2010­11 FINAL BUDGET Cabrillo Community College District September 13, 2010
­­­­­­­­ Original Message ­­­­­­­­ Subject:Budget Update­­August 5, 2010 Date:Thu, 5 Aug 2010 14:03:44 ­0700 From:Skinner, Erik <eskinner@CCCCO.EDU> Reply­To:System Office Memos to CBOs <SO2CBO@LISTSERV.CCCNEXT.NET> Dear Colleagues: Last night, the Budget Conference Committee completed its work on the education budget, adopting the recently unveiled Democratic plan in a series of votes. As expected nearly every vote was split along partisan lines. For the California Community Colleges, the actions were consistent with the details provided in my August 4 budget update: ü $126 million for enrollment funding (2.21 percent) ü Reject negative COLA ($23 million) ü $35 million to backfill one­time federal ARRA funding (directed to categorical programs) ü $25 million augmentation for the Economic and Workforce Development program to support workforce training enrollments ü Reject Governor’s proposed $10 million cut to EOPS ü Reject Governor’s proposed $10 million cut to Part­Time Faculty Compensation ü Reject Governor’s proposed $20 million augmentation for SB 70 CTE programs ü Reject Senate’s proposed language to revise Basic Skills categorical funding formula ü Establish Joint Powers Authority (JPA)to accelerate repayment of mandated cost reimbursements. At last night’s hearing, new details were provided in regards to the mandate proposal. Language explaining the mandate reimbursement JPA is attached to this update. This mechanism could help community college districts to access over $380 million in overdue mandate reimbursements, providing a welcome infusion of one­time funds. In addition, the Committee voted to suspend or modify a number of K­12 and CCC mandates. For the colleges, the Committee voted to suspend two mandates: Law Enforcement Jurisdiction Agreements and Integrated Waste Management (recycling). If these mandate suspensions are enacted into law, the effect would be to free colleges from the related programmatic requirements for one year and also to free the state of any obligation to cover related costs incurred during that same period. With the Conference Committee closing out its actions, the stage is set for the next steps in this year’s budget battle. While we anticipate that these steps will include floor votes on the Democratic plan as well as Big 5 meetings among legislative leaders and the Governor, no specific timeframes have been announced at this time. More updates to follow. Regards, Erik Skinner Vice Chancellor for Fiscal Policy California Community Colleges, Chancellor's Office 1102 Q Street Sacramento, CA 95811­6549 eskinner@cccco.edu direct line: 916­323­7007 fax: 916­323­8245 ********************************************************************
2010­2011 FINAL BUDGET TABLE OF CONTENTS PAGE I General Fund – Overview ............................................................................................. 1 A. Base Budget .................................................................................................... 2 1. Base Budget Revenue .......................................................................... 2 a. b. c. 2. General Apportionment............................................................. 2 Lottery...................................................................................... 6 Non­Resident Tuition ............................................................... 6 Base Budget Expenditures ................................................................... 8 a. Benefits .................................................................................. 10 Base Budget Tables Base Budget Revenue ............................................................. 11 Base Budget Expenditures ...................................................... 12 B. Community Education.................................................................................... 14 C. General Restricted Fund ................................................................................. 16 D. Carry­Over Sub­Fund..................................................................................... 20 E. Mid­Year Reserve – Bridge Fund ................................................................... 21 F. One­Time Sub­Fund – FTES Reserves ........................................................... 22 G. One­Time Sub­Fund....................................................................................... 23 H. Reserves (Ending Balance)............................................................................. 24 1. Base Budget Reserves........................................................................ 24 a. b. c. d. e. f. g. 2. I. General Reserves .................................................................... 24 Revolving Cash Fund.............................................................. 24 Clearing/Operational Fund...................................................... 24 CalPers Reserve...................................................................... 24 Mid­Year Reserve – Bridge Fund............................................ 24 FTES Reserve......................................................................... 24 One­Time Sub­Fund ............................................................... 24 Ending Fund Balance vs. Cash Balance.............................................. 26 Other Financing Sources (Outgo) ................................................................... 27 Inter­ and Intra­Fund Transfers .......................................................... 28
i TABLE OF CONTENTS (CONTINUED) II Retiree Benefit Fund................................................................................................... 30 III Debt Service Fund ...................................................................................................... 34 IV Child Development Fund ............................................................................................ 36 V Building Fund............................................................................................................. 38 A. Scheduled Maintenance & Capital Construction Projects................................ 38 B. Transportation, Parking & Security ................................................................ 38 C. Certificates of Participation ............................................................................ 38 D. Redevelopment Agency (RDA) Funds............................................................ 39 E. Federal EDA Grant ........................................................................................ 39 VI General Obligation Bond Fund ................................................................................... 42 VII Bookstore Fund .......................................................................................................... 48 VIII Cafeteria Special Revenue Fund ................................................................................. 50 IX Associated Students Fund ........................................................................................... 52 X Trust & Agency Fund ................................................................................................. 54 XI Scholarship & Loan Trust Fund .................................................................................. 56 XII Student Financial Assistance Fund.............................................................................. 58 XIII Student Representation Fee Trust Fund ....................................................................... 60 XIV Student Center Fee Fund............................................................................................. 62 XV Staffing Summary ­ All Funds .................................................................................... 64 Attachments: 2008­11 Summary of Base Budget Reductions........................................................... 1­5 Budget and Benefits Town Hall Meeting May 26, 2010 .......................................... A1­6 2010­11 Budget Update, May 3, 2010......................................................................B1­3 2010­11 Budget Reduction Plan.............................................................................C1­10 2010­11 Budget Update, February 1, 2010.............................................................. D1­2 2010­11 Budget Development Documents ...............................................................E1­7 2010­11 Budget Planning Parameters....................................................................... F1­2
ii 2010-11 FINAL BUDGET
GENERAL FUND - OVERVIEW
I. GENERAL FUND - OVERVIEW
The General Fund is maintained to account for those transactions that are for the overall operation
(Instruction, Student Services, Business Services, etcetera). Within the General Fund, a number of sub-funds
have been established: Base Budget, Restricted, Community Education, District Match, Carryover, and
One-Time sub-funds. The division of these sub-funds reflects the need to differentiate discretionary revenue
from restricted revenue and ongoing funding from one-time funding.
A brief description of each sub-fund is provided later in the report. It is anticipated that the College will
transfer $1,885,818 from the Bridge Fund Reserve to balance the Final Budget. This transfer is shown in the
net other sources of the unrestricted base budget presented here.
Cash deferrals of almost $8 million have caused the District to continue to freeze spending on non-essential
expenditures. As a result the District is assuming unexpended balances of $1.5 million in the Base Budget,
$1.8 million in Carryover and $2.7 million in the One-Time Fund (including the Bridge Fund & FTES
Reserves). Spending in the Carryover and One-Time Funds will be limited to approximately 50% of
budgeted expenditures to conserve cash. Reduced spending will continue to result in a larger ending balance.
The Final Budgets for the Unrestricted Base Budget, including District Match, and the Restricted Fund are
summarized as follows:
General Fund
Overview
Base
Budget (Note 1)
District
Match
Restricted
Carry
Over
