1. College of the Sequoias
Final Budget
September 14, 2015

2. Budget Process Tentative Budget is created based on May Revise
Approval of Tentative Budget by Board in June authorizes expenditures over summer
Summer - Legislature proposes adjustments to state allocations, and Governor negotiates
State Budget is adopted by June 15th (legislature); Governor approves by June 30th
Staff account for final changes to income & expenditures
Final Budget is adopted by Board in September

3. Final Budget - Assumptions:
5.72% Access Funding (Growth) $2.4M available
Budget only includes 140 FTES, or 1.5% growth, due to third session summer 2015 (120 FTES) and small growth (20 FTES) = appx $650,000
1.02% COLA = $474,000 COS (per-FTES, and base)
$2.2M increased “base allocation” ongoing, but first/only
3.1% H&W cap increase (50% of PPO-4 RX-A increase) for COSTA $76,752, CSEA $71,340, & Mgt/Conf $23,616.

4. Final Budget - Assumptions:
Student Success/SSSP- additional $750K ongoing
Student Equity/SEP – additional $850K ongoing
Scheduled Maintenance
May Revise = $577K allocation (zero match required)
Instructional Equipment
May Revise = $577K allocation
COS budgets $277K per year for annual computer refresh - $150K extra refresh/$150K for other allocations
Full Time Temp placeholders – 3 FTT filled, 1 open

5. Final Budget - Assumptions:
Increased STRS by $370K (GF Unrestricted) – employer contribution rate increased from 8.88% (14-15) to 10.73% (15-16)
Increased PERS by $98K - Employer contribution rate increased from % (GF budget) to 11.84%
Now includes $491,169 revenue for increased full-time faculty hiring
State is allocating based on FTES. COS will need to use this to hire additional faculty in fall 2016 to meet FON.
Does not include $4.9 million in one-time mandate cost reimbursements – will budget when received in December

6. Final Budget - Assumptions:
CSEA settlement 170.6K for Unrestricted General Fund:
One-year-only stipends for 50% medical premium increase
One-year-only 6% PERS contribution (50 ee’s only hired after 1/1/13)
Small ongoing increase ($6,200) in dental/vision coverage
Management/Confidential small ongoing increase in dental/vision $2500 GFU
Switched carriers for P&L insurance, netting the District $160K annually in savings (but not in final budget yet!)

7. Major Changes in Budget Assumptions:
Final Budget –
Major Changes in Budget Assumptions:
General Fund Unrestricted
Surplus/(Deficit) Estimated at January Governor’s Budget 1.58% COLA
235,727
Surplus/(Deficit) at District Budget Forums (after COSTA settlement & other small misc.)
(72,273)
+ $975K Increase in Base Allocation & other small misc. incr
1,043,923
Surplus/(Deficit) at May Revise and Tentative Budget adoption 1.02% COLA
$971,650
+ $136K addt’l Base Allocation + $491K new FON allocation, - 2 additional FTT positions budgeted - CSEA settlement
$387,222
Surplus/(Deficit) at Final Budget Adoption
$1,358,872

8. Description
GFU
Combined
State Allocation
$50,187,193
Federal Revenues
$ ,000
$2,330,906
Other Income
$ 2,367,909
$12,595,294
Total Revenues
$52,562,102
$65,113,393
Certificated
$22,180,384
$23,606,263
Classified
$ 9,534,973
$13,177,575
Benefits
$11,751,075
$13,814,251
Materials & Supplies
$ ,834
$ 2,415,137
Contracted Services
$ 5,592,513
$ 7,127,672
Capital Expenditures
$ ,964
$ 2,505,582
Transfer Out/Other Outgo
$ ,487
$ 1,108,041
Total Expenditures
$51,203,230
$63,754,521
Surplus/(Deficit)
$ 1,358,872
$ 1,358,872

9. Description 2015-16 Beginning Fund Balance $7,115,046
14.9% (13.1% after designated carryover)
Surplus/(Deficit)
$1,358,872
(Does not include mandate reimb funds)
Ending Fund Balance
$8,473,918
16.55%
6% Reserve for Economic Uncertainties
$3,072,194
Board Policy 6%
Additional Fund Balance
$5,401,724
= Projected 6/30/16 Gen Fund Balance
Board Priority 10% (~16.5%)
Note 1: Additional funds expected to fall to fund balance at close of each year
Note 2: 1 month of GF expenditures
$4,300,000
8.4 %
state average-CC Fund Balance
$8,700,000
17%

