EOPS and CARE Allocation Formulas in 2018-19 and Beyond CCC Confer March 22, 2018 1:30-3:30 Listen over your computer Or…. Call 1-888-886-3951, Passcode 643060 Presented by Kelly Gornik California Community Colleges Chancellor’s Office

Background Current formulas reinstated in 2016-17 after being suspended (with EOPS/CARE constituency agreement) since 2009-10 when programs were reduced by nearly 40% EOPS received a partial restoration of funds in 2013-14; each program was increased an equal percentage regardless of number of students served Both EOPS and CARE were fully restored to the 2008-09 levels in 2015-16; each program was increased by the same percentage regardless of number of students served Current EOPS and CARE allocation formulas were reinstated in 2016-17

Background What this means: When the formulas were suspended, colleges received the same or more funds each year despite increasing or decreasing number of students. The result was a dollar per student being vastly different from one college to another. Some colleges were “overfunded” and others were “underfunded” during the suspension years.

Current EOPS Allocation Formula, 2017-18 Three Elements: Base Allocation: $50,000 to each EOPS program Students Served: 90% of funds remaining after base allocation is distributed are allocated based on students served in the prior academic year per MIS College Effort: 10% of funds remaining after base allocation is distributed are allocated based on “college effort”

Current EOPS Allocation Formula, 2017-18 In addition: In 2017-18, student cap based on highest number of students served in one of the following academic years: 2014-15, 2015-16 and 2016-17 95% guarantee Any fiscal adjustments* are applied after allocations are determined Each program receives the same COLA percentage * Audit penalties and penalties for returning more than 5% of the program’s allocation after the end of that fiscal year

EOPS Allocation Formula 2017-18 and Beyond EOPS Student Cap: Does not establish a ceiling or restrict the number of students counted as served by EOPS Helps to maintain the dollar per student from year to year Aims to protect funding for those programs that are unable to or choose not to serve additional students Likely will take a couple of years or so for this to take effect

EOPS/CARE Allocation Task Group EOPS Allocation Task Group convened five times between January and September 2017 to review EOPS allocation formula and recommend changes, as appropriate based on abundant input from task group members’ constiuencies Composed of one EOPS representative from each of the 10 regions, CSSO, CBO, CCCEOPSA and Chancellor’s Office (Sarah Tyson, Barbara Kwoka and Kelly Gornik)

NEW EOPS Allocation Formula 2018-19 2 Year Phase-In Starting 2018-19: Base Allocation: $150,000 to each college Students Served: 95% of remaining funds allocated based on of # of students served statewide College Effort: 5% of remaining funds allocated based on “college effort”

NEW EOPS Allocation Formula 2019-20 Second Year of Two-Year Phase In: Base Allocation: $150,000 to each college Students Served: 90% of remaining funds allocated based on of # of students served statewide College Effort: 5% of remaining funds allocated based on “college effort” Student Growth: Remaining 5% of remaining funds allocated based on student growth from prior year

NEW EOPS Allocation Formula Starting in 2018-19 Additional factors in the EOPS allocation formula for 2018-19 and beyond: 95% Guarantee: Programs are guaranteed at least 95% of their prior year base allocation, unless the statewide EOPS appropriation is reduced more than 5% from the prior fiscal year. To ensure programs are not cut more than 5%, funds are given to them from programs receiving the highest % increase. This creates a maximum increase for any program. Minimum Funding Guarantee: Each program will receive a minimum of $150,000, before Fiscal Adjustments or COLA.

New EOPS Allocation Formula Starting in 2018-19 COLA: Any COLA included in the State Budget Act will be applied equally to all programs after formula is ran Prior Prior Year Data: Data from two fiscal years priors for students served, college effort and growth will be used in the formula. Using data from two fiscal years prior allows the Chancellor’s Office to calculate and distribute allocations soon after the new fiscal year. Thus, the 2018-19 EOPS allocation formula will use 2016-17 data

New EOPS Allocation Formula Student Cap: implemented in 2017-18: Cap for 2017-18: determined from the largest number of students served in 2014-15, 2015-16, or 2016-17 Cap for 2018-19: same as 2017-18 Cap for 2019-20 and beyond: based on number of students served up to the program’s cap or to the number of students funded through the formula growth funds

New EOPS Allocation Formula Element #3 “College Effort” “College Effort” is not the same as the district required match However, both involve the amount of district funds supporting the EOPS program

