1. NOTE: To change the image on this slide, select the picture and delete it. Then click the Pictures icon in the placeholder to insert your own image. SAN BERNARDINO COMMUNITY COLLEGE DISTRICT Fiscal Year 2015-2016 Budget Study Session September 8, 2015 Final Budget Presentation

2. Agenda  Objectives for Fiscal Year 2015-2016  Challenges To Meet Objectives  Solutions to Meet Objectives & Outcomes  Final Numbers 2September 8, 2015

3. OBJECTIVES FOR FISCAL YEAR 2015-2016 3September 8, 2015

4. Objectives for Fiscal Year 2015-2016  Board Directives  Strategic Plan  Program Review  Accreditation  Faculty & Staff Needs September 8, 20154

5. Objectives - Board Directives as Approved on November 13, 2014  Balance the 2014-15 budget without the use of Fund Balance (Reserve)  Maintain a minimum Fund Balance level of 15% (State minimum is 5%).  Fund Balance may be utilized for specially identified “one-time” needs as long as the 15% balance can be maintained. “One-time” is defined as an expenditure that has no ongoing commitment. While “one-time” needs may be repeated in future years, the nature of the expenditure must conform to the definition.  Allocate funding through the district resource allocation model to support SBVC and CHC as comprehensive community colleges through transfer education, career/ technical education, and basic skills education.  Increase student success and access.  Identify new or reallocated funds for strategic initiatives.  Maintain “selective hiring freeze” to provide strategic funding of priority needs.  Reorganize and reallocate resources where possible to increase efficiency and improve services.  Reduce expenditures that are not mission-critical.  Invest in projects that enhance the efficiency of district and college operations.  Continue the Measure M bond program based on facilities master plans.  Continue to develop external funding streams including grants, scholarships, and fundraising.  Maintain full funding for step and column increases.  Maintain 50% law ratios in staffing plans.  Honor collective bargaining agreements.  Continue toward the sustainability of KVCR. 5September 8, 2015

6. Objectives - Strategic Plan  Goal 1: Student Success  Goal 2: Enrollment and Access  Goal 3: Partnerships of Strategic Importance  Goal 4: District Operational Systems September 8, 20156

7. Objectives - Program Review & Accreditation Program Review  Allocation of Resources  Prioritization of Positions by College  Needs by College ACCJC Recommendations  Institutional Mission & Effectiveness  Student Learning Programs & Services  Resources  Leadership & Governance September 8, 20157

8. Objectives - Faculty & Staff Needs 50% Law Compliance  Fiscal Year 2013-2014 was 51.44% Faculty Obligation Number (FON) Compliance  Fall 2014 FON Requirement was 194.80  Our Actual FON Count was 213.33  Exceeded our FON Requirement by 18.53 September 8, 20158

9. CHALLENGES TO MEET OBJECTIVES 9September 8, 2015

10. Challenges To Meet Objectives  Resource Allocation Model (RAM)  FTES Enrollment Management  Faculty & Staff Needs  Sustainability of KVCR  Continued Funding for Student Success Initiatives September 8, 201510

11. Challenges – Resource Allocation Model (RAM)  Last Year’s model did not consider colleges’ needs  Created competition among colleges  No clear direction to colleges  Too many unfunded FTES  Crafton will operate at a deficit every year  No additional FTES to fill the new building  No additional FTES funding to support added costs from new buildings September 8, 201511

12. Challenges - FTES Enrollment Management September 8, 201512  Limited State Funded FTES Growth  Projected State Funded Growth was 3.0%  SBCCD Projected Growth for FY 2015-2016 was 4.62%  Projected Unfunded FTES for FY 2014-2015 were 407  New Growth Formula Not Yet Implemented

13. Challenges - FTES Enrollment Management September 8, 201513  San Bernardino Valley College  Meet the threshold for medium size college  Maintain Valley College at least at 10,000 FTES  Allow Valley to continue to grow  Allowing Crafton Hills College to grow without hurting Valley College  Crafton Hills College  Allow Crafton Hills College to grow to become a self-sustaining comprehensive college  Approximately 5,000 FTES  Approximately 9% growth in the next 2 Years  Needed additional FTES to fill the new building

14. Challenges – Faculty & Staffing Needs  3rd year of selective hiring freeze  50% Law Compliance  Fiscal Year 2013-2014 was 51.44%  Faculty Obligation Number (FON) Compliance  Increase to our FON by 10.31  Funding for approximately 7-8 full-time positions  Understaffing in the Human Resources department September 8, 201514

15. Challenges - Sustainability of KVCR Sustainability of KVCR  No Foundation Director  Continue to decrease District’s contribution September 8, 201515

16. Challenges - Continue Funding for Student Success Initiatives  Enhance Learning Experiences for Students at Valley College Through the Learning Compass  Continue Offering Services to Meet Objectives of the Learning Compass Such as  Tutorial Services  Supplemental Instruction  Counseling support  Library support  Continue Offering Services to Meet the Needs of the Communities Such as  Valley Bound  Puente  Tumaini September 8, 201516

17. Challenges - Continue Funding for Student Success Initiatives  Meet the goals of Student Success Initiative Under the Left Lane Project at Crafton Hills College  Five Key Domains: 1)Improve student success in basic skills learning 2)Ensure every CHC student has an educational plan 3)Clarify educational pathways 4)Expand Left Lane services to serve a larger population 5)Increase institutional capacity through professional development  3 rd Year of Project September 8, 201517

18. SOLUTIONS TO MEET OBJECTIVES & OUTCOMES 18September 8, 2015

19. Solutions & Outcomes  Resource Allocation Model (RAM)  FTES Enrollment Management  Faculty & Staffing Needs  Sustainability of KVCR  Funding for Student Success 19September 8, 2015

