AR 3110 –
Basic Aid Allocation
Board of Trustees Presentation
February 27, 2012
Introductions
Background
Why AR 311o? Accreditation Recommendation # 2 :
“The district and the colleges develop and implement a resource
allocation model:
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Driven by planning
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That includes all district funds and
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Is open, transparent, inclusive, and
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That is widely disseminated and
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Reviewed/evaluated periodically for effectiveness”
Background (cont.)
Accreditation Recommendation #2 Committee:
• Based on general consensus of the input across the district,
determined that the issues were not with the DRAC Model but
with allocation of basic aid resources
• Developed illustrative model to provide information regarding
planning and resources for better communication
• Instrumental in getting BP 3110 developed
• AR 3110 was the next step in implementation
Put left half of flow chart here
BP 3110
Board Policy for Basic Aid Funds Allocation Process
(Exhibit A):
• To be based on planning documents
• Board determines timing and how much allocated
each year
• Reasonable amount not allocated until assurance of
availability of resources or if needed for potential
unexpected needs
BP 3110
Board Policy for Basic Aid Funds Allocation Process
(Exhibit A):
• To be allocated for the follow purposes:
1. Capital construction, major renovation, large
infrastructure projects, and site development to
follow district & college strategic plans,
Education and Facilities Master Plan, 20 year
Facility, Renovation, and Scheduled
Maintenance Plan and 5 year Construction Plan
BP 3110
Board Policy for Basic Aid Funds Allocation Process
(Exhibit A):
• To be allocated for the follow purposes:
2. Retiree benefit trust fund and other long term
obligations
3. Trustee elections, legislative advocacy, major
legal fees & judgments
4. Major technology initiatives as identified in
District and College Tech Plans
BP 3110
Board Policy for Basic Aid Funds Allocation Process
(Exhibit A):
• To be allocated for the follow purposes:
5. 50% matching funds for scheduled maintenance
and small renovation projects including
maintenance equipment as identified in 20 year
Facilties, Renovation, and Scheduled
Maintenance Plan. The other 50 % funded by the
college and allocation will be based on DRAC
ratios used in the model
AR 3110 –
Basic Aid Allocation
Board of Trustees Presentation
February 27, 2012
AR 3110
•
Follows BP 3110
•
Will culminate in a master list of projects to be funded
by basic aid which follows the budget cycle
•
Allocation cycle will conform with budget development
cycle
•
Linked to property tax schedule and conservative
estimates
•
Unless emergency situation, the cycle will be followed
BAARC
• District-wide participatory governance committee
whose role is to implement the Basic Aid Allocation
Process
• Charged with implementing BP 3110 and AR 3110
• Utilizes plans developed by other district-wide
councils and committees
• Follows the annual basic aid allocation cycle which
follows the budget cycle
BAARC
Composed of 17 positions:
• Vice Chancellor of Business (chair)
• Vice Presidents of Instruction (2)
• Directors of Facilities (2)
• District Directors of Facilities and Fiscal Services (2)
• Directors of Fiscal Services (2)
• Academic Senate Presidents and/or reps (4)
• Vice Chancellor of Technology and Learning Services
• Classified Senate Presidents or reps (2)
• CSEA rep (1)
Determining allocation amounts:
(Refer to page 3 of 7 of the AR)
• Conservative estimation of property tax excess
•
Unallocated balance from PY + estimated CY = Total
estimated property taxes for basic aid
•
Contingency for Unrealized Tax Collection = no less than
20 %
•
Amount available for allocation = no more than 80% of
Total estimated property taxes for basic aid
•
Committee can allocation less than 80% if it’s appropriate
Allocation process:
(Refer to page 4 of 7 of the AR)
• Required amounts for Long Term Obligations such as
Retiree Benefit Liability and fixed expense commitments
such as Advocacy and Legal Costs will be funded first
because they are liabilities, not discretionary
•
Remaining balance will fund: a) capital construction,
major renovation, large infrastructure, and site
development; b) major technology initiatives; c) 50 %
match for scheduled maintenance, smaller renovation
projects, and maintenance equipment
Allocation process:
(Refer to page 5 of 7 of the AR)
• Majority portion of basic aid intended for areas of
capital construction, major renovation, large
infrastructure, and site development
• Allocation of scheduled maintenance will be based
on distribution ratios between the colleges used in
the DRAC model for specific projects
Allocation process:
•
Capital Improvement Committee (CIC) will be the
district wide participatory governance committee
responsible for definitions of capital construction and
other facilities related terms
•
Common definitions, transparent, and clear
•
Allocations must be used within 5 years on the specific
project for which funding was approved
•
Any remaining funds return to the basic aid fund for
reallocation in the next year
Allocation process:
•
BAARC can recommend funding for a project that has
phases over multiple years, if appropriate.
•
BAARC is to rely strongly upon existing priorities in the
plan documents
•
However, may have to consider Total Allocation amount,
queuing of projects for state funding consideration,
phasing considerations, cash flow, and melding the
various plans into one recommended list for basic aid
allocation recommendation
•
Capital projects will include a change order contingency
Allocation process:
• Any Major Tech Project for consideration for funding
must be included in the District-wide Tech Plan and
must clearly be a one-time project:
•
•
•
•
•
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Clear description
Detailed scope
Specific dollar amount
If phases, much be outlined
Ongoing maintenance not to be funded by basic aid
Changes and/or enhancements or added features to projects require a
new request and cannot be funded through original project allocation
Making recommendations:
•
The Basic Aid Recommendations will be made to the
Chancellor, who will share and confer with the
Presidents before making final recommendations to the
Board of Trustees
•
•
•
•
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Master list of projects, with project description, recommended amount, and
scope
Future phases will be clearly disclosed with projected future costs and timing
Cover letter and narrative report from BAARC explaining the process,
considerations, background Chancellor should have
If the Chancellor recommends any changes to BAARC’s recommendation, the
chancellor will clearly provide the changes and explanations prior to their
being included in the Tentative and Final Budget for Board of Trustee
approval
If consensus cannot take place in BAARC, chair will bring issue to Chancellor
who will be authorized to make final decision
Evaluation:
•
There will be evaluation of BP 3110 and AR 3110 for
effectiveness and adherence to the Policy and
Administrative Regulation
•
Once a year, open and transparent
•
Make recommendations for improving or adjusting
process
•
Communication of the results of the assessment will be
widely disseminated
•
Any adjustments to the process will be widely
disseminated and keep with the intent of the BP and AR
Where can I find more information?
Here are the SharePoint links to the following pages:
• District-wide Planning Council:
https://sharepoint.socccd.edu/chancellor/dp/dwpc/default.aspx
• DRAC:
https://sharepoint.socccd.edu/sites/dwc/drac/default.aspx
• BAARC:
This new SharePoint site was just established:
http://sharepoint.socccd.edu/sites/dwc/baarc
Thank you
New BAARC Members
Bob Bramucci
Lisa Davis Allen
Dan Walsh
Bruce Gilman
Craig Justice
Don Busche
Don Mineo
John Edwards
John Ozuravich
Carol Hilton
Davit Khachatryan
Earlene Munder
Jan Mastrangelo
Debra Fitzsimons
Kim McCord
Brandye D’Lena
1st committee meeting is March
9th!
Questions?