RIVERSIDE COMMUNITY COLLEGE DISTRICT Budget Allocation Model
Transcript of RIVERSIDE COMMUNITY COLLEGE DISTRICT Budget Allocation Model
RIVERSIDE COMMUNITY COLLEGE DISTRICT
Budget Allocation Model Development Task Force Friday – November 21, 2008
9:00 - 11:00 a.m.
AGENDA
I. Welcome and Call to Order
- Review minutes of November 7, 2008 meeting
II. Budget Allocation Model
- Analysis of Norm’s BAM proposal presented on November 7, 2008
- FY 2008-2009 and FY 2009-2010 Budget Projections
� Strategies for potential Budget Reductions
- New and Vacant Position Funding Allocation Methodology
- Treatment of Budget Savings and Base Budget Adjustments
III. Other
- Strategic Enrollment Management
IV. Next Meetings (all from 9:00 – 11:00 a.m.)
� Friday, December 5, 2008 – DL 409
� Friday, December 19, 2008 – Citrus Room
� Friday, January 9, 2009 – Citrus Room
� Friday, January 23, 2009 – Citrus Room
V. Adjournment
RIVERSIDE COMMUNITY COLLEGE DISTRICT
Budget Allocation Model Development Task Force Meeting of November 21, 2008
MINUTES
Task Force Members
PresentPeter Boelman, Associate Professor, Economics, Social & Behavioral Sciences (Norco) Aaron Brown, Associate Vice Chancellor, Finance Patti Braymer, Interim Vice President, Business Services (Moreno Valley) Jim Buysse, Vice Chancellor, Administration and Finance Becky Elam, Vice President, Business Services (Riverside) Norm Godin, Vice President, Business Services (Norco) Beth Gomez, District Budget Manager Cindy Taylor, Outreach/Passport to College Coordinator (Riverside) Tom Wagner, Associate Professor, Business Administration (Norco) – Arrived at 9:30 a.m. Ajene Wilcoxson, Associate Professor, Business Administration (Riverside) Meghan Skaggs, Treasurer, ASRCC (Norco) Kristen Van Hala – (Recorder) AbsentMichael McQuead, Associate Professor, CIS (Moreno Valley) Meshay Brown, President, ASRCC (Riverside)
I. Meeting was called to order
II. Minutes of November 7, 2008
The minutes of the November 7, 2008 meeting were reviewed and approved without change.
III. Budget Allocation Model
� Review of Norm’s BAM proposal (attached)
o Everything in blue was taken from the BAM summary report that was presented to the
Board of Trustees in May. The yellow line was created to set-aside additional reserve
funds. The intent was to fund as many aspects of the model as possible, before
reducing for the additional reserve set-aside.
1 of 4
o The BAM Task Force will need to decide on the importance and priority of the BAM
component - 1% Reserve for Economic Uncertainty.
o Moreno Valley and Norco appear to be impacted the most by the way the additional
set-aside reserve was handled in the adopted budget. This impact was mitigated by the
additional budget augmentations subsequent to budget adoption, The augmentations
are shown as the “Small College Factor.”
o Budget savings treatment still needs to be resolved. Can unused funds be retained at
the site level and roll into the next year, for use on a one-time basis?
o Dr. Buysse cited DeAnza College as a budget example. Their budget was divided into
three groups: the “A” budget for personnel and utilities; the “B” budget (salaries); and
the “C” budget for capital outlay. By consensus of the BAM Task Force, this
methodology will be explored further.
o Historically, the P/T faculty and overload budgets have been over-spent. If this
occurs, how would shortages be handled? Right now they are handled primarily by
salary savings.
o Should it be the responsibility of the site to operate within the budget allocation model
and handle any shortfalls themselves, including in P/T faculty and overload
categories?
o We need to keep in mind that we are transitioning to a three-college system and that
some budget solutions and treatment may need to be phased in over time.
� Budget Reduction Strategies
o The state’s “Big 5” are meeting today. Aaron distributed a handout of a budget
scenario modeling what is expected to be worst-case showing mid-year cuts for 2008-
2 of 4
o The projected adjustments and mid-year cuts result in an estimated shortfall of $5
million for 2008-09. Moving into 2009-10, the deficit is projected at $10 million after
the 5% contingency.
o Becky Elam distributed the Budget Allocation Model Principles sheet that was
presented to the Board in May. It has been updated by RCC to show Student Services
as a high priority. Student access, student programs, and stand-alone college status are
all priorities. Prioritizing in-house recruiting for positions instead of outside recruiting
will save money.
o Aaron distributed a revised version of the 2008-09 Budget Allocation Model that has
been updated for the budget augmentations provided to Moreno Valley and Norco
(shown as the Small College Factor.)
o There is approximately $2.1 million left of the Remaining Allocation Increment for
FY 2008-09 after factoring in the growth funding relocation, Lottery reduction, and
Moreno Valley and Norco augmentations.
o Possible consideration of a Golden Handshake.
o Scrutinize expenditures. Look at prior years to see how budget savings were achieved.
o Some budgets cannot be reduced without reducing student services.
o Some budgets have already been cut to fund new positions.
o Maintaining student access should be the primary goal.
