AGENDA ITEM BACKGROUND
TO: GOVERNING BOARD
DATE
FROM: PRESIDENT
August 5, 2013
SUBJECT:
2012-13 and 2013-14 Budget Planning Update
REASON FOR BOARD CONSIDERATION
ENCLOSURE(S)
ITEM NUMBER
INFORMATION
Page 1 of 10
G.5
BACKGROUND:
The Governing Board approved the 2013-14 Preliminary Budget on June 10. The highlights of the 201314 state budget includes the following funding plan for California Community Colleges:
x
$38million more in categorical funding than was proposed by the Governor
x $50 million for Student Success and Support- including $15million for DSPS, $15 million for EOPS, and
$8 million for CalWORKs.
x
A COLA of 1.57% and funding to restore access of 1.63%
x
$30 million for deferred maintenance (specified as one time funds, though paid with budget year money).
x
$25 million for local planning grants related to new adult education consortia.
x $48 million for energy efficiency activities related to Proposition 39 to be allocated in a manner determined
E\WKH&KDQFHOORU¶V2IILFH'LVWULFWUHSRUWLQJUHTXLUHPHQWVZLOOEHVSHFLILHGLQWUDLOHUOHJLVODWLRQ
x
$16.9 million for the Online Education Initiative.
x Cabrillo will receive approximately $137,000 for Scheduled Maintenance funding and $137,000 for State
Instructional equipment funding on a one-time basis for 2013-14.
x
$150,000 in funding for the Academic Senate.
x
The budget agreement will pay down $30million in deferrals in 2013-14.
The budget planning materials have been updated to reflect 2012-13 and 2013-14 state and local budget
changes. More changes will be made as the state releases trailer bills.
The Governing Board will be asked to approve the budget planning assumptions and 2013-14 Final
Budget at the September Board meeting.
Administrator Initiating Item:
Graciano Mendoza
Victoria Lewis
Academic and Professional Matter
If yes, Faculty Senate Agreement
Senate President Signature
; No
Final Disposition
2013-14 Budget Reduction Process, Commitments, and Strategies (pages X - X)
x The 2013-14 Budget Reduction Process Commitments, Criteria and Strategies were updated to
reference the goals in the Strategic Plan and the need to design and implement the Student
Success Initiative for the college.
2012-13 through 2013-14 Budget Development Timeline (pages X - X)
x The budget calendar includes all shared governance and board meetings associated with the
budget planning process for 2013-14.
2013-14 Base Budget Planning Assumptions (page X)
x The 2012-13 through 2013-14 budget planning assumptions reflect the impact of the passage of
proposition 30 on state revenue anticipated by the college for 2012-13 and 2013-14.
x Estimates have been updated to reflect the 1.57% COLA included in the 2013-14 state budget.
x Although the college allocated resources to restore course offerings for 2013-14, no revenue
associated with these offerings is included in the budget planning assumptions.
x Community Colleges do not receive backfill for shortfalls in redevelopment, local property tax or
student enrollment fee shortfalls. The apportionment shortfall for 2013-14 is currently estimated
at 2% or $1.2 million for Cabrillo.
x The expenditure assumptions include the replacement of eight full-time faculty positions and the
DOORFDWLRQRIIXQGLQJWRPDLQWDLQWKHFROOHJH¶VHQUROOPHQWDQGFDSWXUHUHVWRUDWLRQIXQGLQJRI
1.6%; $750,000 for Cabrillo.
x The District has concluded the bargaining process for all employee groups for the 2013-14 fiscal
year. The cost of the agreements has been added to the budget planning assumptions.
x The 2013-14 Final Budget will be developed using the mid-case scenario. The projected deficit
for planning purposes is approximately $1.9 million. The college expects to have adequate
reserves to cover the deficit.
2013-14 through 2016-17 M ulti-Year Base Budget Planning Assumptions (page X)
x The long-term projection for 2014-15 through 2016-17 projects new revenue in the form of
COLA.
x With new revenue comes a requirement to hire new faculty in order to meet the faculty obligation
requirement. The faculty obligation number has been frozen since 2008 due to lack of funding.
The Board of Governors is expected to unfreeze the faculty obligation number in fall of 2014.
x 7KHFROOHJH¶VHQUROOPHQWLVGHFOLQLQJ7KHcollege has allocated ongoing and one-time funding to
capture restoration funding and stabilize enrollment. The college may have to allocate more
funding in future years to maintain enrollment to the funding cap.
One-Time Operating Reserves (page X)
x The Business Office will close the fiscal year in the finance system in mid-August. The ending
balances for all funds will be included in the 2013-14 Final Budget document.
x The college budgeted reserves of $3.1 million to balance the 2012-13 Final Budget. Changes in
the operating reserves are summarized as follows:
x The college is anticipating budget savings of $1.5 million.
x The college will use $666,503 of the operating reserves to restore the FTES reserve back
up to $1 million in 2013-14.
x Operating reserve funds of $1.9 million will be used to balance the 2013-14 Final Budget.
x $1.3 million of operating reserves will be used to fund the one-time (off-schedule) salary
increases for 2013-4.
x The college allocated $24,736 in operating reserves for 2013-14 one-time expenditures.
April 8August 5, 2013 Board Meeting
2013-14 Budget Reduction Process Commitments,
Criteria and Strategies
The economic crisis affecting the state budget is conservatively projected to end soon. At the current time, our
best efforts at projecting the fiscal impact on Cabrillo indicate that our state funding may begin to increase over
the next few years.
The intent of the following process commitments, criteria and strategies is to enable Cabrillo to move from
being a college that ishas been organized and staffed to operate on a $60 million budget to an organization and
staffing level that can deliver sustainable services to the community within a smaller budgetthe ongoing
resource allocation from the state.
I.
Process Commitments
A.
Link Budget planning, including program and service changes and redesign efficiencies, to long
range planning, including the evaluation of the impact on student success.
B.
Utilize the appropriate forums to dialogue about the restructuring, consolidation, reductions,
and/or elimination of programs and services resulting from a reduction in resources.
C.
In the event that program and workforce reductions are necessary, the college will work to
preserve faculty, staff and management positions when possible and, if not possible, will assist
with employment-related transitional issues.
D.
