8/18/2019 San Juan College March 29 Budget Presentation for Board
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Follow-Up Conversation -FY 2016 Year-End Budget an
Approach to FY 2017 Budge
March 29, 2016
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Take Aways from
March 1, 2016 Budget Discussion
• Oil and Gas Production Tax Revenue is decreasing.
• Enrollments have decreased.
• NM State Budget is experiencing reductions; cuts in
appropriations are expected.
• Changes in Property Tax Revenue are uncertain.
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It’s not just FY 2017
These circumstances are impacting our
budget estimates…
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Impact on Current Year - FY 2016 General Fund
• Oil & Gas Production Tax Revenue is estimated to fall sho
budget by $
•
Tuition, General Fee and Workforce Development Revenestimated to fall short of budget by $
• NM Appropriation will be cut at year end by $
• Sales & Services Revenues are estimated to fall short of b
amounts by $
• Property Tax Revenue is estimated to exceed budget by $
• Decrease in Resources for FY 2016 $1
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Revenues Changes FY2015 to FY 2016
FY15 Year End FY16 Mid-Year
Actual Approved BAR Reco
Tuition & Fees 11,618,389 13,334,854
NM State Appropriations 25,170,340 25,220,300
Local Taxes - Property & Production 14,880,095 14,115,131
Sales & Services 817,567 825,079
Total 52,486,391 53,495,364
Decrease from Mid-Year BAR
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A note about the following recommended measu
• These recommendations were formulated to achieve the following obje
– Prevent overspending of resources at year end, 6/30/2016
– Provide for continued operations for summer semester and lead-in to FY 2017
minimize instructional and service disruptions)
• With only three months remaining in the fiscal year, most of our resour
spent or are committed.
• Most of these tactics are to be considered one-shot measures.
R d i Off D i
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Recommendations to Offset Decrease in
Current Year - FY 2016 General Fund Revenue
• Forego budgeted increase in Fund Balance $
• Reduce transfer to R&R funds –
Defer a large portion of Technology purchases $250,000 –Use undesignated R&R fund balance for
currently planned physical plant projects $251,973 $
• Reduce transfer to 3% Scholarships $
• Charge Auxiliary Enterprise Operations for IT services
and space use (utilities, maintenance, custodial) $
• Zero-out remaining contingency for pay/benefits $
• Other minor changes $
• Total - Measures Recommended to Offset Shortfall $1,
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Moving On To FY 2017 –
Revenue Assumptions
• No increase in tuition or general fee rates
•
Enrollment Level: another 10% decline in headcounanother 2% decline in semester credit hours
• Little or no change in property values
• Possible further decrease in Production Tax Revenue
• Another cut in NM appropriation is anticipated
• Most of the FY2016 year-end revenue decreases wilcarryforward to FY2017 and exacerbate the impact oabove listed assumptions
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Estimated Changes in FY 2017 Revenue
• Decrease in Revenue from Tuition and General Fees $
• Increase in Property Tax Revenue (
• Decrease in Oil & Gas Production Tax Revenue $• Reduction in NM Appropriation $
• Carryforward of FY2016 year-end revenue changes: – Oil & Gas Production Tax Revenue Shortfall $350,000
– Tuition, General Fee & Workforce Dev. Revenue Shortfall $722,134
– Reduced Sales & Service Revenue $291,530
– Increase in Property Tax Revenue ($232,455) $1
• Total Estimated Change in FY2017 Revenue $2
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Revenue Changes FY2015 to FY2017
FY15 Y.E. FY16 Mid-Year FY16 Year End
Actual Approved BAR Recommended B
Tuition & Fees 11,618,389 13,334,854 12,512,72
NM State Appropriations 25,170,340 25,220,300 25,069,30
Local Taxes - Property & Production 14,880,095 14,115,131 13,997,58
Sales & Services 817,567 825,079 533,54
Total 52,486,391 53,495,364 52,113,15
Decrease from Previous Budget (1,382,209
Total Decrease - FY16 Mid-Year to FY17
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Cost and Expenditures Assumptions
• No increase in wage and salary rates
• Change in health benefit cost unknown until July or la
•
We must make changes in the way we do things, deciwe cannot do and stay focused on our mission and co
programs and services.
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Recommended Changes in FY 2017 Expenditures t
Projected Reductions in Revenue
• Reduced Cost of new IT Management & Services contract
• Sunset KSJE (net of redeployment of 1 employee)
• Change in Herbarium Operation
• Savings from turnover - currently known retirements
• Reduction of 3% Scholarship transfer
• Energy Savings Initiatives
• Improvements in Ancillary Staffing Issues & Efficiencies $
• Other smaller and minor cost reduction measures
• Total – Measures to Reduce Costs and Offset Reduction in Revenue $
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Improvements in Ancillary Staffing Issues & Effic
Possible Areas of Exploration And Evaluatio
•
Class Size• Faculty Load
• Overloads
• Savings From Retirement Turnover
•
Selective reduction in staffing levels through attritionstrategic redeployment of talent
• Program ROI and Viability
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Changing the Way We Do Things to Reduc
• Establish Contract Pricing Agreement for Office Supplies
• Restrict and Reduce Cell Phone Reimbursements
• Explore feasibility of wide-spread use of thin client technology
• Evaluate P-card program
• Evaluate efficiency and cost effectiveness of motor pool
• Reduce travel (cost benefit)
• Negotiate lower credit card fees• Reduce or sunset student print credit (encourage electronic docum
• Establish guidelines for institutionally coordinated technology acq
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Outlook for FY2018
• No further decline in enrollment. Grow enrollment.
• Change in property values uncertain. Stability may be anticip
• No further decrease in Oil & Gas Production Tax Revenue? Smdecrease?
• May anticipate further reduction in NM state appropriation.
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