December 11, 2014

Members Present: Sonja Swenson, Brock McMurray, Sharyn Eveland, Bill Devine and Debbie Hegeman, recorder.

Members Absent: Barbara Amerio, Sheri Horn-Bunk, Aldrin Luben and Agnes Jose-Eguaras

APPROVAL OF MINUTES

A quorum of members was not present therefore the minutes from November 20, 2014 will be approved during the next meeting.

DSP&S BUDGET UPDATE

Brock noted the DSP&S Budget Augmentation request went to the Board for approval on December 10, 2014. The increase of $20,922 is good news since many of the services provided by this department are state mandated which means we must provide the services regardless of whether we receive funding.

STUDENT EQUITY BUDGET UPDATE

Brock informed the committee the Student Equity Budget is new therefore funds for this new program were not included in the 2014/2015 adopted budget. We will be receiving an allocation of $200,872 restricted funds however we have already received permission to spend the money now. In addition, the money can be carried over to next fiscal year through September 30, 2015.

STANDARD IIID: FINANCIAL RESOURCES (draft)

Several copies of the draft were emailed before the meeting for review and several updates were processed. Brock asked for comments from the committee on the document. Between Barbara Amerio, Bill Devine, Sharyn Eveland and Sonja Swenson there were many welcomed suggestions. These changes will be sent to Debbie to be included in the document.

JANUARY – GOVERNOR’S ‘PROPOSED BUDGET’ WORKSHOP

Brock will be attending the Governor’s “Proposed Budget” workshop in January 2015. He reported this workshop is when most of the Governor’s plans for 2015/2016 will be revealed. He said there is still on-going discussion about raising our base which would be great for Taft College. During our next meeting, Brock will provide a report of the news received during the workshop.

OTHER

Sonja is concerned about the decrease in prices at the gas pumps and how it would affect Taft College, as well as the State of California. As in the past, the falling gas prices affect Taft College mostly by increasing our enrollments due to field workers being out of work. Brock feels the decrease would not affect the State of California as much as it would affect Kern County.

(All handouts from this meeting will be available on the Intranet)

Respectfully submitted by:

______________________

Debbie Hegeman

2014.12.11-BC-Minutes

2014.12.11-DSPS-Budget-Update

2014.12.11-Standard-IIID-Financial-Draft

2014.12.11-Student-Equity-Budget-Information

November 20, 2014

2:00 P.M. – 3 P.M.

Members Present: Sonja Swenson, Brock McMurray, Sharyn Eveland, Barbara Amerio, Bill Devine and Debbie Hegeman, recorder.

Members Absent: Sheri Horn-Bunk, Aldrin Luben and Agnes Jose-Eguaras

APPROVAL OF MINUTES

The minutes of the meeting held October 9, 2014 were approved by consensus.

BUDGET DEVELOPMENT CALENDAR

Brock pointed out a few minor changes to the budget calendar which was approved at the November 12th board meeting and will be submitted to the Governance Council during their December meeting.

SSSP BUDGET UPDATE

The SSSP budget augmentation request was approved by the Board at the November 12th meeting. The increase of $561,360 brought the yearly SSSP budget to $1,067,406. Brock reminded the committee the SSSP funds are restricted and have stipulations attached to how the money can be spent.

Based on FTE, we also received notification of $200,000 in Student Equity money. This is new money for Taft College and Mark Williams is preparing the budget and augmentation proposal for the Board.

ACBO UPDATE (growth formula)

Brock reported he recently attended the ACBO conference where he received information on the new growth formula. The new formula is based on five (5) equally rated factors.

FACTOR 1: EDUCATIONAL ATTAINMENT (20%)

Coverage: This measure includes individuals 25 years of age or older residing within a district’s legal boundary.

Measure: Percent of individuals 25 years of age or older that do not have a bachelor’s degree.

Date Source(s):

• Economic and Social Research Institute (ESRI) Data

Budget Committee Minutes

November 20, 2014

Page 2 of 2

FACTOR 2: UNEMPLOYMENT (20%)

Coverage: This measure includes individuals 16 years of age or older eligible to be in the labor force residing within a district’s legal boundary.

Measure: Percent of individuals 16 years of age or older who are unemployed living within the district’s legal boundary.

Date Source(s):

• Economic and Social Research Institute (ESRI) Data

FACTOR 3: PELL (20%)

Coverage: This measure includes all students.

Measure: Annual percentage of students receiving a Pell Grant.

Date Source(s):

• Pell Grant Status: Chancellor’s Office Data Mart

FACTOR 4: UNEMPLOYMENT (20%)

Coverage: This measure includes students residing in households geographically located within a district’s legal boundary.

Measure: This measure is a ratio expressed as a rate of enrolled students per 1,000 comparable individuals within a district’s legal boundary.

NOTE: The numerator is an annual volume of unduplicated headcount of students residing within a district’s boundary. The denominator is a Census-based estimate of individuals living within a district’s boundary.