The process will be characterized by openness, respect, sensitivity, and inclusiveness.
The College Master Plan provided the general framework for the following criteria:
II.
Criteria
A.
Compliance Requirements
1.
Maintain accreditation standards of the college and academic programs
2.
Maintain state and federal compliance requirements (Strategic Plan Goal B) e.g.:
50% law
Full-Time faculty obligation number (FON)
Accessibility
B.
Preserve transfer, basic skills, and Career Technical Education so students are able to complete
their academic goals (Strategic Plan Goal A)
Core courses toward an AA/AS
General education breadth
Labor market
C.
Minimize negative impact on student success (Strategic Plan Goal A) e.g.
ARCC
D.
Optimize enrollment to achieve maximum state revenues.
E.
Minimize impact of non-base budget programs on General Fund (Strategic Plan Goal A)
Ancillary/Auxiliary operations
Revised 2/27/137/29/13
Categorical and grant-funded programs
III.
F.
Maximize efficiency of programs and services (Strategic Plan Goal A and Technology Plan)
Are college programs and services efficient?
WSCH/FTEF
Non-redundant
G.
Minimize the negative impact on the operational needs of new and existing facilities (Strategic
Plan Goal B and Facilities Master Plan)
H.
Optimize effective utilization of college facilities (Strategic Plan Goal B)
I.
Maximize flexibility and opportunities for employees (Process Commitment C)
Strategies
A.
Design and implement the Student Success Initiative for the college.
B.
Review all auxiliary and categorical program budgets with the appropriate budget administrator
to identify reductions.
C.
Evaluate college-wide services and systems; explore alternative models across components;
reduce costs, reduce duplication of function, and increase efficiencies throughout the college.
D.
Management of personnel budget.
Process Overview
Utilize salary savings for vacant positions to reduce the overall budget reduction target.
Salary savings may be used to fund replacements for vacant positions based on demonstrated
need and the approval of the Vice President/President.
Salary savings may not be used to cover other operating expenses or equipment purchases.
Cabinet may approve the recruitment of vacant positions based on demonstrated need.
Human Resources will provide a list of vacant positions and the status of recruitments on a
weekly basis.
Administrative Services will provide a report of cumulative salary savings on a monthly
basis.
E.
Evaluate facility use for efficiency and effectiveness.
Watsonville
Scotts Valley
Energy Use Reduction
F.
Discuss compensation and benefit programs with all employee groups.
IV.
Historical Data Available
A.
Internal Data
Accreditation Self-Study http://www.cabrillo.edu/services/pro/accred/index.html
Budget & Benefits Information Center:
http://www.cabrillo.edu/internal/adminservices/budgetcenter/
Educational Master Plan: http://www.cabrillo.edu/services/pro/masterPlan/
FACT Books http://www.cabrillo.edu/services/pro/factbook/
Program Planning Pages http://pro.cabrillo.edu/pro/factbook/programPlanningTables.html
Strategic Plan: http://pro.cabrillo.edu/cmp/
Technology Plan: http://www.cabrillo.edu/services/pro/accred/pdf/ITTP.pdf
B.
External Data
Fiscal Data Abstract 06-07
Current Cost of Education 06-07
WASC Accreditation Standards
http://www.cabrillo.edu/services/pro/accred/pdf/ACCJC%20NEW%20STANDARDS.pdf
CABRI LLO COLLEGE
FY 2012-13 through 2013-14 Budget Development Timeline
August 5, 2013 Board M eeting
Nov./Dec. 2012
January 14, 2013
January 10, 2013
January 8/15/29,2013
January 18, 2013
January 23, 2013
February 11, 2013
February 19, 2013
February 27, 2013
M arch 4, 2013
M arch, 2013
M arch 5/26, 2013
M arch 6, 2013
M arch 6/20, 2013
April, 2013
April 8, 2013
April 9/23, 2013
April 3, 2013
April 3/17, 2013
April - June 2013
M ay 6, 2013
M ay 7/28, 2013
M ay 1, 2013
M ay 1/15, 2013
M ay 25, 2013
CPC/BOARD MEETI NG
Action Items;
- Academic Staffing Recommendation- Replace six full-time faculty positions for Fall 2013
BOARD MEETI NG
Information Items:
- 2012-2014 Budget Update
2013-14 GOVERNOR'S STATE BUDGET
ADMI NI STRATI VE COUNCI L
STATE BUDGET WORKSHOP
MANAGER'S MEETI NG/CPC MEETI NG
Review Governor's Budget and impact of Proposition 30
- Discussed major components of budget planning parameters for 2013-14
-Increase the replacement of full-time teaching faculty from six to eight for Fall 2013
-Permanently fund 280 teach units to stabilize enrollment and capture restoration funding for 2012-13
- Updated revenue assumptions to include 2012-13 restoration funding
BOARD MEETI NG
Information Items:
- Budget Update
ADMI NI STRATI VE COUNCI L
CPC MEETI NG
Information Items:
- Update Budget Parameters FY 2012-13 through 2016-17
- Update Budget Development Timeline- FY 2013-14
- Review Strategies, Commitments and Criteria
BOARD MEETI NG
Information Items:
- Update Budget Parameters FY 2012-13 through 2016-17
- Update Budget Development Timeline- FY 2013-14
- Review Strategies, Commitments and Criteria
First Principal Apportionment 2012-13/ 2012-13 Recal
ADMI NI STRATI VE COUNCI L
MANAGERS MEETI NG
CPC MEETI NGS
Continue to evaluate/revise Planning Parameters
BOARD MEETI NG
Action Items:
- Update Budget Parameters FY 2012-13 through 2016-17
- Update Budget Development Timeline- FY 2013-14
- Review Strategies, Commitments and Criteria
ADMI NI STRATI VE COUNCI L
MANAGERS MEETI NG
CPC MEETI NGS
2012-13 Negotiations- All groups
BOARD MEETI NG
ADMI NI STRATI VE COUNCI L
MANAGERS MEETI NG
CPC MEETI NGS
Governor's May Revise for 2013-14 released
CABRI LLO COLLEGE
FY 2012-13 through 2013-14 Budget Development Timeline
August 5, 2013 Board M eeting
June 2013
June 5, 2013
June 5/19, 2013
June 10, 2013
June 11, 2013
August 5, 2013
August 6/27, 2013
August 7, 2013
August 7/21, 2013
September 9, 2013
September 10/24, 2013
September 4, 2013
September 4/18, 2013
Second Principal Apportionment 2011-12 Received
MANAGERS MEETI NG
CPC MEETI NGS
Action Items:
- 2013-14 Preliminary Budget
Information Items:
- 2013-14 Updated Budget Planning Parameters Final Budget
BOARD MEETI NG
Action Items:
- 2013-14 Preliminary Budget
Information Items:
- 2013-14 Updated Budget Planning Parameters Final Budget
ADMI NI STRATI VE COUNCI L
BOARD MEETI NG
Information Items:
- 2013-14 through 2015-16 Budget Planning Parameters
ADMI NI STRATI VE COUNCI L
MANAGERS MEETI NG
CPC MEETI NGS
BOARD MEETI NG
Action Items:
- 2013-14 through 2015-16 Budget Planning Parameters
- 2013-14 Final Budget
ADMI NI STRATI VE COUNCI L
MANAGERS MEETI NG
CPC MEETI NGS
Cabrillo's budget planning process for 2013-14 began late due to the uncertainty surrounding the passage of Proposition 30.
