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Annual Budget Summary Report Fiscal Year 2018-2019 Adopted Budget Approved by Board of Trustees on 9/12/18 Mission: As an innovative institution of excellence, College of the Canyons offers an accessible, enriching education that provides students with essential academic skills and prepares st udents for transfer education, workforce-skills development, and the attainment of learning outcomes corresponding to their educational goals. To fulfill its mission, College of the Canyons embraces diversity, fosters technical competencies, supports the development of global responsibility, and engages students and the community in scholarly inquiry, creative partnerships, and the application of knowledge. Vision: College of the Canyons is dedicated to being a leading two-year college, recognized locally, regionally, statewide and nationally for technical advancement, institutional effectiveness, student support, model academic and professional programs, excellence in teaching and learning, fostering a broad range of community partnerships, maximizing student access, and for the sense of community that we provide to our students and staff. 26455 Rockwell Canyon Road, Santa Clarita, CA 91355 | (661) 259‐7800 | www.canyons.edu 2 0 1 8 – 2 0 1 9 Service Dates BOARD OF TRUSTEES: Mr. Michael D. Berger, President 2010-2018 Ms. Michele R. Jenkins, Vice President 1985-2018 Ms. Joan W. MacGregor, Clerk 1994-2018 Mr. Steven D. Zimmer, Member 2013-2018 Dr. Edel Alonso, Member 2017-2018 BOARD SECRETARY/ PARLIAMENTARIAN/CHANCELLOR: Dr. Dianne G. Van Hook STUDENT TRUSTEE: Ms. Sarah Farnell BUDGET DEVELOPMENT: Ms. Sharlene Coleal, Assistant Superintendent/ Vice President, Business Services Mr. Jason Hinkle, Associate Vice President, Business Services A special thanks to Chancellor, Dr. Dianne G. Van Hook, Executive Cabinet, Business Services staff and the President’s Advisory Council – Budget (PAC-B) members who assisted with the review, recommendations and development of this budget. Santa Clarita Community College District - College of the Canyons 26455 Rockwell Canyon Road, Santa Clarita, CA 91355 | (661) 259-7800 2 0 1 8 2 0 1 9 A N N U A L B U D G E T Page: SECTION 1: Executive Summary………………………………………………………………………………………. 1 Fiscal Year 2018-2019 Adopted Budget Executive Summary………………………. 2 SECTION 2: Community Overview……………………………………………………………………………………. 13 Region, Service Area, Housing, Community Development, Key Industries, Industrial and Office Markets, Employment, Unemployment, SCV Employers and Employment by Sector, Population, New Degrees and Certificates, District Area Assessed Valuation and Taxpayer Information…... 14 SECTION 3: District Overview………………………………………………………………………………………….. 25 District Governance……………………………………………………………………………………. 26 Organizational Chart ……………………………..………………………………………………….. 27 Overview of the District……………………………………………………………………………… 28 Organizational Units ………………………………………………………………………………… 36 Academic Program and Activity Overview…………..……………………………………… 38 SECTION 4: State Budget Overview…………………………………………………………………………………. 40 State Economy and CA Community Colleges……………………………………………… 41 State Budget and Community College Funding…………………………………………… 45 SECTION 5: Planning……………………………………………………………………………………………………….. 50 Strategic Plan………………………….…………………………………………………………………. 51 Educational and Facilities Master Plans……………..………………………………………. 53 SECTION 6: 2018-2019 Adopted Budget………………………………………………………………………….. 56 PAC –B (President’s Advisory Council – Budget) ………………………………………… 57 Budget Calendar………………………………………………………………………………………… 60 Budget Parameters…………………………………………………………………………………….. 61 FTES Projections…………………………………………………………………………………………. 65 Revenue Descriptions ………………………………………………………………………………… 73 Revenue Assumptions ……………………………………………………………………………… 83 Expense Assumptions………………………………………………………………………………… 90 SECTION 7: Staffing…………………………………………………………………………………………………………. 95 Staffing Levels – Fall 1998 Through Fall 2018……………………………………………… 96 New Funded Positions………………………………………………………………………………… 97 Negotiated Compensation Increases………………………………………………………….. 98 SECTION 8: Instructional Equipment Budget……………………………………………………………………. 101 Instructional Equipment Funding……………………………………………………………….. 102 SECTION 9: Restricted General Fund Budget……………………………………………………………………. 105 Grant Revenue Assumptions………………………………………………………………………. 106 Categorical Funds………………………………………………………………………………………. 108 SECTION 10: Capital Outlay Funds…………………………………………………………………………………….. 113 General Obligation Bonds – Budget Assumptions………………………………………. 114 Locally Funded Capital Outlay – Budget Assumptions………………………………… 118 SECTION 11: Budget Summaries………………………………………………………………………………………… 119 Description of All Funds……………………………………………………………………………… 120 Budget Summaries – All Funds…………………………………………………………………… 124 2 0 1 8 2 0 1 9 A N N U A L B U D G E T GRAPHS: Page: Graph 1-1: Unrestricted Total Revenue, Expenditures, and Ending Fund Balance………………… 4 Graph 1-2: Unrestricted General Fund Balances 2001-2002 through 2018-2019………………….. 