Antelope Valley Community College District Budget Update

1. Antelope Valley Community College DistrictBudget Update Presented By: Mazie L. Brewington Vice President of Administrative Services Welcome Back August 16, 2013

2. Outline 1. 2012-13 Unrestricted Estimates 2. Education Protection Account Funds 3. 2013-2014 Opportunities 4. 2013-2014 Draft Adopted Budget 5. 2013-2014 Risks 6. Outlook 2014-2015

3. 2012-13 Unrestricted General Fund Unaudited Actuals Beginning Balance $ 7,456,314 Revenues $58,174,686* Expenditures $56,182,338 Ending Fund Balance $ 9,448,665 Surplus/(Deficit) $ 1,992,348 Reserve % 16.8% Funded FTES Base 10,619** *Assumes a 1% revenue shortfall on apportionment and a recalculation deficit for receiving more PTAX and Enrollment fees in 2012-2013 than projected by the Chancellor’s Office. Total deficit estimate is $642,576. **Includes 108 borrowed FTES in order to meet base

4. Education Protection Account (EPA) • Proposition 30 was passed in November 2012, which established the EPA account. • LEAs have the sole authority to determine how the funds will be spent; however, there are accountability provisions: • The spending plan must be approved by the governing board during a public meeting, which will be held June of each year. • EPA funds cannot be used for the salaries and benefits of administrators or any other administrative costs (as determined through the account code structure). • Each year, the LEA must publish on its website an accounting of how much money was received from the EPA and how the funds were expended. • For 2012-2013, AVC received $8,846,421 AVC by June 30th • In future years, it is expected to be paid quarterly, Sept/Dec/Mar/Jun. Sep & Dec will most likely be based on prior year P2 ADA information, which means it can be subject to change. This still creates cash flow challenges! PROP 30 IS TEMPORARY!

5. 2013-14 Opportunities: 2011-2012 Workload Reduction Eligibility • Workload eligibility to earn 18% of reduction = 157 additional FTES and $742,895 in additional apportionment revenue We are restoring access, not growing!

6. 2013-14 Opportunities: Reduction in Deferrals 2012-2013 spike in deferrals includes $8.9 million in EPA funds not received until June 30th

7. 2013-14 Opportunities: Additional Funds • Instructional Block Grant to AVC $132,341* • Scheduled Maintenance to AVC $132,338* * Based on Advanced Apportionment dated 7/29/2013

8. 2013-14 Draft Adopted Budget Assumptions • COLA included (1.57%); plus 1% to be negotiated • No Growth Funding • 18% of 2011-12 workload reductions or 157 FTES • Partial restoration of Categorical Programs (DSPS, EOPS, CalWORKS, Student Success, a.k.a Matriculation) • $46 per credit unit • Continued State Deferrals • 0.5 percent deficit factor included-$282,314

9. 2013-14 Draft Unrestricted Adopted Budget • Beginning Balance $9,448,665 • Revenues $59,199,109 • Expenditures $59,082,087 • Ending Fund Balance $9,565,682 • Surplus/(Deficit) $117,022 • Reserve % 16.19% • Base FTES 10,619 • Target FTES 11,096* • Target LHE 11,680 • Target FTES includes 2% above base (212 FTES), Plus 2011-2012 workload eligibility (157 FTES) and borrowed FTES from 2012- 2013 (108 FTES).

10. 2013-14 Risks: RDA Funding & Centers • 3 Centers approved that are not included in the budget figures. Potential deficit. • DOF and Chancellor’s Office disagree on the amounts owed to California Community College for guaranteed EPA funds backfill in 2012-2013. • Potential deficit could be over $2 mil or as little as $200K due to RDA funds.

11. Outlook 2014-2015 • CCC System Budget Request Includes: • Schools Services of California states that the statutory COLA is 1.8% or $100 million. CCC requesting $240 Million for a “Super COLA” or 4.4% • $150 million for restoration of Categorical Programs • $110 million for access or 2% restoration in FTES • $100 million to buy down deferrals Per Chancellor’s Office Budget Workshop, August 6, 2013

12. QUESTIONS