Adopted
HARTNELL COMMUNITY COLLEGE DISTRICT
MINUTES
Board of Trustees – Annual Budget Workshop
CALL-208
411 Central Avenue
Salinas, California
August 28, 2012
OPEN SESSION
Workshop called to order at 5:00 p.m. by Trustee DePauw.
PLEDGE OF
ALLEGIANCE
Trustee Pruneda led the Pledge of Allegiance.
ROLL CALL
Present were:
Demetrio Pruneda
Bill Freeman (arrived at 6: 15 p.m)
Elia Gonzalez-Castro
Ray Montemayor
Candi DePauw
Elaine Duran Luchini, Student Trustee
Willard Lewallen, Superintendent/President
Absent:
Erica Padilla-Chavez, Patricia Donohue
PUBLIC
COMMENTS
There were no public comments.
Trustee DePauw called the workshop to order at 5:00 p.m.
2012-13 BUDGET
AND FACULTY
OBLIGATION
NUMBER
The board received a detail presentation on the proposed final budget for
fiscal year 2012-13 by Al Muñoz, Vice President, Support Operations
(Appendix A). During his presentation, the board asked several clarifying
questions to which Mr. Muñoz and/or Dr. Lewallen responded.
Following the budget presentation, Terri Pyer, Associate Vice President,
Human Resources, presented on the history of and use of the Faculty
Obligation Number, a number that the college is required to report to the
California Community College Chancellor's Office each fall. (Appendix B)
HCCD – BOARD WORKSHOP – AUGUST 28, 2012
Page 1 of 2
STRATEGIC
GOALS FOR THE
COLLEGE
The board continued their discussion on strategic priorities. On July 25th, the
board conducted a workshop to begin their dialogue and based on that
discussion, Dr. Lewallen distributed a summary of discussion and draft of
strategic priorities. (Appendix C )
The board will consider the proposed strategic priorities at the October
meeting.
ADJOURNMENT
The Board adjourned at 7:30 p.m.
Erica Padilla Chavez
Board President
HCCD – BOARD WORKSHOP – AUGUST 28, 2012
Dr. Willard Lewallen, Board Secretary
Superintendent/President
Page 2 of 2
9/20/2012
APPENDIX A
1
Hartnell Community
College District
2012-13
2012
13 Budget Update
August 28, 2012
Presented by Alfred Muñoz, CBO
2
Hartnell GF Draft Budget 2012-13
Deficit Budget
Apportionment
Oth IIncome
Other
Total Revenue
Tentative
$31,002,598
1,877,360
8
6
32,879,958
Revised
$30,786,556
2,138,900
8
32,925,456
Academic Salaries
Classified Salaries
Benefits
Supplies/Materials
Other Operating
$13,286,444
7,511,263
7,838,210
474,455
5,548,505
$13,392,660
7,488,440
7,518,374
474,955
5,090,956
184,100
169,400
534,000
35,376,977
434,000
34,568,785
Capital Outlay
Transfer
Total Expenditures
Deficit
($2,497,019) ($1,643,329)
1
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3
Change in FTES
Tentative Budget
7,100
Final Budget
6,700
Final budget
g reduced Adjunct
j
cost to
accommodate reduction in FTES
4
Change in Revenue
Tentative Budget
Decrease:
Workload Reduction (65 FTES)
Increase:
Adjust Deficit Coefficient
Lottery funds adjustment
Revenue allocation Fund 12
Miscellaneous Income
Final Budget Revenue
$32,879,958
(302,640)
168,250
75,125
71,908
32 855
32,855
$32,925,456
2
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5
Changes to Expenditures
Tentative Budget
Increase/(Decreases):
Academic Salaries
$35,376,977
(447,600)
553 816
553,816
(227,565)
204,742
(448,943)
129,107
(13,600)
14,100
(500, 074)
45,125
(6,300)
(111,000)
Classified Salaries
Benefits
Supplies & Materials
Other Expenditures
Capital Outlay
Transfer-Out
Final Budget Expenditures
$34,568,785
6
FTES FUNDED VS. ACTUAL 2007-08 TO 2012-13
9000
8000
7624
7083
7000
6586 6586
7373
6819
7107
7000 7000
6526
6 6
6462
6700
6700
5995
FTES
6000
5000
4000
3000
2000
1000
0
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13(1)
FUNDED FTES
6586
7083
6819
7000
6462
6526
5995
ACTUAL FTES
6586
7624
7373
7000
7107
6700
6700
0
541
554
0
645
174
705
UNFUNDED FTES
2012-13(2)
3
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7
2011-12 Through 2015-16 Budget Outlook
Revenue, Expense, and Fund Balance
40,000,000
34,570,710
37,189,708
36,460,498
35,748,516
35,000,000
34,568,785
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
2011-12
2012-13
2013-14
2014-15
2015-16
(5,000,000)
Expenses
Balance
Revenue
5% Reserve
8
Graph Data Assumption
No change in staffing level 2012-13 through 2015-16
y
trigger
gg
No mid-year
Revenue
• 2012-13 Based on State approved budget
• No state funding for growth in 2013-14
• Growth funding 2.2% for 2014-15 through 2015-16
(based on legislative analyst office)
Expenses
Continued step increase in wages
Continued increase in cost of health benefits
Inflationary cost of supplies, materials and services
4
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9
General Fund - Restricted
• Federal Grants
$8,092,802
• State Grants
$2,597,242
• Local
$1,383,818
10
Bookstore Fund
Revenue
Expense
Surplus