The 2014-15 budget plannning cycle will begin in September, 2013.
August 5, 2013 Board M eeting
2013-14 Base Budget Planning (Best, M id, Worst Case)
2012-13 Structural Deficit
2012-13 Revenue Adjustments
A. Restoration funds- 1.6%
B. Revenue Adjustment for Prop 30 passing
2013-14 Revenue Adjustment
2013-14 Revenue adjustments
A. Restoration/Growth @ 1.63%
B. COLA @ 1.57%
C. Deficit factor for apportionment shortfalls (3%, 2%, 1%)
D. Other
TOTAL Revenue Adjustment
2013-14 Expenditure Adjustments
Full-time Faculty Obligation - Replace 7, 8, or 9 vacancies
2012-13 Funded positions 196.25
2013-14 Funded positions 193.75 with 8 replacements
Fall 2013 frozen FON- 189.6 /Unfrozen 211.6
Add Teaching Units to maintain enrollment cap from 2012-13 (300, 268, 260)
Add Teaching Units to capture 2% restoration/growth in 2013-14
Step, Column, Longevity, etc
Medical Benefit Increase- 8% (50%-50% cost share = 1/2)
Retiree Medical Benefit Increase
PERS and Other Mandatory Benefit Rate Increases
Permanent Salary Schedule increases- all groups
Total Expenditure Adjustments
Projected 2013-14 Structural Balance (Deficit) *
One-time Reserves used to bridge deficit
Net Deficit for 2013-14
Worst
Case
(2,500,000)
Range
M idRange
(2,500,000)
Best
Case
(2,500,000)
750,000
1,681,326
750,000
1,681,326
800,000
1,681,326
0
0
(1,650,000)
0
781,326
0
850,000
(1,200,000)
50,000
2,131,326
855,000
900,000
(550,000)
100,000
3,786,326
57,000
95,000
133,000
1.5
(531,000)
?
(322,000)
(178,000)
(85,000)
(165,000)
(487,000)
(1,711,000)
(3,429,674)
2.5
(474,360)
?
(322,000)
(178,000)
(85,000)
(165,000)
(487,000)
(1,616,360)
(1,985,034)
1,985,034
0
3.5
(460,200)
?
(322,000)
(178,000)
(85,000)
(165,000)
(487,000)
(1,564,200)
(277,874)
(3,429,674)
(277,874)
* Does not include categorical program impacts on the general fund.
Student Success expenditures moved to restricted fund: Additional 10 days for Counseling contracts, new counseling position, TUs for orientation courses.
The salary/benefit budget includes a credit to the expense lines of $300k for salary/benefit savings.
August 5, 2013 Board Meeting
2013-14 through 2016-17
Base Budget
Planning Parameters
2013-14
Projected
Difference between ongoing Revenues & Expenses (Structural Deficit)
I ncrease in State Revenue Anticipated
A. Restoration/Growth
B. 1/2 COLA @1.57%, 2.3%, 2.5%, 2.7%*
C. Deficit Factor (Prop. Tax, RDA, Student Enrollment Fees)
D. Other
Net change in revenue
Net I ncreases in Ongoing Expenses
Full-time Faculty Position changes (2.5) (net of adjunct backfill) , 15, 8, 6
Add Teaching Units to maintain enrollment cap from 2012-13 (300,268,260)
Add Teaching Units to capture restoration/growth for 2013-14
Step, Column, Longevity Increases, etc.
Medical Plan Rate Increase-- 8% (50%-50% cost share in place)
Retiree Benefit Increase
PERS and Other Mandatory Benefit Rate Increases
STRS Rate Increase
Worker's Comp, Unemployment Insurance
TRAN Interest Expense
Utilities
Net Operating Increases
Labor agreements- all groups
Total Expenditure I ncreases
Budget Reductions
Ongoing Shortfall*
Operating Reserves available to bridge deficit
2014-15
Projected
(68,674)
2016-17
Projected
(1,985,034)
(1,890,034)
(1,715,034)
?
?
?
?
1,265,000
?
1,375,000
?
1,485,000
50,000
(368,674)
(720,034)
(515,034)
(230,034)
95,000
(474,360)
?
?
?
?
?
?
?
(322,000)
(178,000)
(85,000)
(165,000)
?
(487,000)
(1,616,360)
?
(325,000)
(230,000)
(145,000)
(150,000)
?
(50,000)
(20,000)
(100,000)
(150,000)
?
(1,170,000)
?
(325,000)
(230,000)
(145,000)
(175,000)
?
(50,000)
(25,000)
(100,000)
(150,000)
?
(1,200,000)
?
(325,000)
(230,000)
(145,000)
(175,000)
?
(50,000)
(30,000)
(100,000)
(150,000)
?
(1,205,000)
?
?
?
?
(1,985,034)
1,985,034
(1,890,034)
(1,715,034)
(1,435,034)
?
850,000
(1,200,000)
* Deficit net of One-time funds
0
Cost of 1% for all employees = $425,000
RDA continues to be a major threat. The RDA shortfall was backfilled for 2012-13 but there is no guarantee this will continue.
