Santa Monica College Proposed Budget Summary 2021-2022
Santa Monica College's presentation of the 2021-2022 proposed adopted budget to the Board of Trustees on September 14, 2021, includes details on revenue, expenditure, budget reductions, and financial highlights from the 2019-2020 and 2020-2021 fiscal years. The budget outlines various actions taken to address financial challenges, such as faculty retirement plan reductions, furloughs, and funding shifts. Total budget reductions amount to $15,950,735 for the 2020-2021 fiscal year.
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SANTA MONICA COLLEGE Presentation of the 2021-2022 Proposed Adopted Budget Board of Trustees September 14, 2021
THINGS CAN AND WILL CHANGE CCCCO has not provided District allocations for the majority of new programs E.g. Full-time Faculty Hiring
2019-2020 June 30, 2020 2020-2021 Adopted 2020-2021 Without Backfill Revenue 21,339,089 2020-2021 With Backfill Revenue 21,339,089 Beg. Fund Balance 30,676,107 21,040,755 Apportionment Non- Apportionment Non-Resident Tuition HEERF Backfill Total Revenue Salary Benefits Supplies/Other Operating/Trfr Total Expenditure Surplus/Deficit Ending Fund Bal 136,530,947 20,640,216 136,612,902 16,714,384 137,662,108 18,106,939 137,662,108 18,106,939 28,384,549 24,150,510 23,987,221 23,987,221 N/A N/A N/A 16,681,407 196,437,675 112,789,091 55,281,777 14,222,146 185,555,712 120,446,348 55,466,408 19,278,308 177,477,796 111,790,374 55,610,932 17,834,450 179,756,268 112,789,091 55,281,777 14,222,146 195,191,064 <9,635,352> 21,040,755 185,235,756 <7,757,960> 13,282,795 182,293,014 <2,536,746> 18,802,343 182,293,014 14,144,661 35,483,750
2020-2021 Budget Action Amount of Budget Reduction/Action $3,270,966 $2,334,192 $1,940,928 $1,800,000 $1,780,163 $1,494,967 $1,270,460 $528,337 $468,291 $414,552 $212,879 $125,000 $90,000 $80,000 $60,000 $50,000 $30,000 Faculty Supplemental Retirement Plan Reduction in Hourly Instruction 1 Day Furlough and Salary Freeze (CSEA) Student Bad Debt Lease for Pool, Madison Campus, Airport Funding Shift 2 Day Furlough and Salary Freeze (Mgmt) Mgmt and Classified Supplemental Retirement Plan (Net) Renegotiation of BBB Contract Hourly Classified, Overtime, Contracts, and Supplies 5% Reduction HSI Federal Match Exemption Reduction in Hourly Counseling Global Citizenship Legal Fees ISC Community Services Specialists Intensive ESL Program Broad Stage Mailing Transportation Public Policy Institute Total Budget Reductions: $15,950,735
2019-2020 June 30, 2020 2020-2021 Adopted 2020-2021 With Backfill Revenue 21,339,089 2020-2021 Without Backfill Revenue 21,339,089 Does this mean we have a $14 million ongoing surplus? 21,040,755 Remember One-time revenue should not be used for ongoing expenditures Beg. Fund Balance 30,676,107 Apportionment Non- Apportionment Non-Resident Tuition HEERF Backfill Total Revenue Salary Benefits Supplies/Other Operating/Trfr Total Expenditure 136,530,947 20,640,216 136,612,902 16,714,384 137,662,108 18,106,939 137,662,108 18,106,939 28,384,549 24,150,510 23,987,221 23,987,221 N/A N/A 16,681,407 196,437,675 112,789,091 55,281,777 14,222,146 N/A 185,555,712 120,446,348 55,466,408 19,278,308 177,477,796 111,790,374 55,610,932 17,834,450 179,756,268 112,789,091 55,281,777 14,222,146 195,191,064 185,235,756 182,293,014 182,293,014 Surplus/Deficit Ending Fund Bal <9,635,352> 21,040,755 <7,757,960> 13,282,795 14,144,661 35,483,750 <2,536,746> 18,802,344
SUMMARY OF SYSTEM FUNDING Increase in Funding for CCC of $3,563,000,000 33 Adjustments including new and continuing programs $765.3 million Ongoing $505.0 million Unrestricted $260.3 million Restricted $2,518.3 million One-time All Restricted $1,453.2 repayment of deferrals $29.4 million technical adjustments $250 million ARP CCCCO has not released District allocations for many programs
Ongoing Funding Final Systemwide Projected District - Unrestricted $6.99 million Projected District - Restricted N/A COLA 5.07% $371.2 million Full-time Faculty Targeted Support Programs Student Basic Needs, Mental Health Strong Workforce $100.0 million $74.0 million $60.0 million Unknown N/A N/A N/A Unknown Unknown $42.4 million N/A Unknown COLA Categoricals 1.7% $29.2 million N/A $154 thousand Enrollment Growth 0.5% $23.8 million Hold Harmless N/A
Final Systemwide Projected District - Unrestricted Projected District - Restricted Apprenticeship Online Ed Support Part-time Faculty Office Hours Rising Scholars CENIC Dreamer Resource Liaisons $15.0 million $10.6 million $10.0 million $10.0 million $8.0 million $5.8 million N/A N/A N/A State Project Unknown N/A N/A State Project N/A N/A Unknown Unknown Library Service Platform $4.0 million N/A Unknown HBCU Transfer $1.3 million N/A Unknown Total Ongoing Funding $765.3 million $6.99 million $154 thousand