Reserve Balance
$139,000
110,000
$ 29,000
$1,323,437
5
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11
Child Development Fund
Revenue
Expense
Deficit
$538,451
743,193
($204,742)
Reserve Balance
$57,420
12
Capital Outlay Fund
Revenue
Expenses
Deficit
Reserve Balance
$346,000
$1,244,000
($ 898,000)
$3,175,897
6
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13
State Capital Match Fund
Revenue
Expenses
Surplus
$100
-0$100
Reserve Balance
$24,368
14
Property Acquisition Fund
Revenue
Expenses
Surplus
$282,000
57,600
$224,400
Reserve Balance
$3,836,743
7
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15
Bond Projects Fund
Revenue
Expenses
Deficit
$140,000
18,034,292
$17,894,292
Reserve Balance
$22,572,221
16
Cafeteria Fund
Revenue
Expenses
Surplus
$377,600
368,903
$ 8,697
Reserve Balance
$264,285
8
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17
Self Insurance Fund
Revenue
Expenses
Deficit
$ 2,700
112,000
($109,300)
Reserve Balance
$923,035
Funding for tail claims that are the result of withdrawing from the
Monterey County Workers’ Compensation JPA in 2002.
18
Retiree Health Benefits Fund
(Other Post Employment Benefit - OPEB)
Revenue
Expenses
Surplus
$112,000
-0$112,000
Reserve Balance
$4,370,425
87% of Future Liability Funded
9
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19
Associated Students Trust Fund
Revenue
Expense
Deficit
$132,547
145,384
($ 12,837)
Reserve Balance
$552,721
20
Scholarships, Loan & Trust Fund
Revenue
Expenses
Deficit
$ 300
1,000
($ 700)
Reserve Balance
$95,192
10
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21
Intercollegiate Athletics Trust Fund
Revenue
Expenses
Deficit
$16,500
34,000
($17,500)
Reserve Balance
$80,946
22
Student Financial Aid Trust Fund
Grants
Grants Expenditure
Surplus
Reserve Balance
$12,828,000
12,828,000
$ -0$ -0-
11
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23
Hartnell College Productivity
18000
16,549
30
16000
30
13,913
14000
12000
FTES
10000
8000
25
7107
6586
24
HEADCOUNT
(UNDUPLICATED)
AVG CLASS SIZE
SIZE*
6000
4000
2328
2506
2007-08
2011-12
CLASS SECTIONS
2000
0
20
2007-08
2011-12
2007-08 Revenue $36.7 million
2011-12 Revenue $34.0 million
24
FIFTY PERCENT LAW BACKGROUND
The Law, which dates back to 1959, was created presumably to ensure
that non-instructional functions do not squeeze out course section
offerings.
Education Code section 84362, commonly known as the Fifty Percent
Law, requires each community college district to spend at least half of
its “current expense of education” each fiscal year for salaries and
b
benefits
fi off classroom
l
iinstructors.
Current Expense of Education is referred as the “DENOMINATOR”
Salaries of Classroom Instructors is referred to as the “NUMBERATOR”
12
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25
Meets Requirement
I t ti
Instructional
l Salaries
S l i
$10 M = 50%
Current Exp. Of Ed. $20 M
Does Not Meet Requirement
Instructional Salaries $10 M = 47.6%
C
Current
tE
Exp. Of Ed.
Ed
$21
$ M
26
Counts Toward 50% Target
Salaries
S
l i and
dB
Benefit
fit Costs
C t of:
f
• Classroom faculty
• Instructional Aides
13
9/20/2012
27
Does Not Count Toward 50% Target
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Salaries and Benefit Costs of:
Counselors (Faculty)
Librarians
b
((Faculty)
y)
Faculty coordinators
Faculty directors
Release time for faculty
Deans & other administrators
Board of Trustees
Admissions and Records staff
Business Services staff
Campus security
Facilities and maintenance staff
Human Resource staff
Computer technical support staff
28
Does Not Count Toward 50% Target
Operating Costs:
• Utilities
• Insurance
• Legal
• Audit Fees
• Travel and conference expenses
• Materials and supplies
• Replacement equipment
14
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29
Outside the 50% Calculation
•
•
•
•
•
•
•
•
Costs funded byy categorical
g
p
programs
g
Building and equipment leases
New equipment
Community education
Ancillary programs
Costs funded byy Lotteryy funds
Student Transportation
Student Health Services
30
How would the following impact the
calculation?
•
•
•
•
•
•
•
•
History instructor is hired
Full time counselor is hired
Biology lab supplies are purchased
Instructional Aide is hired for a chemistry class
Increase in PERS rate
Increase in STRS rate
Instructor is granted 50% release time
Classified staff are provided a salary increase
15
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31
Fiscal Year 2011-12 Unaudited 50% Calc
Instructional Salaries & Benefits
Current Expense of Education
$15,359,823 = 51.42%
$29,869,306
Excluded from Current Expense of Education $2,617,057
$2 617 057
32
Questions?
16
9/20/2012
APPENDIX B
Hartnell College
Faculty Obligation
Background

