VENTURA COUNTY COMMUNITY COLLEGE DISTRICT OXNARD COLLEGE

BUDGET PLANNING, DEVELOPMENT & MANAGEMENT PROCESS FISCAL YEAR 2009-10

DR. RICHARD DURAN, PRESIDENT JOHN AL-AMIN, VP BUSINESS SERVICES SCOTT CORBETT, ACADEMIC SENATE PRESIDENT B u d g e t P l a n n i n g , D e v e l o p m e n t a n d M a n a g e m e n t P r o c e s s H a n d b o o k ______

Table of Contents PAGE

The State of California’s Budget Process: Timeline of Events……………..…………………………………... 3 Budget Development Revenue Sources…………………………… 4

A. Districts Resource Budget Allocation Model – General Fund………….... 4 B. Trust and Agency Accounts……………………….. …………………….. 5 C. Other Funding Sources………………………………..………………….. 5

College-wide Organizational Center Budgets .………………….. 6

Phase I: Assessment & Planning…………………………………. 7

Phase II: Budget Development…………………………………… 9

A. Budget Requests…………………………………………………………… 9 B. The College Planning and Budget Committee (PBC)…………………….. 10 C. Program Effectiveness & Planning Committee (PEPC)…….…………….. 11 D. Information Technology Committee ……………………………………... 12

Integration of the Budget Development Process…………………. 13

Budget Development & Request Process Flow …………………… .. 14

Calendar for Budget Development Process ……………………… 15

2 B u d g e t P l a n n i n g , D e v e l o p m e n t a n d M a n a g e m e n t P r o c e s s H a n d b o o k ______

The State of California’s Budget Process: Timeline of Events

The States’ budget process and timelines dictate the timing of events and distribution of monetary resources to the District that are then allocated to the three colleges (Moorpark, Oxnard, Ventura). The timeline is as follows:

 January: Governor’s Budget Proposal – includes proposed estimates of state revenues  February: Final calculation of state revenues of previous fiscal year’s budget  P1 – estimates of statewide budget shortfalls in property tax and enrollment fees; deficit factor to growth funding; may allocate special funding  May: Governor’s Budget Revise – revised estimates of state revenues  June: P2 – revised estimates of statewide budget shortfalls in property tax and enrollment fees; deficit factor to growth funding; may allocate special funding  July: Final State Budget – final State revenues

As noted below in the timeline, the District’s budget process includes working with up to three different fiscal year’s budgets at various points in time during the calendar year.

P2 FY 07-08

P1 FY 07-08 P1 FY 08-09 Final Recalculation FY 08-09 Final Recalculation Final Recalculation FY 06-07 State Budget FY 07-08 FY 09-09

2008 2009 2010

Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun

“May Revise” FY 08-09 District P2 FY 08-09

Governor’s January Budget FY 08-09

System-wide Preliminary Proposed Budget

3 B u d g e t P l a n n i n g , D e v e l o p m e n t a n d M a n a g e m e n t P r o c e s s H a n d b o o k ______

Budget Development Revenue Sources

A. District’s Resource Allocation Budget Model – General Fund Unrestricted

A majority of the District’s revenue comes from State apportionments for student enrollment (Full-time Equivalent Students or “FTES”); Cost of Living Allowances (COLA), if any; Enrollment Growth funds; Local Property Taxes; and, Enrollment fees. Amounts for salaries and benefits are budgeted, which account for approximately 86% of the total district budget; as well as costs for Utilities, Facilities Management, Information Technology and other District-wide activities.

The General Fund is the college’s largest source of revenue. The General Funds that are allocated to the college are formula-driven and based upon factors such as Weekly Student Contact Hours (WSCH), a three-year transition funding (ending in 2009), the number of full time staff (FTE), FTES (%) allocation carry-over allowances, a base allocation for fixed expenses and other factors.

In an attempt to develop a model that would be accepted as fair and equitable, areas of differences or unique characteristics between the colleges, as well as similarities, were identified. A model that considers and reflects these differences is consistent with the objective of equitability.

The differences, unique characteristics, and similarities identified include, but are not limited to:

 Facility constraints/classroom capacity on each campus  Program Mix: mix of general education and vocational education programs  Student’s level of educational preparedness  Proportion of Senior Faculty (salary schedule placement)  Comparison ratios of full-time and part-time faculty  Productivity benchmarking percentage  Contractual obligations  Similarities and differences of core services  Size of the student body comparison

The allocation model recognizes the incentive in allowing budget allocations to maintain their unexpended funds for future needs and allows for Oxnard Community College to “carry-over” a specified percentage of its budget annually.

