College of the Sequoias 2018-19 Final Budget September 10, 2018

Final Budget California Budget for Community Colleges 2018-19: New Student Centered Funding Formula uses three components: 70% of funding is based on FTES (+ base allocations) 20% of funding is based on Equity (Supplemental Allocation) # of Pell Grant students # of College Promise (BOG) students # of AB 540 students (Dream Act) 10% is based on Student Success (7 criteria, with bumps for Pell/BOG) Associates Degrees Baccalaureate degrees = sub category Associate Degrees for Transfer Credit Certificates (18+ units) 9 or more CTE Units Transfers to 4-year Institutions Transfer Level English and Math Completion Attained a Regional Living Wage These components will move to 60% FTES, 20% Equity, and 20% Success in two years

Final Budget Includes a base allocation for COS of $7.831M 2.71% COLA = approximately $1.7M for COS ongoing Growth/Access funds (1.71% for COS, but actually uncapped) = final budget reflects growth of 549 over 2017-18 adopted budget Over $2M for COS Includes a base allocation for COS of $7.831M that base allocation includes an extra $1.2M for reaching 10,000 mid-size college Additional State Revenues since Tentative Adopted Budget = $6.08M (state allocation) Overall increase for COS = 13.71% state allocation increase

Final Budget Final Budget built on 10,153.59 funded FTES Under new funding formula the state uses FTES in different manners for funding component calculations State uses prior year FTES (10,337) to calculate our Basic Funding (Mid-size college, etc.), but also allows for 3-year hold harmless State uses three years’ average prior FTES to calculate our Credit FTES for 2018-19 (10,153.59) Plant Maintenance & Instructional Support one-time =$256K This allows a budget of only $128K each for scheduled maintenance and instructional equipment $411K for one-time Guided Pathways funds in 2018-19 $1.25M for COS over five years $342K was received in 17-18, and has been carried over to 2018-19 to support development of an integrated approach to student success through a Guided Pathways framework

Final Budget College Promise Funds = $414K ongoing Prop 39 Energy Efficiency - Year 5 was carried over from 2017-18 = $269K for COS Only a couple more Prop 51 bond facility projects were approved; COS Basic Skills Building was not one of them. Since COS will not receive funds for Basic Skills Building in 2018-19, it will fall back to compete with 39 other CC projects for state funds It should compete well, however, there may be a move at the state level to primarily fund health and safety projects, and to expect CC’s to raise any other construction funds locally COS Administration will continue to monitor, and may begin preliminary research into a future bond, or into local funding for a building renovation of Buckeye building The move of the I&T programs from the Buckeye building to the TCC Downtown annex occurred summer 2018

Final Budget PERS/STRS increased costs: 2018-19 increased costs of $844K were budgeted last year in advance 2019-20 increased costs of $884K and 2020-21 increased costs of $665K are both budgeted in advance, and are included in the 2018-19 final adopted budget. This leaves only $397,800 annual ongoing expense to cover to reach full funding Student Success and Support (SSSP), Student Equity (SEP), and Basic Skills are all now combined in the Student Equity and Achievement Program (SEAP); are budgeted almost equal to prior year funding Strong Workforce Program (SWP) 2018-19 regional allocation is approximately $650K, and local allocation is approximately $1.26M. Similar allocation received in prior year, and to be received in following year The CC’s have three years to spend each allocation 

PERS & STRS Increased Employer Costs Fiscal Year New total salaries STRS creditable earnings STRS Employer % Rate STRS increase STRS increased cost STRS Accumulated increased cost from FY15 PERS creditable earnings PERS Employer Rate PERS increase PERS increased cost PERS Accumulated increased cost from FY15 Total Annual Increase 2014/2015 34,450,471 19,166,938 8.88 0.0063 120,752 11,288,373 0.11771 0.00329 37,139 157,890 2015/2016 37,263,295 20,513,374 10.73 0.0185 379,497 500,249 12,061,443 0.11850 0.00079 9,529 46,667 389,026 2016/2017 41,960,918 22,755,902 12.58 420,984 921,233 14,150,730 0.13888 0.02038 288,392 335,059 709,376 2017/2018 44,281,096 24,631,825 14.43 455,689 1,376,922 14,987,832 0.15531 0.01643 246,250 581,309 701,939 2018/2019 44,680,350 24,843,430 16.28 459,603 1,836,526 15,175,482 0.18062 0.02531 384,091 965,401 843,695 2019/2020 45,079,604 25,055,034 18.13 463,518 2,300,044 15,363,131 0.20800 0.02738 420,643 1,386,043 884,161 2020/2021 45,478,858 25,266,639 19.10 0.0097 245,086 2,545,130 15,550,780 0.23500 0.02700 419,871 1,805,914 664,957 2021/2022 45,878,112 25,478,244 15,738,430 0.24600 0.01100 173,123 1,979,037 2022/2023 46,277,366 25,689,848 15,926,079 0.25300 0.00700 111,483 2,090,520 2023/2024 46,676,620 25,901,453 16,113,729 0.25800 0.00500 80,569 2,171,088 2024/2025 47,075,874 26,113,057 16,301,378 0.26000 0.00200 32,603 2,203,691 4,748,821