One-time Funding Systemwide Final Projected District - Unrestricted Projected District - Restricted Deferral Repayment $1,453.2 million N/A N/A $511.0 million N/A $9.31 million Schedule Maintenance/Instructional Equip. Zero Textbook Cost Degrees Student Basic Needs Retention and Enrollment Strategies Part-time Faculty Office Hours $115.0 million $100.0 million $100.0 million Competitive State Program N/A N/A Unknown $2.28 million $90.0 million N/A Unknown
Final Systemwide Projected District - Unrestricted Projected District - Restricted Guided Pathways $50.0 million N/A Unknown $20.0 million N/A Unknown Faculty Professional Development EEO Best Practices $20.0 million N/A Unknown $20.0 million N/A Unknown Collaboration with Workforce Development Board $10.0 million N/A Unknown Competency Based Education Common Course Numbering $10.0 million N/A Unknown
Final Systemwide Projected District - Unrestricted Projected District - Restricted LGBTQ+ Centers $10.0 million N/A Unknown $5.6 million N/A Unknown AB 1460 Anti-racism Initiatives Instruct.Materials Dual Enrollment CCC Registry Total One-time Funding $2.5 million N/A Unknown $1.0 million $2,518.3 million State Initiative $0.00 $11.59 million
LINKING PLANNING TO BUDGETING District Planning and Advisory Council (DPAC) Primary planning body Developed 8 Annual Plans for 2021-22 All 8 plans included in the Proposed Adopted Budget Grant Funded - $2,094,689 Unrestricted Funded - $525,226
Reduce Racial Equity Gaps and Increase Completion of Academic and Career Paths Budget: $44,707 (one-time)to be funded by Award and Innovation in Higher Education Purpose/Goal of Action Plan: Close gaps in educational outcomes and provide educational and career opportunities and pathways through a critical review of practices for developing, approving and assessing Program Learning Outcomes (PLOs) and course level Student Learning outcomes (SLOs). Reduce Racial Equity Gaps in Course Success for Largest Gateway Courses Budget: $1,402,535 (one-time)to be funded by Student Equity Achievement Program and Guided Pathways Purpose/Goal of Action Plan: Reduce racial equity gaps in course success for the largest gateway courses by implementing professional development program in equity minded teaching practices and curricular development. Reduce Racial Equity Gaps and Increase Success in AB705 Mathematics Courses Budget: $192,330 (on-going) to be funded by Unrestricted General Fund Purpose/Goal of Action Plan: Reduce racial equity gaps in AB 705 Math courses by providing support services to help students be successful on their Mathematics paths at SMC and when they move on to a 4-year institution. Reduce Racial Equity Gaps and Increase Success in AB705 English Courses Budget: $142,896 (on-going) to be funded by Unrestricted General Fund Purpose/Goal of Action Plan: Reduce racial equity gaps in AB 705 English courses by providing support services to help students be successful on their English paths at SMC and when they move on to a 4-year institution.
Starfish GPS Early Alert System Budget: $93,034 (on-going) to be funded by Student Equity Achievement Program Purpose/Goal of Action Plan: Increase persistence, retention and completion among racially minoritized students using SMC Gateway to Persistence and Success (GPS) technology tool. SMC Online Education Budget: $65,000 (one-time)to be funded by the Unrestricted General Fund and $61,415 (one-time)to be funded by Student Equity and Achievement Program Purpose/Goal of Action Plan: Increase the number of online degree and certificate completions by African American and Latinx students. Areas of Interest Counseling (at Scale) and Student Care Teams Budget: $492,998 (on-going) to be funded by Student Equity and Achievement Program and Title V Navigating Pathways to Success Purpose/Goal of Action Plan: (a) Implement counseling and support staff clusters for all Areas of Interest (AOI) (at Scale) (b) Student Care Teams reduce racial equity gaps in persistence, retention and completion through the implementation of a case management approach for racially minoritized students. Human Resource Staffing Plan Budget: $125,000 (one-time) to be funded by Unrestricted General Fund Purpose/Goal of Action Plan: Research and assess costs associated with developing a Human Resources staff plan which supports student success by achieving benchmark levels of full-time faculty, classified staff and administrators.
