mt. san jacinto community college district

Mt. San Jacinto Community College District

Board of Trustees

Eugene V. KadowDorothy J. McGargillAnn MotteGwendolyn SchlangeJoan F. Sparkman

Interim Superintendent/President

Dr. Richard J. Giese

2005-2006 Adopted Budget

September 8, 2005

Business Services, September 8, 2005

Mt. San Jacinto College 2005-06 Adopted Budget

PRESENTATION OUTLINE

• Economic Profile• Enrollment Trend• 2005-06 State Budget for Community Colleges

Impact of State Budget Actions• MSJC Budget Planning Assumptions

Major Funding Issues• Proposed Adopted Budget 2005-06

General Fund Unrestricted Categorical Revenues Child Development Center Fund Auxiliary Funds Capital Outlay, Lease Revenue Bond Revenue and Expense Summary – All Funds



ECONOMIC PROFILE

• California’s financial profile continues to improve

Personal income rising

Jobs are up, unemployment is down

• Risk of economic downturn exists

Federal Reserve continues to increase interest rates

California real estate market is vulnerable to interest rate increases

Inflation due to cost increases for gas and fuels, insurance and construction raw materials

• National and global uncertainty will impact State economy

War

Natural disasters

ENROLLMENT TRENDMt. San Jacinto College 2005-06 Adopted Budget


• At P2, MSJC enrollment growth fully funded at 8.04%. (Actual certification will be received in February 2006.)

• Chancellor’s Office 2005-06 calculated growth rate for MSJC is 10.83%, third highest in the state.

• MSJC Fall 2005 enrollments are flat compared to Fall 2004.

• The schedule for Spring and Summer 2006 provides the access needed to achieve target enrollments.

• Fall 2005 enrollments are down across the state.

0

5

10

15

20

25

30

35

40

45

FY96-97 FY97-98 FY98-99 FY99-00 FY00-01 FY01-02 FY02-03 FY03-04 FY04-05 PROJ2006

FEDERAL

OTHERENROLLMENT FEES

STATE APPORTIONMENTPROPERTY TAXES

Mt. San Jacinto CollegeTen Year Revenue Analysis

7,630

7,4787,015

6,721

6,457

5,861

5,265

4,848

COLA 3.06 2.97 2.26 1 .41 4.17 3.87 2.00 0 2.41 4.23

Business Services September 8, 2005

8,245

*Enrollment Target = 8,800 FTES Dollar Values are in Millions Credit Full Time Equivalent Student (FTES)

8,445

• No student fee increase

• 4.23% Cost of Living Adjustment (COLA)

• 3% Growth; 1.73% Categorical Growth

• $30M Equalization

• $31.4M Partnership for Excellence Restored

• $10M Mandate Reimbursement

• $10M Nursing Programs

• $ 1M California Partnership for Achieving Student Success (CalPASS)

• $15.6M Property Tax Backfill



STATE BUDGET FOR CALIFORNIA COMMUNITY COLLEGES

CCC MSJCCost of Living Adjust (COLA) 4.23% $209,624,000 $ 1,445,000Student Access (Growth) 3% * 136,709,000 2,876,458Equalization 30,000,000 190,575PFE Restored 31,400,000 248,245Mandate Reimbursement 10,000,000 TBDNursing Programs (One Time) 10,000,000 TBDCalPASS Program 1,000,000 TBDProperty Tax Backfill (One Time) 15,600,000 TBDInstructional Equipment Block Grant 27,345,000 207,058

The 2005-06 State budget includes line item appropriations detailed above with direct fiscal impact on MSJC. The allocation mechanism for certain budget line items have not been disclosed and are to be determined (TBD) with distribution language. These will be treated as budget modifications during the fiscal year. * Full growth allocation is not included in the Adopted Budget.

IMPACT OF STATE BUDGET ACTIONS



BUDGETING PROCESS PLANNING ASSUMPTIONS

• Fiscal Stability is Highest Priority Prudent Reserve of 6.23%, or $2.5 million

• Resource Allocation Linked to Formal Planning: Education Plan, Master Plan, Facility Master Plan

• Budget Committee Recommendations: Compliance to 50% Law and Full-time Faculty Obligation Hire 5 FT faculty; 5 FT classified support staff Fund for enrollment growth and efficiency Restore cuts to conference, travel and consultant accounts Maintain program quality w/ instructional equipment

upgrades and student access center improvements Continue with preventive maintenance of physical plant



MAJOR FUNDING ISSUES

• Two major construction projects will require District matching funds: LRC Const/Equipment

$1.2 million Technology Building Const/Equipment

l.6 million

• Initial Reserves for GASB 43/45 and GASB 16 are reflected in the proposed adopted budget. Full reserve is required in fiscal 2008-09.

