Santa Monica College 2023-2024 Budget Overview
Santa Monica College's budget for 2023-2024 presents a recap of changes from the tentative projections, detailing revenue, expenditures, surplus/deficit, and ending fund balance. The systemwide budget and state adopted budget for 2023-2024 are also discussed, highlighting economic challenges and impacts on funding. The presentation includes information on Prop. 98 Minimum Guarantee over the years.
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SANTA MONICA COLLEGE Presentation of the 2023 - 2024 Proposed Adopted Budget Board of Trustees September 12, 2023
2022 - 2023 RECAP SUMMARY OF CHANGES FROM TENTATIVE BUDGET PROJECTIONS
2022-2023 Tentative Projections $ 43,914,608 2022-2023 Unaudited Final $ 43,914,608 2022-2023 Adopted $ 43,914,608 Major Change No Change Change Amount $ - Beginning FB Apportionment $ 154,272,704 $ 154,753,003 $ 153,271,985 0.96% Deficit Factor Increased interest return $ (1,481,018) Non-Apportionment $ 14,494,248 STRS On-behalf Payment $ 18,083,064 $ 19,497,751 $ 1,414,687 Accounting entry only No budget effect $ 7,413,205 $ 7,413,205 $ 5,386,881 $ - Non-Resident Tuition $ 22,976,436 $ 23,058,284 $ 22,922,455 Final accounting Moved exp. to CBG. Backfilled revenue $ (135,829) HEERF $ 487,115 $ 487,115 $ 3,783,848 $ 3,296,733 Total Revenue $ 199,643,708 $ 203,794,671 $ 204,862,920 $ 3,094,573 Final accounting 0.9% difference Salary and Benefits STRS On-behalf Payment Supplies/Other Operating/Transfers $ 20,538,642 $ 174,420,666 $ 191,867,728 $ 190,119,830 $ (1,747,898) Accounting entry only No budget effect $ 7,413,205 $ 7,413,205 $ 5,386,881 $ - $ 19,791,784 $ 19,248,304 Final accounting $ (543,480) Total Expenditure $ 202,372,513 $ 219,072,717 $ 214,755,015 $ (2,291,378) Surplus/Deficit $ (2,728,805) $ (15,278,046) $ (9,892,095) $ 5,385,951 Ending Fund Balance $ 41,185,803 $ 28,636,562 $ 34,022,513 $ 5,385,951 20.35% 13.07% 15.84% 2.77%
REMINDER: CCCCO HAS NOT MADE DISTRICT LEVEL CALCULATIONS FOR ALL PROGRAMS
2023-2024 State Adopted Budget Feast or famine May 2022 State reported a $97.5 billion surplus June 2023 State estimated a $31.5 billion deficit Issues include: (From CCCCO System Budget Presentation) Population decline for past two years Home prices are 8.5% below April 2022 Personal Income Taxes are behind in 2023 by double digits Labor force is below pre-pandemic peak Slow wage gains but high inflation weakness in technology sector and declining investments in California businesses have reduced compensation to high-income taxpayers which California s tax structure is heavily dependent on. California Community Colleges Increased by $308.6 million In 2022-2023 Community Colleges received $4 billion additional funding $1.9 billion ongoing $2.1 billion one-time
Prop 98 Minimum Guarantee 120 110.6 108.3 107.4 100 96.1 80 79.3 78.5 Funding in Billions 60 40 20 0 2018 - 19 2019 - 20 2020 - 21 2021 - 22 2022- 23 2023 - 24 2018 - 19 2019 - 20 2020 - 21 2021 - 22 2022- 23 2023 - 24
Apportionment 8.22% COLA on Apportionment $678.0 million systemwide Estimated $12,681,216 for SMC 0.5% Growth SMC is in hold harmless
Apportionment SCFF vs. Hold Harmless Hold Harmless = $166,953,920 SCFF = $159,696,179 Projected Hold Harmless is $7,257,741 million 1,367 Credit Resident FTES
Apportionment Revised Hold Harmless Provision Starting in 2025-26 Districts will receive either funding under the SCFF or the amount of funding received in 2024-25 . Whichever is greater Hold Harmless Districts will no longer receive COLA!!! Assuming 3% Credit FTES growth and COLA s of 3.94% in 24-25 and 3.29% in 25-26 the District will in Hold Harmless in the amount of $5,514,990 967.84 Credit Resident FTES Only 12 Districts are funded under SCFF in 2023-24
