FISCAL YEAR 2018-2019 PROPOSED BUDGET...2005/09/18 · KEY BUDGET COMPONENTS - REVENUES •Approved...
Transcript of FISCAL YEAR 2018-2019 PROPOSED BUDGET...2005/09/18 · KEY BUDGET COMPONENTS - REVENUES •Approved...
FISCAL YEAR 2018-2019 PROPOSED BUDGET
MAY 9, 2018
PRESENTED BY: DR. DAVID BEA
BOARD APPROVED STRATEGIC PRIORITIES
• 2017-2021 College Strategic Plan
• Educational Master Plan
• Facilities Master Plan
• Diversity, Equity, and Inclusion Plan
• Strategic Enrollment Management Plan
FY18 BUDGET SCENARIOS
Scenario A: Delay Impacts for Now with Larger Tuition Increases
• Small to no reductions for 17-18 and 18-19. Plan for $15 mil reduction in 19-20
• Continue to reduce via attrition
• Mitigate cost increases and Expenditure Limitation impacts with larger tuition increases
• No funding to implement EMP/FMP or other strategic changes until 19-20
• Large reduction pending due to Expenditure Limitation
Scenario C: Revolutionize the College
• Reduce current operations by about $10 mil per year in each of next 3 years
• Identify programs for elimination and begin phasing out
• Eliminate at least one location
• Significantly reduce infrastructure/staffing
• Large and immediate investment in EMP/FMP
• Ensure future financial stability and ability to grow
Scenario B: Rejuvenate the College
• Reduce current operations by $5 mil per year in each of next 3 years
• Identify programs for elimination and begin phasing out
• Reduce infrastructure/staffing
• Implement most of the first 5 years of the EMP/FMP
• Rely on Revenue Bonds for some EMP/FMP projects
EXPENDITURE LIMITATION PROJECTIONS
KEY BUDGET COMPONENTS - REVENUES
• Approved Tuition and Fees
• $82.50 per credit in-state resident rate, +$450K
• Credit Card Convenience Fee, +$400K
• $10 fee per payment plan, +$100K
• Proposed Property Tax Levy Increase of 2% (levy max), +$2.4M
• Proposed Revenues –All Funds $300.6M
• Proposed Revenues – General Fund $154.9M
KEY BUDGET COMPONENTS - EXPENDITURES
• Reduction of approximately 3 administrator, 51 staff, and 10 instructional faculty positions
• Maintenance of the 2.5% increase to salaries
• Capital Budget of $10.3M
• Revenue Bond Debt of $4.5M
• Lease Purchase Debt of $1.1M
• Proposed Expenditures –All Funds $300.6M
• Proposed Expenditures – General Fund $154.9M
BUDGET COMPARISON –ADOPTED FISCAL YEAR 2018 VS.
PROPOSED FISCAL YEAR 2019
Adopted Fiscal Year 2018 Budget Revenues - $246.1M
(all funds, in $ millions)
Property Tax Revenue
$112.146%
Grants, Contracts, Financial Aid
$53.222%
Tuition & Fees$48.2
19%
College Equity$27.8
11%
Other Revenue$4.82%
Proposed Fiscal Year 2019 Budget Revenues - $300.6M
(all funds, in $ millions)
Property Tax Revenue
$116.539%
Grants, Contracts, Financial Aid
$47.716%
Tuition & Fees$48.8
16%
College Equity$23.8
8%
Bond Proceeds$56.0
19%
Other Revenue$7.82%
PRIMARY PROPERTY TAX LEVY DETAIL – PROPOSED
FY 2018FY 2019
Levy NeutralFY 2019
Proposed
Net Taxable Value Current Year ($100s) $ 80,749,577 $ 83,338,929 $ 83,338,929
Overall Change in Valuation 3.30% 3.21% 3.21%
Change from New Property 1.43% 1.86% 1.86%
Estimated Primary Tax Rate Authorization (per $100 net assessed valuation)
$ 1.3890 $ 1.3709 $ 1.3983
Primary Tax Levy $ 112,161,162 $ 114,249,338 $ 116,532,824
Change from previous fiscal year $ 2,088,176 $ 4,371,662
Truth in Taxation Levy Increase $ 2,241,800