12 Graph 2-1: Median Home Value Price by City/Area……….……………………………………………………… 15 Graph 2-2: Key Industries within the Santa Clarita Community College District’s Service Area……………………………………………………………………………………………………………………. 16 Graph 2-3: Unemployment Rates for Santa Clarita Compared to the State of California 2000–2017……………………………………………………………………………………………………….... 18 Graph 2-4: Actual/Projected Population of the Santa Clarita Valley……………………………………… 21 Graph 2-5: Age of Santa Clarita Valley Residents………………………………………………………………….. 21 Graph 3-1: Santa Clarita Community College District Governance……………………………………….. 26 Graph 3-2: Santa Clarita Community College District Organizational Chart………………………….. 27 Graph 4-1: Sources of CA State General Fund Revenues in 2018-2019…………………………………. 42 Graph 4-2: CCC Funding by Source in 2008-2009………………………………………………………………….. 43 Graph 4-3: CCC Funding by Source in 2012-2013………………………………………………………………….. 44 Graph 6-1: The Budget Development and Program Review Process…………………………………….. 58 Graph 6-2: Budget Development Process - The Life Cycle of a Budget Request……………………. 59 Graph 6-3: History of Funded and Unfunded FTES……………………………………………………………….. 65 Graph 6-4: FTES Comparison – Funded FTES…………………………………………………………….............. 66 Graph 6-5: Actual Funded Growth or Access Compared to Growth Caps: 1998-1999 to 2017-2018 (Est.)…………………………………………………………………………………………………. 67 Graph 6-6: Workload Reductions…………………………………………………………………………………………. 78 Graph 6-7: Stages of Workload Repayments………………………………………………………………………... 78 Graph 6-8: 2018-2019 Adopted Budget - Salary and Benefits………………………………………………. 93 Graph 7-1: Staffing Levels: Fall 1998 Through Fall 2018……………………………………………………….. 96 Graph 9-1: History of Grants Development 2009-2010 through 2018-19……………………………… 107 TABLES: Page: Table 1-1: Total Expenditures and Budgeted Reserves………………………………………………………… 3 Table 1-2: Fifty Percent (50%) Law Trends…………………………………………………………………………… 8 Table 1-3: Faculty Obligation Number (FON) History……………….………………………………………….. 9 Table 1-4: Inconsistencies Between FON and 50% Law…………………….…………………………………. 10 Table 2-1: Approved Residential Construction Projects……………………………………………………….. 15 Table 2-2: Industrial Market - Santa Clarita Valley 2017……………………………………………………... 17 Table 2-3: Office Market Overview - Santa Clarita Valley 2017………………………………………….... 18 Table 2-4: Top Employers in the Santa Clarita Valley…………………………………………………………… 19 Table 2-5: Santa Clarita Valley Employment by Sector: 2015-2018……………………………………… 20 Table 2-6: Population Growth Comparison…………………………………………………………………………. 21 Table 2-7: Assessed Valuations of Taxable Property Within the District…………………………….... 23 Table 2-8: Secured Tax Charges, Delinquencies and Collections………………………………………….. 24 Table 2-9: 20 Largest Local Secured Taxpayers - Fiscal Year 2017-18 - Santa Clarita Community College District………………………………………………………………………………... 24 Table 4-1: ISA FTES………………………………………………………………………………………………………………. 49 Table 6-1: 2018-2019 Budget Calendar……………………………………………………………………………….. 60 Table 6-2: History of Systemwide and College of the Canyons Growth/Access Funding…….... 70 Table 6-3: State Apportionment Base Cuts and Subsequent Restoration…………………………….. 71 Table 6-4: SCCCD Historical FTES: 2008-2009 Through 2017-2018………………………………………. 72 Table 6-5: State Apportionment - Student Centered Funding Formula (SCFF)……………………… 83 Table 6-6: Base Allocation…………………………………………………………………………………………………… 85 Table 6-7: Supplemental Allocation…………………………………………………………………………………….. 85 Table 6-8: Student Success Allocation…………………………………………………………………………………. 85 Table 6-9: 2018-2019 Adopted Budget General Fund Revenue Summary…………………………... 86 Table 6-10: 2018-2019 Adopted Budget Unrestricted General Fund Total Comp. Revenue…… 87 Table 6-11: 2018-2019 Adopted Budget Unrestricted General Fund Revenue Summary………. 88 Table 6-12: 2018-2019 Adopted Budget General Fund Expense Summary……………………………. 90 Table 6-13: 2018-2019 Adopted Budget Unrestricted General Fund Expense Summary - Salary and Benefits…………………………………………………………………………………………….. 91 Table 6-14: 2018-2019 Adopted Budget Unrestricted General Fund Expense Summary - All Expenses…………………………………………………………………………………………………………….. 92 Table 6-15: STRS Pension Liability Through 2022-2023………………………………………………………….. 93 Table 6-16: PERS Pension Liability Through 2022-2023…………………………………………………………. 94 Table 6-17: STRS/PERS Pension Rate Increases……………………………………………………………………… 94 Table 7-1: Additional Pay Available for Each Bargaining Unit……………………………………………… 98 Table 7-2: Total Salary and Health & Welfare Increases
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