1. Final Budget
September 9, 2014

2. Agenda State Budget Highlights Peralta’s 2014-15 Final Budget
Funding Sources
Unrestricted General Fund
Parcel Tax Fund
Budget Allocation Model Summary

3. 2014-15 State Budget 4th Consecutive Year the budget passed on time
Includes a reserve of $1.4 billion
Based on the Governor’s conservative forecast
Progress made toward paying down deferrals
Down to $94 million from $592 million before passage of Prop 30
Governor has clearly laid out his path
Protect against boom and bust cycles
Retire Debt
Focus new money on education
Includes a Rainy Day Fund

4. 2014-15 State Budget Wall of Debt Rain Day Fund on November Ballot
Budget eliminates $10 Billion in debt
Mid year positive trigger would further reduce deferrals to schools and colleges
Rain Day Fund on November Ballot
When capital gains exceed 8% of GF revenues, a deposit to the RDF is required
Half used to pay off debt and liabilities for the first 15 years
Allows for withdrawal for disasters or if spending is at or below highest level of spending of the prior 3 years
CalSTRS – 30 Year obligation of $74.4 billion
State GF contribution increase from 3% to 6.3% in
Employee rate increase from 8% to 10.25% as of
Employer rate increase from 8.25% to 19.1% as of 2021

5. State Budget
The Budget Bill contained the following community college provisions:
Access funds (growth) of $140.4 million (2.75%)
Cost of Living Adjustment (COLA) of $47.3 million (.85%)
$100 million for Student Success and Support (SSSP)
Match of 2:1 on entire amount
$30 million increase for DSPS
$70 million increase for Student Equity Plans
$50 million one time increase for the Economic and Workforce Development program
$49.5 million to pay down mandates
$148 million for deferred maintenance and instructional equipment. Flexible locally and specified as one-time.

6. COMMUNITY COLLEGE what’s new
Technical Assistance for Chancellors Office
$1.1 million and 9 positions for goal setting and monitoring of institutional effectiveness
$2.5 million for technical assistance to support implementation of effective practices at college
State funding for Career Development and College Program (CDCP) Rate per FTES to be increased to be equal to Credit Rate as of
Positive Trigger –
Department of Finance can pay down deferrals during the year if Proposition 98 guarantee is higher than estimated
New formula for Growth allocation is effective in 15-16
Proposal to be out late summer/early fall

7. Cautions and concerns Proposition 30 is temporary
Sales tax increase terminates at the end of 2016
(Approximately 21% of Prop 30 revenues)
Income tax increase terminates at end of 2018
STRS obligation
Deficits
Continued exposure to shortfalls in property taxes and fees

8. Our district - PCCD
Access funds (growth) $2.2 million (increase in funded FTES of 430)
Cost of Living Adjustment (COLA) $846,989 (.085%)
Categorical increases – awaiting on allocations from the State Chancellors Office
$2,366,996 for scheduled maintenance/instructional equipment
Flexible locally and specified as one-time
No match except if the funds are used for Architectural Barrier Removal
State Retirement increases to employer rates:
STRS .63% increase ; $198,600
PERS .329% increase ; $73,563
Increase in Medical Premiums $979,893
Kaiser 0%;
Traditional PPO 26%
Lite PPO 24.9%
Traditional PPO (Local 39) 22.1%
Lite PPO (Local 39) 17.5%
Increase in Workers Compensation rate of .1% estimated cost of $54,500
Increase in OPEB Debt service payment of $1,642,666

9. Additional assumptions used to develop the budget
FTES – Target of 19,355 Residence FTES with funded FTES from the state of 19,055
Productivity level of 17.5
Unrestricted Lottery dollars funded at $ per funded FTES
State Apportionment deficit factor of 2%
Parcel Tax revenue estimated to be $8,053,385