AZ COMMUNITY COLLEGES PROPERTY TAX RATES FY 2018 (RATES PER $100 NET ASSESSED VALUATION)
Graham Yuma/La Paz Pinal Cochise Yavapai Navajo Maricopa Pima Mohave Coconino
Secondary Tax Rate $- $0.3632 $0.3099 $- $0.2001 $- $0.2140 $- $- $0.1326
Primary Tax Rate $3.1383 $2.2578 $2.2330 $2.3735 $1.7827 $1.8067 $1.1956 $1.3890 $1.3430 $0.4816
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$3.1383
$2.6210$2.5429
$2.3735
$1.9828 $1.8067
$1.4096 $1.3890 $1.3430
$0.6142
FY 2009-2019* BUDGETED REVENUE AND FUND BALANCE BY SOURCE (ALL FUNDS, IN $ THOUSANDS, *PROPOSED)
$-
$25,000
$50,000
$75,000
$100,000
$125,000
$150,000
$175,000
$200,000
$225,000
$250,000
$275,000
$300,000
$325,000
FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019*
Bond Proceeds
Fund Balance
Grants, Contracts & Financial Aid
Other Revenue
Tuition & Fees
Property Taxes
State Aid (Operations + Capital)
BUDGET COMPARISON – FISCAL YEAR 2018 VS. FISCAL YEAR 2019*
GENERAL FUND REVENUES BY SOURCE (IN $ MILLIONS, *PROPOSED)
FY18
Proposed
FY19 Change
Property Tax Levy $ 112.1 $ 116.5 $ 4.4
Tuition and Fees 40.4 40.9 0.5
Other Revenue 0.6 0.6 0.0
College Equity 5.3 2.5 -2.8
Total Resources $ 158.4 $ 160.5 $ 2.1
Debt Fund Transfer -5.6
Total $ 154.9
Property Tax
Levy
72.6%
Tuition and Fees
25.5%
Other Revenue
0.4%College Equity
1.6%
FY 2018-2019 PROPOSED BUDGET EXPENDITURES –
GENERAL FUND, $154.9M (IN $ MILLIONS)
Administrators
$6.0
4%
Faculty
$21.6
14%
Staff-Classified
$39.0
25%
Other Compensation
$2.7
2%
Fringe Benefits
$23.5
15%
Operations
$27.6
18%
Contingency / Reserves
$9.2
6%
Capital
$0.5
0.3%
Transfers
$24.8
16%
FY 2018-2019 PROPOSED BUDGET EXPENDITURES,
$300.6M (ALL FUNDS, IN $ MILLIONS)
Administrative Personnel, $6.3, 2%
Faculty, $21.8, 7%
Additional Compensation-Faculty, $1.0, 0%
Adjunct Faculty, $13.1, 4%
Classified Staff, $48.8, 16%
Other Compensation, $4.9, 2%
Student Employment, $0.5, 0%
Fringe Benefits, $29.1, 10%
Capital Equipment, $82.2, 27%
Communications and Utilities, $5.8, 2%
Travel, $3.7, 1%
Contractual Services, $18.1, 6%
Supplies and Materials, $8.6, 3%
Current Fixed Charges, $1.7, 1%
Other Expenditures, $6.7, 2%
Student Financial Aid, $30.7, 10%
Contingency and Reserves, $17.6, 6%
COMMUNICATION AND NEXT STEPS
• May 28 and June 4, 2018 publication in the Arizona Daily Star
• Proposed Budget
• Truth in Taxation – Notice of Tax Increase
• May 28, 2018 Press Release on the proposed budget and Truth in Taxation
• June 13, 2018 Public Hearing and Special Board Meeting to adopt the FY 2019 budget and set property tax levies and rates
QUESTIONS?
ADDITIONAL CHARTS, INFORMATION, &
RESOURCES
PROJECTION: ACTUAL FTSE VS. EXPENDITURE LIMITATION FTSE
0
5,000
10,000
15,000
20,000
25,000
30,000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Audited FTSE CTE Weight EL FTSE
BUDGETED GENERAL FUND REVENUE SOURCES AS A PERCENT OF TOTAL REVENUE (EXCLUDES COLLEGE EQUITY LIKE USE OF FUND BALANCE / RESERVES / SAVINGS TO MORE CLEARLY SHOW REVENUE FROM EXTERNAL SOURCES, *PROPOSED)
FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019*
Property Tax 62% 60% 62% 62% 64% 66% 69% 72% 73% 74%
Tuition 24% 28% 32% 32% 31% 29% 31% 27% 26% 26%
State Aid 13% 11% 5% 5% 5% 4% 0% 0% 0% 0%
Other 1% 0% 1% 1% 1% 1% 0% 0% 0% 0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
