104
AGENDA ITEM BACKGROUND
TO: GOVERNING BOARD
DATE
FROM: PRESIDENT
April 8, 2013
SUBJECT:
2012-13 Budget Revision—Allocation of FTES Reserve
REASON FOR BOARD CONSIDERATION
ENCLOSURE(S)
ITEM NUMBER
ACTION
Page 1 of 2
G.4
BACKGROUND:
The Governing Board took action to create an FTES operating reserve of $500,000 on October 9, 2006.
The reserve was established to provide the college with resources to safeguard the district against a
decline in enrollment. The reserve was established at a time with the college’s enrollment was below
the state enrollment cap. At the time, the college was at risk for a permanent loss of state apportionment
funding.
The FTES reserve was increased from $500,000 to $2.8 million. The college was able to increase
the reserve by capturing growth revenue for the 2006-07 and 2007-08 fiscal years. The increase in
revenue was temporary so the resources were treated as one-time. Funds were allocated and
replenished as follows:
2008-09 FTES Reserve balance:
2008-09 Allocation to generate FTES
2009-10 Bridge 2009-10 budget deficit
2010-11 Bridge 2010-11 budget deficit
2011-12 Allocate one-time funds to FTES reserve
Current balance of FTES reserve
$2.8 million
($ .7 million)
($ .3 million)
($1.3 million)
$ .5 million
$1.0 million
The college was significantly over the state funded enrollment cap for several years. The college’s
enrollment is now declining. Enrollment for spring 2013 is 4.3% below the spring enrollment for the
prior year. Classes have been added to spring 2013, and summer 2013.
Continued next page
FISCAL IMPACT: $666,503 from the One-time FTES Reserve
RECOMMENDATION:
It is recommended that the Governing Board adopt the recommendations of the College Planning
Council and authorize the Vice President, Administrative Services to make the budget adjustments to
allocate $666,503 of the FTES reserve in 2012-13 for the 2013-14 Academic Year. The college will
restore the FTES back up to $1 million when the 2012-13 fiscal year is closed in August 2013.
Administrator Initiating Item:
Victoria Lewis/
Graciano Mendoza
Academic and Professional Matter
If yes, Faculty Senate Agreement
Senate President Signature
 Yes  No
 Yes  No
Final Disposition
105
In order to maximize state apportionment funding and stabilize enrollment the college needs to
utilize the FTES reserve. The allocation of resources is consistent with the 2013-14 Budget
Reduction Process Commitments, Strategies and Criteria II.B, C & D. The college is planning to
allocate one-time reserves as follows:
Credit Courses
FTES
BELA
HASS
HAWK
NAS
VAPA
Library
Counseling TUs spring 2014
Total TUs from FTES Reserve Fund
TUs
32.31
38.55
12
89
42.06
28.25
9
63.35
38.38
0.8
9
9
222.92
148.78 @ $1770 per TU
Total Cost to FTES Reserve Fund
Public Safety Courses
1. CEED Related Costs
$2.25 per contract hour payment to agencies
Dean CEED, 0.05 FTE S&B
Public Safety Program Coordinator, 0.5 FTE S&B
Program Specialist, 0.45 FTE S&B (new)
Faculty, 4 TU @ 1,850
Student Worker
Benefits, Vacations, Step @ 10%
Programming, software, systems development
Contingencies
Total cost allocation to CEED
2. Business Services Related Costs
Sr. Accounting Specialist
Accounts Payable
Review Process
Total cost allocation to BSO
3. Admissions & Records Related Costs
20 hours @ $26.81 per hour + 20% mand. Ben. (two times per year)
20 hours @51.90 per hour + 20% mand. Ben. (two times per year)
Total Cost Allocation to A & R
Total Costs to Offer Courses
Public Safety Cost per FTES (assuming 232 FTES)
Projected FTES
Total allocation from FTES Reserve
$263,341
$263,341
PROJECTED
EXPENSES
$274,050
7,878
47,500
27,201
7,400
2,000
9,315
4,000
2,000
$381,344
12,470
4,770
800
$18,040
1,286
2,492
$3,778
$403,162
1,738
455
$666,503
It is still unclear whether the college will be able to capture all of the restoration/growth funding for
2012-13 and 2013-14. The short term goal is to capture restoration funding for 2012-13. It is also
unclear whether the college will be able maintain restoration/growth funding once it is earned.
Enrollment will be evaluated on an ongoing basis. The college will allocate ongoing resources to
sustain enrollment and capture the maximum funding available.