SOUTH ORANGE COUNTY COMMUNITY COLLEGE

BUDGETS AND COMPENSATION

The old system

• Program Based funding (5 elements)•PRIOR YEAR APPORTIONMENT (BASE

FUND)•COLA•PROGRAM IMPROVEMENT

(EQUALIZATION)•GROWTH / DECLINE / RESTORATION•STABILITY 1 YEAR BAILOUT FOR

DECLINING ENROLLMENT

The new formula

• Program based funding is now a thing of the past.

• A new formula for funding community colleges was adopted by the passage of Senate Bill 361.

• The formula simplifies funding from a complicated five step process to a three step process.– Foundation amount– Credit FTES– Non credit FTES

FOUNDATION (Step 1)

CREDIT REVENUE (Step 2)

• EQUALIZATION = TARGET OF 90%• 90% =$ 3,955 PER FTES (05-06)• COLA OF 4.23 % =$ 4,123• MULTIPLY 2005-06 P-2 FTES BY

$4,123 AND YOU GET BASE CREDIT REVENUE

NON CREDIT REVENUE (Step 3)

• NON CREDIT REVENUE IS APPROXIMATELY 60% OF CREDIT REVENUE

• $ 4,123 TIMES 60% = $ 2,479

• MULTIPLY NON CREDIT FTES BY $ 2,479 AND THAT EQUALS INCOME

ProgramBased Funding

SB 361

SB 361

PBF versus SB 361

2006-07COLA OF 5.92%IS APPLIED TO ALL BASES

AFTER COLA IS APPLIED

• GROWTH FOR 06-07 IS CALCULATED AT 4,367 PER CREDIT FTES WHICH INCLUDES NEW 5.92 % COLA

• GROWTH FOR NON CREDIT IS 2,626• A DISTRICT WILL NOT GET GROWTH MONEY IF THEY

HAVE PRIOR YEAR(S) RESTORATION TO MAKE UP

IF A DISTRICTRESTORES ALLLOST FTES FROM PRIORTHREE YEARSAND GROWS UP TO 2%

As always Community College funding is from the same sources as in the past.• FEDERAL INCOME

• STATE INCOME

• LOCAL INCOME

• BEGINNING BALANCE

BEGINNING BALANCESSTATEWIDE

0

100,000,000

200,000,000

300,000,000

400,000,000

500,000,000

600,000,000

700,000,000

800,000,000

1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

The 72 Community College Districts are starting 2006-07 with three-quartersof a Billion dollars in beginning balances !!!!!!!!

BEGINNING BALANCES BY DISTRICT

BUDGET HISTORY SOUTH ORANGE

Twenty year earnings