Academic Senate Study Session: Part-Time Instructional Budget
October 22, 2015
Presented by:
Michelle Marquez
Vice President, Administrative Services
Today’s Session
• What is the 50% Law?
• What is FON?
• How does the college budget for part-time faculty and # of sections?
• What impact does load have on our budget?
A Bit of History…
• Education Code 84362: 50% Law (1961) – Protecting K-12 classroom
size
• 75/25 Ratio (1988) – Goal for a 75/25% ratio of FT to PT faculty
• FON (1989) – Faculty obligation number
Today’s Session
• What is the 50% Law?
• What is FON?
• How does the college budget for part-time faculty and # of sections?
• What impact does load have on our budget?
50% Law
• Education Code 84362 and California Code of Regulations 59200
requires California Community College Districts to spend 50% of
general funds each fiscal year on salaries of classroom instructors. The
intent of the statute is to limit class size and contain the relative growth
of administrative and non-instructional costs. Source: California Community Colleges Budget and Accounting Manual
• This is not a straightforward “50% of Fund 1” calculation. There are
many exclusions we have to consider (student transportation, food
services, external facility rentals, capital improvement projects, team
sports, lottery expenditures, and a few others)
50% Law
• Developed to protect K-12 class size, not to guarantee levels of
compensation or funding to instruction
• Issues surrounding 50% Law:
• Has not been reviewed since 1961. Educational practices have evolved since then:
• Learning now takes place in multiple venues, inside and outside the classroom
• Support services are recognized as a critical component of student success
•
•
•
•
Workload reductions during budget reductions
Faculty release time counts against the 50%
Librarians and counselors count against the 50%
We report as a District (and District has $0 instructional expenses)
Fun Fact:
No other state in the
U.S. has anything
remotely close to the
50% Law
50% Law
• Where did we end up for 2014/2015:
• Cañada College = 61.7%
• District = 50.1%
Good Side of the 50 Percent Law
Wrong Side of the 50 Percent Law
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




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Salaries of classroom teachers
Instructional Aid Full-Time & Hourly
In-Classroom Tutors


Distance Education Coordinators
Instructional Designer
Counselors
Faculty Reassign Time
Faculty Director: EOPS, NSF, Transfer
Center, Athletic Director
Faculty Compensation for Special
Assignments
Librarians
Today’s Session
• What is the 50% Law?
• What is FON?
• How does the college budget for part-time faculty and # of sections?
• What impact does load have on our budget?
75/25
• The “75/25” is a goal to achieve a ratio of 75% Full-Time faculty to
25% Part-Time faculty
• Official calculation:
• #FT LHE/#PT LHE
• Common calculation:
• Total LHE/PT LHE = % PT
• 75/25 often does not account for release time
• Overload counts toward PT LHE
FON
• Faculty obligation number (FON) is the number of full-time faculty a
district is required to employ as of Fall semester (Ed Code 87482.6, Title
V 51025)
• FON was developed to help colleges meet the 75/25 goal
• FON does not include non-credit faculty, but does include librarians and
counselors
FON
• FON calculation is very complicated. Our obligation is adjusted annually
by the lower of:
• Projected fundable growth at budget adoption
• Actual percent change in funded credit FTES from the prior year P2 report
• Faculty Obligation (FON)
• Obligation 2014/2015 = 328
• Actual = 334
What Happens if we Don’t Comply?
• 50% Law:
• No financial penalty, but there is a political price to pay (and gets reported to
BOG)
• FON:
• Financial penalty
• # of faculty below FON * Avg replacement cost of faculty (4 faculty * $76,000 = $304,000)
• 75/25:
• No penalty (this is a goal, not a mandate)
Considerations
• These laws/mandates/goals were established individually as a response
to specific issues
• No one has studied the collective impact of the 50% law, FON, and
other mandates together
Today’s Session
• What is the 50% Law?
• What is FON?
• How does the college budget for part-time faculty and # of
sections?
• What impact does load have on our budget?
FY 2015/2016 College Budget
Cañada College 2015-2016 Unrestricted Budget Summary
Expenses
Unrestricted Allocation
Regular Employees (salaries & benefits)
Hourly Salaries
Discretionary
Total Expenses
$ 16,824,767
$ 4,167,310
$ 788,293
$ 21,780,370
Nuts and Bolts – Some acronyms and calculations
• 1 FTEF = 15 LHE (lecture hour equivalent)
• 1 FTES = 525 contact hours
• FTES = (census day enrollment*wsch*term)/525
• LHE:
• 1 hour lecture = 1 LHE
• 1 hour lab = 0.75 LHE
• WSCH (weekly student contact hours)
• WSCH = class enrollment * weekly hours
• 1310 = Refers to our hourly faculty budget
How is the 1310 Budget Developed?