COLA for Categoricals 8.22% COLA for: EOPS DSPS Calworks NextUp Basic Needs Mandated BG CARE Mental Health Veterans Umoja
Student Enrollment and Retention $50 million one-time to engage with former and prospective students who discontinued due to COVID-19 Retroactive reduction of <$55.4> million issued in 2022-2023 Net effect = <$5.4> million
Physical Plant and Instructional Equipment $5.7 million one-time SMC: $109,543 Retroactive reduction of <$500> million issued in 2022-2023 2022-23: $16,065,543 Reduction: <$9,555,621> Remaining: $6,509,922
Other Allocations and Changes Student Housing: Removes grants and replaces them with a requirement for Districts to issue Lease Revenue Bonds with State pledge of support to pay off the bonds COVID Block Grant: Increased flexibility including to include deferred maintenance and enrollment and retention LGBTQ+ Pilot Program at LACCD: One-time $10.0 million East LA Entrepreneurship and Innovation Center: One-time $2.5 million Equal Opportunity Program: $5.7 million Student Success Completion Grant: Increases maximum award from $4,000 per semester to $5,250 for current and former foster youth enrolled in 12 or more units.
LINKING PLANNING TO BUDGETING District Planning and Advisory Council (DPAC) Primary planning body Continued 2 Annual Plans from 2022-2023 into 2023-2024 Both plans included in the Proposed Adopted Budget Unrestricted Funded - $600,750 Grant Funded - $276,250
Develop a Master Plan for Education Budget: $185,000 (one-time) to be funded by Unrestricted General Fund Purpose/Goal of Action Plan: Establish a task force comprised of representatives from all constituencies of the District who will work with Administrators and consultant in developing the District s Master Plan of Education. Relaunch The Center to be a Learning and Professional Development Center for All Employee Groups Budget: $415,750 (ongoing) to be funded by Unrestricted General Fund and $276,250 (ongoing) to be funded by Student Equity and Achievement Program Purpose/Goal of Action Plan: Support theInstitutional Effectiveness Partnership Initiative in its design and implementation of a comprehensive professional development plan for all employee groups, which aligns with the District s redesign, equity mission, vision and goals, to improve student racial equity and sense of belonging on campus.
MAJOR ASSUMPTIONS Apportionment COLA: 8.22% or $12,681,216 No Growth: Hold harmless Deficit Factor: 0.00%
Credit FTES 20,000 CrFTES growth of 3.0% or 482.20 FTES 19,501 19,500 19,101 19,000 18,500 Decline of 2,946 or 15.1% 18,000 17,551 17,500 17,013 17,000 16,555 16,500 16,073 16,000 15,500 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 Proj. Credit FTES
Non-Resident FTES Non-resident FTES: 7.0% or 199 FTES 5,200 5,071 4,700 4,259 4,200 Decline of 1,214 or 28.5% 3,703 3,700 3,088 3,200 3,045 2,846 2,764 2,700 2,200 2007-2008 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 Proj. Non-Resident FTES
NR Tuition revenue increase of ~$1,604,073 from PY 2018-2019 = $33,029,528 2019-2020 = $28,384,549 2020-2021 = $23,987,221 2021-2022 = $21,657,241 2022-2023 = $22,922,455 2023-2024 Proj. = $24,526,528 5 Year Decrease of ~<$8,503,000> or <25.7%> All revenues driven by FTES adjusted
Since 2018-2019, total FTES served is projected to have declined by ~<16.6%> or <4,069.76> FTES
Higher Education Emergency Relief Fund (HEERF) ended June 2023 All revenues driven by FTES adjusted
