Fy 2020‐21 State Aid Allocations and Budget Policies

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Fy 2020‐21 State Aid Allocations and Budget Policies Attachment FC 01 FY 2020‐21 STATE AID ALLOCATIONS AND BUDGET POLICIES STATE BOARD OF COMMUNITY COLLEGES DIVISION OF FINANCE AND OPERATIONS AUGUST 21, 2020 SBCC 08/21/2020 Version 1.0 Document History Version Date Description Published 1.0 08/21/2020 Document presented to the State Board TABLE OF CONTENTS I. Purpose Statement .......................................................................................................... 1 II. Guidelines Related to State Salaries of Community College Employees ........................... 2 A. Salaries of Faculty, Professional Staff, and Other State‐Supported Positions ............... 2 B. Establishment of Minimum Salaries for Curriculum Faculty ......................................... 3 C. College Presidents’ State Salaries ................................................................................. 5 D. Employer Contribution Rates and Longevity – FOR INFORMATION ONLY .................... 7 E. Other Personnel‐Related Provisions ............................................................................. 8 III. Budget Allocations ........................................................................................................... 9 A. Formula Budget – Current Operating ......................................................................... 11 1. Curriculum Instruction ......................................................................................... 15 2. Continuing Education Instruction ........................................................................ 17 3. Basic Skills ............................................................................................................ 19 4. Institutional & Academic Support ....................................................................... 23 5. Performance‐Based Funding Allocations ............................................................. 26 6. Formula Budget by College .................................................................................. 30 B. Categorical Allocations ............................................................................................... 31 1. Career and Technical Education (Federal) ........................................................... 31 2. Child Care ............................................................................................................ 35 3. Small Business Centers ........................................................................................ 37 4. Customized Training ............................................................................................ 42 5. Equipment ........................................................................................................... 45 6. Instructional Resources ....................................................................................... 49 C. Specific Program Categorical Allocations .................................................................... 51 D. Budget Allocation Summary ....................................................................................... 53 IV. Use of State Funds and Budget Flexibility ...................................................................... 55 A. Cash Management – FOR INFORMATION ONLY ......................................................... 55 B. Use of State Funds – FOR INFORMATION ONLY .......................................................... 55 C. Authority to Use Funds for Campus Security .............................................................. 56 V. Tuition and Fees – FOR INFORMATION ONLY ................................................................. 58 A. Curriculum Tuition Rates ............................................................................................ 58 B. Continuing Education Registration Fees ..................................................................... 58 C. Estimated Receipts ..................................................................................................... 58 VI. Other Budget Policy Issues – FOR INFORMATION ONLY ................................................. 61 Appendix A: Enrollment Growth $41.5 Million Coronavirus Relief Funds ............................... 62 Appendix B: Relevant Excerpts from 2019 and 2020 Session Laws ......................................... 64 Appendix C: Closing the Skills Gap Priority Occupations ......................................................... 81 Appendix D: Tier Designations ............................................................................................... 82 Appendix E: Performance‐Based Funding Allocation Detail .................................................... 86 Appendix F: Revised Purpose and Vocational Codes ............................................................... 90 Appendix G: FY 2020‐21 Key Formula Values ......................................................................... 92 Appendix H: FY 2020‐21 Per Capita Rates ............................................................................... 93 I. Purpose Statement G.S. 115D‐5(a) provides that “[t]he State Board of Community Colleges may adopt and execute such policies, regulations and standards concerning the establishment, administration, and operation of institutions as the State Board may deem necessary … to provide for the equitable distribution of State and federal funds to the several institutions.” G.S. 115D‐31(a) further describes the State Board’s responsibility to provide, “from sources available to the State Board,” financial support to the institutions. On November 1, 2019, an Appropriations Act for the Community College System was enacted into law (S.L. 2019‐235). In addition, Session Law 2020‐64 provides nonrecurring enrollment growth funds for FY 2020‐21. Furthermore, Session Law 2019‐209 as amended by Session Law 2020‐41 and Session Law 2020‐45 provides appropriations for the State Retirement and State Health Plan required employer contributions. Through this legislation, the General Assembly established the appropriation to the North Carolina Community College System for FY 2020‐21 and communicated various directives and made policy changes that require State Board action. These actions and adjustments are required to ensure appropriate fiscal control with respect to the allocation of resources, and as such require the State Board’s deliberation and approval. It is the purpose of this document to allocate funds to the colleges and adopt necessary policies consistent with S.L. 2019‐235, S.L. 2020‐64, and S.L. 2019‐209 as amended by S.L. 2020‐41 and S.L. 2020‐45, and in compliance with G.S. 115D‐5(a) and G.S. 115D‐31. It is the responsibility of the colleges to ensure that State and Federal funds are expended consistent with the policies herein. 1 1 II. Guidelines Related to State Salaries of Community College Employees A. Salaries of Faculty, Professional Staff, and Other State‐Supported Positions 1) Local Flexibility to Make Further Adjustments to Base Salaries: Community college boards of trustees may provide personnel salary increases consistent with the salary determination methods adopted as part of each college’s personnel policies under 1C SBCCC 200.94. Colleges may use the flexibility provided under this rule to make recurring adjustments to the base salary of employees in State‐funded positions within the constraints of the college’s State budget allocation. Non‐recurring adjustments or bonuses are not allowable except for one‐time, performance‐based bonuses authorized under G.S. 115D‐31.3(g) (see E. Other Personnel‐Related Provisions for more detail). NOTE: Numbered memo CC20‐046 restricts FY 2020‐21 salary increases and any State‐funded salary increases must be in accordance with this memo until such time as restrictions are lifted. 2) No Across‐the‐Board Recurring Salary Increases in Fourth Quarter: Notwithstanding the above, colleges may not use State funds to provide across‐the‐ board recurring salary increases during the fourth quarter of the fiscal year. Other recurring adjustments are allowed provided recurring funds are available. 3) State Board Minimum and Maximum State Salaries: Per 1C SBCCC 400.3, the State Board shall adopt a minimum and maximum amount of State funds which may be paid to any full‐time employee of the college paid with State funds. With the exception of the college president, the minimum amount is $24,168 and the maximum amount is $129,532 for FY 2020‐21. Since a salary increase has not been appropriated for community colleges, the minimum and maximum values remain the same as the FY 2019‐20 level. 4) Locally‐funded Compensation Adjustments: Colleges may provide recurring or non‐ recurring salary adjustments using local funding sources, if such adjustments are an authorized use of those funds. 2 2 B. Establishment of Minimum Salaries for Curriculum Faculty No curriculum faculty member shall earn less than the minimum amount for his or her education level, as of the beginning of the contractual period, consistent with the following guidelines: 1. Definitions of Educational Levels: The minimum salaries for community college curriculum faculty shall be based upon the following educational levels as demonstrated through credentials earned from an accredited institution: Vocational Diploma, Certificate or Less – This education level includes faculty members who are high school graduates, have vocational diplomas, or have completed one year of college. Associate Degree or Equivalent – This education level includes faculty members who have an associate degree or have
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