Peralta Community College District
Planning and Budgeting Council
Date of Meeting: September 26, 2014
Present: Norma Ambriz-Galaviz, Timothy Brice, Tamika Brown, Paula Coil, Lisa Cook, Matthew Goldstein, Rick Greenspan, Stefanie Harding,
Brandi Howard, Jennifer Lenahan, Anna O’Neal, Carl Oliver, Mike Orkin, Tae-Soon Park, Jeramy Rolley, Jennifer Shanoski, Cleavon
Smith, Sui Song, Elnora Webb
Chair/Co-Chair: Susan Rinne, Karolyn van Putten
Guests: Thuy Thi Nguyen, Charles Neal
Facilitator/Recorder: Linda Sanford, Joseph Bielanski
Absent: Debbie Budd, Drew Gephart, Eric Gravenberg, Sadiq Ikharo, Jenny Lowood, Calvin Madlock, Trulie Thompson.
Agenda Item
Meeting Called
to Order
1. Agenda Review
2. Review of Minutes
Committee
Goal
Strategic
Planning
Goal and/or
Institutional
Objective
Discussion
Follow-up
Action
Decisions
(Shared Agreement/
Resolved or
Unresolved}
Time: 9:10AM
APPROVED
Corrections to the minutes.
Page 2 of 7: The search for the VC of
Finance was not abandoned. The
search was completed, but the District
decided not to move forward with the
finalist. The District was looking at a
different direction.
Page 4 of 7: Louis Quidlen should be
Louis Quindlen.
APPROVED as amended
Abstain: 5
1
3. Review of PBC 201415 Goals developed at
the Summit meeting
4. 2014-15 Final Budget
6. Monitor
Progress in the
Integrated
Planning and
Budgeting
Calendar
D.3
Institutional
Effectiveness
The wording of PBC Goal #7 was
revised
APPROVED as amended
E.2 Budget to
Improve
Student
Success
E.3 Fiscal
Oversight
The Final Budget was presented to the
Board of Trustees (BOT) at their
September 9, 2014 meeting for
adoption.
Highlights from the presentation:
State Budget:
 To pay down/eliminate the
wall of debt; $10 billion
 Focusing on new money for
education
 An initiative on the November
ballot for a Rainy Day Fund
(RDF). If capital gains exceed
8% of General Fund, those
funds will be deposited into the
RDF. Half of those funds
would be used to pay off
liabilities and debt for 15
years. If there is a disaster or
emergency within the State,
the Governor has the ability to
draw from that fund.
 Positive Triggers: First time in
many years. If revenue comes
in higher, it will activate
positive triggers in the budget.
 CalSTRS: For 2014-15,
The PBC
Goals
document
will be
updated to
include the
revision to
Goal #7.
The
PowerPoint
presentation
that was
presented to
the BOT will
be posted
online.
2





employers are faced with a
.63% increase in STRS
contribution. Peralta is paying
8.88% from 8.25%. Faculty is
paying 8.15% instead of 8%.
State is paying 6.3% instead of
3%. The increase is scheduled
to go up to 19.1% for
employers and 10.25% for
employees. The increase
equates to about $14 million in
additional expense for the
District over the span of seven
years.
COLA = .85% (half of prior
year)
Access (growth) = 2.75%
SSSP = $100 million.
Mandates: Release time for
negotiations. Funding will be
allocated per FTES instead of
filing mandated cost claims.
We are expected to receive
around $500,000 this year.
Scheduled Maintenance and
Instructional Equipment: Last
year, we received $225,000 for
each with a 1:1 match
requirement. This year, we
received $2.3 million to be
split between the two with no
match requirement unless we
are doing a barrier removal
(which we are not). The split
amount would be decided by
the District. It was decided at a
Mr.
Greenspan
would like to
see a report
(APU and
clarification)
as to how the
decision was
made for the
split.
3



Chancellor’s Cabinet meeting
that $1.9 million is going to
scheduled maintenance,
$200,000 for library materials,
and $200,000 for instructional
equipment. Per VC Rinne, we
were required to report to the
State Chancellor’s Office by
September 15, 2014 as to how
we are going to split the
funding. The letter from the
State Chancellor’s office was
received on September 1,
2014.
Technical Assistance Team:
The State Chancellor’s Office
received nine new positions.
The State Chancellor’s Office
is trying to setup a method to
assist colleges that might have
accreditation issues. This
method won’t charge the
colleges for their service.
Formula for Growth
Allocation: Previously growth
allocation was based on the
prior year annual report’s
funded base + 3% on top. For
2015-16, there will be a new
formula based on economic
factors.
Career Development and
College Programs (CDCP):
Used to be funded at a quarter
level of credit, but now it will
be funded at full credit base
4
($4600 per credit).
Caution and Concerns:
 Prop. 30 allowed us to
maintain the same level of
access to our students. If Prop.
30 goes away, we’ll lose $13
to $15 million.