Community
Education
One
Time
Total
General Fund
Revenue
59,119,599
10,687,090
0
0
0
804,111
70,610,800
Expenditures
58,823,224
11,178,217
550,321
1,799,048
1,900,000
896,658
75,147,468
Revenue less
Expenditures
296,375
(491,127)
(550,321)
(1,799,048)
(1,900,000)
(92,547)
(4,536,668)
(296,375)
(628,536)
550,321
(1,985,818)
(24,907)
(2,385,315)
(1,119,663)
0
(1,799,048)
(3,885,818)
(117,454)
(6,921,983)
Transfers In
(Out)
Net Change in
Fund Balance
0
Beginning
Balance
July 1, 2010
Base Budget Spending Freeze
3,209,000
1,500,000
1,119,666
0
3,599,048
6,634,217
451,114
15,013,045
Projected Net Fund
Balance
June 30, 2011
4,709,000
3
0
1,800,000
2,748,399
333,660
9,591,062
Ending balance includes the FTES Reserve and the Bridge Fund Reserve.
Note 1:
Projected Ending balance for Base Budget includes approximately $1.5 million anticipated at year end
as a result of the spending freeze.
1
2010­11 FINAL BUDGET GENERAL FUND ­ OVERVIEW A. BASE BUDGET Base Budget is an unrestricted sub­fund, accounting for the ongoing operational expenditures of the college and is based on the Budget Planning Parameters presented to the Board on May 3, 2010. 1. BASE BUDGET REVENUE The Base Budget Revenue for community colleges is based on a formula that allocates a “basic allocation” based on the number of colleges and centers in the district. In addition to the basic allocation, each district receives equalized rates for its full­time equivalent students (FTES) from the state general apportionment, student enrollment fees, and property taxes. a. General Apportionment 2009­10 Actual Enrollment Fees: The enrollment fees for 2009­10 were $26 per unit. COLA: The state did not fund a COLA on apportionments. Growth: No growth funds were budgeted for 2009­10. The college generated 10% more FTES than the number funded by the state. General Apportionment Shortfall: The state reduced the college’s funded FTES by 3.39%. This reduction is considered permanent. Property Tax Shortfall: A property tax shortfall was included in the 2009­10 reductions. The state continues to implement apportionment deferrals throughout the fiscal year (see page 26). Deferrals basically mean that the state does not submit monthly payments to the college when they are due. In addition, the state is not required to pay the college until the state budget passes. The college will borrow from the County Investment Pool on a temporary basis until the state budget is passed. Payment deferrals adversely impact Cabrillo’s spending power and the college’s ability to meet its ongoing expenditure commitments. The deferrals have also necessitated continued spending freezes for non­essential expenditures.
2 2010­11 FINAL BUDGET GENERAL FUND ­ OVERVIEW 2010­11 Final Budget Enrollment Fees: Student Enrollment fees continue to be budgeted at $26 per unit. A student enrollment fee increase is anticipated as a part of the state budget. The Legislative Analyst’s Office is recommending a $40 per unit fee structure for 2010­11. Note: The college does not set enrollment fees. The state offsets the college’s state funding by 98% of the enrollment fee revenues. When there is an enrollment fee shortfall, the state does not backfill the shortfall for the college. Growth: The Governor’s Budget includes 2.2% growth for community colleges; $1.2 million for Cabrillo. The 2010­11 Final Budget does not include growth funds. COLA: The college is expecting a negative COLA of .38%, a reduction of $216,000. Other state funding reductions of $425,000 are assumed. Other issues: Downside risk and the contentious nature of the budget negotiations make 2010­11 mid­year budget reductions a strong possibility.
3 2010­11 FINAL BUDGET GENERAL FUND ­ OVERVIEW ANNUAL APPORTIONMENT ATTENDANCE FULL­TIME EQUIVALENT STUDENTS (FTES) Year 1992­1993 1993­1994 1994­1995 FTES 8,685 8,370 8,459 Increase (Decrease) ­ (3.6%) 1% 1995­1996 1996­1997 1997­1998 1998­1999 8,228 8,526 9,247 9,549 (2.7%) 3.5% 8.5% 3.3% 1999­2000 9,696 1.5% 2000­2001 2001­2002 2002­2003 2003­2004 2004­2005 2005­2006 2006­2007 2006­2007 2007­2008 2007­2008 2008­2009 2008­2009 2009­2010 2009­2010 10,175 10,956 11,391 11,410 11,159 11,159 10,981 11,462 (reported) 11,467 11,610 (reported) 13,472 (reported) 11,847 (funded) 12,799 (reported) 11,357 (funded) 5% 7.7% 4% .17% (2.2%) ­0­ (1.44%) .786% (5%) (4%) *Differential fee of $50 for holders of BA/BS degrees
4 Student Fees $13 per Unit *$13 per Unit $13 per Unit No Differential $13 per Unit $13 per Unit $13 per Unit $13 per Unit­Fall $12 per Unit­Spring $12 per Unit­Fall $11 per Unit­Spring $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 2010-11 FINAL BUDGET
GENERAL FUND - OVERVIEW
This Chart Compares 2009-10 General Apportioinment with the budget for 2010-11
GENERAL APPORTIONMENT
2009-10 Revised
Base
& Mid-Year
Adjustments
2009-10
ENDING
2010-11
Final
Budget
11,346
11,357
11,357
51,966,005 51,966,005 51,966,005
Funded FTES Assumptions
BASE REVENUES
Foundation Grant
4,000,000
4,000,000 4,000,000
Watsonville Center Revenue
COLA, Cost of Living Adjustment
1,000,000
1,000,000 1,000,000
General Apportionment-shortfall
Property Tax Shortfall 2010-11
GENERAL APPORTIONMENT
-64,926
-216,000
-425,000
56,966,005 56,901,079 56,325,005
5
2010­11 FINAL BUDGET GENERAL FUND ­ OVERVIEW b. Lottery 2009­10 Actual Lottery estimates have continued to decrease. The Lottery Commission is projecting a reduction to $125.75 per FTES. Lottery revenue is calculated based on the previous year’s reported FTES; 13,471. The funding rate for restricted lottery revenue is estimated at $15.75 per FTES and the funding rate for unrestricted lottery revenue is $110 per FTES. Although the rate of funding has declined, the total FTES used to calculate revenue has increased. 2010­11 Final Budget The Lottery estimate for 2010­11 is based on total FTES of 12,799 at a rate of $133 per FTES. The restricted rate is estimated at $18 per FTES, and unrestricted revenue at $115 per FTES. c. Non­Resident Tuition 2009­10 Actual The 2009­10 budgeted revenue for non­resident tuition was $829,000. This estimate was based on a fee of $199 per unit. Total revenue for 2009­10 was $967,910. 2010­11 Final Budget Non­resident tuition for 2010­11 will be reduced to the Statewide average rate of $183, plus $4 per unit for the capital outlay fee. The College has experienced increased enrollment from out­of­state and foreign students, and projects the fees to be $866,263.
6 ­This Page Intentionally Left Blank­
7 2010­11 FINAL BUDGET GENERAL FUND ­ OVERVIEW 2. BASE BUDGET EXPENDITURES The following assumptions were used in generating the base budget expenditures:
· The Final Budget assumes the District will capture $300,000 in salary/benefit savings from vacant positions.
· No negotiated salary increases for 2010­11 are included in the Final Budget.
· Benefit stipend increases were 13.73%; a reduction from the 17% included in the Preliminary Budget.
· An increase in retiree benefits of $234,000 is budgeted.
· The PERS rate has increased from 9.7% to 10.7%. The District pays the employee contribution for classified and confidential employees, for a total of 17.7%.
· Column and step increases are funded for all units.
· The District plans to suspend winter session in 2011. The adjunct budget was reduced by 200 teaching units. Operating reductions for the writing center and the library are also assumed.
· One full­time faculty replacement is included in the Final Budget.
· 2.5 management positions were unfunded in the 2010­11 Budget.
· Energy costs are expected to increase in 2010­11 as new buildings are completed. Natural gas price fluctuations continue to make it difficult to accurately project these expenditures.
· Maintenance and Operating expenses for the Allied Health building are included in the Final Budget.
· The Final Budget includes 1 new lead custodian and 2.5 new custodial positions.
· The Lease/Purchase expenditure budget was reduced by $362,000. The balance of the technology lease was paid in March 2010.
8 2010­11 FINAL BUDGET GENERAL FUND ­ OVERVIEW · The operating budget was increased by $400,000 to backfill the loss of State funding for scheduled maintenance and instructional equipment funding.
· The transfer to the transportation fund was reduced by $100,000 for the Final Budget. Bus pass fees were increased to $75 in Spring 2010 and will increase to $100 in Fall 2010.
· The District is developing a plan to begin funding retiree benefit costs for new employees in the base budget.
· Total transfers from the Bridge Fund Reserve of $1,885,818 will be used to balance the 2010­11 Final Budget.
9
2010­11 FINAL BUDGET GENERAL FUND ­ OVERVIEW a. Benefits Mandatory benefits have been funded based on the following rates: FY 08/09 FY 09/10 FY 10/11 9.428% 9.7% 10.707% 7% 7% 7% $9.33/mo/per employee $9.33/mo/per employee $9.33/mo/per employee STRS 8.25% 8.25% 8.25% SOCIAL SECURITY 6.20% 6.20% 6.20% MEDICARE 1.45% 1.45% 1.45% $1.63 $1.63 $1.898 .45% .45% .30% 15.00% 15.00% 15.00% $7,586, $14,442, $19,838 7,833, 15,000, 20,868 8,774, 16,971, 23,363
DISTRICT BENEFITS PERS (Employer Portion) PERS Employee (Paid by Employer for Confidential employees and for Classified bargaining­unit employees) PERS AB2177 WORKERS COMP Rate per $100 payroll UNEMPLOYMENT Rate per $100 payroll Local experience charge CAFETERIA PACKAGE/FTE All Employee Groups 10 2010-11 FINAL BUDGET
GENERAL FUND - OVERVIEW
UNRESTRICTED GENERAL FUND BASE BUDGET
BASE
BUDGET
REVENUE
FEDERAL
8150 Admin. Allowance
8160 Veterans
Total Federal
STATE
8612
8612
8670
8612
8612
8681
*General Apportionment
P/T Faculty Comp
*State Taxes
*BOGG
2% Admin. Allow.
Lottery
Total State
LOCAL
8811
8840
8850
8860
8874
8874
8879
8880
8890
2009-10
ADOPTED
BUDGET
$
WORKING
BUDGET
$
2010-11
ACTUALS
AT 6/30/10
$
%
35,346
1,100
35,346
1,100
47,749
1,281
36,446
36,446
34,237,065
158,071
165,000
2,500,000
38,000
1,314,795
31,241,966
244,522
165,000
3,017,000
38,000
1,751,100
31,446,005
244,522
157,305
3,013,899
38,617
1,751,449
38,412,931
36,457,588
36,651,797
FINAL
BUDGET
$
35,346
1,100
49,030 0.08%
36,446
31,265,000
144,522
155,000
3,750,000
38,000
1,471,885
61%
36,824,407
*Taxes
Catalogs
Facility Rental/Use
Interest
*Enrollment Fee
