Planning and Budgeting Council: Budget Allocation Model Workshop—TEAM #1
CRITICAL ELEMENTS
1. Model should be easily understood and
transparent.
2. Model should reflect core mission and values
statement.
3. Model should be re-evaluated annually.
In PCCD
MODEL?
Yes or No
NO
NO
NO, but
4. Model should require a balanced budget with
no less than a 5% reserve.
5. Model should be implemented in a fashion so as
to not place undue hardship upon any
particular college.
6. Model does not include funding for categorical
programs and grants, as they are specifically
funded in most cases.
7. Model should allocate base resources upon FullTime Equivalent Students served.
8. To the extent growth is funded, additional
resources available should be allocated based
upon where growth occurs and is based upon
prior year funded growth.
9. In the event of decreased in FTES, model
should adjust the College’s base allocation to a
like degree in subsequent year.
10. Stabilization provided for in the event of FTES
declines.
YES
11. Regulatory Compliance (i.e., FON, 50% law,
etc.)
YES
IMPROVEMENTS
Combines assumptions and policy
Doesn’t track all costs
Needs statements that tie to integrated planning,
and to the mission(s)
If we follow a BAM, then this will occur naturally
YES
Have questions about the way it is stated, but…
NO, but
What about DSPS?
NO
It is unclear if this is “implied”
NO
NO
YES
But doesn’t make sense as stated in PCCD BAM
Other suggested criteria to consider in a Budget Allocation Model:
 #1- “First year implementation will not reduce college’s budget.” Would work during prosperous times; not
lean times. Eliminate from model? Move to assumptions.
 #2- “FTES targets shall be sufficient to earn base plus growth.” Move to assumptions. FTES from the State
should be allocated to the colleges as earned.
 #3- “Chancellor’s contingency fund.” This is not a fixed cost
 #4- This is policy driven and not inherent to a BAM
 #5- Is this policy? “Hold Harmless”
 #6- “All categorical funds will be distributed to the colleges according to state requirements.” Need to show
the administrative costs the District Office takes from these funds.
 #7- “Built into the model is an economy of scale allocation (10.5%).” Not transparent; needs data support;
what does this mean?
 #9- Leave banking: not transparent; should be in the budget,
 #11 – update language to current planning process
 #12 – the Board of Trustees review the annual budget and not the allocation model
 #13- Even in a fiscal emergency is it the Chancellor alone who suspends the budget allocation model?
 #14- “At the discretion of the Chief Financial Officer, any contingent funding may remain unallocated until
funding is assured.” Not transparent.
 #15- Not transparent; Should go to the colleges with agreement about contribution to the reserve,
possibly……
Team #1 for this exercise: Pisano, Dudley, van Putten, Black, Johns.