Although RDA will be backfilled for 2012-13, the state is delaying payments to CCCs because of a cash shortfall, increasing
the amounts CCCs must borrow (in addition to apportionment deferrals).
* COLA estimates projected based on School Services of California Financial Dartboard
2015-16
Projected
August 5, 2013
ONE-TI M E OPERATI NG RESERVES
Reserves budgeted for 2012-13 Deficit
Projected
$3,142,914
ADD:
Projected Ending balance
LESS:
Restore FTES Reserve in 2013-14
Budgeted Deficit for 2013-14
One-time allocation Compensation agreements for 2013-14
One-time subfund allocation
Projected Operating Reserves available for 2013-14
* Does not include FTES reserve of $1,000,000 or the 5% General Reserve
$1,500,000
($666,503)
($1,985,034)
($1,300,000)
($24,736)
$666,641
Cabrillo Community College District
Sound Fiscal Management
Self-Assessment Checklist
August, 2013
1.
Deficit Spending—Is this area acceptable? No.
• Is the district spending within their revenue budget in the current year?
No, the State of California has been in the midst of a catastrophic fiscal crisis since 2008.
Since 2008-09, the California Community Colleges were cut by $809 million, or 12
percent, and total enrollment has gone down by 300,000 students (California Community
Colleges Media Statement; June 27, 2012).
The college has employed the use of one-time reserves and made permanent reductions to
the ongoing budget of the college to reduce the budget deficit. The college froze all vacant
positions until programs and services could be prioritized. Savings was garnered from
spending freezes and some one-time fund allocations were re-directed back to the reserves
and used to bridge the budget deficit. These strategies allowed the college to shrink the
college more thoughtfully and slowly. The reduction process was difficult but the college
community worked together to avoided making knee jerk decisions that would have long
term, adverse impacts on our students and the community we serve.
Permanent reductions have been made to most of the operations and funds maintained by
the college. Compared to the 2008-09 fiscal year budget, the college has cut over $11
million from the base operating expenditure budget and over $3 million in ongoing
expenses from the categorical restricted fund programs.
The District began using a multi-year budget planning assumption approach in 2010. This
multi-year approach has allowed the college to take a longer perspective in budget
planning.
•
Has the district controlled deficit spending over multiple years?
Yes, the district maintains 6 subfunds in the General Fund to track various activities; base
budget (ongoing), restricted (grants and contracts), district match (required match for
EOPS/DSPS programs), carryover (funds that are encumbered in the current year but
unspent until the next), one-time, and community education. The 6 subfunds allow for
tighter budget controls thus reducing unplanned deficit spending patterns.
Careful budget planning and ongoing expenditure controls have resulted in an increase in
the level of reserves above the 5% general reserve established statewide standard. In
addition, the college established a $1 million FTES reserve that has been used to support
college enrollment management practices during this period of uncertain state funding. If
transferred for use during the fiscal year, the FTES Reserve is restored to $1 million in the
annual budget process. Mid-year reserves and other operating reserves have been
established to bridge the deficit while permanent reductions were identified and
implemented. The college will continue to maintain one-time reserves above the 5%
general reserve on an ongoing basis.
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•
Is deficit spending addressed by fund balance, ongoing revenue increases, or
expenditure reductions?
During difficult budget years the district has reduced on-going expenditure budgets and set
aside one-time funds to bridge budgeted deficits. At the same time, the district revises
ongoing revenue and expenditure estimates to reflect changes in the state and local
economic environment. Budgets are revised accordingly as new economic information
becomes available.
•
Are district revenue estimates based upon past history?
The district utilizes the state’s base revenue computation as the basis for the current year
estimates. Base revenue is adjusted up or down based on actual fluctuations in FTES,
enrollment fees, changes in the per FTES funding rate, etc. Revenue estimates for nonapportionment related revenue are calculated and updated separately. A deficit factor is
usually applied to the apportionment revenue projection to adjust for potential shortfalls in
property tax, redevelopment, and student fee revenue. The district updates a “budget
planning parameter” document and a multi-year planning document that tracks incremental
increases and decreases in revenue and expenditure estimates. The budget planning
parameter document includes estimates based on “best”, “mid” or “worst” case scenarios
for revenue, expenditures and reserves. Preliminary and Final Budgets are developed
based on the mid range estimates.
All budget development steps for the Preliminary and Final Budgets along with on-going
adjustments are reviewed with the College Planning Council and presented for review and
approval at regularly scheduled Board of Trustees meetings.
•
2.
Does the district automatically build in growth revenue estimates?
No. The district analyzes FTES on an ongoing basis to determine whether it is realistic to
project the receipt of growth revenue.
Fund Balance—Is this area acceptable? Yes.
• Is the district’s fund balance stable or consistently increasing?
The district’s fund balance has been stable and within the required guidelines set by the
State Chancellor’s Office. Fluctuations in the ending fund balance are anticipated based on
designations or commitments that cross fiscal years.
•
Is the fund balance increasing due to on-going revenue increases and/or expenditure
reductions?
Fluctuations in the fund balance are based on variances between budgeted
revenues/expenditures versus actual revenues/expenditures. Variances in state
apportionment revenue projections occur based on unanticipated changes in the state’s
economy. An example of an operational expenditure variance is “salary savings”. Salary
savings occurs when there are unexpected changes in staffing either through retirement or
attrition.
The college receives a large percentage of its revenue from state apportionment. As the
state has increased the level of cash deferrals, it has been necessary for the college to
increase the ending fund balance and increase borrowing in order to meet the District’s
cash flow need.
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3.
Enrollment—Is this area acceptable? No.
• Has the district’s enrollment been increasing or stable for multiple years?
The college was significantly over the enrollment cap during the budget crisis. Enrollment
is now decreasing statewide due to the improvements in the economy and the
unemployment rate. Cabrillo College budget planning will be based on realistic enrollment
projections and concomitant state apportionment revenue estimates.
