Peralta Community College Budget Allocation Model

Peralta Community College Budget Allocation Model
BAMNovember 17, 2014
BAM
Modeled after SB 361Used for funding apportionment for all California Community Colleges3 fundamental revenue driversBase allocationCredit Full TimeEquivalentStudents (FTES)Non-Credit FTESApportionment funding from this formula represents more than 70% of the District’s unrestricted revenue
Principles
Simple and easy to understandConsistent with State’s SB 361 modelProvides –Financial stabilityA reserve in accordance with PCCD Board PolicyClear AccountabilityPeriodic review and revisionSome services centralized at the District OfficeUtilizes conservative revenue projectionsMaintains autonomous decision making at the college levelIs responsive to the district’s and colleges’ planning processes
Partnership
Between the Colleges and the District OfficeTo encourage and support collaborationColleges have broad oversight of institutional responsibilitiesPrimary authority over educational programs and student services functionsDevelops autonomous and individualized processes to meet state and accreditation standardsDistrict office primarily ensures compliance with applicable statue and regulatory compliance as well as essential support functionsStaff responsibility to fulfill fiduciary role of providing appropriate oversight of District operations
Allocations
Similar allocation to four Colleges as SB 361 allocation to DistrictAllocates resources for Revenue, the District Office, District wide-services and regulatory costs based on percentage of 3 year rolling average of FTES
Components of Formula Used
Applicable Revenue = Revenue less ExclusionsAmount of revenue to be distributed to CollegesCentralized and District Office ExpensesAmount of expenditures to be distributed to CollegesThree Year Rolling Averages3 year Average of the Total funded Full Time Equivalent Students (FTES) for each College
Budget Allocation Worksheet
RevenueComputational Revenue as determined by SB361 at the StateUnrestricted LotteryApprenticeshipStudent Health FeesOther Student Fees and MiscellaneousTransfers in from other sourcesParcel Tax
Exclusions
Other Post Employment Benefits (OPEB) paid for retireesOPEB debt service payment
District Office Service Centers
Chancellors OfficeBoard of TrusteesGeneral CounselInformation TechnologyPublic InformationRisk ManagementEducation and Student ServicesInstitutional ResearchHuman ResourcesFinance and PurchasingGeneral Services
Centralized Services
DSPS ContributionAdmissions and RecordsFacilitiesFinancial AidInternational Education
Formula
Revenue Allocations to CollegesApplicable revenue times the percentage represented by the 3 year rolling FTES average of the district wide 3 year rolling averageDistrict Office and Centralized ServicesApplicable cost of each service time the percentage represented by the 3 year rolling FTES average of the district wide 3 year rolling averagesTotal of these represent the revenue allocation to each College
Unrestricted Expenditure Budgets by College
Budget CycleTentative Budget to board by June 30Final Budget adopted by board by September 15Budget CalendarPositionsDiscretionaryCategorical/Grants
Non-discretionary budgets
Spreadsheet with prior year positions and coding sent to College for review and inputRates acquired by the issuing agencyCost for each employee computedThis plus the part time faculty make up the non-discretionary portion of each budget
FTEF calculation
FTES targets established for each College based on funded growth from the State17.5 productivity used to determine number of Full TimeEquivalentFaculty (FTEF) needed to meet the FTES targetsFull Time position for faculty subtracted from the number of FTEF needed to determine part time faculty budget
Part-Time Faculty Calculation
Non-Discretionary Budgets
Fulltime positionsPart Time Faculty CalculationRelated payroll liabilitiesMedical and Dental premiumsOn average, represents about 85% of College budget
Discretionary Budget
Prior Year Allocation used for:Hourly personnelSuppliesMaterialsServicesCapital EquipmentInclude some fixed costs, such as utilities, rent, maintenance agreements, etc.Represents on average 15% of College fundingObject codes4xxx-7xxx14xx and 13xx (except 1351)
Unrestricted Expenditure Budget by College
Total of the Discretionary and Non-Discretionary budgets as allocated based on the previous two slides
Differences
As anticipated, there are delta’s between the Revenue allocation by College and unrestricted expenditures by CollegeIdentified in the BAM are strategies for Transition
Strategies for Transition
Will require multiple years to avoid negative and sudden operational impacts to programs and servicesOptions:Shifting FTES targets to provide additional apportionment to some collegesDeficit reduction plansShifting growth money from one college to anotherReductions in centralized support functions and servicesUtilization of international student tuition
Periodic Review
Still sorting out remaining issuesEvaluating the effectiveness of the procedures outlinedSuggested review every 3 yearsKeeping the model up to date and responsive to the changing community college landscape
Questions / Comments