PCC PRIMARY, SECONDARY, & COMBINED TAX RATES (FISCAL YEARS 2000-2019*)
FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019*
Primary Property Tax Rate 1.1626 1.1709 1.1455 1.1530 1.1358 1.1143 1.0930 1.0570 1.0191 0.9787 0.9356 0.9755 1.0846 1.1484 1.2746 1.3344 1.3689 1.3733 1.3890 1.3983
Secondary Property Tax Rate 0.2070 0.3865 0.4015 0.3803 0.3526 0.2285 0.2184 0.1945 0.1654 0.1502 0.1414 0.1093 0.0248 0.0257 0.0187 0.0000 0.0000 0.0000 0.0000 0.0000
Combined Primary + Secondary Tax Rates 1.3696 1.5574 1.5470 1.5333 1.4884 1.3428 1.3114 1.2515 1.1845 1.1289 1.0770 1.0848 1.1094 1.1741 1.2933 1.3344 1.3689 1.3733 1.3890 1.3983
1.3696 Proposed
1.3983*
0.0000
0.2500
0.5000
0.7500
1.0000
1.2500
1.5000
1.7500
Levy Neutral
1.3709
* proposed
PCC SALARIES & FTSE FY 2003-2018(BUDGETED, ALL FUNDS BY FISCAL YEAR)
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018*
Staff $32,133,946 $34,280,875 $35,868,297 $37,682,081 $39,483,632 $42,778,944 $43,181,009 $37,953,841 $42,148,993 $45,599,991 $47,060,059 $46,831,669 $49,453,273 $53,645,008 $54,411,915 $54,845,091
Faculty $17,595,382 $17,943,050 $19,985,652 $20,930,328 $21,801,158 $23,072,134 $23,442,431 $23,461,655 $24,227,479 $23,858,356 $24,294,337 $24,508,824 $25,025,370 $24,647,440 $22,941,718 $23,102,563
Administrators $4,743,030 $4,983,465 $5,269,538 $5,494,824 $5,774,937 $6,816,417 $7,135,400 $6,291,692 $6,701,482 $6,553,160 $6,844,161 $6,973,001 $7,196,004 $6,643,627 $6,414,826 $6,451,207
FTSE* 20,611 20,425 20,393 19,993 19,807 20,222 20,889 22,021 22,907 22,028 19,514 17,963 16,458 15,382 14,779 14,900
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
22,000
24,000
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000
$90,000,000
FT
SE
Dolla
rs
*FY 2018 FTSE is estimated
PCC POSITIONS & FTSE FY 2003-2018(BUDGETED, ALL FUNDS BY FISCAL YEAR)
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018*
Staff 1,043 1,059 1,017 1,020 927 1,023 1,047 1,016 1,037 1,059 1,019 1,051 1,090 1,121 1,084 1,083
Faculty 378 361 380 380 362 387 389 388 392 391 391 391 390 391 360 359
Administrators 48 48 51 56 56 62 53 53 53 54 55 56 56 51 48 49
FTSE* 20,611 20,425 20,393 19,993 19,807 20,222 20,889 22,021 22,907 22,028 19,514 17,963 16,458 15,382 14,779 14,900
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
22,000
24,000
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
FT
SE
# o
f Posi
tions
*FY 2018 FTSE is estimated
FY 2018-2019 PROPOSED BUDGET BY FUND,
$300.6M (ALL FUNDS, IN $ MILLIONS)
FY 2018
Proposed
FY 2019 Change
General Fund $ 153.1 $ 154.9 $ 1.8
Capital Fund 17.0 74.8 57.8
Restricted Fund 53.0 49.0 -4.0
Designated Fund 15.4 14.1 -1.3
Auxiliary Fund 2.3 2.2 -0.1
Debt Fund 5.3 5.6 0.3
Total $ 246.1 $ 300.6 $ 54.5
General Fund$154.9
51%
Restricted Fund$49.0
16%
Capital Fund$74.825%
Designated Fund$14.1
5%
Debt Fund$5.62%
Auxiliary Fund$2.21%
GENERAL FUND SUMMARY(BY PROGRAM, IN $ MILLIONS, PROPOSED FY 2019)
FY 2018
Proposed
FY 2019 Change
Administrators $ 6.1 $ 6.0 $ -0.1
Faculty 22.5 21.6 -0.9
Staff-Classified 39.7 39.0 -0.7
Other Compensation 3.6 2.7 -0.9
Fringe 24.4 23.5 -0.9
Subtotal 96.3 92.8 -3.5
Operations 26.6 27.6 1.0
Capital 0.5 0.5 0.0
Transfers (net)
Designated Fund
Capital
Miscellaneous
21.7
13.3
6.3
2.1
24.8
15.6
6.7
2.5
3.1
2.3
0.4
0.4
Contingency / Reserves 8.0 9.2 1.2
Total $ 153.1 $ 154.9 $ 1.8
