1. 2014-15 First Quarter Financial Status Report
BUDGET AND FINANCE COMMITTEE First Quarter Financial Status Report November 5, 2014
First Quarter Financial Status Report
-- Status of Fund Balance
Enrollment Planning and Targets
State Budget Outlook for FY
Budget Planning and Development
Budget Cautions and Concerns

2. 2014-15 First Quarter Financial Status Report November 5, 2014FY
(as of First Quarter, since the Board of Trustees has not granted any salary increases,
The first quarter projection assumes no salary increases at this time)
Projected Revenue $ m
Projected Expenditures m
Proj. Revenue Over Expenditures $ m
Balances Carried Forward for $73.31 m
Projected Ending Balance $73.72 m
Percent of Projected Expenditures %

3. 2014-15 First Quarter Financial Status Report November 5, 2014
Status of Fund Balance
Financially favorable – projected to end the year with $73.7 million in Unrestricted General Fund with new revenue from:
$4.14 million in COLA (0.85%)
$12.59 million in enrollment growth revenue (2.75%)

4. FTES 2014-15 Funded Base = 99,613 FTES
Budget Year Targets = 104,344 FTES
Planning Growth Target = 4.75%
State Funded Enrollment Growth = 2.75%
District will fund colleges at cost = $2,324 per FTES
for a 2% over-cap from Contingency Reserve

6. 2014-15 Reserves General Reserve (6.5%) 34,440,765
Contingency Reserve (3.5%)
19,085,721
Deferred Maintenance Program Reserve (1%)
5,453,063
Total Reserves
$58,979,549

7. State Budget Outlook
California Community College System Budget Request
$735 million
$120 million for Access => approximately 2% growth in FTES
$180 million for COLA (3%) => estimated statutory COLA for FY is
estimated by School Services of California to be 2.1%
$100 million for Full-time and Part-time faculty
$200 million Student Success and Student Equity Plans
Enhanced Noncredit Rate – Commencing in , the Enhanced Noncredit rate will equal the credit rate
Implementation of New State Growth Allocation Formula

8. LACCD – 2015-16 Proposed Budget Planning Assumptions
The Budget will be based on Governor’s State Proposed
Budget to be released in January 2015
The Budget Plan will reflect the Board’s visions and priorities to
support the educational programs and services of the district
Focus on Student Success and improve Student Equity
Meet accreditation standards
Cover hiring of full-time faculty to maintain the Faculty
Obligation Number
Ensure funding is adequately provided for facilities
maintenance and operation needs
Maintain a minimum of 10% reserves

9. Budget Cautions and Concerns
Proposition 30 is temporary
Sale tax increase terminates at the end of 2016
(approximately 21% of Prop 30 revenues)
Income tax increase terminates at the end 2018
STRS Obligations
Employee contribution rate will increase to 8.88% in to 19.1% as of 2021
Significant costs for the District and Colleges
FON Obligations and Penalties
Fall 2008 was 1,461 and reported 1,434.53, for a difference of full-time equivalent faculty =>penalty for Fall 2008 of $1,699,930. The penalty amount will be adjusted on the Recalculation Exhibit C and appear as a prior year adjustment.
FON Planning and Obligation for Fall 2015
Accreditation
OBAMA Care – “Cadillac Tax”?
Deficits