2% Adm. Allow.
Transcripts
Non-Resident Tuition
Miscellaneous
Total Local
16,000,000
200
71,000
100,000
3,700,000
71,429
30,000
829,000
35,000
18,534,000
200
99,000
75,000
3,965,014
71,429
30,000
967,885
10,000
18,453,857
20,836,629
23,752,528
23,540,989
39%
22,258,746
Total Revenue
59,286,006
60,246,562
60,241,816 100%
59,119,599
53,822,065
4,000,000
1,000,000
580,000
51,966,005
4,000,000
1,000,000
* GENERAL APPORTIONMENT
Base, Prior Year
Foundation Grant
Center Revenue
Growth/Reallocation of Growth
COLA
Adjustments:
Elimination of COLA
General Apport. Shortfall
Property Tax Shortfall
Reduce Base FTES
* TOTAL GENERAL APPORTIONMENT
17,655,005
200
71,000
50,000
3,500,000
81,278
30,000
866,263
5,000
90,233
80,890
3,830,899
81,430
26,061
967,910
9,709
51,966,005
4,000,000
1,000,000
51,966,005
4,000,000
1,000,000
(64,926)
(430,000)
(1,170,000)
(1,200,000)
0
0
(216,000)
(425,000)
0
56,602,065
56,966,005
56,901,079
56,325,005
11
UNRESTRICTED GENERAL FUND BASE BUDGET
BASE
BUDGET
EXPENDITURES
CERTIFICATED SALARIES
1100 Teaching
1200 Non-Teaching
1300 Part-Time Teaching
1400 Part-Time Non-Teaching
2009-10
ADOPTED
BUDGET
$
WORKING
BUDGET
$
2010-11
ACTUALS
AT 6/30/10
$
%
13,830,274
4,214,187
8,434,608
240,764
12,773,990
4,994,915
8,215,308
530,069
26,719,833
26,514,282
CLASSIFIED SALARIES
2100 Regular Contract
2200 Instr'l Aide Contract
2300 Part-Time Classified
2400 Part-Time Class Instr'l Aide
10,310,791
1,608,037
472,251
312,708
9,950,741
1,573,507
650,289
334,337
Total Classified
12,703,787
12,508,874
11,877,577 21%
12,937,951
12,095,879
11,690,523
11,360,925 20%
12,311,073
8,000
473,482
597,293
8,000
444,500
528,151
8,000
238,617
325,258
Total Certificated
STAFF BENEFITS
SUPPLIES
4200 Other Books
4300 Instructional Supplies
4500 Non-Instructional Supplies
12,494,191
4,804,151
8,023,557
495,514
FINAL
BUDGET
$
25,817,413 47%
9,716,865
1,390,685
520,505
249,522
Total Supplies
1,078,775
980,651
571,875
OPERATING EXPENDITURES
5100 Professional Services
5200 Travel & Mileage
5300 Dues & Memberships
5400 Insurance
5500 Utilities
5600 Rental Equip. & Facilities
Maint. Serv. Agreements
Repairs
5700 Legal Fees
Audit
Misc. Fees (Mchnt Bank)
5800 Postage
Advertising
Fingerprint & Testing Reqs
Printing
Program Support
Component
Other Fees
Uncollectable Stdnt. Recv.
399,242
113,666
73,926
436,623
1,984,796
20,108
706,600
192,517
200,000
75,075
138,626
247,500
99,039
24,550
118,791
316,686
52,878
107,831
225,000
850,689
121,699
83,301
499,794
1,815,862
21,794
774,648
269,250
250,000
75,670
140,026
210,540
75,113
24,250
120,743
33,136
78,056
59,424
228,000
630,084
55,827
87,601
497,636
1,645,904
13,722
654,129
202,733
117,011
75,670
127,251
151,832
24,040
5,556
47,580
19,427
50,445
52,261
227,400
Total Operating
5,533,454
5,731,995
4,686,109
16,950
293,900
362,575
24,560
20,078
295,161
1,030,574
24,560
19,066
77,591
1,030,574
673,425
1,370,373
1,151,791
58,805,153
58,796,698
CAPITAL OUTLAY
6100 Prof Serv-Construction
6300 Books
6400 Equipment
6500 Lease/Purchase
Total Capital Outlay
TOTAL EXPENDITURES
12
13,977,760
4,009,280
7,964,067
246,491
26,197,598
10,540,618
1,624,777
459,848
312,708
8,000
473,674
615,195
1%
1,096,869
399,242
113,516
73,926
518,238
2,100,963
22,150
872,314
202,818
150,000
76,000
140,626
197,500
99,039
24,550
118,791
334,956
52,878
61,908
235,000
8%
5,794,415
21,950
463,368
0
2%
55,465,690 100%
485,318
58,823,224
2010-11 FINAL BUDGET
GENERAL FUND - OVERVIEW
UNRESTRICTED GENERAL FUND BASE BUDGET
BASE
BUDGET
EXPENDITURES
TOTAL EXPENDITURES
TOTAL REVENUE
REVENUE OVER (UNDER)
EXPENDITURES
OTHER FINANCING SOURCES (OUTGO)
To District Match-FD 13
Indirects-fr FD 12, 33, 71, 72
TRANSFERS
From Student Center Fund
From Bookstore Fund
From Assoc. Students Fund
From Trust & Agency Fund
To Bldg FD-Transportation
To Bldg FD-Sched Maint Match
To Retiree Benefits Fund
To Debt Service Fund
Total Transfers
TOTAL OTHER FINANCING SOURCE
SOURCES (OUTGO)
EXCESS REVENUE/TRANSFERS
OVER (UNDER) EXPENDITURES
2009-10
ADOPTED
BUDGET
$
WORKING
BUDGET
$
2010-11
ACTUALS
AT 6/30/10
$
FINAL
BUDGET
$
58,805,153
59,286,006
58,796,698
60,246,562
55,465,690
60,241,816
58,823,224
59,119,599
480,853
1,449,864
4,776,126
296,375
(576,978)
312,612
(576,978)
312,612
(532,122)
359,943
(550,321)
335,539
90,475
118,319
18,000
98,882
(435,000)
(123,076)
(997,000)
(339,369)
(1,568,769)
90,475
118,319
18,000
87,482
(400,000)
(123,076)
(997,000)
(339,369)
(1,545,169)
93,191
118,319
18,000
84,686
(400,000)
(123,076)
(997,000)
(325,549)
(1,531,429)
94,221
129,666
18,000
86,147
(335,000)
(390,076)
(1,231,000)
(339,369)
(1,967,411)
(1,833,135)
(1,809,535)
(1,703,608)
(2,182,193)
(1,352,282)
(359,671)
3,072,518
(1,885,818)
MAINTAIN CONTINGENCY RESERVE AT 5%
MID-YEAR REDUCTIONS
(1,098,051)
(1,581,614)
TRANS FOR CARRYOVER DESIGNATIONS
FROM ONE-TIME
TO RESERVES
NET INCREASE TO FUND BALANCE
1,353,000
1,353,000
1,885,818
(392,853)
718
993,329
0
0
BALANCE - BEGINNING YEAR
CalPERS Reserve
3,375,000
3,375,000
3,375,000
(166,000)
3,209,000
YEAR END FUND BALANCE
3,375,718
4,368,329
3,209,000
3,209,000
3,154,000
30,000
25,000
718
166,000
3,154,000
30,000
25,000
3,154,000
30,000
25,000
3,154,000
30,000
25,000
72,678
1,098,051
4,379,729
=========
0
0
3,209,000
=========
3,209,000
===========
RESERVES
General Reserve
Revolving Cash Fund
Clearing/Operational
Unallocated
CalPers
Budget Adjustments
Mid-Year Reductions
TOTAL RESERVES
0
3,375,718
===========
13
2010­11 FINAL BUDGET COMMUNITY EDUCATION – GENERAL FUND B. COMMUNITY EDUCATION This sub­fund accounts for the Community Education and the Contract Education programs. The Community Education program is primarily based upon revenue generated from class fees.
14 2010-11 FINAL BUDGET
COMMUNITY EDUCATION - GENERAL FUND
Cabrillo Community College District
Final Budget 2010-11
Community Education
Budget
2009-10
Revenues
8800: Local
Total Revenues
Expenditures
1000: Academic Salaries
2000: Non-Instructional Salaries
3000: Employee Benefits
4000: Supplies and Materials
5000: Other Operating Expenses
6000: Capital Outlay
7600: Grants/Donations/Scholarships
Total Expenditures
Excess of Revenues Over Expenditures
Actual
2009-10
Budget
2010-11
530,758
530,758
812,194
812,194
804,111
804,111
4,605
193,552
51,946
21,459
210,865
1,000
26,352
433,332
147,917
43,194
237,663
8,200
483,427
39,511
237,797
36,876
39,693
328,499
1,089
1,950
685,415
47,331
126,779
(92,547)
896,658
Other Financing Sources (Outgo)
Interfund Transfers
8900: Transfers In
7300: Transfers Out
Total Other Financing Sources (Outgo)
0
Net Change to Fund Balance
Beginning Fund Balance
Fund Adjustment
Ending Fund Balance
15
1,482
24,907
(1,482)
(24,907)
47,331
125,297
(117,454)
325,816
325,816
451,113
373,147
451,113
333,659
2010­11 FINAL BUDGET GENERAL RESTRICTED FUND C. GENERAL RESTRICTED FUND The Restricted General Fund programs are established for the purpose of providing specialized services. These services are funded by revenues collected from program participants or from revenues provided by a Federal, State or local agency. As the name implies, restricted funds may only be used to pay for the costs of providing specific services. Federal, State and local agencies frequently require that a district receiving special funding provide general fund dollars to the restricted program. This “match” varies by funding agency and may be in the form of a cash contribution to pay for specific expenditures, or it may be an “in­kind” contribution that is made through allocation of existing district resources such as use of a facility, use of equipment, utilities or personnel. Required match is often expensed in the unrestricted general fund. The College continues to evaluate match requirements and commitments to determine the appropriate level of match for each program. The severe cuts that some restricted programs implemented in 2009­10 have become permanent. In 2009­10, the College received federal stimulus funds (ARRA) to backfill for some of these cuts. The College also contributed one­time funds to the programs to allow planning time for the 2010­11 permanent reductions. No backfill funds are included in the 2010­11 Final Budget. The State has given districts the authority to transfer funds between twelve restricted programs, without affecting future allocations. The College will continue to discuss potential transfers. The flexibility provisions are in effect for fiscal years 2009­10 through 2012­13. Page 17 shows a summary of the 2010­11 Final Restricted General Fund revenues and expenditures. Pages 18­19 show the listing of programs included in the Restricted General Fund budget.
16 2010-11 FINAL BUDGET
RESTRICTED - GENERAL FUND
Cabrillo Community College District
Final Budget 2010-11
Restricted Fund
Budget
2009-10
Revenues
8100: Federal
8600: State
8800: Local
Total Revenues
Actual
2009-10
Budget
2010-11
2,094,844
5,553,075
2,058,431
9,706,350
3,069,173
5,225,809
2,424,827
10,719,809
3,445,981
4,375,574
2,865,535
10,687,090
Expenditures
1000: Academic Salaries
2000: Non-Instructional Salaries
3000: Employee Benefits
4000: Supplies and Materials
5000: Other Operating Expenses
6000: Capital Outlay
Total Expenditures
2,247,909
2,254,402
1,693,609
499,490
4,244,515
523,577
11,463,502
2,112,818
2,383,871
1,389,189
380,355
3,364,225
472,944
10,103,402
2,103,048
2,193,776
1,662,696
735,402
4,187,446
295,849
11,178,217
Excess of Revenues Over Expenditures
(1,757,152)
Other Financing Sources (Outgo)
7600: Grants/Donations/Scholarships
7320: Indirects
Interfund Transfers
8900: Transfers In
7300: Transfers Out
Total Other Financing Sources (Outgo)
Net Change to Fund Balance
Project Reserves
Beginning Fund Balance
Increase to Fund Balance
Ending Fund Balance
17
616,407
(491,127)
(288,604)
(268,419)
(230,897)
(314,856)
(173,392)
(293,944)
(336,700)
(452,494)
(161,200)
(893,723)
(998,247)
(628,536)
(2,650,875)
(381,840)
(1,119,663)
-
-
1,501,506
1,501,506
1,119,666
(1,149,369)
1,119,666
3
2010-11 FINAL BUDGET
RESTRICTED - GENERAL FUND
Cabrillo Community College District
Final Budget 2010-11
Restricted - General Fund Detailed Program Listing
Project
023
031
100
103
104
107
110
111
112
120
122
125
126
128
130
134
136
137
138
139
140
141
150
153
162
165
174
175
181
190
193
194
204
205
217
218
230
236
