Budget 101 Kelly Fowler CIO Joe Allison CBO

Budget 101 Kelly Fowler, CIO Joe Allison, CBO Merced College

Budget 101 Overview • • State Budget Cycle Student Centered Funding Formula (SCFF) College Budget Processes College Planning Processes External Factors Role of the CIO and CBO Helpful Resources

State Budget Cycle • State Budget Cycle (January and May) • January: Governor’s Budget Proposal • May: Revised Governor’s Budget Proposal • District 320 Report: P 1, P 2, and Annual Revision

Student Centered Funding Formula • • Three major components: Base Allocation, Supplemental Allocation, and Student Success Allocation Three Year Average Hold Harmless Stabilization (Push/Pull) Student Success Metrics Supplemental Allocation and Financial Aid Funding of Dual Enrollment and Inmate Education

College Planning Processes

College Budget Processes Budget Components: • General Unrestricted – SCFF Apportionment • General Restricted (categorical) • Lottery Funds (unrestricted and Prop 20 restricted) • Instructional Equipment • Local Revenue

External Factors • 50% Law • Full-time Faculty Obligation Number • 75%/25% “rule”

The 50% Law • Established in 1961 – Ed Code § 84362(d) requires that 50% of district’s current expense of education be for salaries of classroom instructors • What does it mean? When all the salaries and benefits of faculty are added the total must be at least 50% of all of the general fund dollars spent by the district. • What’s not included in the 50% calculations? Salaries of counselors, librarians, reassigned time for campus and senate work, categorical funds • What if a district falls below 50%? There are significant penalties.

Full-time Faculty Obligation Number (FON) • • Established in 1989 • Ed Code § 87482. 6 and CCR Title 5 § 51025 requires districts to increase the number of full time faculty over the prior year in proportion to the amount of growth in funded credit FTES. • • Based on credit funded FTES Baseline Compliance established based on local FON in 1988 -89 What’s not included? Noncredit faculty What if a district falls below their FON? Significant penalties equivalent to the costs of hiring the number faculty they are below the FON Directly impacts Full-time Faculty Hiring!

The 75% - 25% “rule” • AB 1725 (Vasconcellos, 1988) Established a goal that 75% of instructional hours be taught by full time faculty. • What if a district falls below 75%? Essentially all districts are below 75%. There is no penalty

Role of CIO and CBO Role of CIO • • • Enrollment Management • • FTES Efficiency Full-time Faculty Hiring (FON) Adjunct Faculty Hiring • • Role of CBO • • • Scheduling Efficiency Overseeing Divisional and Categorical Budgets Collaborate with your CBO! • Budget Oversight Financial Solvency Position Control Multi-year Budget Projections Fiscal Compliance • • • External Audits FON 50% Law Collaborate with your CIO!

External Resources • California Community Colleges Chancellor’s Office: College Finance & Facilities Planning website • California Community Colleges Chancellor’s Office Student Centered Funding Formula website • California Community Colleges Chancellor’s Office: Student Centered Funding Formula Dashboard website

Questions?