3 of 4
4 of 4
o Cutting P/T faculty may impact student accessibility. Would it be better to cut online
courses or in-class sections?
o Dr. Buysse will discuss Budget Reduction Strategies with Executive Cabinet on
Monday, November 24th. Communication has to be very clear.
o In the 1990’s, the District did not have any instructional equipment money or
scheduled maintenance money.
o When enrollment fees were increased to $26/unit, demand for classes died. We ought
to assume a similar scenario if the enrollment fees go up to $30/unit.
� Proposal Consensus
o Each Campus and each Vice Chancellor area should develop their own reduction
strategy. Departments can help advise on where cuts can be made. The goal will be to
achieve a 5% cut (approx. $7 million) over an 18-month period.
o It should be emphasized that these are planning strategies only at this point, so we can
be prepared in the event actual reductions become a reality.
IV. Next Meeting
� Next BAM Meeting is scheduled for Friday, December 5, 2008 in the Digital Library 4th floor
conference room, DL 409, 9:00 a.m. to 11:00 a.m.
o Discuss the BAM proposals.
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catio
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odel
:
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view
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s of
Bas
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pend
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Bud
gets
�D
evel
opm
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f Dis
cipl
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WSC
H:F
TEF
Stan
dard
s�
Stud
ent S
ucce
ss In
cent
ive
�N
ew P
ositi
on F
undi
ng A
lloca
tion
Met
hodo
logy
�Tr
eatm
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f Bud
get S
avin
gs�
Base
Bud
get A
djus
tmen
ts�
On-
Line
Edu
catio
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ES A
lloca
tion
�O
ther
Ince
ntiv
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isin
cent
ives
FY 2
009-
2010
Bud
get A
lloca
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Mod
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t 11-
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stud
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atio
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he b
est
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rest
of s
tude
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will
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Stu
dent
Ac
cess
and
Stu
dent
Ser
vice
s w
ill r
emai
n th
e hi
ghes
t prio
rity.
�Co
llegi
ality
.Re
sour
ce a
lloca
tion
mus
t be
view
ed a
s th
e di
strib
utio
n of
fund
s in
a
man
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that
is b
est f
or th
e D
istr
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ith a
n un
ders
tand
ing
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e “p
ower
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hree
”. Co
ntin
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ith th
e fo
cus
on M
oren
o Va
lley
and
Nor
co s
epar
ate
colle
ge g
oal.
Enga
ge th
e co
llege
com
mun
it y in
the
dial
ogue
. Re
duct
ion
mus
t be
equi
tabl
e.
�Lo
ng r
ange
pla
nnin
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y re
lyin
g up
on th
e D
istr
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trat
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goa
ls, t
he C
olle
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duca
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and
Faci
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Mas
ter
Plan
s, th
e St
rate
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and
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Rev
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pro
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tly s
tart
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.
�Em
pow
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ent o
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tabi
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At
the
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Aut
horit
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ust b
e as
sign
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t the
low
est a
pplic
able
leve
l. Em
pow
er e
ach
entit
y to
det
erm
ine
whe
re
budg
et c
uts
will
com
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om a
nd s
eque
nce
of
cuts
.
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gnifi
canc
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fisc
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ear b
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arie
s. A
lignm
ent
of o
n-go
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com
mitm
ents
with
on-
goin
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venu
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s an
d on
e-tim
e al
loca
tions
with
one
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quis
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omm
unic
ate
fisca
l inf
orm
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d pr
ojec
ted
shor
t ter
m a
nd lo
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ange
impa
cts
to
the
cam
pus
com
mun
ity.
�Ca
mpu
s re
spon
sibi
lity.
By
prov
idin
g Co
llege
s w
ith th
e op
port
unity
and
aut
horit
y to
man
age
budg
ets
by p
rovi
ding
car
ry-o
ver o
f unu
sed
fund
s.
Allo
w e
ach
entit
y to
iden
tify
cut s
eque
nce;
pr
ovid
e fo
r ca
rry-
over
to in
cent
iviz
e co
st
redu
ctio
n an
d pr
omot
e lo
ng-r
ange
pla
nnin
g.
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duci
ary
resp
onsi
bilit
y. C
ompl
ianc
e w
ith F
eder
al,
Stat
e, a
nd L
ocal
reg
ulat
ions
will
be
adhe
red
to.
This
incl
udes
fund
ing
a m
inim
um fi
ve (5
) per
cent
Re
serv
e fir
st. C
omm
unic
ate
regu
lato
ry
requ
irem
ents
and
cha
nges
to th
e co
llege
fam
ily.