Below is a table summarizing the district’s enrollment over a 21-year period:
ANNUAL APPORTIONMENT ATTENDANCE
FULL-TIME EQUIVALENT STUDENTS (FTES)
Year
1992-1993
1993-1994
FTES
8,685
8,370
Increase
(Decrease)
(3.6%)
1994-1995
8,459
1%
1995-1996
1996-1997
1997-1998
8,228
8,526
9,247
(2.7%)
3.5%
8.5%
1998-1999
9,549
3.3%
1999-2000
9,696
1.5%
2000-2001
10,175
5%
2001-2002
10,956
7.7%
2002-2003
11,391
4%
2003-2004
11,410
.17%
2004-2005
11,159
(2.2%)
2005-2006
11,159
-02006-2007
10,981 (funded)
(1.44%)
2006-2007
11,462 (reported)
2007-2008
11,467 (funded)
2007-2008
11,610 (reported)
.786%
2008-2009
13,472 (reported)
2008-2009
11,847 (funded)
2009-2010
12,799 (reported)
(5%)
2009-2010
11,357 (funded)
(4%)
2010-2011
11,915 (reported)
(7%)
2010-2011
11,651 (funded)
2.5%
2011-2012
12,483 (reported)
5%
2011-2012
10,683 (funded)
(8%)
2012-2013
10,894
*Differential fee of $50 for holders of BA/BS degrees
•
Student Fees
$13 per Unit
*$13 per Unit
$13 per Unit
No Differential
$13 per Unit
$13 per Unit
$13 per Unit
$13 per Unit-Fall
$12 per Unit-Spring
$12 per Unit-Fall
$11 per Unit-Spring
$11 per Unit
$11 per Unit
$11 per Unit
$18 per Unit
$26 per Unit
$26 per Unit
$20 per Unit
$20 per Unit
$20 per Unit
$20 per Unit
$20 per Unit
$20 per Unit
$26 per Unit
$26 per Unit
$26 per Unit
$26 per Unit
$36 per Unit
$36 per Unit
Are the district’s enrollment projections updated at least semiannually?
Yes. Actual enrollment figures are updated daily. Enrollment projections are available
online and are provided to the district’s management team on a regular basis. The
President’s Cabinet reviews actual enrollment and projections on a weekly basis. FTES
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projections are used in the development of budget planning assumptions used for the
Preliminary and Final Budgets. The College Planning Council receives semi-annual
updates on the status of the college’s enrollment and the anticipated impact on the budget.
The college’s Student Success Task force is in the process of forming an enrollment
management subcommittee.
4.
•
Are staffing adjustments consistent with the enrollment trends?
Yes, enrollment trends are part of the criteria used in determining the number of full-time
faculty and classified support positions needed to support the college operations.
•
Does the district analyze enrollment and full-time equivalent student (FTES) data?
Yes. The President, Vice President of Instruction, Vice President of Administrative
Services, Vice President of Student Services, Instructional Deans and Director of Research
& Planning (currently vacant) analyze enrollment and FTES as a function of developing
schedules of classes on a daily basis during registration periods and prior to submitting
enrollment reports to the state each January, April and July.
•
Does the district track historical data to establish future trends between P-1 and
annual for projection purposes?
Yes. The Office of Planning and Research tracks enrollment trends and works very closely
with the Vice President of Instruction to reconcile enrollment data. Enrollment data is
reviewed by an ad hoc team that includes staff from enrollment services, research and
planning, instruction, information technology, and the business office prior to each
submission to the Chancellor’s Office.
•
Has the district avoided stabilization funding? Yes.
Unrestricted General Fund Balance – Is this area acceptable? Yes.
• Is the district’s unrestricted general fund balance consistently maintained at or above
the recommended minimum prudent level (5% of the total unrestricted general
fund expenditures)?
Yes, the Unrestricted General Fund ending balance consistently exceeds 5%.
•
5.
Is the district’s unrestricted fund balance maintained throughout the year? Yes.
Cash Flow Borrowing—Is this area acceptable? No.
State Apportionment deferrals in addition to funding cuts have caused a marked increase in the
need for borrowing, and made it significantly difficult to manage cash at the college. In 2009
the college developed a quarterly cash flow report in order to keep the college community and
the Governing Board up-to-date on the college’s cash flow challenges and how they impact
college operations. The table below is a permanent addition to the college’s Board approved
budget documents.
(See table next page.)
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2013-14 Preliminary Budget—ENDING FUND BALANCE vs. CASH BALANCE
(2013-14 Preliminary Budget Page 26)
Ending Balance
Unrestricted Funds
5% General Reserve - Fund 11
Carry Over - Fund 14
One-Time - Fund 17
FTES Reserve - Fund 17
Community Ed - Fund 15
Total Unrestricted Funds
Restricted Funds
Total General Fund
Ending Balance
Cash Balance
6/30/2010
6/30/2011
6/30/2012
$3,209,000
3,599,048
6,134,217
500,000
451,114
$13,893,379
$3,209,000
3,744,031
7,593,195
1,000,000
761,895
$16,308,121
$3,000,000
3,197,718
3,370,652
1,000,000
991,446
$11,559,816
1,119,666
1,136,690
847,337
$15,013,045
$17,444,811
$12,407,153
5,568,430
14,130,344*
6,933,116**
Apportionment Allocation Deferrals
2009-10 @ $7,000,000
2010-11 @ $8,000,000 (est.)
2011-12 @ $9,000,000 (est.)
2012-13 @ $8,000,000 (est.)
* Cash balance includes $5 million in mid-year TRAN borrowing.
** Cash balance includes $4 million in mid-year TRAN borrowing.
*** Projected cash balance includes $8.8 million in mid-year TRAN borrowing.
6.
•
Can the district manage its cash flow without interfund borrowing?
Yes. The college participates in both the mid-year and summer Tax Revenue Anticipation
Note program and thereby avoids the need for inter-fund borrowing.
•
Is the district repaying TRANS and/or borrowed funds within the required statutory
period?
Yes. The college participates in the mid-year tax revenue anticipation note program
because cash flow is deemed inadequate.
Bargaining Agreements—Is this area acceptable? Yes.
• Has the district settled bargaining agreements within new revenue sources during the
past three years?
Yes. The Vice President of Administrative Services reviews budget planning assumptions
and fiscal parameters with bargaining units and the Board of Trustees as a part of the
negotiation process.