241
242
276
277
292
305
311
318
Description
CAP
College & Career Night
Lottery
Student Representation
Child Care Fees
Foundation-10-11Backfill
Health Services
DSPS
Human Care Alliance
EOPS 09-10
Tutorials-Griffith
CARE
EOPS
P.V. Summer Migrant Ed
NSF MESA/STEEP 09-10
ACCESS 09-10
NSF MESA/STEEP 10-11
NSF Chemistry Bridges
ACCESS
NSF MPICT
WIA-Adult Wkr-FTTW
WIA-Dislocated Wkr-FTTW
Federal College Wk Stdy
SFAA - BFAP
First Five/ELF
Foster Kinship Care
MESA 09-10
MESA 10-11
Math Sci Teacher Init
Matriculation-non credit
Matriculation-credit 09-10
Matriculation-credit
TANF (FTTW)
Calworks (FTTW)
TTIP 06-07
TTIP 07-08
AMATYC
Tech Prep-Hartnell
State Instr Materials 08-09
Intnl Student Cap Surcharge
Migrant Headstart, ph 2
Migrant Headstart, ph 1
Calworks (FTTW)
MBUAPCD-Bike Loans&Racks
DSPS 09-10 c/o
MBUAPCD-Transp Dem Mgmt
Federal
Revenue
8100
State
Revenue
8600
Local
Revenue
8800-8900
Certificated
Salaries 1000
73,973
94
Classified
Salaries
2000
Employee
Benefits
3000
47,288
4,551
55,414
28,721
68,044
186,048
46,267
47,107
126,050
311,587
9,147
73,557
45,761
26,939
68,001
2,754
7,384
60
48,095
292
13,469
11,969
26,958
63,797
216,775
236,979
2,400
11,602
6,420
32,862
1,593
6,910
64,038
2,029
3,787
240
16,843
242
1,209
8,972
15,802
40,960
141,879
4,799
20,614
320
4,672
30
2,421
139,144
21,688
99,042
112,407
12,511
37,541
230,382
32,000
210
154,638
564,151
18,000
1,037,365
78,810
274,338
538,358
Other
Operating
Capital
Student Transfer Out
Expenses &
Outlay 6000 Aid 7000
7300
Services
5000
1,284
20,850
94
519,998
230,382
2,000
30,000
10
200
Supplies &
Materials
4000
11,000
409,041
1,372
457
1,300
3,365
525
4,500
400
14,026
9,656
1,504
20,950
79,454
5,626
500
1,500
8,026
11,020
7,218
2,000
26,744
64,256
26,744
43,587
228,486
75,993
14,362
28,253
2,011
38,574
1,720
8,009
18,086
31,719
67,590
2,311
206,279
89,002
22,687
54,787
54,280
113,475
216,775
394,358
78,000
112,164
8,740
50,568
40,898
53,420
1,664
6,500
14,000
26,195
Indirect
7310
9,331
28,050
355,887
26,195
171,396
101,086
14,416
10,000
22,840
2,500
3,278
2,938
1,650
1,805
42,287
3,063
12,049
4,000
5,250
60,000
2,108
5,500
12,000
7,063
2,952
336
1,945
77
5,249
954
21,076
1,311
300
10,000
1,600
18,191
33,008
12,161
5,790
15,112
10,261
8,820
6,647
6,125
6,647
6,125
40,816
26,012
9,000
36,536
13,464
22,844
11,618
85,136
3,375
452
39,431
3,406
1,394
21,849
100
608
1,150
13,000
45,176
2,975
22,706
17,500
2,580
16,318
62,500
14,984
18
42,173
Total
Expenses
73,973
94
750,380
32,000
210
154,638
954,729
1,037,365
55,414
26,744
73,557
43,587
228,486
31,719
67,590
2,311
206,279
89,002
22,687
54,787
54,280
113,475
216,775
394,358
78,000
112,164
8,740
50,568
14,000
9,331
28,050
355,887
52,390
171,396
10,261
8,820
6,647
6,125
40,816
26,012
36,536
13,464
85,136
59,673
63,731
16,318
2010-11 FINAL BUDGET
RESTRICTED - GENERAL FUND
Cabrillo Community College District
Final Budget 2010-11
Restricted - General Fund Detailed Program Listing
Project
328
331
338
347
351
352
357
358
361
363
364
365
367
368
389
390
391
393
399
507
620
649
656
657
658
670
707
708
713
714
816
819
822
846
847
848
849
850
853
859
863
864
865
867
Description
Caregiver Training Grant
RN Enrollment Growth
Grove Scholars
Song Brown
Title V-Hisp Serv Inst 09-10
Title V-Hisp Serv Inst 10-11
Nursing Foundation
Health Projects Ctr/AHEC
Basic Skills 10-11
Basic Skills 08-09
Basic Skills 09-10
SA/HIV (Formerly OFR)
STAP
APS-Adopt,Prom & Supprt
SBDC-YEP
SBDC-Monterey WIB
SBDC-SBA July-Dec
SBDC-SBA Jan-June
SBDC-Santa Cruz WIB
Student Body Center Fee
Rad Tech Foundation
E.A.S.E. Fndtn 08-09
Fndtn Faculty Grant 08-09
Fndtn Faculty Grant 09-10
E.A.S.E. Fndtn 08-09
Foundation-Horticulture
NSF (CSUMB)
DBA - NSF Sci & Math
DBA Hewlett
DBA Gates
VTEA 1C
Tech Prep VTEA II
CTE Teacher Pipeln 08-09
EWD-Resp Training Fund
Green Pre-Apprentice
EWD-In Serv Training/WIB
EWD-Reg Cons Prtnershp
Bridge
EWD-Resp Training Fund
BACCC VTEA 1B
CTE Comm Coll Proj 2a
CTE Workforce Innov 2b
CTE Pathways
CTE BAWFC
Total
Federal
Revenue
8100
State
Revenue
8600
Local
Revenue
8800-8900
Certificated
Salaries 1000
Classified
Salaries
2000
Employee
Benefits
3000
13,576
137,228
Other
Operating
Capital
Student Transfer Out
Expenses &
Outlay 6000 Aid 7000
7300
Services
5000
801
12,775
2,541
6,295
Supplies &
Materials
4000
51,772
39,433
32,151
23,379
21,496
176,039
37,802
8,298
5,750
4,000
35,465
3,420
4,636
7,500
30,851
5,191
25,989
107,391
11,456
2,514
14,422
11,602
11,601
13,442
12,982
10,000
5,000
300
Indirect
7310
2,443
1,231
5,963
781
12,153
6,643
5,647
2,842
2,692
13,576
137,228
0
42,500
292,483
565,759
53,884
11,732
90,000
44,464
46,018
239,922
167,466
33,687
23
70,846
70,000
80,672
49,974
137,550
15,950
488
1,324
3,182
952
66,053
15,862
357,846
311,616
1,072,550
462,100
67,750
46,181
32,385
250,409
63,508
32,000
155,036
19,519
316,000
171,345
146,826
73,733
37,849
293,944
11,806,753
5,036
979
42,500
292,483
565,759
53,884
11,732
90,000
239,922
167,466
33,687
29,960
24,960
70,846
21,484
35,332
35,332
12,926
70,000
80,672
49,974
137,550
15,950
13,593
10,033
16,371
16,371
3,479
13,873
59,712
43,653
13,164
104,475
311,616
1,072,550
462,100
67,750
46,181
32,385
250,409
91,910
43,207
34,106
10,988
86,419
135,274
36,182
136,857
4,500
18,252
1,488
52,352
65,910
23,326
99,379
12,669
6,863
29,365
25,351
18,068
63,508
32,000
155,036
19,519
13,167
58,823
171,345
146,826
73,733
37,849
4,375,574
3,200
2,100
10,123
4,983
883
1,186
4,100
20,156
500
316,000
2,865,535
2,103,048
1,635
1,117
2,112
451
28,791
20,096
4,042
5,000
6,440
2,692
2,692
2,274
131,000
2,357
488
360
2,077
15,862
357,846
3,445,981
197
197
2,000
3,125
235,245
239,364
2,514
469
44,727
44,464
46,018
146,127
92,827
24,345
23
32,889
15,408
26,080
29,295
6,550
10,584
2,193,776
19
2,677
16,552
3,484
741
238
734
1,662,696
735,402
964
1,105
952
10,000
600
94,954
96,347
862,511
157,460
12,987
112
27,039
64,479
61,065
30,769
148,573
18,738
271,935
87,736
140,941
69,416
35,157
4,187,446
12,400
610
16,446
11,985
39,724
8,774
20,214
2,605
1,780
1,246
7,000
92,990
2,000
1,591
295,849
173,392
161,200
Total
Expenses
2010­11 FINAL BUDGET CARRY­OVER SUB­FUND – GENERAL FUND D. CARRY­OVER SUB­FUND The carry­over sub­fund accounts for self­sustaining funds, projects that are not completed within the same fiscal year and available balance in line­item budgets authorized for carry­over. Self­sustaining funds depend on their ability to generate revenue to support their actual operating expenditures. Major projects that cross fiscal years are carried over in this sub­fund. Examples are major repairs, remodeling, and painting projects that are not state­funded. Examples of items authorized for carry­over are the year­end balances in supply budgets and the balance in the account established to fund the deductible for insurance claims. The District is continuing the spending freeze that has been in effect for the past couple of years. The 2010­11 Final Budget includes an assumption that 50% of budget expenditures will be frozen to conserve cash.
20 2010­11 FINAL BUDGET MID­YEAR RESERVE BRIDGE FUND – GENERAL FUND
E. MID­YEAR RESERVE – BRIDGE FUND AVAILABLE BALANCE 4,385,818 * Allocation to 2010­11 Deficit (1,885,818) Allocation to 2010­11 Mid Year Reductions * Allocation to 2011­12 Deficit (1,250,000) (1,250,000) * Transfer to Base Budget
21 Total Allocation 4,385,818 Available Balance 0 2010­11 FINAL BUDGET ONE­TIME SUB­FUND – GENERAL FUND F. ONE­TIME SUB­FUND – FTES RESERVE FTES RESERVE 1,854,606 Transfer to Mid ­Year Bridge Fund Reserve 1,354,606 Available Balance 22 $ 500,000
2010-11 FINAL BUDGET
ONE-TIME SUB-FUND - GENERAL FUND
G.
ONE-TIME SUB-FUND
Available balance
865,817
Commitments:
Transfer to Retiree Benefit Fund
100,000
Board Elections
100,000
Classroom Remodels
120,000
Contribution to New Employee Retiree Benefits
Total Allocations
100,000
420,000
Unallocated
445,817
23
2010­11 FINAL BUDGET RESERVES – GENERAL FUND H. RESERVES (ENDING BALANCE) 1. BASE BUDGET RESERVES The General Reserves, Revolving Fund, Revolving Stores, and Clearing/Operational Fund are accounted for in the Base Budget in the amount of $3,209,000. These funds are not designated for allocation during the fiscal year. a. General Reserves An account to record the reserve budgeted to provide operating cash in the succeeding fiscal year until taxes and State funds become available. The California Community Colleges Chancellor’s Office guideline is a minimum of 5% of the total General Fund Reserve. The Final Budget includes a 5% general reserve; $3,154,000. b. Revolving Cash Fund A $30,000 account to be used for emergency or small sundry disbursements. c. Clearing/Operational Fund A $25,000 account to be used for District deposits and subsequent withdrawal into appropriate County treasury accounts. d. CalPers Reserve A CalPers reserve was included in the budget until 2009­10. The reserve was reallocated to the Bridge Fund Reserve for 2010­11. e. 2010­11 Mid­Year Reserve – Bridge Fund The District retains a Mid­Year Bridge Fund Reserve to provide one­time assistance and planning time for addressing ongoing reductions in State revenues. The District will cover the $1,885,818 deficit for 2010­11,$1.25 million for 2010­11 Mid­Year reductions and set aside remaining funds for the 2011­12 fiscal year. f. FTES Reserve The FTES Reserve balance is included on page 13. The FTES reserve will be reduced to $500,000 for 2010­11. The remainder of the funds; $1.3 million will be used to bridge the deficit. g. One­Time Sub­Fund The One­Time Sub­Fund includes approximately $445,000 for one­ time projects. The funds are currently unallocated.
24 2010-11 FINAL BUDGET
RESERVES - GENERAL FUND
2010-11 Final Budget
Reserves of the General Fund
RESERVES
Final Budget
Base
Budget
General Reserve
3,154,000
Revolving Cash Fund
30,000
Clearing/Operational
25,000
Total Reserves
$3,209,000
25
2010-11 FINAL BUDGET
FUND BALANCE VS CASH
2.
ENDING FUND BALANCE vs CASH BALANCE
Budget
6/30/2011
Ending Balance
6/30/2008
6/30/2009
6/30/2010
Unrestricted Funds
5% General Reserve - Fund 11
Carry Over - Fund 14 (Note 1)
One-Time - Fund 17 (Note 1)
FTES Reserve - Fund 17 (Note 1)
Community Ed - Fund 15
Total Unrestricted Funds
$3,376,000
2,462,000
2,104,000
2,803,000
236,000
$10,981,000
$3,375,000