4 B u d g e t P l a n n i n g , D e v e l o p m e n t a n d M a n a g e m e n t P r o c e s s H a n d b o o k ______

RESOURCE BUDGET ALLOCATION MODEL Ventura County Community College District’s Resource Allocation Model

ProposedG Revenue R TBudget H O T W H O C E F O G L FTESE L District Wide AllocationE Support

RUNNING THE COLLEGE Productivity % Benchmark Class Schedule Delivery Allocation

Transition Carry-Over Funds Funding

B. Categorical Restricted Funding

The Categorical funding sources are restricted to specific types of expenditures and the College may not deviate from the funding specifications. Instructional Disabled Equipment and

Students Library Programs and Materials Services Restricted (IELM) Lottery Extended Opportunity Programs and Services

Matriculation

C. Trust & Agency Accounts The Trust and Agency Accounts include groups or activities that are extensions of classroom instruction such as Athletics, Theatre, Forensics, and Student Groups; and includes student- centered, student-focused cultural activities coordinated by Student Services & Development, Multicultural Celebrations, Welcome Back Picnic/Day Events, Commencement, Orientation and College Day etc. The Trust and Agency budgets provide financial support for these college programs and activities as part of the college’s overall mission. All income is generated locally and not part of a state allocation therefore, revenue can accommodate expenditures not allowable against the general fund.

5 B u d g e t P l a n n i n g , D e v e l o p m e n t a n d M a n a g e m e n t P r o c e s s H a n d b o o k ______

D. Grants & Other Funding Oxnard Community College receives restricted revenue from categorical programs, grants, fiscal agent contracts and other special projects. Restricted funds are used in compliance with guidelines structured by the funding source, usually the federal or state government. VTEA (Vocational Education) funds, for example, are received from the federal government, and can only be used in support of our vocational programs.

College Budgets

Each Department/Division of the college is assigned a budget to account for the general fund fiscal activity. Appropriations from the College General Fund are based on the historical operating costs, called the Base, which is intended to cover costs for supplies, student help, temporary classified, travel, etc. A department or division may be allocated funds recommended by the college Planning & Budget Committee (PBC) for specific equipment purchases requested during the annual budget development process.

The College’s Five Year Staffing Plan is an evolving process that identifies the human resources needed based on enrollment; productivity factors; and the achievement of college goals and objectives. Each Department and Division will develop five-year staffing and equipment projections taking into consideration the strategic plans, goals and objectives of the District, the College and the Department/Division.

At the end of the fiscal year on June 30, the Allocation Model provides that, if available, up to 1% of the college’s General Fund can be carried forward to the next fiscal year.

Department & Division Budgets

District Budget College Budget Department & Division

6 B u d g e t P l a n n i n g , D e v e l o p m e n t a n d M a n a g e m e n t P r o c e s s H a n d b o o k ______Oxnard Community College utilizes the Continuous Quality Improvement (CQI) process to assist in the integration of the budget and the overall campus goals and objectives as specified in the College’s Strategic Plan.

The THREE PRIMARY COMPONENTS that facilitate the continuous quality improvement process of Oxnard Community College’s Budget Process are as follows:

Assessment & Planning Phase

Management Phase $$ $ Development Phase

The aforementioned components integrate the College’s Mission, the assessment of institutional effectiveness, the assessment of program effectiveness and the budget priorities, expenditures & allocations.

PHASE I: ASSESSMENT & PLANNING

ESTABLISHING INSTITUTIONAL ASSESSMENT PROGRAMS: CONTINUOUS QUALITY IMPROVEMENT

The design and implementation of a comprehensive assessment program does not involve anything particularly mysterious or complex; it does, however, take time, energy and commitment on the part of the entire college community. Seen as a whole, institutional assessment can also be a large and overwhelming process, and is often avoided because of its apparent difficulty. The approach at Oxnard Community College is to break the overall process down into discrete steps in the form of a series of fundamental questions about the educational mission and goals of the college as well as identifying the services needed from the non-academic departments & divisions (Maintenance and Operations, Police Services etc) to support the colleges goals, objectives and strategic plans.

