HARTNELL COMMUNITY COLLEGE DISTRICT
Board of Trustees – Workshop
No Closed Session – No Action will be taken
August 28, 2012 – 5:00 p.m.
TIME/PLACE
411 Central Avenue, Salinas
CALL Building, 2nd Floor, Room 208
Members of the Board
Erica Padilla-Chavez, President
Candi DePauw, Vice President
Patricia Donohue, Bill Freeman, Elia Gonzalez-Castro
Ray Montemayor, Demetrio Pruneda
Elaine Duran Luchini, Student Trustee
Willard Clark Lewallen, Ph.D., Board Secretary
Superintendent/President
I.
CALL TO ORDER
II.
PLEDGE OF ALLEGIANCE
III.
ROLL CALL
IV.
PUBLIC COMMENTS
Fifteen minutes (three minute maximum per person) set aside to receive public comments on items
on the published agenda.
V.
BUDGET PRESENTATION
The Board will receive a presentation on the budget for fiscal year 2012-13.
VI.
CONTINUED DISCUSSION ABOUT STRATEGIC PRIORITIES
The Board will continue its discussion on the strategic priorities for Hartnell College.
VII.
ADJOURNMENT
MISSION STATEMENT: Hartnell College provides the leadership and resources to ensure that all students shall have equal access to a quality education
and the opportunity to pursue and achieve their goals. We are responsive to the learning needs of our community and dedicated to a diverse educational
and cultural campus environment that prepares our students for productive participation in a changing world.
ACCOMMODATIONS: All meeting locations are wheelchair accessible. The following services are available when requests are made by 4:00 p.m. of the
Thursday before the Board meeting: American Sign Language interpreters or use of a reader during a meeting; large print agenda or minutes; assistive
listening devices. Please contact, the Office of the President at (831) 755-6900, if you need assistance in order to participate in a public meeting or if you
need the agenda and public documents modified as required by Section 202 of the Americans with Disabilities Act.
Act.
H.C.C.D – BOARD OF TRUSTEES STUDY SESSION – AUGUST 28, 2011
Page 1 of 1
AGENDA ITEM FOR BOARD MEETING OF:
Title
August 28, 2012
Number
Annual Budget Presentation
V
Area
Status
Office of Superintendent/President
Information
Summary
The Board will receive a budget presentation on the annual budget for fiscal year 2012-13.
The Board will conduct a public hearing on the annual budget and consider adoption at their
regular meeting of September 4, 2012.
8/24/2012
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
8/24/2012
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
8/24/2012
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
8/24/2012
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
8/24/2012
9
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
10
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”
5
8/24/2012
11
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
12
Counts Toward 50% Target
Salaries
S
l i and
dB
Benefit
fit Costs
C t of:
f
• Classroom faculty
• Instructional Aides
6
8/24/2012
13
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
14
Does Not Count Toward 50% Target
Operating Costs:
• Utilities
• Insurance
• Legal
• Audit Fees
• Travel and conference expenses
• Materials and supplies
• Replacement equipment
7
8/24/2012
15
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
16
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
8
8/24/2012
17
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
18
Questions?
9
8/24/2012
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
8/24/2012
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
8/24/2012
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
8/24/2012
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
AGENDA ITEM FOR BOARD MEETING OF:
Title
August 28, 2012
Number
Strategic Priorities
VI
Area
Status
Office of Superintendent/President
Information
Summary
The Board will continue their discussion from the July 25, 2012 board workshop in relation
to strategic priorities.
Board Workshop 7.25.12
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
Board Workshop 7.25.12
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
Board Workshop 8.28.12
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