Enrollment Management - FTES 2017-18 FTES per Final CCFS 320 – used for 2018-19 COS Basic Allocation, and for credit FTES allocation : 2017-18 FTES Actual Hours of Attendance Weekly Attendance Method Indep Weekly Attdc Meth Daily Attendance Method Indep Daily Attdc Method Total Summer 2017 62 117 36 215 Fall 2017 497 3,848 344 89 116 4,894 Spring 2018 539 3,500 317 92 136 4,584 Summer 2018 4 391 161 556 TOTAL 10,249 Shift from session 2 summer 2017 88 10,337

FTES Update Historical Perspective Year Actual FTES Funded FTES 2001-02 8,419.17 2002-03 8,506.82 2003-04 8,510.76 2004-05 8,620.16 2005-06 7,582.27 2006-07 8,929.55 2007-08 8,209.56 2008-09 10,160.04 9,042.35 2009-10 10,614.57 8,696.69 2010-11 10,561.93 8,945.00 2011-12 9,033.30 8,261.13 2012-13 8,646.55 8,466.31 2013-14 9,448.98 8,713.55 2014-15 8,868.90 2015-16 9,430.28 2016-17 9,700.21 2017-18 10,337.26 2018-19 10,337.00? 10,153.59?

Fiscal Solvency Projections Step and Column Costs (Cost of 1% = information only) Note: negotiated salary increases of 6.5% are included in the final adopted budget for each group Description COSTA CSEA COSAFA Mgt/Conf Total Cost – Step and Column (Unrestricted) 214,500 218,800 58,000 491,300 Cost of 1% (Unrestricted Only) 217,800 95,300 44,700 61,600 419,400 Cost of 1% (Combined) 240,900 135,750 48,000 76,200 500,850

Fiscal Solvency Projections 2019-20 Assume 0% growth for 19-20 in FTES, Equity, & Success Assume 1% COLA for 19-20 = $678,000 ongoing +/-Other SCFF adjustments (FTES now 65%, Success now 15%) = $1.22M new revenues 19-20 (pg 13 of budget book) 2020-21 Assume 0% growth for 20-21 in FTES, Equity, & Success Assume 1% COLA for 20-21 = $690,000 ongoing - Other SCFF adjustments (FTES now 60%, Success now 20%) = $542.5K new revenues 20-21 (pg 13 of budget book)

Projected Budget - Fiscal Solvency Plan Unrestricted Only 2 Projected Budget - Fiscal Solvency Plan Unrestricted Only 2.71% COLA and 0 Growth estimated for 18-19 1% COLA and 0 Growth estimated for 19-20 1% COLA and 0 Growth estimated for 20-21 Description 2018-19 2019-20 2020-21 State Allocation 67,816,778 69,038,708 69,581,233 Local and Federal Funds 3,148,019 3,148,000 Total Revenue 70,964,797 72,186,708 72,729,233 Expenditures (GF 1000 to 7000) 65,863,253 66,874,540 Step/Column 492,000 Utilities/insurance/other augmentations 200,000 Savings from GFU retirees (estimate 4) (405,000) (405,000)? Cost of estimated 6 New Faculty 551,164 571,800? Cost of PERS/STRS Incr (budget 2 yrs advance) 173,123 111,483 Budget Augmentations Total Expenditures 67,844,823 Structural Surplus/(Deficit) projected 5,101,544 5,312,168 4,884,410

Goal 1: Increase Student Enrollment Links between Resource Allocations & District Goals/Objectives Goal 1: Increase Student Enrollment District Objective 1.1: Increase overall enrollment by 1.75% annually Fifteen Full-Time Faculty, one Full-Time Categorically-funded Faculty Increase Budget for Instructional Aids-Large Lecture ($7,000) Discretionary Budget Augmentations for many Academic Services Departments ($65,000) Increase PE/Athletics Funds for Equipment & Supplies ($24,000) Admissions and Records Equivalence Specialist ($75,000) Admissions and Records Clerical Assistant ($46,000) Increase Funding for Ambassador Program at Welcome Center ($30,000) Financial Aid to Support Printing Costs of Student Information ($10,000)

