BUDGET RESOURCE ALLOCATION COMMITTEE BUDGET UPDATE Presentation by Chedva Weingart, Executive Director/Fiscal Services Pasadena City College March 28, 2019

Background Memo from State Chancellors Office 2018-2019 First Principal Apportionment Student Center Funding Formula consists of three components: The Base allocation based upon FTES – current year projected (with prior years used to calculate a three year average). Supplemental Allocation –based upon prior year awards for Pell, AB-540 Students and California Promise Students Student Success allocation – based upon prior year success metrics. The Budget Act of 2018 estimated the costs of the general apportionment for 2018- 2019 using estimates on the then-recent data for all the formula factors.

Background Memo from State Chancellors Office 2018-2019 First Principal Apportionment – CON’T State Chancellors Office underestimated the amount of revenue required under the new funding formula for all the Community Colleges. The data they used for their assumptions was old and non verified data. The Chancellors Office Estimates a $324 million Funding Shortfall.  This is comprised of two components: Higher estimates $143. million computed for Total Computation Revenue. Lower estimates $181. million for offsetting revenues, such as Property Tax and Education Protection Act (EPA). The Estimates for 2018-2019 Total Computation Revenue of the First Principal apportionment was $143 million higher than the estimate in the Budget Act of 2018 is attributable to the following reasons: The Student Centered Funding Formula as of First Principal Apportionment are $67 million higher than estimated at the Budget Act of 2018. Estimates that are for the “hold harmless” – Last year Total Computed Revenue plus cost-of-living-adjustment were $76 million higher that estimated at the time of the Budget Act of 2018.

Pasadena Area CCD 2018-2019 First Principal Apportionment - Exhibit C

Pasadena Area CCD 2018-2019 First Principal Apportionment Exhibit C. In March 2019 PCC Principal Apportionment consists of the following: Base Allocation $99,838,103 Supplemental allocation $28,460,511 Student Success Allocation $18,840,873 The Total computational Revenue for PCC is $147,139,487 Revenue short fall was 5% of Total Computational Revenue. The Shortfall for PCC is $7,409,711. The State Chancellor’s office held this money back from our apportionment and it is estimated may not be backfilled. The State Chancellor’s Office computation of available revenue for Pasadena Area CCD for fiscal year 2018/2019 is $139,729,776.

Pasadena Area CCD - Budget PCC used for Adopted budget the same numbers that was used for the Budget Act of 2018. The numbers used to calculate the revenue in the Budget Act of 2018 used the numbers for the supplemental and success metrics from fiscal year 2016/2017 because fiscal year 2017/2018 numbers were not yet available. For the Adopted budget PCC estimated $141,979,941 for Total Computational Revenue (TCR)– These numbers were provided to us from the State Chancellors Office and were advised to use those numbers for our estimate.

Pasadena Area CCD - Budget Pasadena Area CCD - Budget con’t In October the Advance apportionment that the State provided for TCR was $144,124,183 we did not adjust budget to that estimate as we did not have confidence in that number and did not want to overspend. PCC budgeted $2.3 million dollars (estimated at the adopted budget) more than the available resources computed at P1. Total FTES is projected to be the same as last year: 23,988

The end QUESTIONS?