SANTA MONICA COLLEGE PRESENTATION OF THE TENTATIVE BUDGET REPORT

TENTATIVE IS….. TENTATIVE!!! Still waiting for P2 Year end closing May Revise - Macro view Governor vs. Legislature CAUTION: For these reasons projections may significantly differ from final allocation

OVERVIEW Governor’s Proposed Budget Tentative Budget

Governor’s May Revise WARNING: RESULTS MAY VARY

GOVERNOR’S MAY REVISE Record $115B General Fund Budget Prop 98 funding is $68.4B $7.5B increase from June Projection ($60.9M) $2.1B increase from May Revise ($66.3M) Community Colleges share is 11.5% or $7.9B System increase of $1.3B or 19.9% From Enacted!!! No enrollment fee change

RECAP OF GOVERNOR’S BUDGET UNRESTRICTED FUND ONGOINGONE-TIMETOTAL INC. TO BASE - $266.7M $4,984,973- ACCESS - $156.5M % $2,583,728- COLA - $61M % $1,161,177- CDCP - $49M - 41% PER FTES $244,305- MANDATED COST PAYMENT- $626M -$11,978,846 TOTAL$8,974,183$11,978,846$20,953,029

RECAP OF GOVERNOR’S BUDGET RESTRICTED FUND ONGOINGONE-TIMETOTAL SSSP - $100M$1,676,414- EQUITY - $115M$1,816,390- COLA - EOPS/DSPS/CALW ORKS $36,225- INST. BG/SCHED. MAINTENANCE -$2,840,225 PROP 39 - $39.6M-$739,170 TOTAL$3,529,029$3,579,395$7,108,424

RECAP OF GOVERNOR’S BUDGET UNRESTRICTED AND RESTRICTED FUND ONGOINGONE-TIMETOTAL UNRESTRICTED (01.0) $8,974,183$11,978,846$20,953,029 RESTRICTED (01.3) $3,529,029$3,579,395$7,108,424 TOTAL$12,503,212$15,558,241$28,061,453

PROPOSALS NOT INCLUDED Unrestricted $75M for full-time faculty $50M Awards for Innovation

PROPOSALS NOT INCLUDED Restricted $60M Basic skills and student outcomes $2M Basic skills pilot with CSU $15M Institutional effectiveness $500M Adult Ed Block Grant $48M CTE Pathways SB 1070

Tentative Budget

Changes in Revenue

PROJECTED CHANGES IN REVENUE TO TENTATIVE PROJECTIONS Revenue Projection:149,698,927 Mandated Costs - Past Claims10,433,856 Apportionment - Base Change/CDCP5,229,179 Growth2,583,728 Non-resident Tuition1,538,566 Inflationary Adjustment1,161,177 Deficit Factor net PY Adjustment187,824 Lottery77,165 Medicare Part D Subsidy-231,648 Other39, Tentative Revenue Projection:170,717,896 $21,250,617 $-231,648 $21,018,969 or 14%

FIVE YEAR REVENUE TREND

Changes in Expenditures

MAJOR CHANGES IN ASSUMPTIONS Vacancy List Past Practice: Fund 50% of the entire list (Would equate to $3.1M in 15-16) New Practice: Fund $2.5M in salaries and related benefits. Discount at 66%. (Equates to $1.2M) Exception for is President/Superintendent

MAJOR CHANGES IN ASSUMPTIONS Technology Replacement Plan and Non-Technology Set Aside EMP Institutional Objective #2 “To allocate resources sufficient to support the ongoing maintenance of technology, equipment and facilities.” Accreditation Standards III.B and III.C District Program Review through 2015 Technology Replacement Plan: Computers, Projectors, Controllers/Amps, Doc Cams $1.2M offset by $792K IEBG = Total funding of $418K Non-Technology/TCO Set Aside: Total funding of $500K

PROJECTED CHANGES IN EXPENDITURES TO TENTATIVE PROJECTIONS Expenditure Projection:153,834,272 Salary Increase and Related Benefits2,588,479 Non-Health and Welfare Benefits1,202,422 Equip., Technology and TCO Replacement Plan1,012,375 Step, Column and Longevity982,162 Vacancy List742,285 Health and Welfare Incl. Retiree607,051 OPEB Contribution500,000 Utilities and Insurance170,844 Supplies and Other Operating75,371 Decrease in Hourly-654,278 Net Effect of Hiring and Separation-660,628 Others-42, Tentative Exp. Projection:160,357,741 $6,523,469 or 4.2% $7,880,989 $-1,357,520

FIVE YEAR EXPENDITURE TREND

Changes in Fund Balance

THE “BOTTOM LINE” Projected Tentative Beg. Fund Balance $13,971,779$9,836,434 Structural Surplus/Deficit-$5,724,159-$606,316 One-Time items$1,588,814$10,966,471 Ending Fund Balance$9,836,434$20,196,589 Fund Balance to TTL Expenditures and Transfers 6.39%12.59%

FIVE YEAR REVENUE TREND

OTHER ISSUES MOVING FORWARD PERS and STRS increases Built in increases: Step and column, benefits, OPEB, utilities FTES: Cautious optimism Tentative FTES Target: 21,507 Credit (approx. 534 Growth) STRS 8.25%8.88%10.73%12.58%14.43%16.28%18.13%19.1% PERS %11.77%11.84%14.24%15.84%17.44%19.14%19.64% Structural Surplus/Deficit

Thank You!!! The Accounting Team with Special Thanks To Veronica Diaz and Jo Lau Jocelyn Chong and Al DeSalles Charlie Yen, Greg Brown and the Facilities Team Budget Committee