• Inflation to fuel, insurance and construction raw materials is anticipated.

• Maintaining physical plant will require resources.

• Chancellor’s Office financial data “second” revisions.



$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

$40,000,000

$45,000,000

2001-2002Actual

2002-2003Actual

2003-2004Actual

2004-2005Actual

2005-2006A-Budget

Other Local

Other State

State Apportionment

Federal Revenues

Beginning Balance

MT. SAN JACINTO COMMUNITY COLLEGEGeneral Fund Unrestricted

AVAILABLE FUNDS

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

$40,000,000

$45,000,000

2001-2002Actual

2002-2003Actual

2003-2004Actual

2004-2005Actual

2005-2006A-Budget

Ending Balance

Capital Outlay/Other Outgo

Services

Supplies

Employee Benefits

Classified Salaries

Academic Salaries

MT. SAN JACINTO COMMUNITY COLLEGEGeneral Fund Unrestricted

ALLOCATION OF AVAILABLE FUNDS

Capital Outlay4%

Employee Benefits

17%

Supplies2%

Classified Salaries

23%

Academic Salaries

41%

Services13%

Mt. San Jacinto College2005-2006 Adopted Unrestricted General Fund Budget

EXPENDITURE TOTAL $40,421,476

Business Services September 8, 2005

Other48%

Federal0%

State52%

REVENUE TOTAL $41,393,497

Adopted 2005-2006

General Fund Reserve $ 500,000Board Special Reserve Designated $1,405,000 Undesignated $ 795,000Total $2,700,000


MT. SAN JACINTO COMMUNITY COLLEGECATEGORICAL REVENUE COMPARISON

FY2003-2004 ACTUALS; FY2004-2005 ACTUALS; FY2005-2006 ADOPTED

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

2003-2004 Actuals 2004-2005 Actuals 2005-2006 Adopted

Federal Revenues

State Revenues

Local Revenues

2005-2006 STATE BUDGETMt. San Jacinto College 2005-06 Adopted Budget


$0

$500,000

$1,000,000

$1,500,000

$2,000,000

2003-2004Actuals

2003-2004GF

Support

2004-2005Actuals

2004-2005GF

Support

2005-2006Adopted

2005-2006GF

Support

General Fund Support

Federal Revenues

State Revenues

Local Revenues

County Contracts

Parent Fees

MT. SAN JACINTO COMMUNITY COLLEGECHILD CARE CENTERS REVENUE COMPARISON

FY2003-2004 ACTUALS; FY2004-2005 ACTUALS; FY2005-2006 ADOPTED

2005-2006 STATE BUDGETMt. San Jacinto College 2005-06 Adopted Budget

$-

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

FY2003-2004 FY2004-2005 FY2005-2006

Mt. San Jacinto Community College

BOOKSTORE Income and Expense Summary Comparison

FY 2003-2004 Actual, FY 2004-2005 Actual, FY 2005-2006 Adopted

Beginning Balance and Income

Expenditures

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

FY2003-2004 FY2004-2005 FY2005-2006


CAFETERIAIncome and Expense Summary Comparison



Expenditures

$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$4,500,000

FY2003-2004 FY2004-2005 FY2005-2006


FOUNDATIONIncome and Expense Summary Comparison



Expenditures

$5,600,000

$5,800,000

$6,000,000

$6,200,000

$6,400,000

$6,600,000

$6,800,000

$7,000,000

$7,200,000

$7,400,000

FY2003-2004 FY2004-2005 FY2005-2006


AWARD ACCOUNT Income and Expense Summary



Expenditures

$-

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

FY2003-2004 FY2004-2005 FY2005-2006


ASSOCIATED STUDENT BODYIncome and Expense Summary Comparison



Expenditures

$-

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

FY2003-2004 FY2004-2005 FY2005-2006


STUDENT REPRESENTATION FEEIncome and Expense Summary Comparison



Expenditures

Learning Resource Center, MVC Construction $ 8,252,867Equipment 1,412,000Total $ 9,664,867

District match $ 1,200,000

Currently, the LRC construction is ahead of schedule and under budget. Estimated completion is March, 2006. Occupancy of the LRC will begin in April 2006.

CAPITAL OUTLAY PROJECTS



Technology Center, MVC Design $ 442,530Construction & Equip 10,775,000Total $11,217,530

Est. District match $ 1,600,000

The Technology Center bidding and construction dates will be set after DSA approval. Estimated start for construction is mid-Spring 2006 with a projected 14 month construction period. Estimated occupancy of the Technology Center is Fall 2007.

