WORDS TO LIVE BY…
“ If you are not at the table…
Then you are on the
menu!” Anonymous
CTE
THE BUDGET AND CTE
What is a budget?
What is the faculty role in budgeting?
What mandates a budget and the budget form?
State and Local Budgets
Categorical Funding
Where do we currently stand and other budget concerns?
Where do we go from here?
Planning - From Program Review to Resource Allocation
Data – Factual Resources
WHAT IS A BUDGET?
A. An income and expenditure plan
B. A complete waste of time
C. A mix-mash of numbers and jargon that
nobody understands
D. A distraction while the real allocation
choices are made behind closed doors
E. An annual series of evolving documents
that can and should be paid attention
to
WHAT IS THE FACULTY ROLE IN BUDGETING?
Title 5, §53200 (c) (10)
Processes for institutional planning and
budget development
ACCJC III D. 1. d. The institution clearly defines and
follows its guidelines and processes for financial
planning and budget development, with all
constituencies having appropriate opportunities to
participate in the development of institutional plans
and budgets.
WHAT MANDATES A BUDGET AND THE BUDGET
FORM?
State Apportionment
51102 Minimum Conditions for Apportionment
53309 Calculation of FTES
58000-58875 Apportionment Regulations
58305 Adoption of a Final Budget
Form is Established by the CCCCO BAM (Budget
Accounting Manual) and the SAAM (Student
Attendance Account Manual)
 http://www.cccco.edu/ChancellorsOffice/Divisions/FinanceFacilities/FiscalServices/ManualsPublications/tabid/331/De
fault.aspx
STATE AND LOCAL BUDGETS
California State Budget Development
 Start with existing budget (includes historical
recommendations) from DOF
 Make changes – Budget Change Proposals (BCP)
 January 10th Governor’s proposal to Legislature
 May 15th Governor’s Revision to Legislature
 Senate and Assembly Budget Committees >>
Conference Committee or Big 5 haggle out differences.
 June 15th Legislature must pass or else…
STATE AND LOCAL BUDGETS
Local development is for following year.
Current year can be altered
 Mid year cuts – mid year deferrals
Key Funding Targets – Current year behavior effecting
subsequent budget
 Base + Growth (growth affected by local demographics)
 50% Law – 50% GF spent on instruction
 75:25 FON (Faculty Obligation Number)
 Categorical limitations (now flexible)
CATEGORICAL FUNDING
(STRINGS ATTACHED)
GENERAL PROGRAMS
Vocational and Technical Education Act (VTEA) has
provided a funding source for the past 22 years (1984)
as the Carl D. Perkins funding. (reauthorized 1998)
Made into law 2006 as the Career and Technical
Education Improvement Act
States limited to spend 5% of gross allocation on
Administrative cost
EOPS primarily serves CTE students
SB 70 CTE focused State and local projects
WHERE DO WE CURRENTLY STAND?
3 years of cuts – 18-23%
Funding deferrals = local debt burden 2-4%
ACCJC and other accountability standards
ramping up
Institutional brain-trust retiring
Entering student capacity declining
Perfect storm is brewing
THE BUDGET AND CTE
Perkins Act earmarks $1.3 billion Federal funding to all 50
states
Funding for Perkins extends through 2012
Current State General Fund Apportionment to CCC BOG$961,000,000
Funding beyond 2013 – 2014 is expected to remain with a
possible 4% increase if a proposed State sales tax is
passed in November. (good thru 2015-2016).
Source: California Governor’s January 12, 2012 ‘ Budget Update’
SB 70 (SCOTT) 2005
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Governor’s initiative to improve and strengthen
CTE programs thru a Career workforce
Innovations (CWI) partnership with CCC.
$20,000,000 from the CCC Prop 98 reversion
account
$ 32,000,000 additional funding through 2013 –
14 fiscal year
Awards programs which increase articulations
between High schools, ROCP’s, industry and the
CCC.
SB 1130 (2006) ensures funding through 2013 –
14 fiscal year
BUDGET CONSIDERATIONS FOR CCC
FACULTY OBLIGATION NUMBER (FON)
 Districts should attempt to provide instruction
by a minimum 50% full-time instructors
FULL TIME EQUIVALENT STUDENT (FTES)
 Districts are funded based on FTES number
* All Colleges have a decreasing FTES over
the past 3 years.
FACULTY OBLIGATION NUMBER
COLLEGE OR DISTRICT FUNDING THRU FTES
THE BUDGET: HAVE YOU CONSIDERED?
Your colleges’ budgetary history?
Is your colleges’ ‘Mission ‘ changing?
Have classes been cut?
Are Full-Time Faculty being replaced?
AB 515- Local Boards ability to offer ‘for-credit ‘ Contract
Ed
Tuition increases
For profit course offerings
Source:
http://www.cccco.edu/Home/tabid/189/Default.aspx
WHERE DO WE GO FROM HERE?
Become Informed
 State fiscal and success data (includes Federal)
 Local data
Become Engaged
 Advisory committees
 Campus committees
 College Academic Senate
 Dept/Division/School
 State committees
PLANNING - FROM PROGRAM REVIEW TO RESOURCE
ALLOCATION
Decision-making
 Planning
Program Review (department)
Master planning (Education, Academic, Facilities, etc.)
(college)
Strategic planning (college)
Budget development (college >>> district)
 Real-time – Drama of the Day
Unplanned for expense exigencies
Predictive fiscal strategies (adapting, enrollment
management, etc. )
DATA – FACTUAL RESOURCES
ACCJC Accreditation Standards
 Eligibility Requirements and Accreditation Standards
ASCCC Papers
 Budget Considerations - A Primer for Senate Leaders, 2009
 Faculty Role in Planning and Budgeting, 2001
 Enrollment Management Revisited, 2009
CCCCO Fiscal Services Unit
 Fiscal Data Abstract
 Full-Time Fac. Obligation
 Fiscal Trend Analysis
QUESTIONS
Thank you