Salaries: Step, column, longevity and negotiated adjustments Health and Welfare Current employees: 11.9% Retirees: 2.93% Utilities: Adjusted for increased usage Full-year Malibu included Insurance: 9.12% No Equipment Emergency Need Fund 40.0
July Board Meeting: Discussion on budget balancing recommendations (Tentative to Adopted) Major changes: 100% efficiency adjusted to 92.5% (annual) Late notification for Fall planning Provides time to plan for 100% efficiency in Winter and Spring Original: 6,883; Updated: 7,891; Current: 8,213 (Fall 22: 8,512) Census Date: 85.54% efficiency (Fall 22 was 80.07%) Attrition savings recalculated to $2.4 million from $1.75 million
Balancing Action to Tentative Projected Saving Increase in Efficiency $4,158,367 Management/Classified Attrition $2,423,259 Contracts and Services $500,024 Non-Instruction $440,173 Student Help $373,170 Conferences $214,044 20% Supplies $206,819 Overtime $144,529 TCO $67,070 Total Balancing Measures: $8,527,455
UNRESTRICTED GENERAL FUND MULTI-YEAR PROJECTION 2022-2023 2023-2024 2024-2025 2025-2026 Beginning Fund Balance 43,914,608 34,022,513 27,053,456 17,872,786 204,862,920 216,247,369 224,258,031 225,387,753 Revenues 214,755,015 (9,892,095) 34,022,513 223,216,426 (6,969,057) 27,053,456 233,438,701 (9,180,670) 17,872,786 239,030,443 (13,642,690) 4,230,096 Expenditures Operating Surplus/(Deficit) Ending Fund Balance Fund Balance Ratio to Total Expenditures and Transfers 15.84% 12.12% 7.66% 1.77% Tentative Budget = 5.10% Tentative Budget = <3.24%>
Projected Changes in Revenue 2022-2023 Unaudited to 2023-2024 Proposed Adopted Budget 2022-2023 Unaudited Revenue $204,862,920 COLA 12,681,216 Non-Resident Tuition 1,604,073 Non-repetition of Deficit Factor 1,481,018 STRS On-behalf 1,224,601 Indirect Costs 337,031 Non-repetition of PY Adjustment <480,299> Interest <493,771> Lottery End of ECA <1,232,732> HEERF Revenue Backfill and Indirect <3,783,848> Other 47,160 Proposed Adopted Budget Projection: $216,247,369 Total Increase in Revenue is $11,384,449 or 5.56%
Projected Changes in Expenditure 2022-2023 Unaudited to 2023-2024 Proposed Adopted Budget 2022-2023 Unaudited Expenditure $214,755,015 Negotiated On Schedule Increases and Related Benefits 9,326,278 Full-year Effect of Hiring and Termination 2,644,824 Step, Column and Longevity 2,563,165 Health and Welfare Current and Retiree 2,232,466 Employment and Retirement Benefits 1,253,627 STRS On-behalf 1,224,601 Total Increase in Expenditure is $8,461,411 or 3.94% Vacancy List 820,569 Insurance and Utilities 454,529 Non-repetition of retroactive pay <4,565,617> Budget Balancing Actions <7,666,341> Other 173,310 Proposed Adopted Budget Projection: $223,216,426
Projected Changes in Fund Balance Unaudited 2022-2023 Proposed 2023-2024 Beg. Fund Balance: 43,914,608 34,022,513 Ongoing Revenue: 201,198,106 216,181,256 Ongoing Expenditure: 208,108,916 222,346,419 Operating/Structural Surplus/Deficit: <6,910,810> <6,165,163> One-time Items: <6,765,133> <803,894> One-time HEERF: 3,783,848 - Surplus/Deficit w/ One-time Items: <9,892,095> <6,969,057> Ending Fund Balance: 34,022,513 27,053,456 FB to Total Expenditure and Transfer: 15.84% 12.12%
Bookstore Revenue 2018-2019 = $4.7 million 2021-2022 = $1.5 million 2022-2023 = $1.9 million Pandemic, success of OER, increased competition Developing a plan for financial sustainability Auxiliary
The Budget Team with Special Appreciation to Veronica Diaz Charlie Yen, John Greenlee and the Facilities Team Mitchell Heskel, David Dever and the Educational Enterprise Team Budget Committee
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