It is not likely that a comprehensive institutional assessment program or a continuous quality improvement (CQI) program can be put into place within a year. It is more reasonable to recognize that it will take a minimum of two to three years to clarify roles and responsibilities, define processes, create evaluation tools, implement CQI assessments/processes, evaluate outcomes and, integrate the budgetary requests & needs with the intent of strategically enhancing the growth of the college and providing “state of the art” premium-quality educational programs that meet the needs of our students’ and their future success’.

7 B u d g e t P l a n n i n g , D e v e l o p m e n t a n d M a n a g e m e n t P r o c e s s H a n d b o o k ______The planning phase is a systematic interrelated operation of the academic and non-academic Departments that encompass six components to begin the Continuous Quality Improvement (CQI) process:

 External analysis: consideration of significant economic, political, techno-logical, environmental factors thought to have impact upon the College.  Internal assessment: examination of what conditions allowed the College to be successful in the past, conditions required for future success and, how the College must change to acquire the capability of succeeding in the future.  Strategic direction: an idea of where the College is going and what it is to accomplish.  Strategic plan: the selected course of action the College plans to take in order to accomplish its mission  Implementation: putting the plan into action  Performance evaluation: the comparison of the stated or intended with the actual results.

The systematic nature of the process is validated by its cyclical patterns. There are no gaps or dead-ends; components feed into the cycle at designated intervals and merge as they progress through the cycle.

Budget Preparation -Preliminary Correlate Budget Requests to Assessments & Strategic Plan Identify major January  Academic budget needs,  Non/Academic requests & changes Fe bruary ber Decem Budget Preparation Revisions Program Effectiveness March Reports & CQI Report Reviews CONTINUOUS QUALITY r April be IMPROVEMENT em ov Review N Finalize & Oct Submit Budgets Purpose, Goals ober May & Assumptions

Initiate Assessment Tools - September June Program Effectiveness Re-visit evaluation tools and program Reviews August July review assessments Develop or Enhance Assessment Tool(s) Establish Planning Guide  External Assessment  Internal Assessment  Strategic Direction  Develop Budget Criteria & Assumptions based on College goals

8 B u d g e t P l a n n i n g , D e v e l o p m e n t a n d M a n a g e m e n t P r o c e s s H a n d b o o k ______

Phase II: Development

A. Budget Requests

This information covers the process for developing the College General Fund budget, the Master Equipment Purchase List (independent of funding source), and the Educational Enrichment budget. As mentioned previously, categorical funds have different development processes.

College General Fund budget development & planning is a year-round process involving many people. Because of its direct impact on all departments and divisions, it is important to understand how the annual budget development process works. For planning purposes, it is important to be aware that the budget development cycle begins in the Fall for the subsequent fiscal year beginning July 1.

During the Fall, all departments & divisions review their current budget to determine needs for the next fiscal year. All budget requests must be justified by program changes, enrollment increases, changes in instructional delivery, safety concerns/issues, opportunities to meet the college’s goals & objectives, or relationship to program effectiveness/CQI plans.

Develops Guiding Budget Principles: Requirements, Criteria  Right-sizing &  Reductions Assumptions

Oxnard College Oxnard College Program Review President Budget Academic Instruction Programs Cycle (PEPC and Dean’s Council) President/Support Services (CQI) Business Services (CQI) Student Services (Academic Programs –PEPC Planning & Budget Non-Academic Programs –CQI) Committee Review and Recommendation(s)

9 B u d g e t P l a n n i n g , D e v e l o p m e n t a n d M a n a g e m e n t P r o c e s s H a n d b o o k ______

B. The College Planning & Budget Committee (PBC)

The college Planning & Budget Committee affirms and prioritizes recommendations made to them from the various campus committees and then recommends allocations of the College General Fund for equipment purchases, base increases (permanent and one-time-only) to the President. The Planning & Budget Committee uses college goals and the District’s strategic goals as its primary criteria and attempts to look beyond a single fiscal year when making recommendations. Recommendations that are made are based on approved criteria and processes that have been established for the fiscal year.

The Planning & Budget Committee (PBC) is co-chaired by the Vice President of Business Services and the Academic Senate President. Membership on the committee follows the guidelines set forth in the “Shared Decision Making/Collegial Consultation Manual”. Efforts are made to ensure that members are appointed from many program and service areas, and that they include a mixture of faculty, classified staff, management staff and student representation.

