money
• By statute, all funds for the CTCs are appropriated by the
legislature to the SBCTC.
• The SBCTC has nine members appointed to four-year
terms by the Governor with the consent of the Senate.
• SBCTC by statute is responsible for funding allocations to
colleges.
How Funding Used To Be Allocate (1985-1999)
• From 1985 to 1999 SBCTC used a formula to divide
funding among colleges
• Tuition was submitted to the State
• Formula was based upon each college’s activities* in prior
years
• And why do you care about this? About 60% of the funding
at your college today was allocated this way
*such as types of programs, salary levels, faculty type, utility bills etc.
4
5/11/2015
Previous Allocation Formula (1985-99))
• Two formulas – one for CCs, one for TCs
• CC formula allocated all state funds every year – SBCTC
“took back” all funding from colleges and re-allocated it
annually
• Actions at one CC affected allocations for other CCs
• Some colleges figured out how to “play the system” – most
didn’t – too complicated
19942 Rocked The Funding Formula
• In 1994 the legislature changed tuition policy – tuition was
to be retained by colleges – tuition rates set by legislature
• Formula hadn’t contemplated that tuition would become a
local resource
• In response, formula was changed and moved money from
colleges that generated a lot of tuition to those that didn’t
5
5/11/2015
19942 Rocked The Funding Formula
Situation
In 19942 the TCs joined the system….
• And they didn’t want anything to do with the CC funding
formula…
• So they had their own formula – similar to the K12 model
they had just left – a flat $/new FTE, for each new funded
enrollment
1999 Funding Formula
In 1999 the funding formula ended….
• Funding per FTES at the CCs ranged from $3,171 to a high
of $5,113/FTE
• Funding/FTE at TCs was fairly uniform – ranged from
$4,015 to $4,280/FTE
6
5/11/2015
2000 Funding Formula (Current)
• CCs and TCs share same method
• Colleges keep their “base funds” from one year to the next
• College base budgets are no longer adjusted for tuition
revenues, types of programs etc.
• College funding is more predictable from one year to the
next.
• Method is much easier to understand
2000 Funding Formula (Current)
• Growth enrollments are allocated at a single $/FTE level to each
college
• Other new funds – compensation increases, special programs –
allocated on appropriate bases discussed annually with
presidents and approved by SBCTC
• Recently:
Funds for Student Achievement – allocated based upon momentum
points - affects base budgets if there is no new funding to pay for
points
Budget reductions – allocated based upon share of system budget definitely do affect base budgets!
7
5/11/2015
2016 Funding Formula (Proposed)
Step One – Set Gross
Funding level for Model
Allocation
Step Six.1 – Compile
District Allocation –
Distribute Net Allocation
after Step Three based
on Share of Step Five
Step Six.2 – Compile
District Allocation – Sum
Step Six.1 and Step Two
Step Two – Identify SAI
Share & Allocate to
Districts
Step Five – Determine
weighted enrollment
share for districts
Step Six.3 – Compile
District Allocation –
Sum Step Six.2 and Step
Three
Step Three – Set Aside
MOA -- (Leaves Net
Allocation to be
distributed for
enrollments - Step Six.1)
Step Four – Set District
Enrollment Target
Final Allocation
(pre- stop/loss)
The Money Pipeline
• Legislature appropriates state funds to each university and in
total to SBCTC
• Northwest College Enrollment targets
2010-11 = 5,095
2011-12 = 4,786
2012-13 = 4,386
2013-14 = 4,783
• Changes in benefits, insurance costs, COLAs and Faculty
increments
• Central Services costs (risk management, audit, Attorney General)
• Square footage of buildings
8
5/11/2015
The Money Pipeline
•
Allocations (distributions) to the 34 CTC’s are based upon