3,530,000
3,746,000
1,855,000
326,000
$12,832,000
$3,209,000
3,599,048
6,134,217
500,000
451,114
$13,893,379
$4,709,000
1,800,000
2,248,399
500,000
333,659
$9,591,058
1,729,000
1,501,000
1,119,666
3
$12,710,000
$14,333,000
$15,013,045
$9,591,061
6,476,000
7,564,000
5,568,430
Restricted Funds
Total General Fund Ending Balance
Cash Balance
1,591,061
Apportionment Allocation Deferrals
2008-09 @ $5,500,000
2009-10 @ $7,000,000
2010-11 @ $8,000,000 (est)
Note 1:
Coordinated efforts to purposfully slow expenditures from the 'Carry Over' and 'One Time' sub-funds
will be implemented in order to ensure an available year end fund balance sufficient to cover payroll
and essential operating expenses.
26
2010­11 FINAL BUDGET OTHER FINANCING SOURCES (OUTGO) I. OTHER FINANCING SOURCES (OUTGO) Other financing sources include proceeds from long­term debt, sale of fixed assets, and incoming transfers. Other outgo includes debt retirement, student aid and transfers to other funds. Inter­fund transfers are made to move appropriations and dollars from one fund to another fund for the purpose of paying for expenditures using the structure required by generally accepted accounting principles applied to governmental entities. The transfer of funds allows money to be moved from one fund to a second fund with the second fund then being responsible for paying all operating costs of that program. This practice allows all program expenditures related to the operation of the program, regardless of funding sources, to be accounted for in a single fund. This treatment provides readers with a full understanding of the scope of the program as a whole. Intra­fund transfers are made within a fund of a district. An example of an intra­ fund transfer would be moving funds from the unrestricted general fund to the restricted general fund. A schedule of Inter­ and Intra­fund Transfers is included on the following page.
27 2010-11 FINAL BUDGET
TRANSFERS
INTER- AND INTRA-FUND TRANSFERS
Transfer in
Unrestricted General Fund 11
From One-Time Sub Fund 17
From Bookstore Fund 51
From ASCC Fund 71
From Stu Ctr Fund 73
From Trust & Agency Fund 79
To Debt Service Fund 22
To Retiree Benefit Fund 23
To Building Fund 41 (Transportation)
To Building Fund 46 (Scheduled Maintenance)
Transfer Out
1,885,818
129,666
18,000
94,221
86,147
339,369
1,231,000
335,000
390,076
Restricted General Fund 12
To Child Development Fund 33 (Fees)
To Student Rep Fund 72 (Fees)
To Student Ctr Trust Fund 73 (Fees)
200
30,000
131,000
Carryover Fund 14
From Trust & Agency Fund 79
11,400
One-Time Sub Fund 17
From Unrestricted General Fund 11
To Unrestricted General Fund 11
To Retiree Benefit Fund 23
To Cafeteria Fund 52
1,885,818
100,000
Debt Service Fund 22
From Unrestricted General Fund 11
339,369
Retiree Benefit Fund 23
From Unrestricted General Fund 11
From One-Time Sub Fund 17
1,231,000
100,000
Child Devel Fund 33
From Restricted General Fund 12 (Child Care Fees)
200
Building Funds 41-47
From Unrestricted General Fund 11 (41-Transportation)
From Unrestricted General Fund 11 (46-Scheduled Maintenance)
335,000
390,076
Bookstore Fund 51
To Unrestricted General Fund 11
To ASCC Fund 71
129,666
15,000
Cafeteria Fund 52
From One-Time Sub Fund 17
Associated Students CC Fund 71
From Bookstore Fund 51
To Unrestricted General Fund 11
15,000
18,000
Student Representation Fund 72
From Restricted General Fund 12 (Fees)
30,000
Student Center Trust Fund 73
From Restricted General Fund 12 (Fees)
To Unrestricted General Fund 11
131,000
94,221
Trust & Agency Fund 79
Pino Alto/Sesnon to Unrestricted General Fund 11
Pino Alto/Sesnon to Carryover Fund 14
86,147
11,400
Total Inter- and Intra-fund Transfers
4,796,897
Indirects collected in the Unrestricted General Fund
From Restricted General Fund 12
From Child Development Fund 33
From Associated Students Fund 71
From Student Representation Fund 72
Total Indirects Reimbursed to Fund 11
28
293,944
21,295
18,200
2,100
335,539
4,796,897
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29 2010­11 FINAL BUDGET RETIREE BENEFIT FUND II. RETIREE BENEFIT FUND Pursuant to the Governmental Fund Group descriptions contained in the California Community Colleges Budget and Accounting Manual, the District has established a Retiree Benefit Fund that is contained within the debt service fund group. The fund is used for the sole purpose of funding retiree health benefits. The District pays retiree benefits directly out of the Retiree Benefit Fund. During the year, a transfer is processed from the general fund to cover the estimated annual cost of retiree benefits. Additional allocations for funding the future cost of retiree benefits from the base budget and one­time funds are: $200,000 ($100,000 from each) in 2010­11, $250,000 ($150,000 from base, $100,000 from one­time) in 2011­12 and 2012­13. Funds held in the Retiree Benefit Fund will accumulate interest income that will be held toward the cost of future benefits. Next Steps – GASB 45 Implementation Effective July, 2009 the District is required to account for the costs of retiree health benefits on an accrual basis, i.e., over the working lifetime of eligible employees. The entity­wide financial statements will recognize the annual required contribution (ARC). The ARC includes future other post employment benefits (OPEB) costs of active eligible employees + amortized unfunded liability of retirees. Although GASB 45 does not require funding the ARC, districts are encouraged to consider OPEB commitments and the districts’ ability to finance when they assess their fiscal health in preparation for Accreditation, future Bond measures, etc. The Chancellor’s Office is in the final stages of drafting an Accounting Advisory on the subject which will help guide districts on reporting requirements including how to allocate components of the ARC equally among all regular programs. The focus of next steps for funding the District’s liability involves the development of a strategy to assign the cost of retiree health benefits for current employees across all programs equally.
30 2010-11 FINAL BUDGET
RETIREE BENEFIT FUND
Cabrillo Community College District
Final Budget 2010-2011
Retiree Benefit Fund
Budget
2009-10
Revenues
8100: Federal
8600: State
8800: Local
Total Revenues
Expenditures
1000: Academic Salaries
2000: Non-Instructional Salaries
3000: Employee Benefits
4000: Supplies and Materials
5000: Other Operating Expenses
6000: Capital Outlay
Total Expenditures
Excess of Revenues Over Expenditures
Actual
2009-10
Budget
2010-11
21,000
21,000
10,769
10,769
11,000
11,000
898,393
932,411
997,000
898,393
932,411
997,000
(877,393)
(921,642)
(986,000)
Other Financing Sources (Outgo)
Interfund Transfers
8900: Transfers In
7300: Transfers Out
1,097,000
1,097,000
1,331,000
Total Other Financing Sources (Outgo)
1,097,000
1,097,000
1,331,000
219,607
175,358
345,000
Beginning Fund Balance
Fund Adjustment
Ending Fund Balance
1,412,918
1,412,918
1,588,276
1,632,525
1,588,276
1,933,276
Reserve - For Future Retiree Benefits
1,632,525
1,588,276
1,933,276
Net Change to Fund Balance
31
­This Page Intentionally Left Blank­
33 2010­11 FINAL BUDGET DEBT SERVICE FUND III. DEBT SERVICE FUND The District uses the Debt Service Fund to account for the payment of the Certificates of Participation (COP) authorized by the Board of Trustees in 1997­98. COPs are a form of debt used by governmental agencies that does not require voter approval. A transfer from the General Fund is made to cover annual COP commitments. The Debt Service Fund also includes loan payments for Delta School capital improvements made in 2007 and a corresponding reimbursement from Delta School for annual loan payments.
34 2010­11 FINAL BUDGET CHILD DEVELOPMENT FUND IV. CHILD DEVELOPMENT FUND The Child Development Fund is designated as a special revenue fund. This fund accounts for legally restricted revenue sources such as the Child Care Premium Tax Bailout, the California Department of Education, and the U.S. Department of Education. The Children Center functions primarily as a demonstration lab for the Early Childhood Education instructional program while providing child care services to students and staff. In 2009­10, Cabrillo partnered with the Santa Cruz County Community Counseling Center and leased the Baskin Center for a Head Start program. The receipt of this new local revenue represents the continual efforts being made to become a more fiscally sustainable Center. The 2009­10 Child Development Fund end­of­year balance of $57,279 will offset any additional reduced funding from the reimbursement of state aid from the Child Development Division (CDD) of the California Department of Education.
36 2010­11 FINAL BUDGET BUILDING FUND V. BUILDING FUND This fund accounts for Federal, State and local funding for scheduled maintenance, capital outlay projects, and student transportation fees. The Final Budget includes projected expenses for new projects only. A. SCHEDULED MAINTENANCE & CAPITAL OUTLAY PROJECTS The State provides funds for capital outlay projects. The State will not be providing scheduled maintenance funding for 2010­11. However, the District will be funding $390,076 from its base fund. The Building Fund also includes funding from Redevelopment Agencies. In October 2005 the College was awarded an allocation from State Proposition 55, which the voters passed in November, 2006, of $10,490,000 for construction and $1,185,000 for equipment for the Allied Health Buildings. Due to an error at the Chancellor’s office, the equipment allocation will not be available until Fall 2010. In March 2008, the College was awarded an allocation from State Proposition 55, which the voters passed in November 2006, of $2,167,000 for construction and $931,000 for equipment for the Building 300 Renovation Project. The State allocation for construction was reduced to $1,051,000 because the bids came in below budget. The equipment allocation remains $931,000. In November 2007, the College was awarded a Financial Assistance Award of $2.5 million from the Economic Development Agency for construction of a Pájaro Valley Regional Training Center at the Watsonville Center. In May 2009, the amount was augmented by EDA in the amount of $840,000 in order to assist the project in achieving LEED Platinum status. The project was renamed the Watsonville Green Technology Center. B. TRANSPORTATION, PARKING & SECURITY The net collections from the bus passes and parking permit fees are deposited into the Building Fund. These funds are designated for parking lot security, maintenance, and repairs. C. CERTIFICATES OF PARTICIPATION (COPS) Certificates of Participation (COPS) were sold in 1997­98. The proceeds have been used for deferred maintenance, upgrading of infrastructure, and purchase and installation of the Datatel software system.