The Planning & Budgeting Committee’s primary roles include:

 Guide the annual planning and budgeting process

 Establish annual budgetary assumptions o Understands institutional issues o Discusses goals with the President and others o Makes recommendations to the President regarding Academic program budget needs or priorities

 Monitors the College-wide planning and budget processes o Assures approved processes are followed o Tracks calendared dates and timely completion of tasks o Assures activities and actions are in concert with approved college goals

 Reviews and assesses major planning and budget topics and functions; including processes, findings and recommendations of other college committees

 Makes recommendations to the College President regarding institution-wide planning and prioritizations o Recommends criteria for college wide prioritization of resources based on: . Safety . Americans with Disabilities Act (ADA) . Other compliance requirements . College/District Strategic Plan . Growth/Productivity . Educational Master Plan . Facilities Master Plan 10 B u d g e t P l a n n i n g , D e v e l o p m e n t a n d M a n a g e m e n t P r o c e s s H a n d b o o k ______. Replacement Needs & Technology Plans

President’s Cabinet Dean’s Council

College Planning & Budget Committee (PBC)

Co-Chairs Academic Senate President & Vice President, Business Services Faculty

Membership Administrators Classified Faculty Students

Program Effectiveness & Planning Committee (PEPC)  Technology And Continuous Quality Improvement (CQI)  Facilities Management  President/Support Services  Fiscal Issues  Business Services  Student Services C. Program Effectiveness and Planning Committee (PEPC)

11 B u d g e t P l a n n i n g , D e v e l o p m e n t a n d M a n a g e m e n t P r o c e s s H a n d b o o k ______The PEPC is the “evaluating and analytical arm” and is instrumental in the development of the Budget Committee’s funding recommendations. The members of PEPC review and monitor the college’s academic program effectiveness plans and may conduct a series of open forums where academic department/division representatives can discuss their budget requests for resources and respond to direct questions from the committee. The committees reviews a high volume of requests that often exceed, in total, available resources and must work to balance funding so that no program or service area will benefit at the expense or undue hardship of other areas.

PEPC organizes, introduces and conducts the annual Oxnard College Academic Committee Program Review and Resource Allocation Planning Processes for all academic programs and departments, including:

 Establishes annual review and planning criteria and processes  Provides information to the Curriculum Committee  Disseminates information, forms and other related documents  Provides related orientation  Reviews and assesses data and information provided by academic departments and programs  Provides objective feedback regarding status and performance  Assimilates and analyzes data  Rates each department’s or program’s effectiveness by category  Conducts formative analysis for continual quality improvement of review and planning processes  Recommends resource needs to the Planning and Budgeting Committee to enhance programs

D. Technology Committee

The Technology Committee exists to meet the instructional, communication, computing and research needs of the students, faculty, and staff of the College. The mission of the committee is to focus on the technology environment at the College and to take a proactive leadership role on technology issues.

The technology committee serves as a voice and advocate for the application of appropriate technologies to the learning process at the College. It also serves as a forum and shares discussion about the College’s educational technology and information management infrastructures.

Some of the major roles of the technology committee include:

 Development of the Technology Plan which includes a needs assessment, cost benefit analysis and recommendations for both long-term and short-term recommendations to assist the implementation of the College’s strategic plan(s)

12 B u d g e t P l a n n i n g , D e v e l o p m e n t a n d M a n a g e m e n t P r o c e s s H a n d b o o k ______ Recommends resource needs to the Planning and Budgeting Committee to enhance programs  Development of related policies and procedures for acquisition, use and maintenance of technology and information management systems

Integration of the Budget Development Process

Oxnard Community College recognizes that the integration of planning and budget processes requires careful thinking through the questions that need to be answered, the type & prioritization of needs and, the ways in which the budget will be used to generate and support the mission and goals of both the District and the College. The table below describes the relationship between a successful budget process and the benefits derived:

Budget Process Elements Criteria for Success Benefits Goals and objectives as well as Finds “gaps” in a program or budgetary assumptions and process and works to resolve Planning and Design consequences are well defined them. ahead of time.

Goals and objectives are both Builds a shared understanding of plausible and possible what the process is all about and how the parts work together.

Program/Process Relevant, credible, and useful Focuses attention of management Implementation and performance data can be obtained on the most important Management connections between actions and results.