legislative direction, State Board priorities, and an
allocation methodology based on enrollment targets
•
Base budget (Northwest share ~3%)
•
Variable funding (WRT, ABE, etc)
•
One-time funding or reductions (ctcLink)
•
Faculty costs, salary increases/decreases
The Money Pipeline
FTES - Enrollments
State Board for Community and Technical Colleges
FY 2014 Allocation Schedule
Allocation: # 10
District: 01
Enrollments
Base
Growth/Variable
4,653
130
Northwest College
Total FTES
4,783
9
5/11/2015
Allocation Of Community College Funding
Funding By District FY 2012-13 & FY 2013-14
12.0%
10.0%
Northwest - FY2012-13 - 3.2% - $18,389,721
FY2013-14 - 3.1% - $19,289,012
8.0%
6.0%
FY2012-13
4.0%
FY2013-14
2.0%
SBCTC
Whatcom
Yakima Valley
Wenatchee Valley
Tacoma
Walla Walla
Spokane
Skagit Valley
South Puget Sound
Seattle
Shoreline
Pierce
Renton
Olympic
Peninsula
Lower Columbia
Highline
Lake Washington
Green River
Everett
Grays Harbor
Edmonds
Columbia Basin
Clark
Clover Park
Cascadia
Centralia
Big Bend
Bellingham
Bates
Bellevue
0.0%
Northwest College
Share Of Community College Funding
State Funding By Fiscal Year
25,000,000
State Funding
20,000,000
15,000,000
10,000,000
5,000,000
Northwest
FY2007-08
22,753,640
FY2008-09
23,293,009
FY2009-10
23,042,143
FY2010-11
22,274,129
FY2011-12
18,906,330
FY2012-13
18,389,721
FY2013-14
19,289,012
10
5/11/2015
Northwest College Base Allocation
Prior
Allocation
Category
Operating Base
Base Allocation (GF-State)
Base Allocation (ELTA)
Institutional Funding
Redistribution of Institutional Funding Pool
IT Reduction - Section 715
PEBB Funding Rate Reduction
PERS/TRS Pension Rate Changes
Procurement Rate Reduction
Step M for Classified Staff
Workers Comp Changes
$
Current
Allocation
14,615,486 $
1,211,648
582,359
12,201
(9,930)
(52,142)
88,559
(396)
1,500
Total
Allocation
- $
-
14,615,486
1,211,648
582,359
12,201
(9,930)
(52,142)
88,559
(396)
1,500
Fund Appr.
No.
FMS Appr.
Index
001-011
08A-3E0
001-011
001-011
001-011
001-011
001-011
001-011
001-011
001-011
101
3E0
101
101
101
101
101
101
101
101
Northwest College Earmarks-Provisos
Earmarks and Provisos
Aerospace Apprenticeships
Aerospace Training
Basic Skills Enhancement
Disability Accommodations
Opportunity Grants (ELTA)
Opportunity Grants (GFS)
Reserve Distribution
Revolving Fund Charges
Student Achievement Initiative (permanent)
Student Achievement Initiative (variable)
Students of Color
System IT Cost Distribution
Remove Worker Retraining - Base (AC1)
Reallocate Worker Retraining - Base (101)
Reallocate Worker Retraining - Base (AC1)
Worker Retraining - Variable (AC1)
Workforce Development Projects
294,254
75,000
62,165
73,539
262,900
29,412
171,449
74,340
139,463
14,926
150,646
226,807
1,083,391
512,500
-
75,005
-
294,254
75,000
62,165
73,539
262,900
29,412
75,005
171,449
74,340
139,463
14,926
150,646
226,807
1,083,391
512,500
-
001-011
001-011
001-011
001-011
08A-3E0
001-011
001-011
001-011
001-BD1
001-BD1
001-011
001-011
001-AC1
001-011
001-AC1
001-AC1
001-011
101
101
101
101
3E0
101
101
101
BD1
BD1
101
101
123
101
123
123
101
11
5/11/2015
Northwest College State Operating Revenue
2011-12 Actual
Revenue
Tuition,
5,476,17
2 , 20%
Tuition,
5,417,89
4 , 20%
Student
Fees,
3,085,61
1 , 11%
2013-14 Budgeted
Revenue
2012-13 Actual
Revenue
Student
Fees,
3,883,89
7 , 14%
State
Allocatio
ns,
18,906,3
30 , 69%
Total State Instructional Rev $27,409,834
Tuition,
5,454,14
8 , 20%
Student
Fees,
3,201,80
9 , 11%
State
Allocatio
ns,
18,389,6
29 , 66%
Total State Instructional Rev $27,749,698
State
Allocatio
ns,
19,289,1
02 , 69%
Total State Instructional Rev $27,945,059
Northwest College State Operating Expenses By Program
2011-12 Actual
Expenses
2012-13 Actual
Expenses
Instructio
n
49.5%
Instructio
n
52.3%
Instructio
n
51.1%
Primary
Support