�D
ata
dete
rmin
ed d
ecis
ion-
mak
ing.
The
dat
a el
emen
ts o
f the
mod
el w
ill b
e w
idel
y kn
own
and
dist
ribut
ed. D
owns
trea
m fi
nanc
ial i
mpa
cts
mus
t be
iden
tifie
d in
dec
isio
n-m
akin
g. M
odel
sc
enar
ios.
Del
iber
ate
and
care
ful p
lann
ing
over
kn
ee-j
erk
reac
ting.
Dat
a in
form
ed d
ecis
ions
s h
ould
incl
ude
long
-ter
m im
pact
s.
PRIN
CIPL
ES:
The
Budg
et A
lloca
tion
Mod
el (B
AM) w
ill e
ncou
rage
:
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IDE
COM
MUN
ITY
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MUN
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COLL
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DIS
TRIC
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BUD
GET
ALL
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N M
OD
ELBU
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DELP
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by
Bec
ky E
lam
at 1
1-21
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BA
M m
eetin
g
�D
ynam
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The
BAM
will
pro
vide
the
abili
ty to
re
flect
cha
nges
in D
istr
ict a
nd C
olle
ge
prio
ritie
s or
str
uctu
re. R
evis
it ba
se b
udge
t and
or
gani
zatio
nal s
truc
ture
. Re
loca
te e
xist
ing
staf
f to
prov
ide
bett
er o
ppor
tuni
ty o
f mee
ting
stan
d al
one
colle
ge s
tatu
s go
al.
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mm
unic
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bro
adly
. Th
e Co
llege
co
mm
unity
will
hav
e a
full
unde
rsta
ndin
g of
th
e m
odel
, the
pro
cess
and
resu
lting
fund
ing
deci
sion
s. I
nfor
mat
ion
will
be
easi
ly a
cces
sibl
e an
d cl
early
com
mun
icat
ed. M
aint
ain
an o
pen
dial
ogue
with
the
colle
ge c
omm
unity
.
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ttom
-up
and
Top-
dow
n. M
echa
nism
s w
ill
exis
t for
inpu
t fro
m a
ll le
vels
of t
he C
olle
ge
com
mun
ity in
clud
ing
stud
ents
. Allo
w e
ach
entit
y to
det
erm
ine
whe
re b
udge
t cut
s w
ill
com
e fr
om.
�Ea
sy to
app
ly.
The
mod
el m
ust b
e st
raig
htfo
rwar
d in
its
appl
icat
ion.
�A
deci
sion
-mak
ing
tool
. Th
e BA
M m
ust
supp
ort s
trat
egic
pla
nnin
g, p
lann
ed g
row
th,
prog
ram
exp
ansi
on a
nd c
ontr
actio
n.Th
e BA
M
mus
t be
able
to r
espo
nd to
cris
isas
wel
l as
mul
ti-ye
ar p
lans
.
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alua
ted
and
asse
ssed
. O
n an
ann
ual b
asis
an
d im
prov
ed a
s ap
prop
riate
. St
rate
gic
Enro
llmen
t Man
agem
ent t
echn
ique
s sh
ould
be
intr
oduc
ed a
nd im
plem
ente
d.
�Ra
tiona
l. B
udge
ts m
ust r
efle
ct n
eeds
and
av
aila
ble
reso
urce
s. W
hen
imbe
dded
form
ula’
s do
n’t w
ork,
alte
rnat
ive
optio
ns m
ust b
e av
aila
ble.
Reo
rgan
ize
in a
sen
sibl
e an
d ef
ficie
nt
man
ner.
Ide
ntify
dup
licat
ion
of e
ffor
t and
co
nsol
idat
e to
eli m
inat
e re
dund
ancy
. Fi
ll va
canc
ies
from
with
in.
�Ti
mel
y. A
lloca
tion
of fu
nds
thro
ugh
the
BAM
w
ill b
e di
strib
uted
in a
tim
ely
man
ner
to a
llow
fo
r th
ough
tful
impl
emen
tatio
n of
pla
ns.
Pr
oact
ive
mea
sure
s ta
ken
now
will
alle
viat
e fe
ar
and
unav
oida
ble
actio
ns in
the
near
futu
re.
PRIN
CIPL
ES:
The
Budg
et A
lloca
tion
Mod
el (B
AM) w
ill b
e:
RIVE
RSID
ERI
VERS
IDE
COM
MUN
ITY
COM
MUN
ITY
COLL
EGE
COLL
EGE
DIS
TRIC
TD
ISTR
ICT
BUD
GET
ALL
OCA
TIO
N M
OD
ELBU
DG
ET A
LLO
CATI
ON
MO
DELP
rese
nted
by
Bec
ky E
lam
at 1
1-21
-08
BA
M m
eetin
g