New EOPS Allocation Formula Element #3 College Effort How does Chancellor’s Office determine “college effort” for the 2018-19 EOPS allocation formula? Determine 15% of average EOPS allocation for 2013-14, 2014-15 and 2015-16 for each individual program (raw minimum) Identify the actual district contribution for each individual program as shown on the 2016-17 Year-End Expenditure Report Determine how much is College Effort – the amount of district contribution exceeding the “raw minimum” (“b” – “a”). If a program’s actual district match for 2016-17 is equal to or less than the 15% raw minimum figure for 2013-14, 2014-15, 2015-16 combined, then that program gets $0 for this element. Add together all of the programs’ college effort $$ from “c” above and divide into $7,892,000 = $0.716 (rate per each dollar above 15% raw minimum)

New EOPS Allocation Formula Element #3 College Effort How does Chancellor’s Office determine “college effort” for the 2018-19 EOPS allocation formula? Determine 15% of average EOPS allocation for 2013-14, 2014-15 and 2015-16 for each individual program (raw minimum) Example for College Y 13-14 Allocation = $100,000 14-15 Allocation = $100,000 15-16 Allocation = $125,000 Total = $325,000 --------------------------------------------------------------- $325,000 divided by 3 = $108,333 (average) $108,333 x 15% = $16,250 = “15% of average EOPS allocation for 2013-14, 2014-15 and 2015-16” = aka raw minimum

New EOPS Allocation Formula Element #3 College Effort How does Chancellor’s Office determine “college effort” for the 2018-19 EOPS allocation formula? Identify the actual district contribution for each individual program as shown on the 2016-17 Year-End Expenditure Report 16-17 EOPS final expenditures report = $50,000 (actual district match)

New EOPS Allocation Formula Element #3 College Effort How does Chancellor’s Office determine “college effort” for the 2018-19 EOPS allocation formula? Determine how much is College Effort = the amount of district contribution exceeding the “raw minimum” (“b” – “a”). If a program’s actual district match for 2016-17 is equal to or less than the 15% raw minimum figure for 2013-14, 2014-15, 2015-16 combined, then that program gets $0 for this element. $50,000 - $16,250 = $33,750 (“College Effort” for College Y) It doesn’t end here….

New EOPS Allocation Formula Element #3 College Effort How does Chancellor’s Office determine “college effort” for the 2018-19 EOPS allocation formula? d) Add together all of the programs’ college effort $$ from “c” on previous slide and divide into $4,597,000?? = $0.34261 (rate per each dollar that is above college’s 15% raw minimum) e) College Y “College Effort” = $11,563 ($33,750 x $0.34261) Note: The Chancellor’s Office adds together the $33,750 for College Y plus every other college’s own “college effort” dollars and divides that total into the amount of funds available for “college effort” to get a rate per each dollar of college effort

EOPS Allocation Formula Example 2018-19 (Phase 1) $107,420,000??? Available to Allocate Element #1 “Base Allocation” ($150,000) 114 programs x $150,000 = $17,100,000 used for this element Remaining Funds ($107.420M - $17.100M = $90.320M for #2 and #3) Element #2 – 95% Element #3 – 5% “Students Served” “College Effort” 95% of $90.320M 5% of $90.320M = $85.804M = $4.516M $17,100,000 (#1) + $85,804,000 (#2) + $4,516,000 (#3) = $107,420,000

EOPS Allocation Formula Example 2018-19 (Phase 1 - continued) $107,420,000?? for EOPS in 2018-19 State Budget Act Base Allocation $150,000 89,810 EOPS students served in 2016-17 per MIS $85,804,000 / 89,810 = $955.3947 per student College Effort Statewide is $11,022,331 (2016-17) $4,516,000 / 11,022,331 = $0.4097 per college effort

EOPS Allocation Formula Example 2018-19 (Phase 1 - continued) $150,000 for base $955.3947 per student College A Served 500 EOPS students in 2016-17 $0.4097 per college effort College A College Effort is $17,482 (2016-17) Calculations based on assumptions in previous screen: Element #1 = $150,000 Element #2 - $955.3947 X 500 = $477,697.35 (# students served) Element #3 - $0.4097 X $17,482 = $7,162.375 (College Effort) Formula Allocation without guarantee = $634,859.73 $634,860 (rounded and before 95% guarantee applied)