• College budget developed as an average for the year
• Estimated targets are developed based on trend data and goals set for the
year
• Monitored continuously through each semester to project any shortfalls
and identify when and how adjustments should be made
Hourly Teaching Budget
Projected Hourly Teaching Budget, FY 2015/2016
FTES
Convert to
WSCH
WSCH/
FTEF
Prod
TOTAL # FTEF
Needed
# FTEF
Available
4,195
62,925
500
125.85
58.17
# FTEF
Average Cost
Needed (PT) per PT FTEF
67.68
$56,963
# of FTEF available = The total number of FT Faculty minus
release/reassign time, medical leave
1310 Budget
Needed
$3,855,256
Historical 1310 Costs
HOURLY FACULTY SUMMARY
FY 2012/13 - Fall 2015
Division
2012-2013
2013-2014
2014-2015
FL 2015 ESTIMATE
Counseling
$18,395
$10,104
$2,439
$3,564
Business
$882,891
$495,677
$532,464
$328,331
Humanities
$812,908
$535,501
$684,253
$571,108
Science
$749,128
$495,515
$629,158
$515,934
-
-
$200,192
$100,661
-
ALL
Office of Instruction
$8,923
$254,065
Total
$2,472,247
$1,790,864
$2,048,507
$1,519,600
Note: Measure G not included in this summary
FY 2014/2015 = $1,576,490; 133 sections
Today’s Session
• What is the 50% Law?
• What is FON?
• How does the college budget for part-time faculty and # of sections?
• What impact does load have on our budget?
Productivity
616
540
504
483
488
480
2010/2011
2011/2012
2012/2013
2013/2014
2014/2015
As of 10/19/15
How Does Load Impact Budget?
• Load, productivity, and efficiency are often used interchangeably
• Higher productivity means more students served per FTE
• Lower productivity means fewer students are served per FTE
• Type of class has to be considered in evaluating productivity
• The state “standard” productivity level is 525
• This number represents the break-even point for a course
1310 Budget Based on Load
Load
State Standard
FY 2015/2016
Goal
Where we are
Fall semester
2015
525
520
515
510
500
490
480
475
470
465
Amount
$
$
$
$
$
$
$
$
$
$
3,513,885
3,579,533
3,646,456
3,714,691
3,855,256
4,001,558
4,153,956
4,232,561
4,312,838
4,394,842
Financial
Impact
$341,371
$275,723
$208,800
$140,565
$146,302
$298,700
$377,305
$457,582
$539,586
Historical Enrollments - Summer
COMPARISON OF SUMMER ENROLLMENTS FY1213 - FY1415
Census
Enrollment
FTES
FTEF
WSCH
CRN
Avg Class Size
Load
SUM 2012
4,099
459.89
24.89
13,797
156
26
554
SUM 2013
4,455
484.94
27.62
14,548
160
28
527
SUM 2014
4,701
516.68
30.48
15,501
170
28
508
Historical Enrollments - Fall
COMPARISON OF FALL ENROLLMENTS FY1213 - FY1415
Census
Enrollment
FTES
FTEF
WSCH
CRN
Avg Class Size
Load
FL 2012
16,924
1,994.60
118.14
59,838
645
26
506
FL 2013
16,078
1,901.54
115.73
57,046
637
25
493
FL 2014
15,673
1,806.25
109.48
54,187
583
27
495
FL 2015
14,837
1,810.38
113.24
54,311
605
25
480
Historical Enrollments - Spring
COMPARISON OF SPRING ENROLLMENTS FY1213 - FY1415
Census
Enrollment
FTES
FTEF
WSCH
CRN
Avg Class Size
Load
SPR 2013
16,779
1,946.51
119.01
58,395
656
26
491
SPR 2014
16,281
1,837.87
118.96
55,1236
659
25
463
SPR 2015
15,333
1,778.94
112.10
53,368
622
25
476
Impact of Not Meeting Targets
• Our 1310 budget is the largest variable expense in the college budget
• Hourly faculty represent roughly 18% of our general fund
• Perspective:
• Our current load projects needing an additional $298,700 for part time faculty
• Current discretionary budget is $788,293
• Could we stand to lose 38% of our discretionary budget?
• On average, it costs an additional $15,500 for each productivity point
• 9 productivity points = $139,500
• Average cost of a new full-time faculty = $109,000
How Is Productivity Improved?
• Ways to improve:
• Offering fewer sections (tightening the core schedule)
• Get a strong sense of enrollment patterns, rates of return, and develop a base schedule that is
specific to each discipline (and monitor every semester)
• Increase the number of students in sections
• Restructure of scheduling (curriculum/program offerings, times that sections are offered)
• Working across departments to identify load targets that are appropriate and pedagogically
sound
• Things to avoid:
• Rolling schedules and hoping course enrollment targets are met
• Setting enrollment targets that are unrealistic for the type of course or discipline
• Assuming things should be done across the board (ie, 5% less courses, 5% more enrollment)
Questions/Discussion
Last Thought
We will never have enough funding to do everything we want. Managing a budget has
more to do with managing needs and values than being proficient in Banner or Excel.
How we allocate our resources (inclusion vs dark room approach) and what values
influence these allocation decisions (do we fund administrative support vs. athletics vs.
librarians?) is an indication of our fiscal competencies as an institution.