Evaluation, Communication and The intended users of the Provides a way to involve and Marketing evaluation results have agreed on engage the various stakeholders in how they will use the information the design, processes, evaluation to integrate budgetary and enhancement of the College prioritization and goals and objectives. recommendations to meet the College’s overall strategic plan.

President/Support Services Research & Grants Professional Development Instructional Program Business Services CQI Process Student Services CQI Process Public Information Effectiveness Plan(s) Budget Requests Budget Requests Strategic/Systems Budget Requests Development

13 B u d g e t P l a n n i n g , D e v e l o p m e n t a n d M a n a g e m e n t P r o c e s s H a n d b o o k ______

PEPC Reviews & Prioritizes VP Business Services VP Student Services Reviews and Prioritizes Reviews and Prioritizes CQI Deans Council Reviews & Prioritizes PBC Reviews and Recommends

Budget DevelopmentOxnard Community & College Request President Process Flow

OXNARD COLLEGE BUDGET DEVELOPMENT & PLANNING MODEL

RESOURCE ALLOCATION Promote Student Learning Business Results

Leadership

OXNARD COMMUNITY COLLEGE MASTER PLAN

Process Management Human Resource Focus

PROGRAM DEPARTMENT REVIEW (PEPC & CQI) & Customer Market Focus Growth & Productivity Instructional DIVISION & PLANS Non- Instructional

Measurement, Analysis, Knowledge Management

INSTITUTIONAL PRIORITIES

PRINCIPLES POLICIES PROCESSES PRACTICES

BENCHMARKING – INTERNAL EXTERNAL ENVIRONMENT ASSESSMENT 14 B u d g e t P l a n n i n g , D e v e l o p m e n t a n d M a n a g e m e n t P r o c e s s H a n d b o o k ______

Strategic Planning

MISSION GOALS & OBJECTIVES

Calendar for Budget Development Process Promote Student2009/2010 Learning

September 2008

PBC, PEPC, Deans Council and Presidents’ Cabinet  Review prior and current FY years’ budget variance analysis,  Discuss budget parameters and realities - Develop Budget Assumptions and Criteria  Review revenues, expenditures and financial status related to enrollment and budget reconciliation.

September -October 2008 Deans/Dept Heads Initiate 2009/10 Instructional Develop Instructional Instructional meet with their Deans/Dept Program Effectiveness Plan program effectiveness Depts. /Divisions Divisions/Units Heads meet (PEP) review process reports, including develop to review PEP/CQI with resource requests (if PEP plans in reports and Divisions/Units/ Initiate the CQI processes for applicable). consultation with requests. Faulty/Staff to non-academic areas faculty and staff review & revise  Business Services Develop CQI reports Deans/Dept Heads final requests  Student Services CQI process plans review requests & before are developed with recommend submission. staff (non-academic) priorities.

November – Finalize PEPs December 2008 PBC continues to with resource Submit PEPs PEPC reviews all PEPC prioritizes requests and review the PEPs, requests and to Academic PEPs and requests makes recommendations CQI processes submit to PEPC Senate and for academic based on pre-established recommendations and VP Deans’ programs criteria and submits campus and other budget Council for wide PEP report with prioritized issues and CQI plans review and resource requests to recommendations. submitted to comment VP Instruction, PBC and the PBC and President. December 15 respective VP Summary of major changes and expenditures are reported to VP Business Services.

January 13 – March 31, 2009

District issues Deans/Dept Heads 2009/10 budget March 31, 2009 VP’s request submit revisions projection PBC/President meet with VP’s FY adjustments /projections to VP President and VP Business based on to discuss budget projections. (additions and Services met with the Governor’s deletions) made Deans/Department Heads to January VPs submit and review and discuss budget proposal are projected budgets to justifications projections. discussed via PBC and the based on PBC. President. established criteria & Banner budget PEP/CQI data is available reports. to all Divisions & Departments

PBC makes recommendations Final version of 2009-10 President issues 15 to the President. budget completed Budget Plan memo President consults with PBC Co-Chairs. B u d g e t P l a n n i n g , D e v e l o p m e n t a n d M a n a g e m e n t P r o c e s s H a n d b o o k ______

April 1 – May 15, 2008 President consults: (As needed) Cabinet Members, Academic Senate Deans’ Council

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