March, 2014 CPC- For information discussion
2014-15 Base Budget Planning Assumptions (Best, Mid, Worst Case)
2013-14 Structural Deficit
2013-14 Revenue Adjustments
A. Restoration/Growth @ 1.63%
2014-15 Revenue Adjustment
2014-15 Revenue adjustments
A. Restoration/Growth
B. COLA- .86%
C. Other
TOTAL Revenue Adjustment
Worst
Case
(750,000)
Range
MidRange
(750,000)
Best
Case
(750,000)
0
0
0
0
?
?
0
0
470,000
?
470,000
0
470,000
?
470,000
78,000
117,000
(2.0)
(324,000)
(248,000)
(50,000)
(100,000)
(33,000)
(125,000)
?
?
(802,000)
(1,082,000)
1,082,000
0
(3.0)
(300,000)
(200,000)
(50,000)
(50,000)
(23,000)
(100,000)
?
?
(606,000)
(886,000)
2013-14 Expenditure Adjustments
Full-time Faculty Obligation 39,000
2014-15 Funded- FON positions 192.25 (Fall 2014 FON TBD- will be unfrozen)
Fall 2013 frozen FON- 177.6 (Fall Actual 187.25 excluding Children's Center teachers)
(1.0)
Step, Column, Longevity, etc
(348,000)
Medical Benefit Increase- 8% (50%-50% cost share = 1/2)
(296,000)
Retiree Medical Benefit Increase
(50,000)
Utilities
(150,000)
PERS
(43,000)
Net Operating Increases
(150,000)
Other?
?
Labor/Negotiations agreeements
?
Total Expenditure Adjustments
(998,000)
Projected 2014-15 Structural Balance (Deficit)*
(1,748,000)
One-time Reserves used to bridge deficit
Net Deficit for 2014-15
(1,748,000)
(886,000)
* The ongoing deficit includes the ongoing portion of the salary increase for 2013-14 only. Does not include categorical program impacts on the general fund.
The salary/benefit budget includes a credit to the expense lines of $300k for salary/benefit savings.
March 2014 CPC- For Information Discussion
ONE-TIME OPERATING RESERVES
Operating Reserves unallocated as of 3/1/14
ADD:
2012-13 one-time increase from recalculation
Anticipated Budget Savings from 2013-14
LESS:
Reserves needed to balance 2014-15 budget
Increase in SSSP/Student Equity Match
Increase in Scheduled Maintenance Match/SIE Match
Program Planning Funding for 2014-15
Projected Operating Reserves available in 2014-15*
* Does not include FTES reserve of $1,000,000 or the 5% General Reserve
Projected
$500,000
$800,000
$2,000,000
($1,082,000)
($1,100,000)
($908,000)
?
$210,000
March 2014 CPC For Information Discussion
2014-15 through 2017-18
Base Budget
Planning Parameters
2014-15
Projected
Difference between ongoing Revenues & Expenses (Structural Deficit)
2015-16
Projected
(750,000)
2016-17
Projected
2017-18
Projected
(1,082,000)
(1,437,000)
(1,787,000)
Increase in State Revenue Anticipated
A. Restoration/Growth
B. COLA @.86%, 1.0%, 1.0%,1.0%
C. Other
Net change in revenue
0
470,000
?
550,000
?
555,000
?
560,000
(280,000)
(532,000)
(882,000)
(1,227,000)
Net Increases in Ongoing Expenses
Full-time Faculty Position changes net of retirements & adjunct backfill
Add Counseling Teaching Units for CG 51 Courses
Step, Column, Longevity Increases, etc.
Medical Plan Rate Increase-- 8% (50%-50% cost share in place)
Retiree Benefit Increase
PERS Rate Increase
STRS Rate Increase
Utilities
Net Operating Increases
Labor agreements
Total Expenditure Increases
78,000
?
(324,000)
(248,000)
(50,000)
(33,000)
0
(100,000)
(125,000)
?
(802,000)
?
?
(324,000)
(248,000)
(50,000)
(33,000)
?
(100,000)
(150,000)
?
(905,000)
?
?
(324,000)
(248,000)
(50,000)
(33,000)
?
(100,000)
(150,000)
?
(905,000)
?
?
(324,000)
(248,000)
(50,000)
(33,000)
?
(100,000)
(150,000)
?
(905,000)
Budget Reductions
?
?
?
?
Ongoing Shortfall*
(1,082,000)
(1,437,000)
(1,787,000)
(2,132,000)
Operating Reserves available to bridge deficit
Deficit net of One-time funds
* Cost of 1% for all employees = $427,000. The salary estimates do not include
the one-time salary increase for 2013-14.
RDA and EPA revenue shortfalls continue to be a major threat.
The RDA shortfall was backfilled for 2012-13 and 2013-14 but there is no guarantee this will continue.
1,082,000
0