1. Budget Allocation

2. Elements of a Budget Model Alignment with Board Budget Priorities –Rapid response to workforce gaps –Address college and career readiness –Invest in contemporary software solutions –Increase the number of high value degrees and transfers

3. Elements of a Budget Model Effective decision making in allocating resources Encourages responsible risk taking Easy to understand Performance based outcomes Provides transparency and accountability Multi-year process

4. Budget Allocation Models TODAY Input based Base Allocation Facilities Allocation Chargebacks Expense based TOMORROW Still Input based but moving to Outcome based allocation Aligns with Board priorities Reward efficient use of resources both human and capital Revenue based-Colleges get what they earn

5. College Allocation TODAY Base 10% Inputs 75% –College earned revenues 5% Facility Operations 11% Board Priorities 4% FY2016 Inputs 72% –College earned revenues 41% Success Points/ Performance Funding 14% Facility Operations 6% Board Priorities 8%

6. College Allocation TODAY State –Formula $179M (subsidized) –Benefits $21M (subsidized) Tuition –CE $13M Tax Support –Base $28M –Facilities $31M –Other $7M Total $279M –Without Chargebacks FY2016 State (biennium) –Formula $77.8M –Success $7.4M –Benefits $17.0M (est) Tuition (annual) –Credit $92.0M; CE $12.8M Tax Support (annual) –Facilities $19.5M –Performance $31.0M –Dual Credit Waivers $7.7M –Salaries $10.9M –Other $6.6M Total $282.7M

7. College Allocation Revenue Smoothing Adjustment –Success Points (Two years) –Performance Funding (Prior FY) Employment Outcomes Transfer Rates Graduates in Critical Fields Degrees and Certificates Course Completions –Adjustment based on prior budget model over three years There may still be adjustment to Performance funding

8. Expenses Full cost of Benefits---not Net –Fixed cost plus a variable percent –No revenue for Public Serv., Facility & Auxiliary –Based on December 2014 payroll (for FY16-17 biennium) –HEGI FY16 one amount and FY17 will increase 7% –Retirement revenue does not change for biennium –Actual Expense will book to high level functional division P&C Insurance, telephone and police dispatch will still be chargebacks All other chargebacks will be a District expense--- College Services LCET will be a college service—no tuition New programs and Career Ladder Provision

9. Budget Comparison TODAY Colleges $279M Chargebacks $28M District $28M Provisions $13M Student Activities $6M Projects $16M Career Ladder $8M Total $378M FY2016 Colleges $282M College Services $27M District $30M Provisions $16M Student Activities $8M Projects $16M Career Ladder $11M Total $390M

10. FY2017 Compression Planning with Presidents to determine measurements Possible changes –More wage related degrees –Promote course sharing among colleges –Facility utilization –Institutional Support metrics

11. DALLAS COUNTY COMMUNITY COLLEGE DISTRICT 2015-2016 BUDGET ALLOCATION - EL CENTRO COLLEGE Original Budget Allocation- Model B Updated as of: 5/28/2015 4pm EL CENTROBJPIEDEL CENTRO - WCECC-All Locations STATE CONTRIBUTION 35.97% State Funding: Formula $ 12,043,271 $ 1,316,537 $ 260,341 $ 13,620,149 Success Points $ 955,173 $ 20,248 $ 995,669 Benefits $ 2,465,000 $ 127,500 $ 68,000 $ 2,660,500 Workstudy $ 192,205 TOTAL STATE CONTRIBUTION $ 15,655,649 $ 1,464,285 $ 348,589 $ 17,468,523 LOCAL CONTRIBUTION36.13% Local- Student (Net Tuition) Credit100% $ 10,706,006 $ - $ 566,972 $ 11,272,978 Cont Ed100% $ 609,182 $ 2,660,996 $ 28,732 $ 3,298,910 Local-Taxes Facilities Ops, Maint. & Security ($4/Square Foot) $ 2,317,672 $ 515,432 $ 138,400 $ 2,971,504 TOTAL LOCAL CONTRIBUTION $ 13,632,860 $ 3,176,428 $ 734,104 $ 17,543,392

12. DALLAS COUNTY COMMUNITY COLLEGE DISTRICT 2015-2016 BUDGET ALLOCATION - EL CENTRO COLLEGE Original Budget Allocation- Model B Updated as of: 5/28/2015 4pm PERFORMANCE FUNDING10.73% Employment Outcomes: Job Placement Rates (Gainful Employment) $ 1,511,688 Transfer Rates $ 738,339 Graduates in Critical Fields $ 1,723,957 Graduates: Degrees & Certificates (incl CEU's) $ 542,551 Course Completion Rate $ 663,961 $ 15,736 $ 695,432 TOTAL PERFORMANCE FUNDING $ 5,180,496 $ 15,736 $ 5,211,967 BOARD PRIORITIES7.78% Adjunct Rule Change $ 293,608 DART Free Program $ 950,000 Dia de la Familia Dual Credit Waivers $ 741,193 HCRC Nursing/Allied Health Stipend $ 280,000 Prior Year Salary Adjustments $ 1,132,155 $ 53,574 $ 18,035 $ 1,203,764 Visiting Scholar/SAAP Initiative $ 285,714 TOTAL BOARD PRIORITIES $ 3,682,670 $ 53,574 $ 18,035 $ 3,754,279

13. DALLAS COUNTY COMMUNITY COLLEGE DISTRICT 2015-2016 BUDGET ALLOCATION - EL CENTRO COLLEGE Original Budget Allocation- Model B Updated as of: 5/28/2015 4pm RECURRING ITEMS2.49% Misc College Income $ 1,161,774 $ 48,301 $ 700 $ 1,210,775 TOTAL RECURRING ITEMS $ 1,161,774 $ 48,301 $ 700 $ 1,210,775 6.19% Smoothing Adjustment $ 1,950,566 $ 884,281 $ 170,058 $ 3,004,905 COLLEGE ALLOCATION $ 41,264,015 $ 5,642,605 $ 1,287,221 $ 48,193,841 0.75% Reconciliation of Requested Fund Balance & Debt Service Transfers Use of Fund Balance Debt Service Transfers $ 364,636 TOTAL COLLEGE BUDGET $ 41,628,651 $ 5,642,605 $ 1,287,221 $ 48,558,477

14. Questions?