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Compensation reductions were negotiated for all employee groups of the college in 201213. Some of the compensation reductions were temporary and others such as the
implementation of a cost sharing program for employee health benefits are ongoing.
The college just concluded negotiations with all bargaining units for 2013-14.
Compensation increases were negotiated. The compensation increases included ongoing
and one-time adjustments to compensation for the 2013-14 fiscal year.
7.
8.
•
Did the district conduct a pre-settlement analysis identifying an ongoing revenue
source to support the agreement? Yes.
•
Did the district correctly identify the related costs? Yes.
•
Did the district address budget reductions necessary to sustain the total compensation
increase? Yes.
Unrestricted General Fund Staffing—Is this area acceptable? No.
The state budget crisis and the corresponding reductions have decreased staffing levels of all
employee groups college-wide, in all operations. As state revenue stabilizes and increases over
the next few years the college will prioritize programs and services to increase student success
and continue to serve the community.
•
Is the district ensuring it is not using one-time funds to pay for permanent staff or
other ongoing expenses?
Yes. Permanent staffing costs are not paid from the District’s one-time sub fund.
•
Is the percentage of district general fund budget allocated to salaries and benefits at
or less than the statewide average (i.e., the statewide average for 2003-04 is 85%)?
Yes. Cabrillo’s allocation is currently 84.1%.
Internal Controls—Is this area acceptable? Yes.
• Does the district have adequate internal controls to insure the integrity of the general
ledger?
Yes. To ensure the integrity of financial operations, external audits are routinely performed
and those findings are presented to the Board. The most recent available report from 2012
found no material “deficiencies in internal control of financial reporting” when reviewing
the college’s financial practices.
•
9.
Does the district have adequate internal controls to safeguard the district’s assets?
Yes.
Management Information Systems—Is this area acceptable? Yes.
• Is the district data accurate and timely?
Financial reports, documents, and updates such as monthly college financial updates,
investment reports, foundation updates, and bond reports reflect actual financial conditions
of the college. The Governing Board receives a variety of financial updates at every
meeting.
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The Business Office makes information readily available in a variety of forms from a
variety of sources. The Business Office maintains a web page that contains information
about the current budget. The Business Office also maintains space on one of the college’s
file servers where it posts reports, updates, and other important information. The Business
Office e-mails updates to the college community on changes that affect the budget or
financial conditions, including state budget changes. The Business Office also regularly
prepares informational items and status reports for the Governing Board to keep them
informed of current budget and financial conditions. These items are made public and are
easily obtained through the Internet, file servers, or e-mails. The Business Office also
routinely sends e-mail reminders of forthcoming financial deadlines, such as deadlines for
submission of purchase orders. The budget office provides budgetary information for use in
the college-wide Program Planning process.
Through the college’s information systems and programs, timely financial information is
readily available to appropriate administrators and their support staff.
10.
11.
•
Are the county and state reports filed in a timely manner? Yes.
•
Are key fiscal reports readily available and understandable?
Yes. Key fiscal reports are readily available. The Business Office actively reviews how it
presents financial and budget information and seeks input on improving the transmission of
that information. The college is always looking for ways to improve the dissemination of
fiscal information. The college community has ongoing discussions of better ways to
educate staff and faculty about budget issues. Packets of budget education materials are
now created and disseminated. The Business Office also tracks budget issues as they
develop or change at the state level.
Position Control—Is this area acceptable? Yes.
• Is position control integrated with payroll? Yes.
The college has a position control system, and Board approved personnel actions are used
to update changes in positions and compensation estimates used for budget planning. The
college processes its own payroll utilizing the integrated ERP system.
•
Does the district control unauthorized hiring?
Yes. The District has formal processes in place for hiring faculty, staff and student
workers.
•
Does the district have controls over part-time academic staff hiring?
Yes. The District has formal processes in place for hiring part-time academic employees.
Budget Monitoring—Is this area acceptable? Yes.
• Is there sufficient consideration to the budget, related to long-term bargaining
agreements? Yes.
•
Are budget revisions completed in a timely manner?
Yes, and submitted monthly to the Governing Board.
•
Does the district openly discuss the impact of budget revisions at the board level?
Yes. Summaries of budget revisions are presented to the Board of Trustees on a monthly
basis.
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12.
•
Are budget revisions made or confirmed by the board in a timely manner after the
collective bargaining agreements are ratified? Yes.
•
Has the district’s long-term debt decreased from the prior fiscal year? Yes.
•
Has the district identified the repayment sources for the long-term debt?
Yes. Long-term debt is repaid from the unrestricted general fund.
•
Does the district compile annualized revenue and expenditure projections throughout
the year?
Yes. The District compiles annual updates revenue and expenditure estimates mid-year
and throughout the budget development process.
Retiree Health Benefits—Is this area acceptable? No.
The college negotiated a limitation in retiree benefit coverage for certificated employees hired
in the 2008-09 fiscal year and beyond.
The college negotiated a cap on retiree benefits for classified and confidential employees in
2012-13 and changes in retiree benefits for new employees. These changes will reduce the
liability over the long term.
•
Has the district completed an actuarial calculation to determine the unfunded
liability?
Yes. . The most recent actuarial report was prepared in 2010. The total liability is
approximately $19.8 million. The college is in the process of securing an update actuarial
study.
•
Does the district have a plan for addressing the retiree benefits liabilities?
The District has implemented a plan for addressing the retiree benefits liability. The Board
approved the establishment of a Retiree Benefit Fund in June 2007 to track retiree health
benefit funding, interest income, expenditures and reserves. The District has developed a
schedule and is committed to transferring ongoing and one-time funds towards the cost of
future retiree benefits. The funds are invested in a separate fund at the County that will
accrue interest. The college budgets ongoing and one-time resources for future retiree
benefits. To date, the college has set aside over $2.8 million for future retiree benefits in
addition to the annual required contributions.
13.
Leadership/Stability—Is this area acceptable? Yes.
• Has the district experienced recent turnover in its management team (including the
Chief Executive Officer, Chief Business Officer, and Board of Trustees)?
Yes. Two members of the administration changed recently. The Vice President of
Instruction was hired in February of 2013. She was a former Dean of Health and Wellness
at the college. The college also hired a new CEO effective July 15, 2013.
14.
District Liability—Is this area acceptable? Yes.