In 1989, the legislature declared that
g should strive to have
communityy colleges
at least 75% of credit instruction taught
by full-time faculty.

AB1725 recognized that ‘the quality,
quantity and composition of full
full-time
time
faculty have the most immediate and
direct impact on the quality of
instruction.”
1
9/20/2012
Background, cont.
Two years later, funding for this hiring
program disappeared.
disappeared
 Faculty Obligation Number (FON) has
become the mechanism for achieving this
goal.
 In 2012, only one of the 112 community
colleges has more than 75% of teaching
done by full-time faculty.

Our Faculty Obligation

Each year the Chancellor’s Office
announces what each college’s FON is,
b d on change
based
h
in
i funded
f d d FTES over the
h
previous year
◦ The base full-time faculty obligation
(FON) is calculated using the change in
funded FTES at P2.
◦ The FON was “frozen”
frozen from Fall 2009
through Fall 2012, due to inadequate
funding from the state.
◦ Alternative Compliance—match previous
year’s percentage of teaching done by
full-time faculty.
2
9/20/2012
Fall 2012 Faculty Obligation

Our “Frozen” FON is 96.9, measured in the fall
We can include:
◦ # regular faculty (probationary and tenured)
◦ # temporary (grant, one-year, one-semester)
◦ # late, unreplaced retirees/resignations (

Alternative full-time percentage is 48.68%
Faculty Obligation
CALIFORNIA COMMUNITY COLLEGES
2010‐2011 2011‐2012 FULL‐TIME FACULTY OBLIGATION
DISTRICT: Hartnell
FALL 2011
FISCAL YEAR 2010‐2011
ADVANCE
BUDGET
WORKSHOP
P1
MAR.
2011
P2
JUN.
2011
FALL 2012
FISCAL YEAR 2011‐2012
RECAL
JAN.
2012
ADVANCE
BUDGET
WORKSHOP
P1
MAR.
2012
P2
JUN.
2012
RECAL
JAN.
2013
2013
ADVANCE
BUDGET
WORKSHOP
6,802.64
6,957.47
1.0000
6,957.47
6,801.49
6,190.39
1.0000
6,190.39
6,801.49
6,467.98
0.9947
6,433.67
6,801.49
6,975.85
0.9968
6,953.31
6,467.98
6,395.52
0.9976
6,380.27
6,975.85
6,446.88
0.9658
6,226.45
6,975.85
6,446.36
0.9767
6,295.93
0.00
0.00
0.0000
0.00
6,446.36
6,446.36
1.0000
6,446.36
Total Growth/Adjustment
154.83
0.00
154.83
‐611.10
0.00
‐611.10
‐367.82
0.00
‐367.82
151.81
0.00
151.81
‐87.71
0.00
‐87.71
‐749.40
0.00
‐749.40
‐679.92
0.00
‐679.92
0.00
0.00
0.00
0.00
0.00
0.00
% Cha nge i n FTES
2.276%
‐8.9848%
‐5.4079%
2.2321%
‐1.3561%
‐10.7428%
‐9.7468%
0%
0%
Ba s e FON
Growth Pys
Rounded Growth Pys
FON
105.90
2.41
2.00
107.90
105.90
‐9.51
‐10.00
95.90
105.90
‐5.73
‐6.00
99.90
105.90
2.36
2.00
107.90
99.90
‐1.35
‐2.00
97.90
107.90
‐11.59
‐12.00
95.90
107.90
‐10.52
‐11.00
96.90
0.00
0.00
0.00
0.00
96.90
0.00
0.00
96.90
Credit Bas e FTES
Funded Credit FTES
Defici t Fa ctor
Adjust Credit Funded FTES
Growth/Decline in FTES
Overca p Adjus tment
November Report
Full ‐time Faculty
Pa rt‐time Faculty
Tota l Faculty
Fa culty Percent
75% Tota l Fa culty
Nov. 2010
Nov. 2011
100.00
75.14
175.14
57%
131.36
95.00
100.17
195.17
49%
146.38
3
9/20/2012
2012 FullFull-time Faculty