Links between Resource Allocations & District Goals/Objectives Goal 2: Improve the Rate at Which Students Complete Degrees, Certificates, and Transfers District Objective 2.1: Increase the percentage of students who earn an associate degree or certificate District Objective 2.2: Increase the number of students who transfer to four-year institutions District Objective 2.3: Increase the percentage of students who complete transfer-level English and math Fifteen new Full-Time Faculty, one Full-Time Categorically-funded Faculty New Associate Dean of Educational Support Services ($159,543 – due to BSSOT early end-of-grant) New Full-time Piano Accompanist-from half-time ($49,800) New Data Steward (TracDat, data audits, reporting, etc.) ($92,000; 50% GFU and 50% categorical) District Objective 4.1: Data driven decision making Increase Budget for Instructional Aids-Large Lecture ($7,000) Writing Center Instructional Aids-Saturday Service ($3,168) District Objective 3.1 and 3.2: Increase the placement rates into transfer level English and Math, and who complete transfer level English and math within their first year

Links between Resource Allocations & District Goals/Objectives Goal 2: Improve the Rate at Which Students Complete Degrees, Certificates, and Transfers, continued Writing Center Instructional Aids – Extended Weekday Service ($3,680) District Objective 3.1 and 3.2: Increase the placement rates into transfer level English and Math, and who complete transfer level English and math within their first year Discretionary Budget Augmentations for Many Academic Services Departments ($65,000) Tulare Downtown Annex – Utilities and Upkeep Costs for Moving CTE Courses to new location ($53,000) District Objective 2.4: Increase the percentage of CTE students who achieve their employment objectives Senior Instructional Specialist – Math Lab Coordinator ($90,000 now GFU) New Associate Dean of Educational Support Services ($159,543 – due to BSSOT early end-of-grant) District Objective 3.1 and 3.2: Increase the placement rates into transfer level English and Math, and the percentage of students who complete transfer level English and math within their first year Discretionary Budget for Dean of Educational Support Services ($7,000)

Admissions and Records Equivalence Specialist ($75,000) Links between Resource Allocations & District Goals/Objectives Goal 2: Improve the Rate at Which Students Complete Degrees, Certificates, and Transfers, continued Educational Support Secretary ($80,252 – due to BSSOT early end-of-grant) Admissions and Records Equivalence Specialist ($75,000) District Objective 2.2: Increase the number of students who transfer to four-year institutions Admissions and Records Clerical Assistant ($46,000) Move ESL professional expert to Classified Position ($6,547) NCCER Administrative Management Costs for Electrician Training ($3,500) District Objective 2.4: Increase the percentage of CTE students who achieve their employment objectives Financial Aid Budget to Support Printing Costs of Student Information ($10,000) PTA Secretary Budget into GFU - .647 FTE ($52,000) Above Base Resource Request funds ($50,000) – increases annual budget District Objective 4.2: Improve organizational effectiveness by strengthening operations of District Departments

Links between Resource Allocations & District Goals/Objectives Goal 3: Strategically tailor and implement academic programs and student services programs that meet the unique needs and demands of students and the workforce District Objective 3.1: Increase the placement rates into transfer level English and Math District Objective 3.2: Increase the percentage of students who complete transfer level English and math within their first year Fifteen Full-Time Faculty, one Full-Time Categorically-funded Faculty District Objective 3.1: Reduce achievement gap of disproportionately impacted student groups annually (per SEP) New Associate Dean of Educational Support Services ($159,543 – due to BSSOT early end-of-grant) New Full-time Piano Accompanist-from half-time ($49,800) New Data Steward (TracDat, data audits, reporting, etc.) ($92,000; 50% GFU and 50% categorical) District Objective 4.1: Data driven decision making Tulare Annex – Utilities and Upkeep Costs for Moving CTE Courses. ($53,000) District Objective 2.4: Increase the percentage of CTE students who achieve their employment objectives LRC Costs to Continue Saturday pilot Program ($20,317) Writing Center Instructional Aids-Saturday Service ($3,168)