• Has the district performed the proper legal analysis regarding potential lawsuits that
may require the district to maintain increased reserve levels?
Yes. The Vice President of Administrative Services works with the District’s legal
advisors to analyze the fiscal impact of pending lawsuits.
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•
15.
Has the district set up contingent liabilities for anticipated settlements, legal fees, etc.?
Yes. The Vice President of Administrative Services maintains a contingency reserve for
anticipated settlements.
Reporting—Is this area acceptable? Yes.
• Has the district filed the annual audit report with the System Office on a timely basis?
No. The timing of the auditor’s annual review has not traditionally coincided with the
Chancellor’s Office deadline of 12/31 due to scheduling difficulties. The audit firm
normally drafts a letter to the Chancellor’s Office prior to the deadline that communicates
the timeline for the completion of the annual audit. The college has not incurred penalties
or adverse consequences as a result of this process. The college worked with the audit firm
to change the audit schedule to move closer to the 12/31 deadline. The transition will take
another year.
•
Has the district taken appropriate actions to address material findings cited in their
annual audit report? Yes.
No material findings have been identified in the annual audit reports to date. The District
drafts formal responses to all other audit findings. The District’s responses to findings are
included in the final audit report. Subsequent actions taken by the District to address
findings are discussed with the auditors during the entrance interview of the following audit
cycle.
•
Has the district met the requirements of the 50 percent law?
Yes, however, meeting this requirement remains a challenge for Cabrillo and many other
California Community College Districts. Cabrillo reported 50.93% for fiscal year 2011-12.
The District is expected to report a similar result for the 2012-13 fiscal year.
•
Have the Quarterly Financial Status Reports (CCFS-311Q), Annual Financial and
Budget Reports (CCFS-311), and Apportionment Attendance Reports (CCFS-320)
been submitted to the System Office on or before the stated deadlines? Yes.
Revised 8/3/13
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Analysis of Selected Data from the Annual Fin. and Budget Report (CCFS-311), Qtrly. Fin. Status Report (CCFS-311Q), and Fiscal Data Abstract
For the period FY 2008-09 to 2012-13
410
Cabrillo Community College District
Unrestricted GF - Col. 2
Unrestricted GF - Fund 11, Col. 1
Budgeted
2012-13
EDP
No.
Actual
12/13 Line
Item %
Acct Description
Updated_1/10/2013
Actual
2011-12
11/12 Line
Item %
Actual
2010-11
10/11 Line
Item %
Year-to-Year Change
Actual
2009-10
09/10 Line
Item %
Change from 11/12 to 12/13
2008-09
08/09 Line
Item %
11/12 to 12/13
$ Change
11/12 to 12/13
% Change
Change from 10/11 to 11/12
10/11 to 11/12
$ Change
10/11 to 11/12
% Change
Change from 09/10 to 10/11
09/10 to 10/11
$ Change
Change from 08/09 to 09/10
09/10 to 10/11 08/09 to 09/10
% Change
$ Change
08/09 to 09/10
% Change
8100
8600
8800
8900
801
Federal Revenues
State Revenues
Local Revenues
Other Financing Sources 
Total Revenues
44,869
32,496,134
24,158,843
3,558,029
60,257,875
0.1%
53.9%
40.1%
5.9%
100.0%
57,133
31,485,488
25,419,185
3,228,250
60,190,056
0.1%
52.3%
42.2%
5.4%
100.0%
50,320
38,379,649
24,619,192
329,917
63,379,078
0.1%
60.6%
38.8%
0.5%
100.0%
49,030
36,916,514
24,691,800
325,596
61,982,940
0.1%
59.6%
39.8%
0.5%
100.0%
39,970
38,246,178
25,042,811
306,200
63,635,159
0.1%
60.1%
39.4%
0.5%
100.0%
-12,264
1,010,646
-1,260,342
329,779
67,819
-21.5%
3.2%
-5.0%
10.2%
0.1%
6,813
-6,894,161
799,993
2,898,333
-3,189,022
13.5%
-18.0%
3.2%
878.5%
-5.0%
1,290
1,463,135
-72,608
4,321
1,396,138
2.6%
4.0%
-0.3%
1.3%
2.3%
9,060
-1,329,664
-351,011
19,396
-1,652,219
22.7%
-3.5%
-1.4%
6.3%
-2.6%
1000
2000
3000
4000
5000
6000
7000
501
Academic Salaries
Classified Salaries
Employee Benefits
Supplies and Materials
Other Operating Expenses and Services
Capital Outlay
Other Outgo 
Total Expenditures
25,224,741
12,611,375
13,600,526
1,880,901
7,888,931
1,064,737
3,946,936
66,218,147
38.1%
19.0%
20.5%
2.8%
11.9%
1.6%
6.0%
100.0%
25,660,539
12,722,713
13,851,245
800,312
6,354,176
638,114
4,911,262
64,938,361
39.5%
19.6%
21.3%
1.2%
9.8%
1.0%
7.6%
100.0%
25,788,348
13,085,135
12,841,409
958,772
5,394,579
677,511
2,218,571
60,964,325
42.3%
21.5%
21.1%
1.6%
8.8%
1.1%
3.6%
100.0%
26,906,391
12,050,359
11,648,403
758,309
6,095,363
1,738,674
1,723,734
60,921,233
44.2%
19.8%
19.1%
1.2%
10.0%
2.9%
2.8%
100.0%
28,003,880
12,682,828
11,268,933