9.0%
Plant
Operatio
ns &
Maintena
nce
10.0%
Administr
ation
18.1%
2013-14 Budgeted
Expenses
Student
Services
12.1%
Plant
Libraries
Operatio
1.3%
ns &
Maintena
nce
10.4%
Primary
Support
9.8%
Primary
Support
9.9%
Administr
ation
15.4%
Student
Services
11.9%
Plant
Operatio
Libraries
ns &
1.3%
Maintena
nce
10.2%
Administr
ation
15.4%
Student
Services
11.0%
Libraries
1.3%
12
5/11/2015
Northwest College Revenue All Funds
FY2011-12
FY2012-13
0.0%
0.6%
0.2%
0.6%
0.2%
0.1%
1.5%
0.2%
0.0%
12.1%
State Allocations
Local Dedicated - Fees
Local General - Tuition
9.4%
15.0%
Grants & Contracts
Stores
8.5%
52.4%
0.1%
CIS Equip. Reserve
Printing
Student Activities
Bookstore
Parking
Other Enterprise
4.5%
State Allocations
0.8%
0.2%
7.7%
10.2%
Local Dedicated - Fees
Local General - Tuition
Grants & Contracts
Running Start
14.9%
Stores
10.6%
50.2%
CIS Equip. Reserve
Printing
Student Activities
Campus Stores
Parking
Other Enterprise
Northwest College Budget Basics Expenditures
• How does the College spend its money?
• Which departments spend the money?
• How much is used for salary & benefits?
13
5/11/2015
Northwest College Budget Basics
FY 12-13 Expenditures By Program
FY13-14 Expenditures Budget By
Program
010 - Instruction
010 - Instruction
040 - Primary Support
Services
10%
15%
51%
12%
52%
12%
060 - Student Services
10%
040 - Primary Support
Services
11%
15%
050 - Libraries
060 - Student Services
10%
080 - Institutional
Support
1%
050 - Libraries
080 - Institutional Support
1%
090 - Plant Operation &
Maintenance
090 - Plant Operation &
Maintenance
Northwest College Budget Basics
FY12-13 Expenditures By Object
FY13-14 Expenditures Budget By
Object
A - Salaries 59%
A - Salaries 56%
B - Benefits 18%
B - Benefits 18%
1%
0%
0% 3% -2%
0% 3% -2%
C - Contracts 0%
C - Personal Services 0%
21%
0%
18%
59%
24%
E/J/K - Goods & Services 21%
E/J/K - Goods & Services 24%
56%
G - Travel 0%
0%
18%
G - Travel 0%
N - Grants & Subsidies 3%
N - Grants & Subsidies 3%
P - Debt Service 0%
P - Debt Service 1%
T - Intra-Agency Transfers -2%
T - Intra-Agency Transfers 2%
14
5/11/2015
Northwest College Budget Basics
FY12-13 Personnel Costs
1% 1%
18%
29%
Exempt 18%
Faculty 51%
Classified 29%
Students 1%
51%
Cash-Out 1%
Northwest College Tuition & Capital Projects
Total Tuition Per
Credit
Building
Fee
S&A
ctcLink
3.5% FA
Net
$106.65
$10.21
$10.21
$3.02
$3.73
$80.77
• Building Fee is submitted to the State of Washington to be used for
capital construction (Fund 060)
• Colleges must compete with each other to determine which college
receives capital project each biennium
• Northwest competed several biennia ago and received funding for a
new classroom building and is in the middle of a construction
project right now.
15
5/11/2015
System Capital Projects
College
Statewide
Statewide
Statewide
Statewide
Statewide
Statewide
Olympic
Centralia
Columbia Basin
Peninsula
South Seattle
Big Bend
Renton
SBCTC Request
New Approp.
Cumulative 1
Project
Preventive Maintenance and Building System Repairs 3
Emergency Repairs and Improvements
Roof Repairs
Facility Repairs
Site Repairs
Minor Program Improvements
College Instruction Center
Student Services
Social Science Center
Allied Health and Early Childhood Dev Center
Cascade Court
Professional-Technical Education Center
Automotive Complex Renovation
Spokane
Main Building South Wing Renovation 2
Highline
Health and Life Sciences
Clover Park
Center for Advanced Manufacturing Technologies
Edmonds
Science Engineering Technology Bldg
Wenatchee
Wells Hall Replacement
Olympic
Shop Building Renovation
Pierce Fort Steilacoom Cascade Building Renovation - Phase 3
Whatcom
Learning Commons
South Seattle
Automotive Technology
Bates
Medical Mile Health Science Center
Shoreline
Allied Health, Science & Manufacturing
Governor's 23Jan15 Psl
New Approp.