10. Links between Resource Allocations & District Goals/Objectives:
9 FT Faculty, 2 FT Counselors, 1 FT Faculty moved to GF, and 5 FT-Temporary Faculty:
Goal 1: Increase Student Enrollment
Goal 2: Improve the rate at which students complete degrees
DO 2.1 through 2.4: Increase number of students who transfer and earn degrees and certificates, including English, Math, ESL, and Career Tech Ed
Goal 3: Strategically tailor and implement programs and student services that match the unique needs of our student population
DO 3.1: Reduce achievement gap of disproportionately impacted student groups annually (per SEP)
Mission: Help our diverse student population achieve their transfer and/or occupational objectives; Support students’ mastery of basic skills, and provide programs and services that foster student success (e.g. new Math, English and Science Faculty)

11. Links between Resource Allocations & District Goals/Objectives:
Six new Student Success Coordinators (SEP)
Goal 2: Improve the rate at which students complete degrees
DO 2.1 through 2.4: Increase number of students who transfer and earn degrees and certificates, including English, Math, ESL, and Career Tech Ed
Goal 3: Strategically tailor and implement…student services that meet the needs and demands of students and the workforce
Ongoing funding for after-hours Library services ($7000)
Additional funds for Library books and periodicals (restricted lottery - $27,000)
Goal 3: Strategically tailor and implement…academic services that meet the needs and demands of students and the workforce

12. Links between Resource Allocations & District Goals/Objectives:
Above Base Resource Allocation Funding-Ongoing GF Unrestricted ($100,000):
Goal 4: Engage in best practices to sustain effective operational systems for continuous improvement
Increase summer school budget ($75,500)
Increase overload budget ($50,000)
Increase instructional aid budget for large student lecture classes ($6,360)
Goal 1: Increase student enrollment
Goal 2: improve the rate at which students complete degrees, certificates, and transfer objectives
DO 2.1 to 2.3 increase course success and completion

13. Links between Resource Allocations & District Goals/Objectives:
Additional restricted funds SSSP $750K and SEP $850K:
Goal 3: strategically tailor and implement academic programs and student services that match the unique needs of the student population
DO 3.1: Reduce the achievement gap of disproportionately impacted student groups annually, as identified in the student equity plan
Institute the extended police academy ($125,000)
Goal 1: Increase student enrollment relative to population growth and educational and workforce development needs
DO 2.4: Increase career technical education course success rates and program completion annually
Goal 3: Strategically tailor and implement academic programs that match the unique needs of its student population and the demands of ongoing changes in workforce development

14. Links between Resource Allocations and District Goals and Objectives: New classified/management Positions
Goal 2: Improve the rate at which students complete degrees, certificates, and transfer objectives
Goal 4: Engage in best practices to sustain effective operational systems
New Positions Added
Unrestricted/Restricted
Tulare Provost
Unrestricted
Payroll Specialist .5 FTE
Sr. Programmer Analyst
Athletic Trainer .5 FTE
Grounds Technician .5 FTE
Research Analyst .5 FTE
Clerical Assistant Police Academy .5 FTE
Program Coordinator Police Academy .5 FTE
Writing Center Instructional Assistant .6 FTE
Clerical Assistant .5 FTE AAC
Restricted/Categorical
Programmer Analyst SSSP

15. Links between Resource Allocations and District Goals and Objectives: New classified/management Positions
Goal 2: Improve the rate at which students complete degrees, certificates, and transfer objectives
Goal 4: Engage in best practices to sustain effective operational systems
New Positions Added
Unrestricted/Restricted
Sr. Clerical Assistant SSSP
Restricted/Categorical
Writing Center Instructional Assistant ELI .6 FTE
Student Success Coordinators SEP 6 FTE
Research Analyst 1.5 FTE SEP
Senior Lead Coordinator SEP 2 FTE
CTE Grant Manager CTE
Job Developer (2) .5 FTE Workability III
High Tech Manager AAC
Grant Program Specialist C6/CTE .5 FTE
Training Resources Center Specialist
Training Resource Center