38 2010­11 FINAL BUDGET BUILDING FUND D. REDEVELOPMENT AGENCY (RDA) FUNDS The budget for 2010­11 projects $534,000 in RDA funds and continues to support the new Scotts Valley center in the amount of $162,900 for the facilities lease agreement and $5,000 for miscellaneous Maintenance & Operations work. Unallocated RDA funds that have accumulated over the past five years equal $1.6 million. E. FEDERAL EDA GRANT The Watsonville Green Technology Center includes $3.365 million in federal Economic Development Agency (EDA) funding. An additional $1.5 million in funding will be provided from bond funds (General Obligation Bond, Measure D, Series B). The total project budget is $4.8 million.
39 2010-11 FINAL BUDGET
BUILDING FUND
Cabrillo Community College District
Final Budget 2010-11
Building Fund
Budget
2009-10
Revenues
8100: Federal
8600: State
8800: Local
Total Revenues
Actual
2009-10
Budget
2010-11
0
11,185,000
845,000
12,030,000
0
9,891,389
1,025,337
10,916,726
3,365,000
2,936,332
1,599,000
7,900,332
0
116,025
33,031
12,200
1,137,845
11,195,000
199,616
12,693,718
0
89,814
23,510
8,749
739,558
6,252,234
0
7,113,865
0
119,902
30,563
15,169
2,399,892
6,346,951
196,991
9,109,468
3,802,861
(1,209,136)
Expenditures
1000: Academic Salaries
2000: Non-Instructional Salaries
3000: Employee Benefits
4000: Supplies and Materials
5000: Other Operating Expenses
6000: Capital Outlay
7000: Reserves
Total Expenditures
Excess of Revenues Over Expenditures
(663,718)
Interfund Transfers
Transfers In
743,276
Transfers Out
937,509
0
Net Change to Fund Balance
79,558
Beginning Fund Balance
Fund Adjustment
Ending Fund Balance
Reserve - Parking Lot - Fund 41
Reserve - Future COPs Projects - 42
Reserve - For Contingency - 43
Reserve - Redevelopment - 44
Reserve - Sched. Maint. Projects - 46
41
725,076
0
4,740,370
(484,060)
(2,114,796)
3,602,118
1,566,880
(2,114,797)
0
2,625,573
2,625,573
0
2,141,513
455
0
70,833
1,083,224
412,368
455,957
199,616
216,675
1,239,858
513,467
128,703
0
33,080
1,610,339
369,391
2010­11 FINAL BUDGET GENERAL OBLIGATION BOND FUND VI. GENERAL OBLIGATION BOND FUND In June 1998 the voters approved an $85 million General Obligation Bond (Measure C) on behalf of Cabrillo College. Sales of Measure C bonds have taken place in increments as funds were needed: 1st Issue (Series A) 1998­99 ­ $12 million 2nd Issue (Series B) 1999­00 ­ $30 million 3rd Issue (Series C) 2000­01 ­ $20 million Final Issue (Series D) 2001­02 ­ $23 million In March 2004 the voters approved a $118.5 million General Obligation Bond (Measure D) on behalf of Cabrillo College. Sales of Measure D bonds occurred as follows: 1st Issue (Series A) May 2004 ­ $60 million Final Issue (Series B) April 2007 ­ $58.5 million The following key projects are included in the Bond Fund for 2010­11:
· Closeout of the Arts Education Classroom (AEC) Project: o Project also receives $20,357,000 State Capital Outlay Construction funding and $1,136,000.00 Equipment funding.
· Closeout of the Student Services Complex project
· Closeout of the Allied Health Complex o Project also receives $10,248,000 in State Capital Outlay Construction funding and $1,185,000 in Equipment funding.
· Building Improvements (as approved throughout the year)
· ADA access improvements (as approved throughout the year)
· Reallocation of space made available by opening of new facilities.
· Building 300 Remodel o Includes $1,051,000 in State Capital Outlay construction funding and $931,000 in Equipment Funding
· Watsonville Green Technology Center o Also includes a minimum of $3,365,000 in Federal Economic Development Agency (EDA) Funding The following key projects were completed in 2009­10:
· Health & Wellness Center
· Completion and opening of VAPA 4000 (Theater) and VAPA 5000 (Music)
· Watsonville demolition and construction plans to DSA
· Numerous building improvement projects throughout campus (building painting, classroom renovation, etc.)
· Aptos campus­wide signage project A portion of the Measure C Fund Balance is being held in Reserve to develop a long term solution for the North County Site.
42 2010-11 FINAL BUDGET
GENERAL OBLIGATION BOND FUND
Cabrillo Community College District
Final Budget 2010-11
1998 General Obligation Bonds
Bond Fund - Measure C
Budget
2009-10
Revenues
8100: Federal
8600: State
8800: Local
Total Revenues
Expenditures
1000: Academic Salaries
2000: Non-Instructional Salaries
3000: Employee Benefits
4000: Supplies and Materials
5000: Other Operating Expenses
6000: Capital Outlay
Total Expenditures
Excess of Revenues Over Expenditures
Actual
2009-10
Budget
2010-11
0
0
15,000
15,000
0
0
20,816
20,816
0
0
10,000
10,000
0
0
0
0
0
931,559
931,559
0
0
0
0
8,665
856,083
864,748
0
0
0
0
0
0
0
(916,559)
(843,932)
10,000
Other Financing Sources (Outgo)
8940: Sale of Bonds
0
0
0
Interfund Transfers
8900: Transfers In
7300: Transfers Out
0
0
0
0
0
Total Other Financing Sources (Outgo)
0
0
0
Net Change to Fund Balance
(916,559)
Beginning Fund Balance
Fund Adjustment
Ending Fund Balance
44
(843,932)
0
10,000
2,611,010
2,611,010
1,767,078
1,694,451
1,767,078
1,777,078
2010-11 FINAL BUDGET
GENERAL OBLIGATION BOND FUND
Cabrillo Community College District
Final Budget 2010-11
2004 General Obligation
Bond Fund - Measure D - Series A
Budget
2009-10
Revenues
8100: Federal
8600: State
8800: Local
Total Revenues
Expenditures
1000: Academic Salaries
2000: Non-Instructional Salaries
3000: Employee Benefits
4000: Supplies and Materials
5000: Other Operating Expenses
6000: Capital Outlay
Total Expenditures
Excess of Revenues Over Expenditures
Actual
2009-10
Budget
2010-11
15,000
15,000
25,598
25,598
10,000
10,000
0
0
0
0
0
1,794,704
1,794,704
0
0
0
37
15
1,390,125
1,390,177
0
0
0
0
0
2,000,000
2,000,000
(1,779,704)
(1,364,579)
(1,990,000)
Other Financing Sources (Outgo)
8940: Sale of Bonds
0
0
0
Interfund Transfers
8900: Transfers In
7300: Transfers Out
0
0
0
0
0
0
Total Other Financing Sources (Outgo)
0
0
0
Net Change to Fund Balance
Beginning Fund Balance
Fund Adjustment
Ending Fund Balance
45
(1,779,704)
(1,364,579)
(1,990,000)
4,076,809
4,076,809
2,712,230
2,297,105
2,712,230
722,230
2010-11 FINAL BUDGET
GENERAL OBLIGATION BOND FUND
Cabrillo Community College District
Final Budget 2010-11
2004 General Obligation
Bond Fund - Measure D - Series B
Budget
2009-10
Revenues
8100: Federal
8600: State
8800: Local
Total Revenues
Expenditures
1000: Academic Salaries
2000: Non-Instructional Salaries
3000: Employee Benefits
4000: Supplies and Materials
5000: Other Operating Expenses
6000: Capital Outlay
Total Expenditures
Excess of Revenues Over Expenditures
Actual
2009-10
300,000
300,000
108,884
108,884
110,000
110,000
0
0
0
4,000
30,000
16,000,000
16,034,000
0
0
0
0
18,207
13,272,736
13,290,943
0
0
0
4,000
30,000
10,500,000
10,534,000
(15,734,000)
(13,182,059)
(10,424,000)
Other Financing Sources (Outgo)
8940: Sale of Bonds
0
Interfund Transfers
8900: Transfers In
7300: Transfers Out
0
0
Total Other Financing Sources (Outgo)
0
Net Change to Fund Balance
Beginning Fund Balance
Fund Adjustment
Ending Fund Balance
46
Budget
2010-11
0
0
0
0
(15,734,000)
(13,182,059)
(10,424,000)
27,043,812
0
11,309,812
27,043,812
0
13,861,753
13,861,753
0
3,437,753
­This Page Intentionally Left Blank­
47 2010­11 FINAL BUDGET BOOKSTORE FUND VII. BOOKSTORE FUND The Bookstore Fund is an enterprise fund. An enterprise fund accounts for the total costs of providing goods and services on a continuing basis to students and staff and is financed through user charges or earned income. The bookstore generates revenue to cover all the expenses of the operation and additionally contributes more than $245,000 to the District. This contribution includes a donation to the Student Senate Library Reserve Book Fund and various occupancy and administrative fees. Bookstore operations are focused on having the right books, at the right time, at the right price available on­campus to all our students. Recent economic forces and the volatile textbook market have made this objective more difficult to achieve, but textbook affordability remains our primary focus. One especially effective program to increase textbook affordability has been our textbook rental program. This program has strong support from students, faculty and administration and has expanded every term since its inception in Spring 2009. Student Senate, Faculty Senate and FIPSE grant funding have contributed to program expansion. In the second year of FIPSE grant funding, the rental program will reach out to over 1,800 students with a reduction in textbook costs of 60%. Actual savings to students already exceeds $100,000. The bookstore is currently focusing on additional innovative strategies to lower costs and increase access to course materials so our students can succeed.
48 2010-11 FINAL BUDGET
BOOKSTORE FUND
Cabrillo Community College District
Final Budget 2010-2011
Bookstore Fund
Enterprise Fund
t
9
Budget
2009-10
Actual
2009-10
Budget
2010-11
Total Income
Cost of Sales
4,109,500
2,843,579
3,856,878
2,638,616
3,856,838
2,448,128
Gross Profit or (Loss)
1,265,921
1,218,262
1,408,710
546,949
270,440
15,000
382,358
494,390
214,616
13,125
441,244
536,238
264,188
15,000
486,971
1,214,747
1,163,375
1,302,397
51,174
54,887
106,313
Other Financing Sources (Outgo)
Interfund Transfers
8900: Transfers In
7300: Transfers Out
(133,319)
(133,319)
(144,666)
Total Other Financing Sources (Outgo)
(133,319)
(133,319)
(144,666)
(82,145)
(78,432)
(38,353)
Expenditures
1000: Academic Salaries
2000: Non-Instructional Salaries
3000: Employee Benefits
4000: Supplies and Materials
