MIRACOSTA COMMUNITY COLLEGE DISTRICT BUDGET WORKSHOP FEBRUARY 18, 2021
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MiraCosta Community College District
Budget Workshop
February 18, 2021
AGENDA
A Look Back at FY2020/21
› Budget Assumptions
› General Fund Current Status
A Look Forward to FY2021/22
› Governor’s January Budget
› MiraCosta Landscape
› Review and Discussion of Budget Directives
› Budget Process and Next Steps
2
A LOOK BACK AT FY2020/21 ASSUMPTIONS
Revenue Assumptions-Unrestricted Gen Fund:
Anticipate property tax revenue growth slow down, but not
as severe as overall state revenue declines
$4.4M deferral of State provided restricted and unrestricted
fund revenue deferred:
$3.75M of Student Equity and Achievement Funds
$688K in Apportionment funding
CARES Act Federal Funding of $5.8M
COVID-19 Response Grant Funding of $1.1M
Loss of one-time allocations
Loss of local revenue
› (bookstore, food service, parking fees, ticket sales)
Loss of enterprise fund revenue
› Civic center, bookstore, food service, etc.
Increase FTES by 1% over FY2019/20
3
A LOOK BACK AT ASSUMPTIONS FOR
FY 2020/21
4
FY 2020/21 GENERAL FUND
UNRESTRICTED REVENUES
FY2020-21 FY2020-21 FY2020-21
Revenues-General Fund FY2019-20 FY2020-21
Actual-to-Date Projected Projected vs Projected Comment
Unrestricted (Fund 11) Actual Budget
1/20/2021 1/20/2021 Curr Budget
State (Lottery, EPA, Gen Appt) $5,068,234 $5,107,016 $1,446,214 $5,107,016 $0
State's funding to STRS, not a
State STRS on Behalf $4,900,943 $4,900,943 $0 $4,900,943
MCCD revenue
Original budget amount is now
4.26% growth (instead of 5.1%)
Property Taxes $111,897,588 $116,664,239 $48,261,671 $116,664,239 $0
due to higher FY2019-20 actuals.
Potential upside of $940K
97% received; may receive more
Student Fees & Charges $7,243,612 $7,661,053 $7,423,979 $7,661,053 $0
from late payments
Student Fees Comm
$1,321,204 $1,300,000 $962,060 $1,300,000 $0 74% of Budget received
Education
Other Local Revenues-
$792,666 $700,000 $112,102 $700,000
Interest Income
Other Local Revenues * $438,448 $90,003 $116,592 $116,592 $26,589
Total Revenues $131,662,695 $136,423,254 $58,322,618 $136,449,843 $26,589
* Other Local Revenues are: Theatre ticket sales, space rentals, child care fees,other
5FY 2020/21 GENERAL FUND
UNRESTRICTED EXPENDITURES
FY2020-21 FY2020-21 FY2020-21
Expenditures-General Fund FY2019-20 FY2020-21
Actual-to-Date Projected Projected vs Projected Comment
Unrestricted (Fund 11) Actual Budget
1/20/2021 1/20/2021 Curr Budget
Academic Salaries $47,665,792 $49,999,053 $26,765,013 $49,999,053 $0
Classified Salaries $28,865,961 $31,172,223 $17,023,873 $31,172,223 $0
Employee Benefits $26,740,651 $28,542,056 $15,407,569 $28,542,056 $0
Employee Benefits STRS-on- State's payment to STRS, not
$4,900,943 $4,900,943 $0 $4,900,943
Behalf a MCCD Expense
Supplies and Printing $1,600,908 $2,152,287 $471,460 $2,152,287 $0
Other Operating Costs $9,327,125 $10,358,972 $4,954,911 $10,358,972 $0
Anticipate savgings with only 6
Capital Outlay $1,893,190 $2,621,386 $513,482 $2,121,386 ($500,000)
month to go
Transfers to Fund 41 Capital
Other Outgo $8,040,335 $7,256,000 $49,483 $7,256,000 $0
Projects will be done in 2H
Total Expenditures $129,034,906 $137,002,919 $65,185,792 $136,502,919 ($500,000) -49.5%
Salaries and Benefits $103,272,405 $109,713,331 $59,196,454 $109,713,331 $0 0%
Sal and Benefits % of Total 83.2% 83.1% 83.4%
Other Operating Expenses $20,861,558 $22,388,645 $5,989,337 $21,888,645 ($500,000) -2.4%
Other Ops Exp % of Total 16.8% 16.9% 16.6%
6FY 2020/21 GENERAL FUND
UNRESTRICTED FUND BALANCE
FY2020-21
Fund Summary-Gen Fund FY2019-20 FY2020-21
Projected
Unrestricted (Fund 11) Actual Budget
1/20/2021
Revenues $131,662,695 $136,423,254 $136,449,843