635,933
6,202,853
1,002,558
1,986,997
61,783,982
45.3%
20.5%
18.2%
1.0%
10.0%
1.6%
3.2%
100.0%
-435,798
-111,338
-250,719
1,080,589
1,534,755
426,623
-964,326
1,279,786
-1.7%
-0.9%
-1.8%
135.0%
24.2%
66.9%
-19.6%
2.0%
-127,809
-362,422
1,009,836
-158,460
959,597
-39,397
2,692,691
3,974,036
-0.5%
-2.8%
7.9%
-16.5%
17.8%
-5.8%
121.4%
6.5%
-1,118,043
1,034,776
1,193,006
200,463
-700,784
-1,061,163
494,837
43,092
-4.2%
8.6%
10.2%
26.4%
-11.5%
-61.0%
28.7%
0.1%
-1,097,489
-632,469
379,470
122,376
-107,490
736,116
-263,263
-862,749
-3.9%
-5.0%
3.4%
19.2%
-1.7%
73.4%
-13.2%
-1.4%
201
Excess/(Deficiency) of Rev. over Expenditures
-5,960,272
n/a
-4,748,305
n/a
2,414,753
n/a
1,061,707
n/a
1,851,177
n/a
-1,211,967
-25.5%
-7,163,058
-296.6%
1,353,046
127.4%
-789,470
-42.6%
901
902
903
904
905
Net Increase/(Decrease) in Fund Balance
Net Beginning Balance, July 1
Prior Year Adjustment
Adjusted Beginning Balance
Ending Balance, June 30
-5,960,272
11,559,816
-106.4%
206.4%
n/a
n/a
100.0%
-4,748,305
16,308,121
0
16,308,121
11,559,816
-41.1%
141.1%
0.0%
141.1%
100.0%
2,414,753
13,893,368
0
13,893,368
16,308,121
14.8%
85.2%
0.0%
85.2%
100.0%
1,061,707
12,831,661
0
12,831,661
13,893,368
7.6%
92.4%
0.0%
92.4%
100.0%
1,851,177
10,980,484
0
10,980,484
12,831,661
14.4%
85.6%
0.0%
85.6%
100.0%
-1,211,967
-4,748,305
n/a
n/a
-5,960,272
-25.5%
-29.1%
n/a
n/a
-51.6%
-7,163,058
2,414,753
n/a
n/a
-4,748,305
-296.6%
17.4%
n/a
n/a
-29.1%
1,353,046
1,061,707
0
1,061,707
2,414,753
127.4%
8.3%
n/a
8.3%
17.4%
-789,470
1,851,177
0
1,851,177
1,061,707
-42.6%
16.9%
n/a
16.9%
8.3%
5,599,544
chk
11,559,816
16,308,121
-
Fund Balance:
Fund Balance % [905/501]
Required Fund Balance to meet 5% threshold
Over -Under 5% threshold
FTES: 
FTES - Resident
FTES - Nonresident
FTES - Apprentice
Total FTES
50 % Law: 
Instructional Salary Costs (AC 100-5000 and 6110)
Current Expense of Education (AC 100-6799)
% of Instructional Salary Costs to CCE
50% Requirement
Over -Under 50% Requirement
2012-13
2011-12
13,893,368
-
2010-11
12,831,661
-
2009-10
-
2008-09
8.5%
17.8%
26.8%
22.8%
20.8%
3,310,907
2,288,637
3,246,918
8,312,898
3,048,216
13,259,905
3,046,062
10,847,306
3,089,199
9,742,462
2012-13 1st Qtr
311Q Report
11,225
2012-13
2011-12
11,142
232
0
11,374
2010-11
11,601
247
0
11,848
2009-10
12,799
247
0
13,046
2008-09
Change from 11/12 to 12/13
% Change
-9.3%
63,989
-6,024,261
2010-11
2009-10
2008-09
29,040,269
57,018,037
50.93%
28,509,019
531,250
28,682,573
55,268,878
51.90%
27,634,439
1,048,134
27,460,049
54,422,229
50.46%
27,211,115
248,934
29,152,896
57,457,239
50.74%
28,728,620
424,276
80.4%
84.8%
83.1%
84.1%
2.0%
-72.5%
Change from 10/11 to 11/12
# Change
83
0.7%
-459
-15
0
-474
GF Cash Balance (unrestricted and restricted):
Cash Balance Per 311Q (excluding investments)
77.7%
2012-13 1st Qtr
311Q Report
14,943,546
2011-12 4th Qtr
311Q Report
7,546,568
2010-11 4th Qtr
311Q Report
13,687,488
2009-10 4th Qtr
311Q Report
6,716,923
2008-09 4th Qtr
311Q Report
8,207,832
% Change
-4.0%
-6.1%
n/a
-4.0%
Change from 11/12 to 12/13
Change from 10/11 to 11/12
$ Change
$ Change
% Change
357,696
1,749,159
% Change
Salaries and Benefits as % of Total Expenditures
6.5%
-37.3%
# Change
% Change
% Change
1.2%
3.2%
-1.0%
Change from 10/11 to 11/12
$ Change
$ Change
7,396,978
98.0%
-6,140,920
% Change
-44.9%
0.1%
22.2%
Change from 09/10 to 10/11
# Change
-1,198
0
0
-1,198
% Change
-9.4%
0.0%
n/a
-9.2%
Change from 09/10 to 10/11
$ Change
1,222,524
846,649
% Change
4.5%
1.6%
1.4%
2.0%
-43,137
1,104,844
# Change
-673
8
0
-664
$ Change
6,970,565
% Change
103.8%
$ Change
-1,692,847
-3,035,010
311_Analysis
-5.0%
3.3%
n/a
-4.8%
% Change
-5.8%
-5.3%
-0.3%
% Change
-1.0%
Change from 08/09 to 09/10
$ Change
-1,490,909
: For purposes of this analysis, Other Financing Sources is combined into Total Revenues and Other Outgo is combined with Total Expenditures.
: FTES data for 2011-12, 2010-11, 2009-10, and 2008-09 is from Chancellor's Office Data Abstract ; 2012-13 Total Resident FTES from latest 311Q and is a projected amount.
: 50% law data from data abstract. (Instructional Salary Costs/Current Expense of Education) >= 50%
Note: If "no data" is displayed for any FTES or GF Cash Balance, the district did not submit CCSF-311Q as of the date of this analysis.
Cabrillo_Fiscal_Trend_Analysis_11_12
% Change
Change from 08/09 to 09/10
1.8%
Change from 09/10 to 10/11
-1.4%
11.3%
Change from 08/09 to 09/10
% Change
-4.4%
Change from 11/12 to 12/13
Change from 08/09 to 09/10
% Change
3.9%
2,155
2,412,598
% Change
-2.8%
% Change
Change from 09/10 to 10/11
% Change
-8.9%
198,702
-4,947,007
Change from 11/12 to 12/13
13,472
239
0
13,710
2011-12
Change from 10/11 to 11/12
% Change
1 of 1
% Change
-18.2%