the budget and cte where do we go from here ?

THE B

UDGET AND

CTE

WHERE D

O WE G

O FROM

HERE ?

F UN

DI N

G S

OU

RC

ES

/ PE

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/ SB

70

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Darryl IssacWheeler North

WORDS TO LIVE BY…

“ If you are not at the table…

Then you are on the menu!” Anonymous

CTE

THE BUDGET AND CTE

What is a budget?

What is the faculty role in budgeting?

What mandates a budget and the budget form?

State and Local Budgets

Categorical Funding

Where do we currently stand and other budget concerns?

Where do we go from here?

Planning - From Program Review to Resource Allocation

Data – Factual Resources

WHAT IS A BUDGET?

A.An income and expenditure plan

B.A complete waste of timeC.A mix-mash of numbers and

jargon that nobody understands

D.A distraction while the real allocation choices are made behind closed doors

E. An annual series of evolving documents that can and should be paid attention to

WHAT IS THE FACULTY ROLE IN BUDGETING?

Title 5, §53200 (c) (10) Processes for institutional

planning and budget development

ACCJC III D. 1. d. The institution clearly defines and follows its guidelines and processes for financial planning and budget development, with all constituencies having appropriate opportunities to participate in the development of institutional plans and budgets.

WHAT MANDATES A BUDGET AND THE BUDGET FORM?

State Apportionment51102 Minimum Conditions for Apportionment

53309 Calculation of FTES58000-58875 Apportionment Regulations

58305 Adoption of a Final Budget

Form is Established by the CCCCO BAM (Budget Accounting Manual) and the SAAM (Student Attendance Account Manual)

http://www.cccco.edu/ChancellorsOffice/Divisions/FinanceFacilities/FiscalServices/ManualsPublications/tabid/331/Default.aspx

STATE AND LOCAL BUDGETS

California State Budget DevelopmentStart with existing budget (includes historical recommendations) from DOF

Make changes – Budget Change Proposals (BCP)

January 10th Governor’s proposal to Legislature

May 15th Governor’s Revision to LegislatureSenate and Assembly Budget Committees >> Conference Committee or Big 5 haggle out differences.

June 15th Legislature must pass or else…

STATE AND LOCAL BUDGETS

Local development is for following year.

Current year can be alteredMid year cuts – mid year deferrals

Key Funding Targets – Current year behavior effecting subsequent budget

Base + Growth (growth affected by local demographics)

50% Law – 50% GF spent on instruction75:25 FON (Faculty Obligation Number)Categorical limitations (now flexible)

CATEGORICAL FUNDING (STRINGS ATTACHED)

GENERAL PROGRAMS

Vocational and Technical Education Act (VTEA) has provided a funding source for the past 22 years (1984) as the Carl D. Perkins funding. (reauthorized 1998)

Made into law 2006 as the Career and Technical Education Improvement Act

States limited to spend 5% of gross allocation on Administrative cost

EOPS primarily serves CTE students

SB 70 CTE focused State and local projects

WHERE DO WE CURRENTLY STAND?

3 years of cuts – 18-23%

Funding deferrals = local debt burden 2-4%

ACCJC and other accountability standards ramping up

Institutional brain-trust retiring

Entering student capacity declining

Perfect storm is brewing

THE BUDGET AND CTE

Perkins Act earmarks $1.3 billion Federal funding to all 50 states

Funding for Perkins extends through 2012

Current State General Fund Apportionment to CCC BOG- $961,000,000

Funding beyond 2013 – 2014 is expected to remain with a possible 4% increase if a proposed State sales tax is passed in November. (good thru 2015-2016).

Source: California Governor’s January 12, 2012 ‘ Budget Update’

SB 70 (SCOTT) 2005

Governor’s initiative to improve and strengthen CTE programs thru a Career workforce Innovations (CWI) partnership with CCC.

$20,000,000 from the CCC Prop 98 reversion account $ 32,000,000 additional funding through 2013 – 14

fiscal year Awards programs which increase articulations between

High schools, ROCP’s, industry and the CCC. SB 1130 (2006) ensures funding through 2013 – 14

fiscal year

Source: California Department of Educationhttp://www.cde.ca.gov/ci/ct/gi/sb7007summary.asp

BUDGET CONSIDERATIONS FOR CCC

FACULTY OBLIGATION NUMBER (FON) Districts should attempt to provide

instruction by a minimum 50% full-time instructors

FULL TIME EQUIVALENT STUDENT (FTES) Districts are funded based on FTES number

* All Colleges have a decreasing FTES over

the past 3 years.

FACULTY OBLIGATION NUMBER

COLLEGE OR DISTRICT FUNDING THRU FTES

THE BUDGET: HAVE YOU CONSIDERED?

Your colleges’ budgetary history?Is your colleges’ ‘Mission ‘ changing?Have classes been cut?Are Full-Time Faculty being replaced?AB 515- Local Boards ability to offer ‘for-

credit ‘ Contract EdTuition increasesFor profit course offerings Source:

http://www.cccco.edu/Home/tabid/189/Default.aspx

WHERE DO WE GO FROM HERE?

Become InformedState fiscal and success data (includes Federal)

Local data

Become EngagedAdvisory committeesCampus committeesCollege Academic SenateDept/Division/School State committees

PLANNING - FROM PROGRAM REVIEW TO RESOURCE ALLOCATION

Decision-makingPlanning

Program Review (department)Master planning (Education, Academic, Facilities, etc.) (college)

Strategic planning (college)Budget development (college >>> district)

Real-time – Drama of the DayUnplanned for expense exigenciesPredictive fiscal strategies (adapting, enrollment management, etc. )

DATA – FACTUAL RESOURCES

ACCJC Accreditation Standards Eligibility Requirements and Accreditation Standards

ASCCC Papers Budget Considerations - A Primer for Senate Leaders,

2009 Faculty Role in Planning and Budgeting, 2001 Enrollment Management Revisited, 2009

CCCCO Fiscal Services Unit Fiscal Data Abstract   Full-Time Fac. Obligation   Fiscal Trend Analysis

QUESTIONS

Thank you