DESIGNATED FUND SUMMARY (BY PROGRAM, IN $ MILLIONS, PROPOSED FY 2019)
FY 2018
Proposed
FY2019 Change
Professional Development $ 0.9 $ 0.9 $ 0.0
Athletics 2.1 2.1 0.0
Course Fees 2.3 2.3 0.0
Academic Programs 13.6 16.3 2.7
Center for Training & Development 2.7 2.6 -0.1
Contract Training 2.1 1.6 -0.5
Prison Program 0.7 0.6 -0.1
Public Safety Institute 0.7 0.4 -0.3
Community Education 0.5 0.5 0.0
Other 1.5 1.2 -0.3
Contingency / Reserves 1.4 1.4 0.0
Transfers -13.1 -15.8 -2.7
Total $ 15.4 $ 14.1 $ -1.3
RESTRICTED FUND SUMMARY(IN $ MILLIONS, PROPOSED FY 2019)
FY 2018
Proposed
FY 2019 Change
Student Financial Aid $ 33.4 $ 29.5 $ -3.9
Workforce Development (Prop 301) 2.0 2.3 0.3
Grants
Health Profession Opportunity Grant (HPOG) 3.0 3.0 0.0
Adult Education 3.9 3.5 -0.4
Title III – Improving graduation rates, particularly STEM 1.1 0.7 -0.4
Title V – Developing Hispanic Serving Institutions 1.7 1.8 0.1
TRIO (Upward Bound, Student Support Services, Talent Search) 2.9 2.4 -0.5
Federal Funds Contracts 0.0 0.6 0.6
Other 2.0 2.2 0.2
New Grants 3.0 3.0 0.0
Total $ 53.0 $ 49.0 $ -4.0
CAPITAL FUND SUMMARY (IN $ MILLIONS, PROPOSED FY 2019)
Budget Year Projects FY 2018
Proposed
FY 2019 Change
General Capital Projects 4.7 4.8 0.1
Technology Fee Projects 1.4 0.6 -0.8
Proposition 301 Projects 1.6 2.3 0.7
Capital Lease Projects 0.0 2.6 2.6
Total Budget Year Projects $ 7.7 $ 10.3 $ 2.6
Bond Projects 0.0 56.0 56.0
Carry Forward Projects 15.0 15.0 0.0
Contingency / Reserves 2.1 1.9 -0.2
Total All Projects $ 24.8 $ 83.2 $ 58.4
Less Transfers from Other Funds
Proposition 301 Funding -1.6 -2.3 -0.7
General Fund Transfer -6.4 -6.7 -0.3
Other Funds Support (including grants) 0.2 0.6 0.4
Net Budget $ 17.0 $ 74.8 $ 57.8
AUXILIARY FUND SUMMARY(IN $ MILLIONS, PROPOSED FY 2019)
FY 2018
Proposed
FY 2019 Change
Food Service 0.1 0.1 $ 0.0
Business Relations 0.2 0.1 -0.1
Rentals 0.2 0.3 0.1
Transfers 0.7 0.7 0.0
Contingency / Reserves and Other 1.1 1.0 -0.1
Total $ 2.3 $ 2.2 $ -0.1
DEBT FUND SUMMARY(IN $ MILLIONS, PROPOSED FY 2019)
FY 2018
Proposed
FY 2019 Change
Lease Purchases 1.7 1.1 $ -0.6
Revenue Bonds 3.6 4.5 0.9
Total $ 5.3 $ 5.6 $ 0.3
RECONCILIATION OF PROPOSED FY 2018-2019 BUDGET
TO PUBLISHED STATE FORMAT (ALL FUNDS, IN $ MILLIONS)
PCC Budget
as presented Transfers
PCC Budget
on State
Forms
General $ 154.9
Designated 14.1
Total General Fund $ 169.0 $ -5.3 $ 163.7
Auxiliary 2.2 -0.7 1.5
Restricted 49.0 -2.4 46.6
Capital 74.8 8.4 83.2
Debt Service 5.6 0.0 5.6
Total $ 300.6 $ 0.0 $ 300.6
RESOURCES
• Budget Criteria
• February 2017 Expenditure Limitation presentation to the Governing Board
• June 2017 Adoption of Tax Levies and Rates and Budget for FY18
• FY18 General Fund Budget Detail
• November 2017 Report to the Governing Board – Proposed FY19 Budget Calendar
• November 2017 Preliminary Budget Presentation to Student Leadership
• December 4, 2017 FY19 Budget Outlook Presentation to the Governing Board
RESOURCES (CONTINUED)
• January 2018 Budget Forums Presentation
• February 2018 Governing Board Study Session
• March 2018 Governing Board Meeting
• FY19 Tuition and Key Budget Parameters
• Actual Expenditures vs. Expenditure Limitation and Most Significant Reduction Strategies by Year
• April 2018 Governing Board Presentation – Proposed Revenue Bond Projects
• April 2018 All College Meeting
• Budget FAQ