Fiscal Year 2015-2016 Budget Objectives Study Session

1. 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

3. Objectives for fiscal year 2015-2016

4. Objectives for Fiscal Year 2015-2016 • Board Directives • Strategic Plan • Program Review • Accreditation • Faculty & Staff Needs

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.

6. Objectives - Strategic Plan • Goal 1: Student Success • Goal 2: Enrollment and Access • Goal 3: Partnerships of Strategic Importance • Goal 4: District Operational Systems

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

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

9. Challenges To Meet Objectives

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

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

12. Challenges - FTES Enrollment Management • 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 • 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

15. Challenges - Sustainability of KVCR Sustainability of KVCR • No Foundation Director • Continue to decrease District’s contribution

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

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: • Improve student success in basic skills learning • Ensure every CHC student has an educational plan • Clarify educational pathways • Expand Left Lane services to serve a larger population • Increase institutional capacity through professional development • 3rd Year of Project

18. Solutions to Meet Objectives & OUTCOMES

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

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

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

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

23. Solutions & Outcomes – Enrollment Management • Based on the new Resource Allocation Model (RAM)

24. Solutions & Outcomes Enrollment Management Growth per Year by College

25. Solutions & Outcomes Enrollment Management – San Bernardino Valley College

26. Solutions & Outcomes Enrollment Management – Crafton Hills College

27. Solutions & Outcomes Enrollment Management – District-Wide

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

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

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

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)

32. Final Numbers

33. 2015-16 Final Budget

34. 2015-16 Final Budget

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

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

37. Resource Allocation Model (Unrestricted General Fund)

38. Resource Allocation Model (Unrestricted General Fund)

39. Other Unrestricted General Fund Statistics

40. Multi-Year Financial Plan (Unrestricted General Fund)

41. Questions Fiscal Year 2015-2016 Budget Study Session September 8, 2015