20. Solutions & Outcomes – Resource Allocation Model (RAM) New Multi-Year Resource Allocation Model  Chancellor developed a task force to work on FTES distribution by college, keeping in mind the January 2014 College Brain Trust Resource Allocation and Utilization Report recommendations  The task force developed an FTES distribution plan by college and submitted it to the District Budget Committee for consideration  District Budget Committee accepted the recommendation and recommended a new Resource Allocation Model to the Chancellor’s Cabinet  Chancellor’s Cabinet accepted the recommendation 20September 8, 2015

21. Solutions & Outcomes – Resource Allocation Model (RAM) Summary of new Resource Allocation Model  Provides clear multi-year goals and expectations for both colleges  Allows Valley College to continue growing  Valley is fully funded  Shifts the risk of unfunded FTES to Crafton Hills  Provides funding from the District to Crafton Hills for unfunded FTES for two years  Places the District in a position to capture additional FTES that other districts cannot  Provides a clear timeline of two years for the District to address the issues identified by the College Brain Trust report 21September 8, 2015

22. Solutions & Outcomes – Enrollment Management  Multi-year enrollment management  Revised Growth funding formula  Based on preliminary results from this new Growth Funding Model, the State Chancellor’s Office determined that SBCCD should be serving 2.12% of the State’s entire community college population.  We only receive funding to serve 1.28%  One-time adjustment – approximately 7.44%  Beginning in 2016-17, it is anticipated that growth will be equally distributed among all districts  Additional $1 million funding to Colleges from One-time funding for Enrollment Management 22September 8, 2015

23. Solutions & Outcomes – Enrollment Management  Based on the new Resource Allocation Model (RAM) 23September 8, 2015 San Bernardino Valley CollegeCrafton Hills College I.Valley College growth goal is 4% II.Projected actual FTES is 10,504 (10,100 + 4.0% growth) III.Projected funded FTES is 10,504 IV.San Bernardino Valley College will carry any excess over 10,504 as unfunded FTES V.District office assessments are based on actual FTES of 10,504 I.Crafton Hills growth goal is 6.0% II.Projected actual FTES is 4,864 (4,589 + 6.0% growth) III.Projected funded FTES is 4,841 IV.All District unfunded FTES will be carried by Crafton (projected to be 23 FTES) V.District to fund unfunded FTES from fund balance for two years VI.District office assessments are based on actual FTES of 4,864

24. Solutions & Outcomes Enrollment Management Growth per Year by College 24September 8, 2015

25. Solutions & Outcomes Enrollment Management – San Bernardino Valley College 25September 8, 2015

26. Solutions & Outcomes Enrollment Management – Crafton Hills College 26September 8, 2015

27. Solutions & Outcomes Enrollment Management – District-Wide 27September 8, 2015

28. Solutions & Outcomes – Faculty & Staff Needs  Budget for 765 positions (All funds)  94 Administrators  255 Faculty  416 Classified  Net Increase of 35 positions when compared to last fiscal year (All funds)  3 additional administrators  15 faculty positions (7 positions from Full-time Faculty funding)  17 classified positions 28September 8, 2015

29. Solutions & Outcomes – Sustainability of KVCR  KVCR augmentation from District Reserves on a One-Time Basis  $300,000  Continue Strategic Planning Meetings with KVCR Manager and District Staff  Staffing budgets  Continue the Development of a Solid Business Plan  Upcoming FCC Incentive Auction Opportunities for Broadcasters 29September 8, 2015

30. Solutions & Outcomes – Student Success  Increased funding for Student Success  SSSP (reduced required match to 1.3 to 1)  Student Equity (no match required)  Other Categorical funding increases (COLA 1.02%)  EOPS, CARE, DSPS & CALWORKS  Funding for Enrollment Management ($1 Million) includes funding for tutoring 30September 8, 2015

31. Solutions & Outcomes Other Goals Linked to our Objectives  Funding to set aside for future STRS/PERS contributions  One-time funding ($1.5 million)  Funding for water conservation measures (future savings)  One-time funding ($1.2 million)  Funding for HLS Building & Generator for TESS at Valley  One-time funding ($1.5 million)  Funding for Program Review  One-time funding ($500 thousand)  Funding for Enterprise Resource Planning System (ERP)  One-time funding & Capital Outlay Fund ($2 million)  Funding for District-wide Educational and Facilities Master Plans  Capital Outlay Fund ($750 thousand)  Funding for District-wide Facilities Assessment  Capital Outlay Fund ($120 thousand)  Sale of Series D under the Measure M authorized Bond Program ($35 million) 31September 8, 2015

32. FINAL NUMBERS 32September 8, 2015

33. 2015-16 Final Budget 33September 8, 2015

34. 2015-16 Final Budget 34September 8, 2015

35. Outcomes – Revenues By Category (All Funds) 35September 8, 2015 Total Revenues $225,206,345

36. Outcomes – Expenses By Category (All Funds) 36September 8, 2015 Total Expenses $213,776,508

37. Resource Allocation Model (Unrestricted General Fund) 37September 8, 2015

38. Resource Allocation Model (Unrestricted General Fund) 38September 8, 2015

39. Other Unrestricted General Fund Statistics September 8, 201539 CategorySBVCCHCDistrict Office District Total Salaries & Benefits88.22%90.36%64.20%84.31% All Other Expenditures11.78%9.64%35.80%15.69% Total Expenditures100.00% District Assessment (line 59)$16,022,790 District Assessment (Percent from total Expenditures)18.71%

40. Multi-Year Financial Plan (Unrestricted General Fund) 40 September 8, 2015

41. NOTE: To change the image on this slide, select the picture and delete it. Then click the Pictures icon in the placeholder to insert your own image. QUESTIONS Fiscal Year 2015-2016 Budget Study Session September 8, 2015