Links between Resource Allocations & District Goals/Objectives Goal 3: Strategically tailor and implement academic programs and student services programs that meet the unique needs and demands of students and the workforce Writing Center Instructional Aids – Extended Weekday Service ($3,680) Business & Welding Lab Aids Budgets from VTEA to GFU ($23,835) Senior Instructional Specialist – Math Lab Coordinator ($90,000 now GFU) Assistant Athletic Trainer .5 FTE to 1.0 FTE Educational Support Secretary ($80,252 – due to BSSOT early end-of-grant) (Placeholder) New Research Analyst/possibly combine with Data Steward ($105,000) District Objective 4.1 Increase the use of data for decision-making at the District and dept/unit level College Nurse for Centers and Nights/Weekends ($100,000) Move ESL professional expert to Classified Position ($6,547) Discretionary Budget Outcomes & Assessments/Curriculum Coordinator ($4,000) Discretionary Budget Dual Enrollment Director ($4,000) Auto – Shop Supplies ($5,000) AAC DHH Transfer Salary to be Covered by GFU ($80,000) = increased District match, leads to increased funding and avoids deficit Above Base Resource Request funds ($50,000) – increases annual budget District Objective 4.2: Improve organizational effectiveness by strengthening operations of District Departments ADA compliant accessible desk inventory ($35,000 one-time)

Links between Resource Allocations & District Goals/Objectives Goal 4: Engage in Best Practices and Staff Development to Sustain Effective Operational Systems for Institutional Assessment and Continuous Improvement: District Objective 4.1: Improve operational systems based upon data driven decision- making as described in the COS 2.0 manuals District Objective 4.2: Improve the efficiency, effectiveness and communication of human, physical, technological, and financial resources to advance the District Mission District Objective 4.3: Increase professional development opportunities for and participation of District employees in support of improving operational effectiveness New Infrastructure & Security Technology Manager ($150,000) District Objective 4.2: Improve organizational effectiveness by strengthening operations of District Departments New .6 FTE Manager-Purchasing & Business Support ($48,000 – offset by rental revenues) New Data Steward (TracDat, data audits, reporting, etc.) ($92,000; 50% GFU and 50% categorical) District Objective 4.1: Data driven decision making Annual Software Maintenance Costs for New Door Locking Software ($5,271)

Links between Resource Allocations & District Goals/Objectives Goal 4: Engage in Best Practices and Staff Development to Sustain Effective Operational Systems for Institutional Assessment and Continuous Improvement: New Compliance Requirements for Debt Reporting – Contract Services ($2,000) Property and Liability Insurance Annual Premium Increase ($55,000) Financial Aid Annual Training for COS Staff ($5,000) District Objective 4.3 Increase professional development opportunities for District employees in support of improving operational effectiveness Increase Student Worker Budget by $1 per Hour due to Minimum Wage Increase ($63,500) Refinance COP from 16 Years to 10 Year + Lower Percentage to Save $1.1M; $600k Net ($52,000) Student Help Assisting Accounts Payable Scan Monthly Documents ($7,000) Travel/Conference Necessary Training for Technology Staff ($6,000) (Placeholder) New Research Analyst/possibly combine with Data Steward ($105,000) District Objective 4.1 Increase the use of data for decision-making at the District and department/unit level Microcomputer Specialist .5 FTE to 1.0 FTE ($55,500)

Links between Resource Allocations & District Goals/Objectives Goal 4: Engage in Best Practices and Staff Development to Sustain Effective Operational Systems for Institutional Assessment and Continuous Improvement: Pool Technician .5 FTE ($20,000) Cashier .5 FTE to 1.0 FTE ($38,300) Food Services Assistant Manager ($42,000 GFU, remainder from Food Services Fund) Alertus Emergency Notification Software ($6,200) Portion of Student Services Dean Salary now out of GFU from WIA ($9,945) Increase Tech Supplies budget ($3,000) Short-term Staff or Student Help for Annual Computer Refresh ($10,000)District Tech Services Annual Software Cost Increases ($20,000) Facilities Annual Costs of Vehicle Replacement ($5,000) Annual Computer Refresh Budget ($270,000) – frees up Instructional Support funding for Instructional Equipment, etc. Objective 4.2: Improve organizational effectiveness by strengthening operations of District Department Above Base Resource Request funds ($50,000) – increases annual budget District Objective 4.2: Improve organizational effectiveness by strengthening operations of District Departments Annual Facility Improvement Projects on all three campuses ($110,000)

Categorical/Restricted Programs Major Categorical Program 2017-18 Revenues 2018-19 Revenues Basic Skills/Basic Skills Transformation $850,335 $832,075 BFAP Financial Aid $449,128 $463,714 EOP&S $1,237,422 $1,304,904 CARE & NextUP $235,938 $385,498 DRC /AAC $1,112,289 $1,144,602 CalWorks $538,425 $540,616 Student Success $3,117,305 Student Equity $1,432,894 Adjunct Parity $252,803 $209,451 Strong Workforce Regional & Local $1,911,337 Scheduled Maintenance/Inst’l Equipment $595,902 $256,000 Guided Pathways $342,348 $410,818 College Promise $413,979 Total $12,076,126 $12,423,193