5000: Other Operating Expenses
6000: Capital Outlay
Total Expenditures
Excess of Revenues Over Expenditures
Net Change to Fund Balance
Beginning Fund Balance
Fund Adjustment
Ending Fund Balance
49
1,735,611
1,735,611
1,657,179
1,653,466
1,657,179
1,618,826
2010­11 FINAL BUDGET CAFETERIA SPECIAL REVENUE FUND VIII. CAFETERIA SPECIAL REVENUE FUND On April 9, 2007, the Governing Board approved awarding a contract to Taher, Inc. of Minnetonka, NM for the operation of the food services for two years, with three one­year options to renew. Their contractual arrangement with the College is as follows:
· Pay a flat commission of $32,500 per year.
· Provide $25,000 in capital improvements (Architectural and Construction Management) to the Student Activities Center cafeteria remodel and expansion.
· Provide $1,000 in co­sponsored catered events to student and College faculty/staff events.
· Effective July 1, 2009 the contract was amended to lower the commission from $32,500 per year to $10,000 per year due to the fact Taher was losing significant money.
· The food operation has operated successfully for three years and the program has generated a positive contribution each year. The current contract has been extended for one year commencing July 1, 2010. This would leave one option year remaining for 2011­12 upon mutual consent of the District and Taher.
50 2010­11 FINAL BUDGET ASSOCIATED STUDENTS OPERATING FUND IX. ASSOCIATED STUDENTS OF CABRILLO COLLEGE (ASCC) OPERATING FUND The ASCC Operating Fund is money held in trust by the District for organized student body association activities. The District has fiduciary responsibility for these funds. Revenues to the ASCC Operating fund are mostly generated by the sale of student activity cards (SAC), student bus passes, vending machine commissions, and contributions from the bookstore. The revenue supports student services, clubs, cultural events, speakers, college wide support grants, scholarships, textbook support programs and many other services. In the area of textbook support the following programs are supported:
· Textbooks on Reserve (2­hour check­out, managed through the Library and ILC)
· Textbook Rental Program (managed by the Hawkshop)
· Borrow­A­Book Program ­ textbooks on loan for the semester (managed by a committee of staff volunteers)
52 2010­11 FINAL BUDGET TRUST & AGENCY FUND X. TRUST & AGENCY FUND The Trust and Agency Fund was established to account for monies held in a trustee capacity by the College for individuals, student organizations or clubs. Money is expended in accordance with procedures established by the entity for which the money is held in trust. The Trust and Agency Fund contains accounts where the District is the agent for the funds. These accounts are not funded from the General Fund. Examples include student clubs and organizations, Cabrillo Stage, Distinguished Artists, Cabrillo Chorus, pottery fund, athletic ancillary funds and numerous others. The fund balance is an accumulated balance of the entities, and is not available to the General Fund. The transfer out represents the support of the Pino Alto and Catering classified positions on the College payroll.
54 2010­11 FINAL BUDGET SCHOLARSHIP & LOAN TRUST FUND XI. SCHOLARSHIP & LOAN TRUST FUND The Scholarship and Loan Trust Fund accounts are for gifts, donations and bequests that are used for scholarships, grants or loans to students. The majority of income for this fund comes from the Cabrillo Foundation; the remainder is received from other sources. The Grove Scholarships were received in the 2008­09 fiscal year. Only the carryover balance was budgeted for the 2010­11 Final Budget.
56 2010­11 FINAL BUDGET STUDENT FINANCIAL ASSISTANCE FUND XII. STUDENT FINANCIAL ASSISTANCE FUND Student Financial Assistance Funds are designated to account for receiving and disbursing federal and state­funded student financial aid. PELL GRANTS ­ A federal program available to undergraduate students who are participating in an eligible program and enrolled in three or more units. The amount of the grant is determined by the student's index number. The 2010­11 Preliminary Budget reflects the 2009­10 amount authorized by the Department of Education. Augmentations are received throughout the year. SEOG ­ Supplemental Educational Opportunity Grant is a federal program that enables students with verified exceptional financial needs to pursue their studies at institutions of higher education. The student must be enrolled on at least a half­time basis, (six or more units), show evidence of academic progress, and be capable of maintaining good standing. EOPS ­ Extended Opportunity Program and Services is a State grant that is awarded through the Financial Aid Office to students with verified exceptional need who qualify under the program guidelines. CARE ­ Cooperative Agencies Resources for Education is a State program awarded through the Financial Aid Office for welfare­dependent single heads of households with preschool age children. CAL GRANTS A, B, C – A State funded grant given to students to help pay for college expenses. ACADEMIC COMPETITIVE GRANT – A Federal funded grant for first and second year college students. Students must be enrolled on at least half­time basis in a college degree program or certificate of achievement in their first or second academic year and be a Federal Pell Grant recipient. DIRECT LOANS ­ Direct Loans are made through the William D. Ford Federal Direct Loan Program which is administered by the U. S. Department of Education. Fall 2010 is the first year of participation in the Federal Direct Loan Program.
· Subsidized Loans – Are for students with demonstrated financial need
· Unsubsidized Loans – Are not based on financial need
· Parent Plus Loans – Are loans for the parents of dependent students
58 2010-11 FINAL BUDGET
STUDENT FINANCIAL ASSISTANCE FUND
Cabrillo Community College District
Final Budget 2010-11
Student Financial Assistance Fund
Revenues
8100: Federal
8600: State
8800: Local
Total Revenues
Budget
2009-10
Actual
2009-10
Budget
2010-11
5,878,852
768,000
144
6,646,996
12,183,761
930,531
120
13,114,412
14,871,304
920,436
120
15,791,860
6,646,996
13,114,412
15,791,860
(6,646,996)
(13,114,292)
(15,791,860)
(6,646,996)
(13,114,292)
(15,791,860)
Expenditures
1000: Academic Salaries
2000: Non-Instructional Salaries
3000: Employee Benefits
4000: Supplies and Materials
5000: Other Operating Expenses
6000: Capital Outlay
Total Expenditures
Excess of Revenues Over Expenditures
Other Financing Sources (Outgo)
7000: Grants/Donations/Scholarships
Interfund Transfers
8900: Transfers In
7300: Transfers Out
Total Other Financing Sources (Outgo)
Net Change to Fund Balance
Beginning Fund Balance
Fund Adjustment
Ending Fund Balance
59
0
120
0
30,085
0
30,085
30,085
30,205
30,205
30,205
2010­11 FINAL BUDGET STUDENT REPRESENTATION FEE FUND XIII. STUDENT REPRESENTATION FEE FUND California Legislation authorized a one­dollar fee to be collected from students to support Student Senate representatives in lobbying for student rights before city, State and Federal agencies.
60 2010­11 FINAL BUDGET STUDENT CENTER FEE FUND XIV. STUDENT CENTER FEE FUND The Student Center Fee is required of all students and is designated solely for the purpose of maintaining and remodeling student activity centers throughout the District. In the last few years, the majority of expenditures from this fund have been used to furnish and maintain the new Student Activity Center (SAC) East. The fee is $1 per unit for a maximum of $5 per semester, and cannot exceed $10 per academic year. Some students receiving financial assistance may have the fee waived. The 2010­11 Final Budget includes continued support of the transfer out to the General Fund. This support is to help fund the cost of the Student Activities Coordinator position. This support was approved by the Student Senate for the 2009­10 fiscal year only. Continued support for this transfer out, past the 2009­10 academic year, was contingent upon the District implementing procedures to collect the full $10 fee per student per academic year as allowed by the California Education Code. Although the District has not implemented this new procedure, and therefore is not collecting all funds possible for this source of revenue, the ASCC Senate is providing one more year of support. In order to provide continued support for the Student Activities Coordinator, the ASCC Senate is requesting the District implement procedures to collect the full amount of revenue allowed by the California Education Code as soon as possible.
62 2010-11 FINAL BUDGET
STAFFING SUMMARY - ALL FUNDS
XV. STAFFING SUMMARY - ALL FUNDS
FULL-TIME EQUIVALENT EMPLOYEES
Fall Sem.
Students
Mgrs/Admin
Contract
Faculty
Adjunct
Faculty
Classified
Staff
Confidential
Staff
Hourly
Employees
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
13,604
14,871
15,231
14,867
14,623
15,157
15,056
16,012
16,900
16,467
N/A
47
44
43
37
37
36
36
38
39
38.5
36
227
235
234
227
211
230
226
225
228
216.5
220
356
364
405
372
376
367
368
411
436
419*
367*
234
253
238
217
220
223
233
249
246
241
239
12.00
13.75
13.75
12.63
12.63
12.63
12.63
13.50
13.50
12.50
12.50
570
574
402
382
386
393
440
405
632
283♦
341♦
Information on this chart is based on the Business Office count of FTE positions for the 2010-11 Final Budget.
This includes position changes approved through the August 2010 Board meeting.
It should also be noted that the numbers for adjunct faculty and hourly employees are not FTE, but a
headcount of all employees in those categories.
Student count based on information published in the Cabrillo College Fact Book
*Adjunct count based on active assignments Fall 2010 semester
♦ Temporary/hourly and students actually working through March 19, 2010
Updated 08/20/10
64
ATTACHMENTS
Budget and Benefits Town Hall Meeting Wednesday, May 26, 2010 Noon to 1:30 pm Sesnon House I. May Revise—Base Budget and Categoricals II. Multi­Year Projection: 2010­13 III. Ending Balance Overview and Funding Deferrals IV. Next Steps V. Benefits Overview VI. Questions
A1 Health Care System: Rate of Increase in Health Care Costs
The Facts About Health Insurer Profits –