10. 2013-14 Unrestricted General Fund final budget Summary
Revenue
Final Budget
Estimated Actuals
Actuals
Federal Revenue $ $ $
State Revenue
$ ,396,913
$ ,270,981
$ ,346,744
Local Revenue
$ ,682,083
$ ,137,518
$ ,174,459
Transfer In Revenue
$ ,128,094
$ ,691,939
$ ,152,116
Revenue Total
$ ,207,090
$ ,100,438
$ ,673,319
Expenses
Full Time Academic
$ ,353,690
$ ,252,185
$ ,233,586
Academic Admin
$ ,864,416
$ ,214,079
$ ,466,038
Other Faculty
$ ,679,831
$ ,388,306
$ ,002,127
Part Time Academic
$ ,226,114
$ ,310,320
$ ,723,964
Classified Salary
$ ,469,094
$ ,974,337
$ ,070,280
Fringe Benefits
$ ,598,080
$ ,409,122
$ ,216,997
Books, Supplies, Services
$ ,954,977
$ ,561,377
$ ,576,388
Equipment Capital Outlay
$ ,836
$ ,151
$ ,456
Debt Service / Transfers
$ ,885,052
$ ,053,604
$ ,613,258
Expense Total
$ ,490,481
$ ,051,094
Revenue over Expenditures
$ ,609,957
$ ,622,225
Beginning Fund Balance
$ ,209,208
$ ,599,251
$ ,017,896
Audit Adjustments $
$ ,040,870
Ending Fund Balance
$ ,209,208
$ ,599,251

11. General Fund Revenue Sources

12. Computational revenue sources

13. 2013-14 General Fund expenditures

14. Measure B – Parcel Tax Revenue 2014-15 Final Budget
Estimated Actuals
Actuals
Local Revenue
$ ,055,785
$ ,056,883
$ ,683,197
Revenue Total
$ ,683,197
Expenses
Full Time Academic $ $ $
Academic Admin
Other Faculty
Part Time Academic
$ ,500,000
$ ,586,364
$ ,222,024
Classified Salary
$ ,702
$ ,079
$ ,511
Fringe Benefits
$ ,511
$ ,164
$ ,737
Books, Supplies, Services $
$ ,470
$ ,372,129
Equipment Capital Outlay
$ ,600
$ ,156
Expense Total
$ ,494,213
$ ,576,677
$ ,507,567
Beginning Fund Balance
$ ,655,836
$ ,175,630
Revenue over Expenditures
$ ,572
$ ,206
$ ,175,630
Ending Fund Balance
$ ,217,408
$ ,655,836

15. Implementation of the budget allocation model
In August of 2010, the Planning and Budgeting Council began working on the creation of and recommendation to the Chancellor a Budget Allocation Model (BAM)
Purpose to:
Move from the existing model to a model that would better serve the Colleges and District
Fully respond to previous Accreditation recommendations
Core Principles:
Provide financial stability
Consistent with the State’s SB361 funding model
Simple and easy to understand
Provide for a reserve in accordance with Peralta’s Board Policy
Maintain autonomous decision making at the college level
Responsive to the District’s and Colleges’ planning processes

16. Budget Allocation Model
Budget Allocation Model Worksheet
Base Allocation:
Total Revenue Allocation
$ ,791,119
Total Exclusions
(18,754,797)
Applicable Revenue
$ ,036,322
Alameda
Berkeley
Laney
Merritt
Three Year FTE Rolling Averages
3,534.73
3,683.22
7,524.21
3,784.08
Percentage
19.36%
19.54%
40.66%
20.44%
Revenue Allocation by College
$ ,994,479
$ ,876,414
$ ,689,920
$ ,475,510
Out of State and International Allocation
679,856
1,538,321
1,847,239
524,754
DO Service Center Budgets
(4,050,934)
(4,221,105)
(8,623,024)
(4,336,702)
Centralized Services Budgets
(1,181,076)
(1,230,690)
(2,514,098)
(1,264,393)
Net Revenue Allocation by College
$ ,442,326
$ ,962,939
$ ,400,036
$ ,399,168
Unrestricted Expenditure Budgets
$ ,523,535
$ ,684,256
$ ,961,345
$ ,475,512
Parcel Tax expenditure budgets
$ ,448,823
$ ,464,996
$ ,777,320
$ ,442,750
Total Expenditures
$ ,972,358
$ ,149,252
$ ,738,665
$ ,918,262
Expenditures (over)/under Net Revenue Allocations by College
(530,032)
813,687
1,661,371
(1,519,094)

17. Thank you for your time! Questions