Farm Budgets: Agriculture Instruction Funds Title Salary & Benefits 40000 Supplies 50000 Services 60000 Capital Outlay Total Expense 88000 Local Revenue Net Surplus (Deficit) Restricted Lottery Ag Overhead 60,000 4,000 20,000 2,000 86,000 1,000 (85,000) 2,250 Ag Technology 175 2,100 500 2,775 (2,775) Beef 1,600 5,450 600 7,650 5,000 (2,650) Equine 12,350 18,750 13,350 44,450 14,500 (29,950) 15,500 Sheep 3,600 3,225 625 7,450 3,500 (3,950) Swine 825 8,400 450 9,675 (6,175) Ornamental Horticulture 18,450 6,100 975 25,525 6,500 (19,025) 1,250 Plant Science Total AG Instr Funds 97,175 50,125 37,000 186,300 34,000 (152,300) 33,000

Farm Budgets: Farm Funds Title 40000 Supplies 50000 Services 60000 Capital Outlay Total Expense 88000 Local Revenue Net Surplus (Deficit) Alfalfa 10,000 40,000 50,000 138,000 88,000 Crops 17,500 130,000 147,500 238,000 90,500 Dairy 14,000 94,800 80,800 Almonds 80,000 (80,000) Farm Overhead 5,000 69,000 4,000 78,000 (78,000) Residence 12,000 28,000 16,000 Total Farm Funds 32,500 265,000 84,000 381,500 437,800 117,300 Total Farm 567,800 532,800 (35,000) Almond expense will be capitalized at year end, this gives authority to purchase.

Other Funds Farm Special Reserve 5,000 Linwood Reserve Title 50000 Services 60000 Capital Outlay 70000 Other Outgo Total Expense 86000 State Revenue 88000 Local Revenue Total Revenue Net Surplus (Deficit) Farm Special Reserve 5,000 Linwood Reserve Capital Projects 551,172 4,012,334 4,563,506 546,573 30,000 576,573 (3,986,933) Hispanic Serving Inst 6,815 10,000 3,185 Banked Leave 2,500 7,500 Hanford GO Debt Serv 266,015 123,985 390,000 - Hanford GO Debt Serv #2 128,244 405,000 533,244

Other Funds Title- 50000 Services 60000 Capital Outlay 70000 Other Outgo Total Expense 86000 State 88000 Local Revenue Total Revenue Net Surplus (Deficit) Hanford GO Debt Serv #C 524,250 25,000 549,250 - Visalia GO Debt Serv 522,848 282,153 805,001 Visalia GO Debt Serv #2 232,500 Visalia GO Debt Serv #3 20,177 14,823 35,000 Visalia GO Debt Serv #D 751,544 55,000 806,544

Other Funds Title 50000 Services 60000 Capital Outlay 70000 Other Outgo Total Expense 86000 State 88000 Local Revenue Total Revenue Net Surplus (Deficit) Tulare GO Debt Serv 524,187 320,813 845,000 - Tulare GO Debt Serv #2 178,625 270,000 448,625 Tulare GO Debt Serv #3 63,075 65,000 128,075 Tulare GO Debt Serv #4 127,900 50,000 177,900 Tulare GO Debt Serv #E 572,850 40,000 612,850

Notes: Closing books 2017-18 Description Additional Revenues, Funds, or Transfers YE Fund Balance and % Actual 2017-18 FTES over budgeted = additional revenue 10,337 final – 9788 adopted = 549 FTES 2,772,000 Prefunding of PERS/STRS increased costs two years in advance 1,614,000 Reaching Mid-Size College Status 1,200,000 June Board Meeting – Board approved moving funds out to Capital Projects Fund (1.67M used for Basic Skills Match, 121K for food services renovation) (1,841,000) June Board Meeting – moved funds for five approved GFU projects to Capital Projects Fund (1,261,000) End of Year - Portions of General Fund Unrestricted District budgets go unspent each year (comprised of over 1,000 account lines) $773K at close $316K is approved carryover - 6 projects + other dept requests $772,800 Net falling to Fund Balance at close of books (unspent) 3,256,800 32%/30% Ending Fund Balance/Ending Fund Bal net of Prepaids & C/O 19,832,851 18,480,976

FINAL Budget Presented for Board Approval Final Adopted Budget Questions? Comments? FINAL Budget Presented for Board Approval