CAPITAL OUTLAY PROJECTS



CAPITAL OUTLAY • Sched Maintenance in ’06 $ 0• Sched Maint & match carryover 26,703• Hazardous Materials 212,220• Facility Improvements 302,065• Xerox Lease 500,000• Equipment Replacement 75,000• Lease Revenue Bond Pmt 467,498• MVC Modular Lease 30,709

State funds for scheduled maintenance continues to decrease. As a result, District expense for maintaining physical plant has increased.

APPROPRIATIONSMt. San Jacinto College 2005-06 Adopted Budget


CAPITAL OUTLAY RESERVE

Funds on deposit with State Treasurer for land acquisition, MVC: $1,789,000

The Board authorized funds on deposit with the State Treasurer for land acquisition, MVC.

These funds are held with the State Treasurer. Accounting rules require disclosure of these funds on

District statements. For clarity, these funds will be accounted for in one fund and in one line item.

Although disclosed on District statements, funds are physically held with State Treasurer.

APPROPRIATIONSMt. San Jacinto College 2005-06 Adopted Budget


LEASE REVENUE BOND(Board Resolution 2002/03-234)

Projects Funded by Lease Revenue Bond:

Property Acquisitions Phone Upgrade HP 9000 Upgrade Galaxy/One Source Financial Systems State Treasurer Deposit for MVC CIS Lab Upgrade

LEASE REVENUE BONDMt. San Jacinto College 2005-06 Adopted Budget


LEASE REVENUE BOND $8,000,000

First Draw (April 27, 2004) 2,975,072 Second Draw (June 23, 2004) 600,089 Total 3,575,161

Interest Earned (thru June 30, 2005) 73,122

First Payment FY0304 (Funds 12 & 41) 467,498 Second Payment FY0405 (Funds 12 & 41) 462,509 Third Payment FY0506 (Fund 41 only) 467,498

LEASE REVENUE BONDMt. San Jacinto College 2005-06 Adopted Budget


MSJC 2005-06 Adopted Budget REVENUE AND EXPENSE SUMMARY-ALL FUNDS

FUND NAME FUND# BEGINNING

BALANCE

REVENUE EXPENSE INTERFUND TRANSFER

RESERVE/ CARRYOVER

GENERAL FUND 11 $2,137,979 $41,393,497 $40,421,476 ($2,610,000) $500,000

SPECIAL RESERVE 11 2,000,000 -0- -0- 200,000 2,200,000

INSTR EQUIPMENT 12 736 305,474 305,474 -0- 736

PARKING FEES 12 205,345 417,500 517,340 -0- 105,505

RESTRICTED FUND 12 -0- 4,381,262 4,381,262 -0- -0-

CHILD CARE CTR 33 55,000 1,669,026 1,724,026 -0- -0-

CAPITAL OUTLAY 41 8,884,042 18,698,440 22,926,592 2,350,000 7,005,890

SELF INSURANCE 61 101,119 84,024 154,380 60,000 90,763

ASSOC STUDENT BODY 23,932 61,650 85,582 -0- -0-

AWARDS/TRUST FUNDS 55,524 7,192,918 7,194,246 -0- 54,196

STUDENT REP FEE 2,505 918 3,423 -0- -0-

FOUNDATION 3,481,647 710,147 643,584 -0- 3,548,210

BOOKSTORE 1,390,866 4,301,000 4,124,120 -0- 1,567,746

CAFETERIA -0- 585,550 585,550 -0- -0-

GRAND TOTAL $ 18,338,695 $79,801,406 $83,067,055 -0- $15,073,046


FY 2005-2006 Adopted Budget Expenditures


Expenditures$100,750,101

Contingency

Child Development

Awards/Student Rep/ASB

Self Insurance Fund

Foundation

Bookstore/Cafeteria

General Fund Unrestricted

Board Special Reserve

Capital Projects FundGeneral Fund Restricted

$13,668,046

13%

$1,724,026

2%

$1,405,000

1%

$4,709,670

5%

$643,584

1%

$7,283,251

7%

$154,380

0%

$22,926,592

23%$5,204,076

5%

$43,031,476

43%

RECOMMENDATION

The proposed Adopted Budget for fiscal year 2005-06 is recommended with the following:

• Enrollment target set at 8,800 credit and 360 non-credit FTES

• Adopted Budget based on 8,445 credit and 342 non-credit FTES

• Budget Base/Revenue Limit = $37,015,000• In compliance with statutory requirements of the

50 Percent Law and FT Faculty Obligation• 6.23% Contingency & Reserve = $2,700,000



QUESTIONS



mt. san jacinto community college district

Documents

budget modifications

adopted budgetseptember

student access growth

growth allocation

msjc enrollment growth

certain budget line

categorical growth

calculated growth rate