CPC
Budget Planning
February 11, 2015
Unrestricted General Fund
Trend Analysis
Unrestricted General Fund
Revenue and Expense Trends
FY 2009-10 thru FY 2017-18
Revenues
Expenses
$68
Millions of Dollars
$66
$64
$62
$60
$58
$56
$54
$52
$50
2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18
Actual Actual Actual Actual Actual Budget Projected Projected Projected
General Unrestricted and Restricted Funds
Fund Balance
FY 2009-10 thru Projected FY 2017-18
$20
$18
Millions of Dollars
$16
Unrestricted Fund Balance
Restricted Fund Balance
$14
$12
$10
$8
$6
$4
$2
$FY 2009-10 FY 2010-11 FY 2011-12 FY 2012-13 FY 2013-14 Projected Projected Projected Projected
FY14-15 FY15-16 FY16-17 FY17-18
Categorical Funding
SSSP and Student Equity
Changes to Funding
Actual Revenue
FY 2011-12
Unrestricted General Fund
Restricted Student Services Funds
4%
Projected Revenue
FY 2015-16
Unrestricted General Fund
Restricted Student Services Funds
8%
96%
92%
State Categorical Apportionment
Student Services
$6
Millions of Dollars
$5
$4
$3
$2
$1
$-
08-09
Recalc
11-12
Recalc
12-13
Recalc
13-14
P2
14-15
P1
15-16
Projected
Student Services Funding
(Assumes No Increase to Local Contributions Beyond 2014-15 Levels)
General Funds
FY 11-12 through Projected FY 15-16
$7,000,000
Unrestricted
General Funds (Includes Required Match)
Restricted Fund
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$0
2011-12 Actual
2012-13 Actual
2013-14 Actual
2014-15 Budget 2015-16 Projected
Student Services Funding
(Assumes 2:1 Required Match)
General Funds
FY 11-12 through Projected FY 15-16
$8,000,000
Unrestricted
General Funds (Includes Required Match)
Restricted Fund
$7,000,000
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$0
2011-12 Actual
2012-13 Actual
2013-14 Actual
2014-15 Budget 2015-16 Projected
CPC
What is your
Risk Tolerance?
Tolerance Score
•
•
•
•
•
18 or below= Low risk tolerance
19 to 22 = Below-average risk tolerance
23 to 28 =Average/moderate risk tolerance
29 to 32 =Above-average risk tolerance
33 and above = High risk tolerance
• Would the answers to the questionnaire change if
you were investing someone else’s money rather
than your own?
• Does your risk tolerance play a role in your views
about the college’s finances?
2015-18 Budget Planning
•
2014-15: Cabrillo will reach 10,887 FTES target.
Deficit reduced from $1 million to $.5 million
•
2015-16: Best state budget in years:
Revenue Changes:
o 1.58% COLA
o Increase in unrestricted general fund revenue? There is chance the legislature will
make this funding restricted in May Revise
Expenditure Changes:
o Unprecedented increases in PERS/STRS rates
o Continuous increases in medical benefit/retiree benefit contributions
Local challenges:
o Cabrillo enrollment down at all locations
o Cabrillo will be funded at 10,887 in 2015-16 but a permanent loss of funding will
occur in 2016-17
o We must maintain 10,000 FTES total and 1,000 FTES at the Watsonville Center
2015-18 Budget Planning
•
2016-17: Cabrillo will reach 10,500 FTES,
Permanent loss of funding is approx. $2 million
•
Proposition 30 begins to phase out
•
Loss of funding impacts other programs:
o
o
Lottery, SIE, Deferred Maintenance and Student Services programs that
receive funding based on FTES.
Also reduces the Full-time faculty obligation number and faculty replacements.
•
Concerns about meeting compliance requirements such as 50% law
•
Expenditure Changes:
•
Local challenges:
o Unprecedented increases in PERS/STRS rates continues
o More increases in medical benefit/retiree benefit contributions
o Cabrillo enrollment down at all locations
o Cabrillo will be funded at 10,887 in 2015-16 but a permanent loss of funding
will occur in 2016-17
o We must maintain 10,000 FTES total and 1,000 FTES at the Watsonville Center
Reserves/Ending Balance
• How much do we keep in
our reserves?
• What is the best use of
operating reserves?
What actions are needed
and when?
• Development and implementation of a
restructuring plan for the college.
• Begin planning process now
• Phase in restructuring- implement by July 1, 2016