Date Source(s):

• Student Headcount: Chancellor’s Office Management Information System (COMIS)
• Individuals living within a district’s legal boundary: Economic and Social Research Institute (ESRI) Data

FACTOR 5: UNFUNDED FTES (20%)

Coverage: This measure includes all resident students.

Measure: For districts that have at least 1 percent unfunded FTES in each of the three previous years, this measure calculates the three year average unfunded FTES in the district.

Date Source(s):

• Chancellor’s Office Data CCFS-320 report

(All handouts from this meeting will be available on the Intranet)

Respectfully submitted by:

Debbie Hegeman

2014.11.20-BC-Minutes

2014.11.20-Budget-Development-Calendar

2014.11.20-Growth-Funding-Information

2014.11.20-SSSP-Budget-Update

October 9, 2014

2:00 P.M. – 3 P.M.

Members Present: Sonja Swenson, Brock McMurray, Sharyn Eveland, Barbara Amerio, Bill Devine, Aldrin Luben and Debbie Hegeman, recorder.

Members Absent: Sheri Horn-Bunk and Agnes Jose-Eguaras

APPROVAL OF MINUTES

The minutes of the meeting held August 20, 2014 were approved by consensus.

BUDGET DEVELOPMENT CALENDAR

Brock reviewed the 2015-2016 Budget Development Calendar with the committee. He noted a few items had been added and asked if there were any other recommendations from the committee. The committee suggested an addition to the calendar in August reflecting a follow-up with the President related to the ranked requests and action taken. Brock asked if anyone had any other suggestions or concerns to please email him otherwise the calendar will be updated and presented to the Board of Trustees at the November 12th Board meeting.

BUDGET PREPARATION (AP 6200)

All committee members received a copy of our current BP 6200 and AP 6200. The AP 6200 from the Community College League of California was to be included but the incorrect document was attached. Brock went over the Administrative Procedures we currently have and after reviewing these documents and some from other colleges, the committee was in favor of simplifying the procedures. Debbie will update the document and email it to the members for their approval.

BUDGET MANAGEMENT (AP 6250)

All committee members received a copy of our current BP 6250 and AP 6250. Also the AP 6250 from the Community College League of California was included. After some discussion and reviewing the documents the committee agreed to simplify the procedures documented for Taft College. This document will also be updated and Debbie will email the update to the members for their approval.

Budget Committee Minutes

October 9, 2014

Page 2 of 2

SYSTEM BUDGET

Brock shared some positive information regarding the small school deferral we took. It’s possible we may not have to wait for the schools who did not take the waiver for growth to be paid back. The new funding formula to be implemented will begin during 2015/2016 and with that we might be eligible for some growth money.

OTHER

TIL Funding – Brock addressed this question by reminding the committee when the TIL project began there was high hopes of matching funds from grants, etc. There were many attempts to acquire the funds including the New Market Tax Credit. The project needed 2.1M for the match. The building was approved and work had begun when we realized we would not be able to acquire matching funds. There were many fund raising attempts but acquiring the match did not materialize therefore it was necessary for Taft College to meet this obligation. In order to complete the project we used money from the Facilities Reserve Account which is not part of our general funds. An agreement has been reached with TIL to repay the debt at $210,000 a year for 10 years with payments scheduled to begin this fiscal year.

Respectfully submitted by:

Debbie Hegeman

2014.10.9-BC-Minutes1

15.16-Budget-Development-Calendar

AP-6250-Budget-Management-draft-10.13.14 (1)

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August 20, 2014

3:10 P.M. – 4 P.M.

Members Present: Sonja Swenson, Brock McMurray, Laura Riss, Agnes J. Eguaras, Sharyn Eveland, Barbara Amerio, Bill Devine, Sheri Horn-Bunk and Debbie Hegeman, recorder.

APPROVAL OF MINUTES

The minutes of the meeting held May 8, 2014 were approved by consensus.

STATE BUDGET UPDATE

• The State Budget was signed by the Governor June 20th which was the 4th year in a row it was passed on time.
• The budget is based on the Governor’s more conservative forecast.
• Protection against boom and bust.
• New money focus is on education.
• The general fund expenditures are $108 billion which is 12 billion higher than it was in 2013.
• Includes a reserve of 1.4 billion.
• Eliminates $10 billion in debt, deferrals, recovery bonds, etc.
• Rainy day fund will be on the November ballot (money to be used during bad economic times).
• CalSTRS (30 year obligation for $74 billion unfunded)
  • State contribution will go from 3% to 6.3% as of 16/17.
  • Employee contribution will go from 8% to 10.25% as of 16/17 (current increase will be from 8% to 8.15%).
  • Employer contribution will go from 8.25% to 19.1% as of 2021 (current increase is from 8.25% to 8.88%).
• There doesn’t seem to be a threat of trigger cuts for this year.

