Lindsey, Lee
From:
Sent:
To:
Subject:
Attachments:
Lindsey, Lee
Saturday, February 22, 2014 6:15 PM
'Daniel Potts'; Dennis, Michael; Edgmon, Doug; Engman, Tami; Gaines, Chris; Hill,
Angelina; Janis, Anita; Matsumoto, Tami; McGovern, MaryGrace; Morse, Crystal; Ries,
Richard; Roper, Steven; Snow-Flamer, Keith; Spalding, Carla; Walsh, Lorie
BPC long range budget forecast
College of the Redwoods_2-7-2014.pdf
The Accrediting Commission for Community and Junior Colleges, Western Association of Schools and Colleges (ACCJC) has directed President Smith to develop and submit a cash flow plan for the next three years. This ACCJC Special Report is due by April 15, 2014 as cited in the attached document. The BPC is already reviewing and preparing recommendations on the 2014‐15 budget forecast based on the January 2014 Governor’s State budget proposal. Staff prepared a preliminary draft 2015‐16 and 2016‐17 budget forecast as data to support the preparation of the ACCJC Special Report. As a professional courtesy, it is requested that you please refrain from “bulk forwarding” this email as its contents have not been approved by the Committee and therefore represent a preliminary draft BPC working paper. Once the BPC votes, your Committee’s recommendations will be posted to the BPC website. 1
Unrestricted General Funds
Fund 10
PRELIMINARY DRAFT
Funded FTES
COLA
Enrollment Gain (Loss)
Non-Credit, Non-Res, Other
Revenue
Changes
2015-16 Bgt
2016-17 Bgt
508,101
4137
251,524
256,577
26,729,563
1,077,365
4220
259,890
386,960
430,516
27,806,928
Academic & Admin Salaries
230,000
11,723,809
230,000
11,953,809
Manager & Staff Salaries
Benefits
Supplies & Materials
Services & Other Operating
Capital Outlay
All Transfers
Expenditure & Transfers
100,000
347,500
8,863
78,976
75,000
840,339
4,487,425
6,736,049
451,993
4,027,794
277,086
742,907
28,447,063
100,000
467,700
9,040
80,556
90,000
75,000
1,052,296
4,587,425
7,203,749
461,032
4,108,350
367,086
817,907
29,499,359
Prior year bgt savings
Net Revenue
Required Budget Savings
Net Revenue
Beginning Fund Balance
Ending Fund Balance
Fund Balance Percent
0
Changes
83
(1,400,000)
(1,775,000)
(317,500)
375,000
57,500
82,570
82,570
1,448,593
1,506,093
1,506,093
1,588,662
5.3%
5.4%
PRELIMINARY DRAFT Approved by BPC via email vote on nn/nn/2014
2015‐16: Funded for‐credit student enrollments remain at the same level as the 2014‐15 forecast. A 1.3% State COLA is included with an increase in non‐resident tuition and/or other revenue. A $100K deficit factor reserve is embedded in this revenue forecast. In expenditures, salary costs are projected to increase at the same rate as the 2014‐15 forecast. Benefits include health and welfare costs increasing at a similar rate as the 2014‐15 forecast and increased employer paid retirement and/or unemployment costs. A $75K increase in the transfer to the OPEB fund is included. A $375K budget shortfall is identified. After the Governor releases the January 2015 Governor’s State budget proposal, the BPC will recommend solutions to the President/Superintendent to close any identified budget shortfall. 2016‐17: Funded for‐credit student enrollments are projected to increase by 2%. A 1.3% State COLA is included with an increase in non‐resident tuition and/or other revenue. A $100K deficit factor reserve is embedded in this revenue forecast. In expenditures, salary costs are projected to increase at the same rate as the 2015‐16 forecast. Benefits include health and welfare costs and employer paid retirement and/or unemployment costs increasing at an accelerated rate. A $75K increase in the transfer to the OPEB fund is included. Capital outlay is augmented by $90K. No budget shortfall is identified. After the Governor releases the January 2016 Governor’s State budget proposal, the BPC will recommend solutions to the President/Superintendent to close any identified budget shortfall. BPC Action: Please vote “Yes” or “No” to recommend the 2015‐16 and 2016‐17 budget forecasts to the President as evidence in support of the ACCJC Special Report. Please email reply with your vote no later than the close of business on 2
Wednesday, March 5, 2014. It is important to vote on time as the Committee’s recommendations will be reviewed at Thursday morning’s Executive Cabinet on March 6, 2014. If a Committee member instead prefers to meet and confer, then please email reply with your request for a special meeting no later than the close of business on Wednesday, February 26, 2014. If a majority of the Committee elects, then a special BPC meeting will be scheduled. This communication helps the District meet the Accreditation Standards including, An institution‐wide dialogue must be at the heart of the self evaluation process, Standard III.D The institution plans and manages its financial affairs with integrity and in a manner that ensures financial stability, and Standard III.D.1.d. The institution clearly defines and follows its guidelines and processes for financial planning and budget development, with all constituencies having appropriate opportunities to participate in the development of institutional plans and budgets. 3