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2018-2019 Final Budget Book

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2018-2019 Final Budget Book 2018-19 FINAL BUDGET Board of Trustees Meeting September 4, 2018 Office of Chancellor Fresno City College – Reedley College – Clovis Community College Madera Community College Center – Oakhurst Community College (Outreach) Center Career and Technology Center Chancellor’s Message This recommended budget allows the District to continue its commitment to support student access, success and completion and provides additional funding to improve the educational experience for students through modernization of facilities, providing additional maintenance to aging facilities, increasing safety and security and innovative technology upgrades. Preparation for future pension obligations is a major challenge. In addition, the District remains committed to expand and strengthen its State Center Community College District (SCCCD) partnerships with business, industry, community continues to be supported by the Governor and organizations and other educational entities. Legislature’s budget which shows a commitment to stabilizing state funding to California Community Our vision remains the same: Empowering through Colleges. The new funding formula supports SCCCD Educational Excellence. The 2018-2019 budget is in based on FTES, numbers of low income students served alignment with our Mission and Strategic Plan. We are and degrees and certificates completed. Continued strong committed to optimizing our resources to support students workforce and guided pathways funding compliments and general operations while maintaining fiscal integrity. student success and student equity. SCCCD’s growth is At SCCCD we are committed to empowering our colleges stable as it has been for the last several years. This growth in their efforts to promote exemplary educational allowed increased full-time faculty and more student opportunities and to provide safe, inclusive, and supportive support services. Our students at Reedley College, Fresno learning environments leading to student success and City College, Clovis Community College, the Career & global competitiveness which will positively transform our Technology Center, and Madera and Oakhurst Community region. College Centers benefited with larger summer schedules as well as increased course offerings for fall and spring of 2018-2019. Dr. Paul Parnell TABLE OF CONTENTS Page No. Budget Overview ................................................................................................................................ 1 Budget Calendar ................................................................................................................................. 4 District Organization .......................................................................................................................... 6 Funding Methodology ........................................................................................................................ 8 Student Enrollment Trends ................................................................................................................. 15 State Center Community College District Budget Summary ............................................................ 17 District Office/Operations Budget Summary ..................................................................................... 46 Fresno City College Budget Summary .............................................................................................. 58 Reedley College Budget Summary .................................................................................................... 71 Clovis Community College Budget Summary .................................................................................. 86 Lottery/Decision Packages ................................................................................................................. 99 Other Funds and Accounts ................................................................................................................. 104 Capital Outlay Projects ...................................................................................................................... 108 Measure E Projects ............................................................................................................................. 113 Measure C Projects ............................................................................................................................. 114 Glossary of Financial Terms .............................................................................................................. 121 2018-19 BUDGET OVERVIEW Introduction unwillingness to overcommit resources to on-going costs. As a result of this philosophy in fiscal year 2018- One of the most significant responsibilities of a 19, the rainy day fund is estimated to reach its community college district is the preparation, constitutional maximum level of $13.8 billion. presentation and approval of the annual budget. A district's budget serves as a cornerstone document to In regards to education, the governor continues to focus our constituents regarding the utilization of available on student success and completion rates for all tax dollars and other funding sources, and as a resource students. Governor Brown’s budget introduces two allocation document to support the district’s planning significant expenditure proposals: 1) a new outcomes- goals and priorities for the ensuing school year. The focused funding formula, and 2) a new fully online State Center Community College District community college targeting working Californians. administration is confident the enclosed budget documents reflect the effective utilization of financial Major features of the Governor’s budget with impacts resources to meet the educational goals of our district. to the California Community Colleges (CCC’s) are summarized below: State Budget Overview • $269.7 million new funding formula On June 27, 2018 the governor signed the 2018-19 final state budget. Governor Brown’s prudent fiscal • $173 million for COLA (2.71%) practices have provided for a balanced State Budget while continuing to plan and save for the future. While • $120 million for new Online Education ($100 the economy continues to expand, even a moderate million as one-time start up) recession could have a significant impact on state revenues for several years. Early predictions show an • $59.6 million (1.0%) in enrollment growth economic downturn in 2020. The governor has • $50 million for full-time faculty remained consistent in his message and concern of an impending recession, and has demonstrated his 1 • $46 million for College Promise Programs good and bad economic years, as seen most recently (AB19) between 2008-09 and 2012-13. • $28.5 million in Deferred Maintenance & The district has consistently developed responsible Instructional Equipment budgets that balance fiscal strengths and weaknesses over several years rather than riding the fiscal roller A noticeable shortcoming in the budget proposal is a coaster with all the implications for increases and lack of any new funding specifically to address the downfalls in student access and the employment cycles increasing pension costs to employers. However, it is of hiring and reducing permanent staff. The district is important to keep in mind the California Community committed to the State Chancellor’s Vision for College (CCC) system has received base increases over Success, which requires adapting programs, policies, the last three years to support increased operating and procedures to align with the goals, requirements, expenses, primarily attributable to the escalating and regulations of the new program funding changes. employer pension rates. While the employer pension costs have increased about $320 million between 2013- During strong economic periods, the district recognizes 14 and 2017-18, the Legislative Analyst’s Office that enrollment demand tends to decline based on expects this amount to reach approximately $900 historical trends. Furthermore, the district analyzes million by 2024-25. It is important for districts to enrollment demographics of the K-12 student properly plan for how they will absorb the remaining population, which projects that the number of K-12 rate increases between now and 2024-25. students is relatively flat with modest growth. In order to purposefully manage enrollments, administration District Budget Overview has developed a multi-pronged approach including a focused marketing campaign, hiring needed faculty, In the development of the budget over the years, the collaborating with high schools to offer dual Board has been conservative and forward-thinking in enrollment courses, increasing course offerings in high its understanding and direction by focusing on demand areas, and the partnering with the California maintaining access for students and employment Promise Program to encourage a college going culture. stability for staff. The Board further understands and accepts that the economics of the State are volatile and The district needs to strategically address the that tremendous revenue fluctuation can occur between underfunded needs of the past (deferred maintenance, 2 equipment, and technology) as well as address the opportunities and prosperity for the region as it partners growing obligations and commitments (including the with business and industry to meet the employment impacts of pension reform, the Affordable Care Act, needs of the community and region. Total Cost of Ownership, and minimum wage increases) to provide a
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