California Community College Funding and Budgeting Allocation Model Review December 12, 2014

BAM Questions Q: Can you review the BAM and new growth funding formula (High Level)? A: Yes, see the following WEB site for advance information on proposed growth funding formula. http://extranet.cccco.edu/Divisions/FinanceFacilities/FiscalServices/AdvisoryWorkgrouponFiscalAffairs.aspx Q: How will the base allocation thresholds be impacted by additional state funds? A: At this point the impact will be no different than in the past. Whatever statutory COLA is adopted will impact the base allocations. Q: Do you foresee any adjustment to the Rural College Threshold and $500,000 allocation? A: No, however this is an area being examined by Statewide Funding group. Q: How will the expiration of Prop 30 funds impact KCCD? A: Not sure. Waiting to see what LAO says this winter regarding that subject. We are relying on $16 million in Prop 30 funds in our base unrestricted funds so if there is no backfill for those revenues things could get really interesting for KCCD when the taxes generating those funds sunset.

Funding Model State Revenue District TCR The State General Apportionment amount will be the amount necessary so that total district revenue sources equal the district’s Total Computational Revenue (TCR). If the State’s appropriation for general apportionment is insufficient to meet the statewide amount needed, all district amounts for state general apportionment will be prorated lower such that total state general apportionment equals the appropriation.

District Revenue Property tax revenues - Apportionments are based on the estimated annual property tax disbursements to the districts provided by each local county auditors office. Student enrollment fees - Annualized” to reflect the complete annual amount to which the district is entitled. Must report 100% of all enrollment fee revenue of which it is entitled to collect. Failure to collect all entitled fee revenue does NOT affect the amount of fee revenue reported.

State Base Revenue

Base Adjustments Restoration of Prior Workload Reductions Stability-Restoration of Prior Declines Basic Allocation COLA Adjustments

Workload Questions Q: Where do you see COLA be funded for FY15-16? How will the District pass on the allocation in a fair and equitable manner? A: 1.3% to 1.5%. Allocation model will allocate consistent with past COLA allocations. Q: What is PC’s projected FY15-16 FTES target? A: Not yet determined Q: Where is Cerro Coso in their stabilization/ FTES and what is the projection for FY15-16? A: They have been stabilized for a 100 FTES reduction. Further changes have not been determined yet.

35 weeks = 17.5 x 2 Semesters; 15 units = Full Time Workload What is FTES? Full Time Equivalent Students Students are counted on the basis of enrollment, not on actual attendance. Census Date -The count is taken on the Monday that is closest to 20% of the way through the semester (usually in the 4th week). FTES=# of students x # hours per week x 35 weeks divided by 525 35 weeks = 17.5 x 2 Semesters; 15 units = Full Time Workload reductions are authorized when it is known at the adoption of the State Budget Act that revenues are not sufficient to fully fund base revenues. (Title 5, §58772)

KCCD Comprehensive Target 2014-15 2013-14 2012-13 Bakersfield 13,361.0 12,648.6 12,618.1 Cero Coso 3,034.6 3,033.0 3,282.9 Porterville 3,213.6 3,071.9 3,074.2 Stabilization Districts receive stability funding only in the initial year of decline in FTES in an amount equaling the revenue loss associated with the FTES reduction for that year. (Title 5, §58776) Standard: Districts are entitled to revenue equal to at least the prior year’s total computational revenue. (Title 5, §58770(a)(2) Effect of Stability: Although revenue is supported in the year of decline, base revenue for the subsequent year is reduced by the amount of PY stability. This is the situation with Cero Coso in FY14-15. Therefore, growth was allocated to PC and BC.

Cost of Living Allowance (COLA) Any Inflation Adjustment authorized by the Legislature is normally communicated via the education trailer bill for that specific year. Last (FY2014-15 - .85)%, year in which we were authorized a cost of living adjustment (COLA), the specific information of that authorization was included in that year’s education trailer bill, Section 36 of SB 80, Chapter 174 of the Statutes of 2007.

Stabilization Districts receive stability funding only in the initial year of decline in FTES in an amount equaling the revenue loss associated with the FTES reduction for that year. (Title 5, §58776) Standard: Districts are entitled to revenue equal to at least the prior year’s total computational revenue. (Title 5, §58770(a)(2) Effect of Stability: Although revenue is supported in the year of decline, base revenue for the subsequent year is reduced by the amount of PY stability.

Other Funding Sources Federal Funding Sources Student Financial Aid – Pell, SEOG, Workstudy Grants – TRIO & Upward Bound California State Funding Sources Categorical Programs Instructional & Library Materials and Equipment Capital Outlay – Scheduled Maintenance & Construction Financial Aid Trust Funds – Cal Grants Child Development Funds – CDC Grants – Title III & V Local Funding Sources Student fees – ASB & Student Center

Categorical Program Questions Q: How are/will SSSP & Equity Funding and Adult Education impact the Basic Skills Initiative? A: At this point, SSSP and Equity funding should not have any negative impact on the Basic Skills Initiative at PC. PC has threaded Basic Skills best practices in both plans and also included the expansion of our ESL offerings. Our efforts in SSSP and Equity look to support the campus BSI efforts. Additionally, I believe AB 86 will not have a negative impact on the college's BSI efforts either. Depending on the direction the KCCD Consortium plan, AB 86 efforts at PC could help to expand PC's BSI efforts especially in the ESL arena. (response provided by Val Garcia VP Student Services Porterville College) Q: How would the shift of Adult Education from K-12 to Community Colleges impact PC’s budget (Credit/Non-Credit FTES Funding)? A: I would assume via increased funding but that has not yet been fully flushed out yet at the State level. Q: Are there any efforts to address the SSSP match requirement from a District prospective (District grant initiatives)? A: We have identified District functions that meet match requirements and have advised the colleges accordingly. There is currently no efforts to identify grants to assist with match requirements.

Categorical Programs Displayed (County ---> District) Each Categorical Program – Annualized Budgets

CalSTRS Funding Plan Proposition 2 Looking Ahead CalSTRS Funding Plan Proposition 2