1. Board of Trustees Meeting September 14, 2015
Adopted Budget
Board of Trustees Meeting
September 14, 2015
The mission of the Rancho Santiago Community College District is to provide quality educational programs and services that address the needs of our diverse students and communities

2. Outline of Presentation
District Budget Assumptions Update
RSCCD Proposed Adopted Budget
What’s Next?
Recommendation

3. District Budget Assumptions Update

4. Budget Assumptions
is the best California Community Colleges budget in the history of the system.
Proposition 98 minimum funding guarantee formula has provided huge increases to K-14 education
Some funds are ongoing
Some funds are one-time Prop 98 prior year settle up funds

5. Budget Assumptions
Budget Assumptions begin on page 107 of Adopted Budget document
Includes latest information from enacted State Budget
Includes June 30, 2015 fiscal year end closing balances
Actual revenues
Actual expenditures

6. FTES Analysis and Targets (p. 106)
District Update - FTES
FTES Analysis and Targets (p. 106)
Growth = the most important driver of new unrestricted funding for our budget

7. Budget Assumptions Recap – page 109

8. 2014/2015 Deficit Spending Reconciliation
2014/15 Adopted Budget was expected to deficit spend by approximately $5 million
Mid fiscal year increased expenditure estimates increased deficit spending estimates to $8 million
Due primarily to increased prior year Prop 98 settle up revenues attributable to the 2013/14 and 2014/15 fiscal year and other adjustments, actual deficit spend down of Budget Stabilization Fund was $1.4 million in 2014/15
Budget Stabilization Fund balance projected in 2014/15 Adopted Budget was $10.8 million
Actual Budget Stabilization Fund balance, as of July 1, 2015 is $13.7 million

9. Budget Stabilization Fund
Major Changes to Budget Stabilization Fund 2014/15
2014/15 Budgeted Ending Budget Stabilization Fund $10,800,000
+ Reduction in Deficit Factor $ 1,950,000
+ Additional PY Apportionment Settleup $ 3,100,000
+ Additional Local Revenue $ 1,400,000
- Deferral of RDA Revenue $ (1,170,000)
- Increase in Board Policy Contingency $ (1,500,000)
- Transfer to Cap Outlay for OEC/SCC-ADA $ (1,500,000)
+ Net Change in Other $ ,000
2015/16 Beginning Budget Stabilization Fund $13,690,000

10. RSCCD 2015-2016 Proposed Adopted Budget

11. Proposed Adopted Budget
Includes Board approved Budget Assumptions for the Adopted Budget
Approved at August 17th Board meeting
Both FRC and District Council recommended the Proposed Adopted Budget
Fourth fiscal year using the District’s SB 361 Budget Allocation Model (BAM)
Revenue allocation model
Adopted Budget document includes Multi-Year Projections (p ), Budget Allocation Model (p ) and STRS and PERS expected cost increases (p. 136)

12. Proposed Adopted Budget
Includes Prop 30 Education Protection Account (EPA) budget (p. 138)
EPA funding are temporary revenues
1/4% sales tax increment expires December 2016
Personal income tax increment expires December 2018
EPA is not additional revenue, but rather a component of state apportionment
Must be accounted for separately and not be spent on administrative costs
RSCCD = $23,946,110 in 2015/16 to be spent 100% on instructional salaries
Page 138 of Adopted Budget document includes required annual Prop 30 EPA Expenditure Plan certification on how funds will be spent

13. Recap of Revenues and Expenditures General Fund (Combined 11, 12 & 13)

14. Proposed Adopted Budget

15. Proposed Adopted Budget

16. Proposed Adopted Budget Reserves and Carryovers
Board Policy Contingency Reserve of 5%
$8,944,553
Increase of approximately $1.5 million due to increased budgeted expenditures
Other Designated Reserves
Restricted Program Reserves & Revolving Cash - $1,333,343
COLA $1,468,618 & Restoration/Access/Growth -0-
Budget Center Carryover Funds - $2,732,089
Santa Ana College - $2,457,949
Santiago Canyon College
District Services - $274,140
Beginning balance of the Budget Stabilization Fund - $13,690,485
Projected ending balance – same, no projected spend down in 2015/16
Balanced budget as appropriated in Adopted Budget

17. List of all District Funds Budgeted

18. What’s Next?

19. What’s Next? District’s ability to earn any Growth funding?
System-wide structural deficit unresolved
Closely monitor expenditures
Prop 30 tax revenue is temporary and will start to expire in December 2016
Decreasing Budget Stabilization Fund balance
Due to new ongoing costs projected to increase at a greater pace than new unrestricted revenues
Multi-Year Projections:
Budget Forecasting is the art of saying what will happen, and then explaining why it didn’t!
MYP’s are based on what we know now

20. Multi-year Projections
Multi-Year budget projections (pages )
Best, worst and baseline modeling
Potential large out-year issues
STRS, PERS, H/W premium increases, step/column movements, utilities, etc.
Yearly cost increases outpacing revenue increases
Expiration of Prop 30 EPA funds starting in 2016/17
Only unrestricted revenues available to offset expenditure increases are COLA and Growth funds, absent any additional unrestricted base allocations
Regardless of which assumption model chosen, Budget Stabilization Fund is estimated to be exhausted by the 2017/18 budget year

21. Multi-year Projections

22. Multi-year Projections

23. Recommendation

24. Adopted Budget Recommendation
Recommend approval of the proposed Adopted Budget, as presented