Budgeting and the Budget Review Committee(BRC) Budgeting and Challenges!

1. Budgeting and the Budget Review Committee(BRC) Budgeting and Challenges! Presenters: Julie Stiak and Paul DeRose Day of Learning - August 17, 2006

2. Try to Guess the Fiscal Year 2006/2007 Operating Base Budget for PC • $124,125,112 • $80,756,778 • $43,962,688 • $22,853,998

3. Introduction and Goals • Goals of this training are to: • Provide an overview of the BRC • Provide an overview of the various sources of funding used to support teaching and learning • Provide an overview of the college’s financial challenges, as a result of the current enrollment (FTSE) decline

4. Budget Review Committee (BRC) • The committee’s charge is to educate the campus on budgeting and the BRC process, and to provide recommendations to the President on budget appropriations for all college programs and departments. • Committee representatives include a member from all staffing groups, administration, and campus services and departments

5. BRC, cont’d • BRC members: Julie Stiak and Paul DeRose, co-chairs Jeanne Arquette Jan Binder Queta Chavez Loman Clark Matt Fisher Dianne Geddis David Sanchez Patti Schellhase Linda Soland Ron Starkey Julian Vazquez • Resource members: Casandra Kakar Jim Moore Ronnie Elliott Donna Cole Jesse De Anda Paul Golisch

6. BRC, cont’d • The committee web site is: http://www.pc.maricopa.edu/brc/ Please contact either of the BRC Co-Chairs: Julie Stiak – x57735 Paul DeRose – x57517

7. Campus Funding Sources • Property Taxes • State Appropriations • Tuition • Rental Income • In-Lieu Tax (SRP) • Course Fees • Interest

8. Fund Descriptions • Fund 110 – General (Operating or Fund 1) • Main Operating Budget • Accounts for most of day-to-day expenses, including salaries and benefits, which account for 85% of the entire operating budget. • Funds are used to purchase supplies, printing, etc. for the individual departments on campus. Official function requests, such as food, are not allowable expenses. • Individual departments are responsible for managing their fund 110 accounts, and the total expenses may not exceed the total amount allocated.

9. Fund Descriptions, cont’d • Fund 110 - General, cont’d • Funding sources include: Property Taxes = 57% Tuition = 24% State Appropriations = 12% In-Lieu Tax (SRP) = 1% Interest Income = 1% Fund Balance = 5% • Any unused budget at June 30th is NOT rolled over to the next fiscal year (NOT a rollover fund). • Departments may reallocate funds within their budget by requesting a permanent reallocation through the BRC process. One time transfers may also be requested during a fiscal year by requesting a budget transfer through the Fiscal Agent.

10. Fund Descriptions, cont’d • Fund 210 – College Activities • This budget is funded from the student activity fees portion of the per credit hour charge (currently $12.50 of the $65.00 per credit hour) paid by students taking credit courses. • Funds are also allocated to each of the colleges for student related services and activities, such as Athletics, Student Life, Alumni & Development, Graduation, and Orientation. • These funds can also be allocated for various district-wide initiatives such as scholarships and student accident insurance. • Any unused budget at June 30th is NOT rolled over to the next fiscal year (NOT a rollover fund).

11. Fund Descriptions • Fund 230 – Auxiliary • This is a non-budgeted fund. • Funding is primarily from income generated from revenue generated programs, or facility rentals. • Expenditures must be related to the purpose of the income generated, e.g., the income from the rental of the Bulpitt Auditorium must be spent on this facility. • This is a rollover fund, which means all unused funds carry over into the next fiscal year.

12. Fund Descriptions, cont’d • Fund 250 – Course Fees • This is a non-budgeted fund. • Funding is from course fees attached to various credit offerings. • Expenditures must be related to use in credit courses. • This is a rollover fund, which means all unused funds carry over into the next fiscal year. • Capital purchase allowed if funds are available. • As a best practice, it is recommended to grow these accounts.

13. Fund Descriptions • Fund 280 – Non-Credit • This is a non-budgeted fund. • Funding is from course fees attached to various NON-credit offerings. • Expenditures must be related to use in NON-credit courses. • This is a rollover fund, which means all unused funds carry over into the next fiscal year. • Capital purchase allowed if funds are available.

14. Fund Descriptions, cont’d • Fund 3 – Grants/Scholarships • Funding sources are from federal, state, and private programs. • The BRC does not review grant applications. Please refer grant requests to the office of the Vice President of Academic Affairs. • Fund 3 accounts are restricted accounts and house accounts such as: • Grants (Title V, HSIAC & Carl Perkins) • Student Financial Aid • Prop 301 • Federal Work Study

15. Fund Descriptions, cont’d • Fund 710 - State Aid Capital • State Aid allocations are primarily based on a statutory formula relating to enrollment levels. • This formula provides for additional State Aid when actual FTSE increases between fiscal years. • Note that the State budget cuts also affect this revenue stream. Therefore, it is important to have contingency dollars set aside for lowered funding to the colleges.

16. Fund Descriptions, cont’d • Fund 730 – Bond Program • Funds are from bonds approved by voters • Bond Categories: • Construction • Major Maintenance • Energy – major upgrades or conservation • Information Technology • Occupational Programs • ADA – Americans with Disabilities Act • Safety/Security

17. Current Challenges • College’s operating budget (fund 110) is funded based on the current enrollment (FTSE) of the college. • Enrollment for FY05/06 declined by almost 7%, compared to FY04/05. • Base budget reduction in FY07/08: $800,000 • 10% reduction in FY06/07 discretionary lines: $400,000 • Current FTSE for FY06/07 is down. • BRC’s Action Item: REVIEW BEST PRACTICES!!! (as a way of reducing costs - our goal is $2 million in savings for the college)