COMMUNITY C OLLEGE BUDGET UPDATE

• Access – (aka growth money) $140 million. Brock reminded the committee Taft College likely won’t benefit from this for a couple of years since we were one of the schools who took the small school exemption. Also a note the funding formula is scheduled to change during 2015/2016.
• COLA – $47.3 million – Taft College employees will receive .85% for this year.
• Categorical funds
  • $100 million for Student Success
  • $70 million for Student Equity
  • $30 million for DSPS which would bring them back up to the level they were during 2009/2010.
• $148 million for deferred maintenance/instructional equipment. We already know our allocation will be $335,000 which restored $109,000 back in Adrian’s budget for instructional equipment and $225,000 to maintenance. We have already received a list of items from Kanoe to be considered for the deferred maintenance money.

  2014.08.20-BC-Minutes
  AP-6250-Budget-Management-draft-10.13.14

  AP 6250 Budget Management
  Reference:
  Title 5 Sections 58305, 58307 and 58308
  Title 5 requires that budget management conforms to the following minimum standards:
  ∗ Total amounts budgeted as the proposed expenditure for each major classification of expenditures shall be the maximum expended for that classification for the academic year, except as specifically authorized by the Board of Trustees.
  ∗ Transfers may be made from the reserve for contingencies to any expenditure classification by written resolution of the Board of Trustees, and must be approved by a two-thirds vote of the members of the Board of Trustees.
  ∗ Transfers may be made between expenditure classifications by written resolution of the Board of Trustees, and may be approved by a majority of the members of the Board of Trustees.
  ∗ Excess funds must be added to the general reserve of the College, and are not available for appropriation except by resolution of the Board of Trustees setting forth the need according to major classification.
  Appropriation Transfer Procedures
  Request for Budget Transfers and Revisions will be forwarded to the Administration Services office. Requests will be submitted to the Board of Trustee’s as pursuant to the California Code of Regulations, Title 5, Section 58308.

February 13, 2014

2 P.M. – 3 P.M.

Members Present: Brock McMurray, Barbara Amerio, Bill Devine, Sharyn Eveland, Fernando Lara, Sonja Swenson and Debbie Hegeman, recorder.

Members Absent: Sheri Horn-Bunk

Guests: Josie Kouyoujian

APPROVAL OF MINUTES

The minutes of the meeting held November 14, 2013 were approved by consensus.

STATEWIDE BUDGET UPDATE (A Budget Update for 2014-2015 report and a 13/14 Mid-Year Budget Analysis report is attached to official minutes and on-line).

Brock reminded the committee where we were 14 months ago when we were unsure of whether Prop.30 would pass or not.

Some of the state budget key points are: increased revenues of $1.7 billion in 2012/2013; additional revenues in current budget year of $2.9 billion; state wide Budget revenues projected to be at $106.1 billion; and stock market primary factors are generating new revenues.

What this means to community colleges is: COLA of .83%; 3% Access/Growth, however we are not in line for these funds since we took the small college exemption; Student Success money of $100 million; underrepresented students $100 million; Deferred Maintenance and Instructional Equipment split of $175 million; Innovation $50 million which is new funds earmarked for higher education; Prop. 39, energy efficiencies funds; deferrals $592.4 million which will be used to catch up payments to schools on deferrals; rainy day fund; RDA’s (Redevelopment Agency Funds) $35.6 million, doesn’t affect us greatly); Chancellor’s office $1.1 million for staff and $2.5 million for technical assistance; and possible additional one time funding in the May revise.

Threats and Issues which affect the budget are stock market; state drought; STRS unfunded liability; and State Debt/State Education Bonds.

Brock also explained the 2013/2014 Mid-Year Budget Analysis which was distributed. (There were some corrections pointed out that will be made on the official copy attached to the minutes and on-line.) It was noted in several areas that corrective journal entries will affect some line items.

50% LAW

Brock noted the task force from last year will review the 50% Law in March. He said a tentative analysis has been done and we are currently on pace. The task force is scheduled to meet in March, 2014.

Budget Committee Meeting

February 13, 2014

Page 2 of 2

PROGRAM REVIEW RECOMMENDATIONS

Brock went over the responsibility of the Budget Committee related to the Program Review Recommendations. Our role is to review the non-personnel items for fall 2013 and identify where we might have funds to fulfill the requests then make recommendations to the President.

The committee agreed it would be best to work collectively on this project and to set aside a special meeting for this to take place. Also Sharyn asked if we could have a list of restricted budgets when we resume.

The special meeting agreed upon to review the “Resource Request Prioritization Worksheet for Non Personnel Items Fall 2013” is for Thursday, February 27th at 1 p.m. in the HR conference room.

Respectfully submitted by:

Debbie Hegeman

2014.02.13-BC-Minutes

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2014.02.13-Mid-Year-Budget-Analysis1

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