97 Full-time Faculty*
◦ 88 regular faculty from last year (includes
(i l d the
h return off
two interim administrators to faculty)
◦ 1 temporary (DSPS Counselor-late retiree)
◦ 4 regular hires (Agricultural & Industrial Technology,
Computer Science, Librarian, Music)
◦ 2 grant-funded (Sustainable Design, RCP*)
◦ 2 temporary hires (English, Nursing)
*One faculty member (in RCP) is in the recruitment process
Q ti ?
Questions?
4
Appendix C
HARTNELL CCD BOARD OF TRUSTEES
SUMMARY OF DISCUSSION FOR STRATEGIC PRIORITIES
STUDENTS
Student success [5]
• In a timely way
• Complete AA or certificate or transfer to 4 year college/university
Serve the community (including those requiring financial aid, ESL learners, high school
prep) [4]
Better meet the educational needs of students based on assessment [1]
• In place but not utilized?
• Full spectrum of needs in the community (Vision 2020)
• Vocational training through to 4 year transfers
• Respect community needs
Focus on the accountability required by law (e.g. academic success of students)
FACULTY, STAFF, BOARD and ADMINISTRATION
Increase diversity of staff and faculty, to better mirror the community [6]
Grow talent within the college
• Includes faculty, staff, and students
• College needs to be ready to face retirement of baby boomers
• Include investment and retraining
• Succession planning
FISCAL
Generate additional revenue [4]
• Beyond state funding (which is uncertain)
• Link to specific populations where viable (veterans, Hispanic students)
Maintain financial strength [1]
[#] Number of “votes” received
1
Appendix C
PROGRAMS, SERVICES and CURRICULUM
Continue to improve the physical pant and infrastructure [1]
• Buildings, technology
• Develop a more methodical approach
• Utilization of 140 acres
State of the art technology for students, staff and board
Focus on delivery methods that best meets the needs of Hartnell students
• Where does distance learning fit?
Capitalize on national trends related to health care
• Curriculum changes
• Put plan in place to attract associated funds
Enhance and enrich the classroom experience
PARTNERSHIPS
Revitalize stakeholder involvement in the planning process [1]
• AA and/or certification
• Example: auto collision course, airport mechanics
Leverage partnerships so that they translate into work opportunities [1]
Expand on relationships with community members and business community
• Source of resources, support and partnership
Continue innovative partnerships, especially as they relate the economic prospects of
students
Work with high schools to ensure college readiness
Extend programs, such as STEM, to younger students
• Outreach into elementary schools
• Plant seeds of college attendance
[#] Number of “votes” received
2
APPENDIX C
HARTNELL CCD BOARD OF TRUSTEES
STRATEGIC PRIORITIES
STUDENT SUCCESS
STUDENT ACCESS
EMPLOYEE DIVERSITY AND DEVELOPMENT
EFFECTIVE UTILIZATION OF RESOURCES
INNOVATION AND RELEVANCE FOR EDUCATIONAL PROGRAMS AND
SERVICES
PARTNERSHIPS WITH INDUSTRY, BUSINESS, AGENCIES, AND EDUCATION
[#] Number of “votes” received
1