 Part of the sales tax increase
ends in 2016 (21% of Prop. 30
revenue). The rest is set to
expire in 2018; therefore we
need to plan for it.
 STRS obligation
 Deficit in continuing exposure
to property taxes and fees.
PCCD Budget:
 COLA = .85% (half of prior
year); $2.2 million
 Access (growth) = 2.75%;
$846,989
 DSPS: Budgeted at105% from
prior year.
 SSSP: Allocation was received
earlier this week. The four
colleges funding almost
doubled from prior year.
 Student Equity Plan: $1.3
million district-wide.
Distribution amount will be
based on a recommendation
from the Chancellor’s Cabinet.
 CalPERS: PERS conducts two
annual evaluations (July 1st
and January 1st). They sent out
5








a circular letter stating that
their fees will increase 15-20%
during the same period as
STRS. This year the increase is
.329%, which equates to
$74,000 for our district.
Medical Premiums: Increased
by approximately $980,000
Workers’ Comp.: Increased by
$54,000
OPEB Liability: The District
took out a bond in 2005 for
$150 million. The debt service
on the bonds is a general fund
obligation. The debt service
payment increased by $1.6
million this year.
We built our budget based on a
target of 19,355 residence
FTES.
Productivity Level = 17.5
Unrestricted Lottery dollars are
the same as prior year.
Total Budget is approximately
$127 million in the General
Fund Unrestricted with an
estimated carryover amount of
$500,000 to $1 million. Our
beginning balance is
approximately $14 million.
Parcel Tax: In fiscal year
2013-14, we used the parcel
tax to restore the 15%
reduction from the 2012-13
General Fund. For fiscal year
2014-15, funding was restored
6


5. 2014-15 Integrated
Planning Budget
Building Calendar
6. Monitor
Progress in the
Integrated
Planning and
Budgeting
Calendar
D.3
Institutional
Effectiveness
E.1.
FTES/FTEF
Target
E.3 Fiscal
Oversight
in the General Fund. This year,
the parcel tax was used only
for 1351 (PT faculty), a couple
Classified positions, and the
PASS program.
New Healthcare Program: The
District has to pay $16.50 per
employee.
Page 19 of the Final Budget:
“Applicable International
Revenue” should be changed
to “Applicable Non-Resident
Revenue”.
Student Equity Plan: The deadline has
been changed because the State has
given us more time to complete the
college plans. The item will be going
to the Board on November 18th for
first read and on December 9th for
approval.
The schedule
will be
included on a
timeline of
topics for the
committee.
Concern was expressed in regards to
the process/schedule to review the
priority hiring list for Faculty and
Classified positions. We need to let
HR know by October of this year so
that there is adequate time for Fall
recruitment for the following year. Per
AVC Sanford, it is on the calendar for
March 27, 2015.
Note: Categorical positions do not
need to go through the district-wide
shared governance process. It can
come to the PBC as an informational
7
item.
Faculty Obligation Number (FON):
There might be an issue with next
year’s FON that may require the
hiring of additional faculty (to meet
the bare minimum/basic requirement).
The percentage calculation method,
which allowed the parcel tax to be
used to hire additional part-timers and
doesn’t count towards the FON, is
going away.
6. Committee Resolutions: 5. Evaluate
Continuous
 DFC
Improvement
 CTE
of the PBIM
Process
D.2
Institutional
Leadership
and
Governance
D.3
Institutional
Effectiveness
District Facilities Committee (DFC)
memo: The memo was received on
September 15th. The DFC
recommends that colleges be able to
appoint additional members, one
Classified representative from each
college, to the DFC. While we usually
do not make such recommendation
until the end of the academic year,
however, the DFC cannot wait and
this is a way to fast track the change.
Request was
made to have
the data on
how many
districts
operate at the
bare base
minimum of
FON. Per
AVC
Sanford, the
information
is posted
online and
will be
circulated to
the group.
A memo will
be sent to the
Chancellor
for action on
adding four
classified
members to
the DFC.
Motion to endorse the memo.
APPROVED
Opposed: 2
8
CTE Subcommittee
The deficiency in the PROMT system
is the integration between the Payroll
and Finance process. It is currently a
manual process. There is a lag
between when payroll is printed to
when it is posted in the finance
module. We are waiting for the
Finance module to be upgraded. The
upgrade is scheduled for this calendar
year.
We currently don’t have a formal
procedure for carryover budgets to be
loaded. In the past, Finance loaded
partial carryover until the books are
closed. We have a fiscal year-end
timeline that is not being adhered to.
There is a Business Managers’
meeting today to go over the proposed
process: once June 30th hits, the
Business Managers will need to
review their budgets, build their
carryovers, and sign off that all bills
are paid and payroll is posted. The
Business Managers can then upload
the carryover budgets. This will be a
uniform process across all colleges.
VC Rinne
will have a
written
procedure on
carryover
budgets that
will be
shared with
the DEC,
PBC, and the
Colleges.