MAJOR ASSUMPTIONS Apportionment COLA: 5.07% or $6.99 million No Growth: Hold harmless Deficit Factor: <1.03%> = <$1.497> M Credit Res. FTES: <8.9%> or <1,682.62> FTES Highest CrFTES 2008-09: 22,859; 2021-22: 17,252 CrFTES = 17,252.39; NC = 705.16; Total: 17,957.55 FTES Medium District: Loss of <$1,425,366> Hold Harmless: $18,816,980 Need 4,382.63 CrFTES growth before funding begins Revenue Backfill: $14,395,308 2020-21: $16,681,407 Total 2 Year backfill: $31,076,715
Non-resident FTES: <14.22%> or <436.19> FTES 2007-08 = 5,071 FTES; 2018-19 = 4,259; 2019-20 = 3,702; 2020-21 = 3,067; 2021-22 = 2,631 NR Tuition revenue decrease of ~<$3,356,638> from PY 2017-2018 = $33,973,786 2018-2019 = $33,029,528 2019-2020 = $28,384,549 2020-2021 = $23,987,221 2021-2022 = $20,630,583 4 Year Decrease of ~<$13,343,203> or <39.3%> All revenues driven by FTES adjusted
Since 2016-2017, total resident and non-resident FTES served is projected to have declined by ~<21.0%> or <5,446.21> FTES
Salaries: Step, column, longevity and negotiated adjustments Health and Welfare (adjusted for SRP) Current employees: 5.6% Retirees: 6.07% Supplies pre-COVID funding level Services pre-COVID funding levels adjusted for approved increases Big Blue Bus: $1,008,000 Utilities: Adjusted for reopening on-campus activities Insurance: 9.7%
Projected Changes in Revenue 2020-2021 Unaudited to 2021-2022 Proposed Adopted Budget 2020-2021 Unaudited Revenue COLA Student Fees Other Local Revenue Lottery STRS On-behalf Deficit Factor (Net 20-21; 21-22) Non-repetition of PY Adjustment Reduction HEERF Backfill Non-resident Tuition/IESL Other Proposed Adopted Budget Projection: Total Decline in Revenue is <$996,769> or <0.51%> $196,437,675 6,985,928 384,890 -437,367 -451,072 -506,404 -661,000 -708,695 -2,286,099 -3,356,638 39,688 $195,440,906
Projected Changes in Expenditure 2020-2021 Unaudited to 2021-2022 Proposed Adopted Budget 2020-2021 Unaudited Expenditure Supplies and Contracts Benefits Non-repetition of Furlough SMCFA Negotiated Increase Step, Column and Longevity Vacancy List Utilities and Insurance Hourly Instruction and Non-Instruction STRS On-behalf Supplemental Retirement (Salary and Benefits 7-1 to 9-30) Vacation Payout (SRP and One-time) Other Proposed Adopted Budget Projection: $182,293,014 4,078,317 3,490,259 2,426,631 1,301,457 1,153,054 755,730 578,451 440,727 -506,404 -881,288 -1,121,733 119,734 $194,127,949 Total Increase in Expenditure is $11,834,935 or 6.5%
Projected Changes in Fund Balance Unaudited 2020-2021 Proposed 2021-2022 Beg. Fund Balance: 21,040,755 35,483,750 Adj. Beg. Balance: 298,334 - Ongoing Revenue: 160,468,113 163,125,731 Ongoing Expenditure: 180,052,788 193,321,826 Operating/Structural Surplus/Deficit: <19,584,675> <30,196,095> One-time Items/Hold Harmless: 17,047,929 17,113,744 One-time HEERF: 16,681,407 14,395,308 Surplus/Deficit w/ One-time Items: 14,144,661 1,312,957 Ending Fund Balance: 35,483,750 36,769,707 FB to Total Expenditure and Transfer: 19.47% 18.95%
2020-2021 experienced artificially low expenditures and artificially high revenue 2021-2022 includes $14.4 million in one-time HEERF backfill funds 2022-2023 no further HEERF funding Significant structural deficit of <$30,196,095> Unless a substantial increase in students served occurs in the next 12-18 months the District will need to resize to maintain fiscal stability.
The Budget Team with Special Appreciation to Veronica Diaz Charlie Yen, John Greenlee and the Facilities Team Budget Committee