Threedriving
Majorhealth
Factors
Increases in Medical Costs
What’s
really
careDriving
cost trends?
 General Inflation
 Health Care Price increases greater than inflation
 Cost shifting
 Higher priced technologies
 Reduced provider competition
25%
45%
 Increased Utilization




Aging
Lifestyle
New treatments
More intensive diagnostic testing/defensive
medicine
 Increased consumer demand
30%
Increased Utilization
General Inflation
Healthcare Price Increases Above Inflation
Cabrillo College – May 26, 2010
Copyright © 2010 Alliant Insurance Services, Inc. Confidential; not for distribution
A5
Health Care System: Cost Drivers
California HealthCare Foundation 2006
Uncontrollable Factors
Controllable Factors


Age of the workforce


Benefit design


Life expectancy
Health care inflation

Increases in charges by providers

Drugs (specialty drugs, e.g. Avastin)

Services (e.g. lab, x-ray, etc.)

New technology (e.g. transplants, PET
scans, etc.



Underpayment of charges by CMS for
Medicare

Cost of claims for:

Accidents and injuries (non-occupational)

Genetic disorders
Eligibility







Co-pays, coinsurance, deductibles
Coverage for disease management,
prevention and health promotion
Network adjustments; directing members to
less costly providers
Contribution policies
Coverage after age 65
Dependent coverage
Medicare assignment requirements
Retirement age
Years of service to vest
Unhealthy behavior (lifestyle choices)

Smoking, weight gain, substance abuse,
lack of exercise, etc
Source: National Business Group on Health
Cabrillo College – May 26, 2010
Copyright © 2010 Alliant Insurance Services, Inc. Confidential; not for distribution
A6