Cumulative 1
House 27Mar15 Psl
New Approp.
Cumulative 1
Senate 8Apr15 Psl
New Approp.
Cumulative 1
$
$
$
$
$
$
$
$
$
$
$
$
$
22,800,000
19,360,000
12,534,000
20,733,000
2,829,000
24,200,000
48,516,000
33,627,000
15,596,000
26,868,000
31,512,000
2,040,000
16,915,000
$
$
$
$
$
$
$
$
$
$
$
$
$
22,800,000
42,160,000
54,694,000
75,427,000
78,256,000
102,456,000
150,972,000
184,599,000
200,195,000
227,063,000
258,575,000
260,615,000
277,530,000
$
$
$
$
$
$
$
$
$
$
$
$
$
22,800,000
19,360,000
12,534,000
20,733,000
2,829,000
24,200,000
48,516,000
31,385,000
14,505,000
23,790,000
28,231,000
2,040,000
15,250,000
$
$
$
$
$
$
$
$
$
$
$
$
$
22,800,000
42,160,000
54,694,000
75,427,000
78,256,000
102,456,000
150,972,000
182,357,000
196,862,000
220,652,000
248,883,000
250,923,000
266,173,000
$
$
$
$
$
$
$
$
$
$
$
$
$
22,800,000
19,360,000
12,534,000
20,733,000
2,829,000
24,200,000
48,516,000
31,385,000
14,505,000
23,790,000
28,231,000
2,040,000
15,250,000
$
$
$
$
$
$
$
$
$
$
$
$
$
22,800,000
42,160,000
54,694,000
75,427,000
78,256,000
102,456,000
150,972,000
182,357,000
196,862,000
220,652,000
248,883,000
250,923,000
266,173,000
$
$
$
$
$
$
$
$
$
$
$
$
$
22,800,000
19,360,000
12,534,000
20,733,000
2,829,000
24,200,000
42,209,000
32,089,000
14,505,000
23,790,000
28,231,000
2,040,000
15,250,000
$
$
$
$
$
$
$
$
$
$
$
$
$
22,800,000
42,160,000
54,694,000
75,427,000
78,256,000
102,456,000
144,665,000
176,754,000
191,259,000
215,049,000
243,280,000
245,320,000
260,570,000
$
$
$
$
$
$
$
$
$
$
$
2,823,000
2,932,000
3,144,000
35,126,000
2,416,000
823,000
2,940,000
31,332,000
1,874,000
2,898,000
3,060,000
Total:
$
$
$
$
$
$
$
$
$
$
$
$
280,353,000
283,285,000
286,429,000
321,555,000
323,971,000
324,794,000
327,734,000
359,066,000
360,940,000
363,838,000
366,898,000
366,898,000
$
$
$
$
$
$
$
$
$
$
$
2,823,000
2,932,000
3,144,000
Total:
$
$
$
$
$
$
$
$
$
$
$
$
268,996,000
271,928,000
275,072,000
275,072,000
275,072,000
275,072,000
275,072,000
275,072,000
275,072,000
275,072,000
275,072,000
275,072,000
$
$
$
$
$
$
$
$
$
$
$
2,823,000
2,932,000
Total:
$
$
$
$
$
$
$
$
$
$
$
$
268,996,000
271,928,000
271,928,000
271,928,000
271,928,000
271,928,000
271,928,000
271,928,000
271,928,000
271,928,000
271,928,000
271,928,000
$
$
$
$
$
$
$
$
$
$
$
2,823,000
2,932,000
3,144,000
Total:
$
$
$
$
$
$
$
$
$
$
$
$
263,393,000
266,325,000
269,469,000
269,469,000
269,469,000
269,469,000
269,469,000
269,469,000
269,469,000
269,469,000
269,469,000
269,469,000
FMS Query
16
5/11/2015
Account Coding
All Accounts
Appropriation Index (AI Or Appr)
Operating Accounts
Appr
•101
•3E0
•123
•BH2
•BD1
Source
• State
• State
• State
• State
• State
Title
General Fund
General Fund
Worker Retraining
Aerospace Training
Student Achievement
17
5/11/2015
Appropriation Index (AI Or Appr)
Operating Accounts
Appr
Source
Title
•148
• Local
Dedicated
(Student Fees, SelfSupport)
•149
• Local
Local (Tuition)
Appropriation Index (AI Or Appr)
Operating Budget Accounts
Budgetary
Fund
• 000
Fund
• 001
• 08A
• 149