16. FISCAL SOLVENCY PROJECTIONS
Annual Ongoing Increases
GFU
GFU
Step & Column
$345,000
$360,000
H&W Benefits $0
PERS (11.847%, %, 16.6%)
$150,000
$448,000
STRS (10.73%, 12.58%, 14.43%)
$416,000
$419,000
Utilities 3% Increase
$50,000
Solar Savings ($119K FY16 + $131K FY17)
($131,000)
CSEA 1-year stipends eliminated
(164,000)
P&L Insurance change savings
(160,000)
Insurance (WC/P&L) 4% Increase
$40,000
Add FTF –Estimated FON
$400,000
$200,000
Total Increased Expenditures
$946,000
$1,517,000
FTES Growth <1.75% 100 FTES
$ 472,400
1% COLA – State allocation
$ 501,872
$ 511,615

17. Assumed 0% COLA and no growth 16-17 & 17-18
Fiscal Solvency Projection
GFU
GFU
GFU
State Allocation
$50,187,193
Federal Revenues
$ ,000
Other Income
$ 2,367,909
Total Revenues
$52,562,102
Certificated
$22,180,384
$22,744,486
$23,117,286
Classified
$ 9,534,973
$ 9,500,587
$ 9,637,387
Benefits
$11,751,075
$12,368,359
$13,285,759
Materials & Supplies
$ ,834
Contracted Services
$ 5,592,513
$ 5,391,513
$ 5,481,513
Capital Expenditures
$ ,964
Transfer Out/Other Outgo
$ ,487
Total Expenditures
$51,203,230
$52,149,230
$53,666,230
Surplus/(Deficit)
$ 1,358,872
$ ,872
$ (1,104,128)

18. Assumed 1% COLA and 100 FTES growth 16-17 & 17-18
Fiscal Solvency Projection
GFU
GFU
GFU
State Allocation
$50,187,193
$51,161,465
$52,145,480
Federal Revenues
$ ,000
Other Income
$ 2,367,909
Total Revenues
$52,562,102
$53,536,374
$54,520,389
Certificated
$22,180,384
$22,744,486
$23,117,286
Classified
$ 9,534,973
$ 9,500,587
$ 9,637,387
Benefits
$11,751,075
$12,368,359
$13,285,759
Materials & Supplies
$ ,834
Contracted Services
$ 5,592,513
$ 5,391,513
$ 5,481,513
Capital Expenditures
$ ,964
Transfer Out/Other Outgo
$ ,487
Total Expenditures
$51,203,230
$52,149,230
$53,666,230
Surplus/(Deficit)
$ 1,358,872
$ 1,387,144
$ 854,159

19. Items to watch for future years:
Note: COS may earn more Access Funding; projecting +180 FTES :
Loss of Prop 30 (EPA) .25% sales tax - 12/31/16 expiration = appx $1.2M to $1.5M for COS annually
Increased PERS & STRS costs of $566,000 annually :
Increased PERS & STRS costs of $867,000 annually :
Increased PERS & STRS costs of $625,500 annually
Loss of Prop 30 (EPA) increased high-earner income tax 12/31/18 expiration = appx $5M for COS annually
COS will need to set aside ongoing funds to cover PERS/STRS in future years.

20. FTES Update Historical Perspective
Year
Actual FTES
Funded FTES
8,204.79
8,149.45
8,419.17
8,506.82
8,510.76
8,620.16
7,582.27
8,929.55
8,209.56
10,160.04
9,042.35
10,614.57
8,696.69
10,561.93
8,945.00
9,033.30
8,261.13
8,646.55
8,408.26
9,448.98
8,697.10
8,870.40
8,870Fdd/8,986cap
9,010.00?
? Funded/9431 cap

21. Major Categorical Program
Revenues
Revenues
Basic Skills
$116,692
BFAP Financial Aid
$417,634
$437,634
EOP&S
$859,235
$1,165,763
CARE
$127,487
$213,239
DRC
$1,200,564
$1,212,810
CalWorks
$362,388
$366,084
Student Success
$1,262,102
$2,012,102
Student Equity
$692,650
$1,542,650
Adjunct Parity
$172,899
$234,336
TANF
$ 84,311
$80,095
Scheduled Maintenance
$911,872
$577,364
Instructional Equipment
$276,873
Total
$6,484,707
$8,536,133

22. Mandate Reimbursement Funds for COS:
The large “one-time” reimbursement (not the annual block grant) is currently estimated at $4.931M for COS in
The District never budgets mandate reimbursement funds until they are actually received – should be received in December 2015
Further discussion and research will be presented to the board, including detailed information of possible funding needs.
When received, options for possible board direction follow. Board direction will be sought in January 2016
Pay toward General Fund 2004 COP $3M balance (student center trust, health center, and District)