She will also
work with IT
on a timeline
for the
Finance
module
upgrade.
Payroll budgets cannot be encumbered
in PROMT. It is not possible in the
current version of PeopleSoft.
Timesheets are posted to the budget
codes listed, whether the funding is
available or not. The last payroll
adjustment was completed yesterday.
9
7. Board Policies and
Administrative
Procedures
3. Review and
Recommend
BPs and APs
D.2
Institutional
Leadership
and
Governance
There will be a workshop scheduled to
help people understand more clearly
what is required for us to close the
books and why we need to adhere to
the fiscal year-end cutoffs.
A number of years ago, we received
an accreditation recommendation that
we failed to keep our Board Policies
(BPs) and Administrative Procedures
(APs) up-to-date. To continue to
address the ACCJC recommendation,
Peralta must show regular and
ongoing review of our BPs and APs.
Tom Henry was here to help us on
Finance issues. He recommended
hiring Jim Grivich is assist in
responding to the ACCJC
recommendation. Mr. Grivich
recommended that we move our
policies and procedures to the
Community College League of
California’s (CCLC) process for
updating BPs and APs.
BP 5020 Nonresident Tuition
The language was taken from the
CCLC due to new regulations.
BP 5030 Student Fees
This BP was reviewed with the AVC
of Student Services.
Section III. B. should read “The
Chancellor is authorized to implement
a Capital Outlay fee of $6 per unit, not
to exceed $144 in an academic year.”
10
BP 6200 Budget Preparation
Remove the statement “Unrestricted
general reserves shall be no less than
5%.” The statement is inserted into BP
6250 Budget Management.
BP 6250 Budget Management
New policy and follows the CCLC
template.
AP 3560 Alcoholic Beverages
It would be legal to have alcoholic
beverages as an option when renting
out facilities and to increase the rental
income. The rental agreement must be
approved by the College President or
the Chancellor.
Per General Counsel Nguyen, you’ll
still need a liquor license or permit but
no insurance required.
AP 6700 Civic Center and Other
Facilities Use
It was noted that we need to hold the
Business Managers accountable for
staffing hours and to adhere to this BP
and AP. It is contractual to have
advance notice.
There is a dollar sign missing under
the second asterisk on the bottom of
page 3 of 4. It should read “Additional
tennis courts are $15 per hour”.
11
Motion to approve the Board Policies
and Administrative Procedures as
amended. APPROVED
Abstain: 4
8. BAM Updates
Discussion:
 RES FTES vs.
Total FTES
 Fixed Costs
1. Update the
BAM to
operationalize
full
implementation
of the model.
E.2 Budget to
Improve
Student
Success
E.3 Fiscal
Oversight
E.4 Support
Quality
Instruction
Discussion on moving toward full
implementation of the BAM by
looking at how we calculate the base
allocation from resident FTES to total
FTES.
The front of the first page shows the
changes, which now includes both
resident and non-resident FTES based
on a three year rolling average. This
will also change the Full-time
Equivalent Faculty (FTEF) allocation
to the colleges. The FTEF will
increase by the same ratio.
A master list
will be
created with
all the
problems
related to the
BAM that
have been
brought up,
such as the
cost of CTE
and faculty
with more
years of
service.
The back of page first page shows the
current BAM that was part of the Final Actual
Adopted Budget.
language
change on
For example:
the proposed
Under the new method, BCC’s
amendment
revenue allocation is $17,974,747.
to the BAM
Under the old method, BCC’s revenue will be
allocation is $17,962,939.
brought back
to the PBC.
The current budget is based on the
targeted FTES. We then distribute the
number of positions needed in order to
support the FTES number. Part-time
faculty funding is based on your FTEF
number.
12
Recommended revision: To include a
line (as a deduction) for fixed costs
(with an asterisk) under Revenue
Allocation by College.
9. Accreditation Update
10. Schedule Workshops
11. Adjournment
7. Receive
from the
colleges
monthly
reports…..
4. Provide
Workshops
on the BAM
D.3
Institutional
Effectiveness
PCCD Integrated Accreditation and
Planning Timeline for 2014-15 is the
District’s guide for the year.
The shaded areas are completed. The
Colleges were asked to update their
strategic plans and to be used as an
update for accreditation. It is due to
the Board of Trustees on December 9,
2014.
D.1 Service
Leadership
Accreditation site visits are scheduled
for March 9th – 12th, 2015.
A
VC Sanford met with college teams
the past two weeks. The Colleges are
working on their first draft. The next
meeting is on September 30th from 35pm and will schedule additional
meetings if needed.
Set aside a 30 minute block of time to To setup
go over, in depth, the understanding of CCCConfer
the BAM.
Time: 11:48 PM
Minutes taken by: Sui Song
Attachments: All documents and/or handouts for this meeting can be found at: http://web.peralta.edu/pbi/planning-and-budgeting-council/pbcdocuments/
13