• 148
• Consolidated
‘operating’ budget
• Should never be used
with actual
expenditures
18
5/11/2015
Appropriation Index (AI Or Appr)
Operating Accounts
Appr
Source
• Federal,
•145
State, Local &
Non-Profit
• Local
•4xx
Title
Grants & Contracts
Internal Service
(Central Stores,
Copiers,…)
Appropriation Index (AI Or Appr)
Operating Accounts
Appr
•5xx
•8xx
Source
• Sales of
Title
goods,
services
Auxiliary
(Bookstore, Childcare,
Parking, ASG)
• Other Funds
Financial Aid, Student
Loans, Endowments
19
5/11/2015
Program Index (PI Or Prog)
Primary Activities (Operating)
Prog
Purpose
• Instruction
•01x
•011
•012
•014
•016
•018
–Academic
–Vocational/Technical
–Continuing Education
–Pre-College <100 Level
–Basic Skills <90 Levl
Appr
101, 3E0,
123, AV1,
BD1, 148,
149
Program Index (PI Or Prog)
Primary Activities (Operating)
Prog
Purpose
• Academic Support
•04x
•041
•042
•043
•044
•05x
– Academic IT
– Shop Jobs
– Academic Admin
– Instruction Prof Dev
– Library Services
Appr
101, 3E0,
123, AV1,
BD1, 148,
149
20
5/11/2015
Program Index (PI Or Prog)
Primary Activities (Operating)
Prog
•06x
–061
–062
–063
•08x
–081
–082
–083
–085
Purpose
• Student Services
Appr
101, 3E0,
- Student Services
123, AV1,
- Educational Activities
- Special Programs
BD1, 148,
• Institutional Support
149
– Management
– Fiscal Operations
– General Support
– Community Relations
Program Index (PI Or Prog)
Primary Activities (Operating)
Prog
•09x
•091
•092
•093
•094
•097
Purpose
Appr
• Plant Operations &
101, 3E0,
Maintenance
– Utilities
148, 149
– Building & Equip
Maintenance
– Custodial & Grounds
– Physical Plant Admin
–Safety & Security
21
5/11/2015
Program Index (PI Or Prog)
Sponsored Programs
Prog
•1xx
•111
•118
•116
•143
•161
•162
•163
Purpose
• Grants & Contracts
Appr
145
– Academic Instruction
– Basic Skills
– College Prep
– Academic Admin
– Basic Student Services
– Educational Opportunities
– Special Programs & Services
Program Index (PI Or Prog)
Auxiliary Programs
Prog
Purpose
Appr
• Service Operations
•2xx
•252
•254
•261
•264
•265
– Parking
– Central Stores
– Campus Stores
– Student Activities
– Childcare
528
440
524
522
570
22
5/11/2015
Program Index (PI Or Prog)
Other Programs
Prog
Purpose
Appr
•3xx
• Debt Services, Pooled
790, 840,841
•5xx
Cash
•Revenue
148,149,060
•9xx
•State Capital Projects
SBCTC
Assigned
Organizational Index (OI Or Org)
All Areas
Org
Purpose
•1xxx
• Adminstration / Support Services /Grants
•2xxx
•3xxx
•4xxx
•5xxx
•6xxx
/Contracts
• Instruction
•Cont Ed/Shop Jobs
•Enterprise
•Financial Aid
•Student Lab Fees
23
5/11/2015
Subobject
All Program Areas
Obj
•A
–AA
–AB
–AZ
–AE
–AH
–AQ
–AD
• B*
Type
• Salaries
– President/Vice President
– Exempt Director/Manager
– Exempt Admin Asst
– Faculty Perm FT
– Faculty Temp PT
– Classified Perm
– Classified/Other Temp PT
• Benefits
Subobject
All Program Areas
Obj
• C*
• E*
• G*
• J/K*
• N*
• T*
Type
• Contracts
• Goods/Services
• Travel/Meals
• Equipment
• Grants
• Transfers
24
5/11/2015
Budget Basics
Questions?
25