23. Description
Reason/Notes
Transfer $ to Capital Projects Fund for Facility Needs
Bond Funds are completely expended; state scheduled maintenance funds are limited. Emergencies could occur. Cap Projects = 1M bal.
Fund OPEB Trust
Increasing our funding lowers our Unfunded Obligation and increases COS’ credit rating and fiscal solvency outlook
Fund a reserve for increased PERS/STRS costs
Recommended no more than one year, as using 1X $’s for this need builds a fiscal cliff. Possibly fund 17/18 867K
Additional Funding for Hanford Quad construction
Available Funds currently $550K for construction. The intended facilities goal may far exceed available funds.
Additional Property Purchases in SE quadrant Visalia campus
Board may wish to extend ownership to meet future Visalia campus needs
Pool Renovations
Large pool renovations will be needed in the near future to keep the pool in functioning order

24. Agriculture Technology Unit
Farm Budgets
Agriculture Technology Unit
Equine Unit
20000
Classified Salary Expense
150
12,000
30000
Benefit Expense 25
350
40000
Supplies
2,100
18,750
50000
Services &Other Op Expenses
500
Services & Other Op Expenses
13,350
Total Expense
2,775
44,450
88000
Local Revenue
14,500
Restricted Lottery Supplies Support
1,000
15,500
Alfalfa Unit
Farm Overhead Unit
16,000
33,000
50,500
27,000
66,500
9,000
91,000
Crops Unit
60000
Capital Outlay
4,000
17,500
164,000
188,300
205,800
2,250
238,000

25. Farm Budgets Beef Unit Dairy Unit 20000 Classified Salary Expense
1,500
50000
Services & Other Op Expenses
14,000
30000
Benefit Expense
100
40000
Supplies
5,450
88000
Local Revenue
45,000
Services &Other Op Expenses
600
Total Expense
7,650
5,000
Restricted Lottery Supplies Support
2,000

26. Ornamental Horticulture Unit
Farm Budgets
Ornamental Horticulture Unit
Sheep Unit
20000
Classified Salary Expense
18,000
3,500
30000
Benefit Expense
450
100
40000
Supplies
6,100
3,225
50000
Services & Other Op Expenses
975
625
Total Expense
25,525
7,450
88000
Local Revenue
6,500
Restricted Lottery Supplies Support
1,250
1,000
Residence - Farm
Swine Unit
12,000
750 75
28,000
8,400
TOTAL FARM UNIT
559,825
9,675
Total Revenue
372,000
4,000
Total Restricted Lottery Supplies Support
27,000

27. Other Funds Farm Special Reserve Banked Leave 70000 Other Outgo 2,500
88000
Local Revenue
13,400
9,500
Linwood Reserve
Hanford General Obligation (GO) Debt Service
15,000
50000
Services & Other Operation Expense
816,581
Capital Projects
105,419
647,200
Total Expense
922,000
60000
Capital Outlay
2,663,851
3,311,051
86000
State Revenue
832,278
2,177,937
Total Revenue
2,950,215
Hanford General Oblign. (GO) Debt Service 2nd Issue
Hispanic Serving Institute Trust
166,763
335,000
501,763
10,000

28. Other Funds Hanford General Obligation Bond Retiree Health & Welfare
40000
Supplies
10,000
88000
Local Revenue
5,000
50000
Services & Other Operation Expense
55,000
60000
Capital Outlay
652,612
Visalia General Obligation (GO) Debt Service 2nd Issue
Total Expense
717,612
232,500
Visalia General Obligation (GO) Debt Service
738,300
70000
Other Outgo
630,000
1,368,300
Visalia General Obligation (GO) Debt Service 3rd Issue
206,525
Tulare General Obligation (GO) Debt Service 3rd Issue
63,075

29. Other Funds Visalia General Obligation Bond
Tulare General Obligation Bond
60000
Capital Outlay
568,377
70000
Other Outgo
2,973,860
Tulare General Obligation (GO) Debt Service
50000
Services & Other Operation Expense
764,313
665,000
Total Expense
1,429,313
88000
Local Revenue
Tulare General Obligation (GO) Debt Service 2nd Issue
178,625
220,000
398,625

30. Questions or Comments?
For Board Approval