EOPS Allocation Formula Example 2019-20 (Phase 2) $107,420,000?? Available to Allocate Element #1 “Base Allocation” ($150,000) 114 programs x $150,000 = $17,100,000 used for this element Remaining Funds ($107.420M - $17.1M = $90.320M) Element #2 – 90% Element #3 – 5% Element #4 – 5% “Students Served” “College Effort” “Student Growth” 90% of $90.320M 5% of $90.320M 5% of $90.320M = $81.288M = $4.516M = $4.516M $17.1M (#1) + $71.028M (#2) + $3.946M (#3) + $3.946M (#4) = $107,420,000

EOPS Allocation Formula Example 2019-20 (Phase 2 - continued) $107,420,000?? for EOPS in 2019-20 State Budget Act Base Allocation $150,000 98,515?* EOPS students served in 2017-18 per MIS $81,228,000 / 98,515* = $825.133 per student College Effort Statewide is $11,252,330 (2017-18) $4,516,000 / 11,252,330?* = $0.40134 per college effort Student Growth is 9,275 students (2017-18) $4,516,000 / $825.133 per student = 5,473 students can be funded *Assumption of increase and decrease in numbers served by programs, and some change in district contributions.

EOPS Allocation Formula Example 2019-20 (Phase 2 - continued) $150,000 for base $825.133 per student College A Served 508 EOPS students in 2017-18 (500 cap plus 8 in growth) $0.40134 per college effort College A College Effort is $17,482 (2017-18) Calculations based on assumptions in previous screen: Element #1 = $150,000 Element #2 - $825.133 X 500 = $412,566 (# students served up to cap) Element #3 - $0.40134 X $17,482 = $7,016.226 (College Effort) Element #4 – 8 additional students x $825.133 = $6,601 (Student Growth) Formula Allocation without guarantee = $576,183.226 $576,183 (rounded and before 95% guarantee applied)

EOPS Allocation Formula Starting in 2017-18 How student cap affects your allocation: Serve less than student cap = funded for number of students served (new cap will be determined starting in 2019-20) Serve the same as student cap = funded for number of students served Serve more than student cap = beginning in 2019-20, student growth funds will be available for additional students served using the current year’s dollar per student (new cap will be determined)

Current CARE Allocation Formula 2017-18 Two Elements: Base Allocation: $10,000 to each program Students Served: Remainder of funds are allocated based on students served in the prior academic year, per MIS Plus, 95% guarantee Any fiscal adjustments* are applied after allocations are determined Each program receives the same COLA percentage * Audit penalties and penalties for returning more than 5% of the program’s allocation after the end of that fiscal year

New CARE Allocation Formula Starting in 2018-19 Base Allocation: $30,000 to each college Students Served: remaining funds allocated based on # of students served statewide Additional factors in approved allocation formula: 90% Guarantee: Programs are guaranteed at least 90% of their prior year base allocation to more quickly align the dollar amount each program receives per student; unless the statewide CARE appropriation is reduced more than 10% from the prior fiscal year. To ensure programs are not cut more than 10%, the funds need to come from programs receiving the highest % increase. This creates a maximum increase for any program.

NEW CARE Allocation Formula Starting in 2018-19 Minimum Funding Guarantee: Each program will receive a minimum of $30,000, before Fiscal Adjustments and COLA COLA: Any COLA included in the State Budget Act will be applied equally to all programs after formula is run. Prior Prior Year Data: Data from two fiscal years prior for students served will be used in the formula. Using data from two fiscal years prior allows the Chancellor’s Office to calculate and distribute allocations earlier in the fiscal year. No Student Cap for CARE

EOPS and CARE Allocation Formulas 2017-18 and Beyond Each program is entitled to COLA (cost-of-living), if provided in budget after allocation formulas are run Programs receive growth funds, if provided in State Budget and if program meets minimum enrollment growth to be eligible for these funds Programs could end up with more than a 5% cut if fiscal adjustments have to be made

New EOPS & CARE Allocation Formulas Starting in 2018-19 A one-time, dollar-for-dollar penalty for returning more than 3% of allocation after April 30, starting in 2018-19 The allowed time frame for spending current year EOPS and CARE funds is still July 1 through June 30 of that same fiscal year

Questions? Contact: Kelly Gornik, EOPS/CARE/NextUp Specialist kgornik@cccco.edu 916-323-4281