BUDGET AND FINANCE COMMITTEE
2014-15 First Quarter Financial Status Report
November 5, 2014
 2014-15 First Quarter Financial Status Report
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-- Status of Fund Balance
Enrollment Planning and Targets
State Budget Outlook for FY 2015-16
2015-16 Budget Planning and Development
Budget Cautions and Concerns
2014-15 First Quarter Financial Status Report
November 5, 2014
FY2014-15
(as of First Quarter, since the Board of Trustees has not granted any salary increases,
The first quarter projection assumes no salary increases at this time)
Projected Revenue
Projected Expenditures
$546.91 m
546.50 m
Proj. Revenue Over Expenditures
$ 0.41 m
Balances Carried Forward for 2013-14
$73.31 m
Projected Ending Balance
Percent of Projected Expenditures
$73.72 m
13.49%
2014-15 First Quarter Financial Status Report
November 5, 2014
Status of Fund Balance
Financially favorable – projected to end the year with $73.7 million in
Unrestricted General Fund with new revenue from:
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$4.14 million in COLA (0.85%)
• $12.59 million in enrollment growth revenue (2.75%)
FTES
4
 2014-15 Funded Base = 99,613 FTES
 2014-15 Budget Year Targets = 104,344 FTES
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Planning Growth Target = 4.75%
State Funded Enrollment Growth = 2.75%
District will fund colleges at cost = $2,324 per FTES
for a 2% over-cap from Contingency Reserve
2014-15 Reserves
General Reserve (6.5%)
Contingency Reserve (3.5%)
Deferred Maintenance Program Reserve (1%)
Total Reserves
34,440,765
19,085,721
5,453,063
$58,979,549
State Budget Outlook
2015-16 California Community College System Budget Request
- $735 million
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$120 million for Access => approximately 2% growth in FTES
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$180 million for COLA (3%) => estimated statutory COLA for FY 2015-16 is
estimated by School Services of California to be 2.1%
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$100 million for Full-time and Part-time faculty
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$200 million Student Success and Student Equity Plans
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Enhanced Noncredit Rate – Commencing in 2015-16, the Enhanced Noncredit
rate will equal the credit rate
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Implementation of New State Growth Allocation Formula
LACCD – 2015-16 Proposed Budget Planning Assumptions
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The Budget will be based on Governor’s State Proposed
Budget to be released in January 2015
The Budget Plan will reflect the Board’s visions and priorities to
support the educational programs and services of the district
Focus on Student Success and improve Student Equity
Meet accreditation standards
Cover hiring of full-time faculty to maintain the Faculty
Obligation Number
Ensure funding is adequately provided for facilities
maintenance and operation needs
Maintain a minimum of 10% reserves
Budget Cautions and Concerns
 Proposition 30 is temporary
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Sale tax increase terminates at the end of 2016
(approximately 21% of Prop 30 revenues)
Income tax increase terminates at the end 2018
 STRS Obligations
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Employee contribution rate will increase to 8.88% in 2014-15 to 19.1% as of 2021
Significant costs for the District and Colleges
 FON Obligations and Penalties
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Fall 2008 was 1,461 and reported 1,434.53, for a difference of 26.47 full-time
equivalent faculty =>penalty for Fall 2008 of $1,699,930. The penalty amount
will be adjusted on the 2013-14 Recalculation Exhibit C and appear as a prior
year adjustment.
FON Planning and Obligation for Fall 2015
 Accreditation
 OBAMA Care – “Cadillac Tax”?
 Deficits