2013-14 Notice of Tentative Budget
Finance & Audit Committee
June 12, 2013
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Total Tentative Budget—
All Funds
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2013-14 Proposed Tentative Budget
All Funds =$3,181,503,141
2011-12
2012-13
2013-14
Actual
Final Budget
Proposed
Tentative Budget
515,254,653
90,815,197
2,364,281
21,780,325
8,672,212
45,521,752
383,318,174
17,218,260
239,594,642
544,670,719
82,943,271
2,506,327
27,792,132
4,134,381
23,884,053
2,444,328,101
5,310,000
342,705,907
APPROPRIATIONS
Unrestricted General Fund
Restricted General Fund
Cafeteria
Bookstore
Child Development Centers
Special Reserve
Building Fund
Debt Services
Student Financial Aid
Less Inter/Intra-fund Transfers
TOTAL BUDGET
(13,142,171)
(8,017,064)
601,819,093
43,674,829
2,298,974
28,103,298
2,123,752
15,555,096
2,279,033,680
5,315,000
211,827,643
(8,248,224)
1,311,397,325 3,470,257,827 3,181,503,141
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2013-2014 PROPOSED TENTIVE BUDGET
Summary of all Funds – Three-Year Comparison
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Finance and Audit Committee Presentation
TOPICS FOR DISCUSSION
State Budget Update and Effects on LACCD
20132013-14 Budget Development
20132013-14 Proposed Tentative Budget
- Unrestricted General Fund
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Governor’s May Revise
May Revise proposes Proposition 98 funding of $56.5 billion in fiscal 2012-13 and $55.3
billion in fiscal year 2013-14 for K-12 and Community Colleges.
May Revise reflects a $2.8 billion increase in Proposition 98 funding in current year 201213 and a projected decrease of $1.8 billion in budget year 2013-14 for K-12 and
Community Colleges.
Governor proposes to use these one-time funds to reduce the deferrals of payments to
schools and community colleges and to support the implementation of new academic
standards.
Governor proposes the following funding for California Community Colleges
-- Current year 2012-13 - $340 million deferral buy down
-- Budget year 2013-14 - approximately $300 million augmentation to community
colleges
-- Withdrawn - Adult Education Proposal, 90-unit Cap Proposal, and Census Proposal.
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Impact on LACCD Budget
2013-14 Budget Year (about $300 million increase in funding)
Apportionment
$227 m for CCC (about $30 m more than January’s Proposal)
$87.5 m for COLA (1.57%) => LACCD = $7.3 m
$89.5 m for Restore Access (1.63%) => LACCD = $7.1 m
$50 m Increase for Student Access and Support (former Matriculation Program) => LACCD =$9 m (Restricted)
Other Additional Funding
$30 m for Adult Education (applied toward 2-yr planning and implementation)
$16.9 m for Delivery of Online Courses through Technology
$1.5 m additional in funding for Proposition 39 for total of $51 m
$64.5 m additional deferral buy down – LACCD $6 m reduction (from $76 m to $70 m)
Other Proposal Policies:
90-unit cap proposal - withdrawn
Adult Education Proposal - withdrawn
Online proposal doesn’t change
Require FAFSA for Waiver – Require BOG to develop process for determining student independence. Allow one
term grace period for completion of FAFSA
2012-13 Current Year ($340 m deferral buy down)
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•
Additional deferral buy down - LACCD =$26 m (from $102 m to $76 million)
State to backfill any shortage in property tax related to the dissolution of RDAs
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State Budget Update
Senate Version
Assembly Version
Conference Committee
To be updated on Monday or Tuesday with comparison using
the latest state budget update.
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FY 2013-14 Budget Development
2012-13 Projected Balances and Current Reserves
• FTES
• Budget Assumptions
• 2013-14 Proposed Tentative Budget
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FY 2013-14 Budget Development
FY2012-13 Projected Balance
Projected Revenue
$512.56 m
Projected Expenditures
506.67 m
Revenue over Expenditures
$5.89 m
Prior Year Adjustments
Mid-year deficit
Balances Carried Forward for 2011-12
Projected Ending Balance
% of Projected Expenditures
1.27 m
(0.00 m)
$74.68 m
$81.84 m
16.15%
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FY 2013-14 Budget Development
Current Reserves
◦ General Reserve = $23.49 m (5%)
◦ Contingency Reserve = $24.37 m (5%)
Contingency Reserve (@7.5%)
Uses of Contingency Reserve to date:
Accreditation Planning Activities
Redistributed to Colleges (2.5%)
Faculty Hiring (FON) Subsidy
Remaining Contingency Reserve
(0.738) m
(9.988) m
(0.140) m
$24.37 m
◦ Deferred Maintenance Reserve (0.5%)
$ 2.35 m
$35.24 m
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FY 2013-14 Budget Development
Contingency Reserve
Funds Set Aside from new revenue
May be used during current year, for example,
mid-year budget corrections
Requires Board Approval to be used
General Reserve
Funds set aside from the previous year’s ending balance
May not be used during the current year
for appropriations or expenditures
Ensures minimum level of balances available to be carried
forward for future fiscal years
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FY 2013-14 Budget Development
FTES
Second Period FTES – 2012-13 = 97,759 FTES
• Funded FTES = 96,840 FTES
• 936 unfunded FTES or about 1% over cap
2013-14 Budget Year Targets = 98,776 FTES
• Planning Growth Target = 2% or 1,936 FTES
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2013-14 Budget Development
Revenue Assumptions
Revenue Adjustments – Reduce COLA and
Restoration/Growth based on May Revise:
• COLA – 1.57%
• Restoration/Growth – 1.63%
Allocation Assumptions:
• Maintain college and district allocations at the Preliminary Budget Level based on
the Governor’s Proposed Budget
• No COLA and Growth Reduction/Adjustments to locations pending State’s Adopted
Budget
• Maintain a 5% General Reserve Reserve and a 5% Contingency Reserve
• No distribution of the projected balances until year end.
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2013-2014 PROPOSED TENTIVE BUDGET
Unrestricted General Fund
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2013-2014 PROPOSED TENTIVE BUDGET
Budget Planning for Final Budget
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Budget Development Revenue Assumptions
are based on the Governor’s May Revise, potential
changes will be made for Final Budget when State
Budget is adopted.
•
Increase funding for categorical programs and one-time
funding programs.
•
Open Orders and Balances.
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Supplemental Information
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