Expenditures $129,034,906 $137,002,919 $136,502,919
Revenues less Expenses $2,627,789 ($579,665) ($53,076)
Beginning Fund Balance, July 1 $30,739,003 $33,366,792 $33,366,792
Revenues less Expenses $2,627,789 ($579,665) ($53,076)
Ending Difference
Fund Balance,
fromJune
FY1930Projected
$33,366,792 $32,787,127
vs FY19 Budget $33,313,716
Fund Balance% of Expenses 25.9% 23.9% 24.4%
7MEASURE MM BOND FUND STATUS (SER A)
THROUGH END OF JANUARY 22, 2021
FY2020-21 FY2020-21
Fund 43 General Obligation Bond Through Total-to-Date
Actual Committed
(Series A) 6/30/2020 01-22-2021
01-22-2021 01-22-2021
Revenue:
Total Revenue - Series A (Issue 1) $100,000,000 $0 $100,000,000
Expense by Project: Spent Spent Committed Spent/Committed
Bond LPB Payoff $12,084,069 $12,084,069
Bond Projects $50,740,081 $18,532,901 $13,987,809 $83,260,791
Total Expenditures $62,824,150 $18,532,901 $13,987,809 $95,344,860
% Spent/Committed-to-date Jan 2021 95.3%
Remaining Funds-Uncommitted $4,655,141
% Remaining Funds-Uncommitted 4.7%
NOTE:
Bond Interest Earned - Series A $4,118,007 $4,118,007
8MEASURE MM BOND FUND STATUS (SER B)
THROUGH END OF JANUARY 22, 2021
FY2020-21 FY2020-21
Fund 43 General Obligation Bond Through Total-to-Date
Actual Committed
(Series B) 6/30/2020 01-22-2021
01-22-2021 01-22-2021
Revenue:
Total Revenue - Series B (Issue 2) $0 $255,000,000 $255,000,000
Expense by Project: Spent Spent Committed Spent/Committed
Bond Cost of Issuance $0 $381,000 $381,000
Bond Projects $0 $1,943,728 $11,721,621 $13,665,349
Total Expenditures $0 $2,324,728 $11,721,621 $14,046,349
% Spent/Committed-to-date Dec 2019 5.5%
Remaining Funds-Uncommitted $240,953,651
% Remaining Funds-Uncommitted 94.5%
9GOOD NEWS IN THE SHORT TERM
The FY2020/21 State Budget went from a planned $5.6B
surplus to a $54.3B deficit. Six months later, revenue growth is
surpassing the original projections.
State Budget Proposal – First step in state’s budgeting process
● General Fund spending up by $8.6B (5.5%), to $164.5B
● $15.5B in discretionary resources:
○ $11B in one-time spending and reserves
○ $1.3B in ongoing programmatic spending
○ $2.5B in revenue reductions
Community Colleges Budget Proposal
● The Governor's Budget proposes $681M in funding for one-time
and ongoing programs and initiatives
○ $428M one-time
○ $203.9M ongoing
○ $49M technical adjustments
10FUTURE BUDGET CHALLENGES AND
RECOVERY INEQUITIES
11January Budget – Community College Proposals
The Governor's Budget proposes $681M in funding for one-time and
ongoing programs and initiatives
Apportionment
Cost of living adjustment of 1.5% ongoing for general
apportionment as well as selected categorical programs
Paying down $1.13B of the $1.45B in deferrals from the 2020/21
budget year with one-time funds
College Affordability
$250M in one-time funds for emergency financial assistance
grants,
$15M in one-time funds to support competitive grants and
technical assistance to expand zero textbook cost (ZTC).
Increase the number of competitive Cal Grant awards
to 50,000 annual awards (Increase of 9K)
12Student Needs
$100M one-time to address student basic needs including
housing and food insecurity
$30M ongoing for basic needs, including access to mental
health services and technology acquisition
$20M in one-time for student retention and re-enrollment
$10.6M ongoing for robust and equitable online education
ecosystem
$2.5M in one-time for instructional materials for dual
enrollment students
13Workforce Expansion
$15M ongoing to expand the development of
apprenticeship and pre-apprenticeship programs
$20M one-time for grants to expand access to work-
based learning models and programs
$20M one-time to support workforce development
linkages between higher education and gainful
employment
Diversity, Equity and Inclusion
$600,000 in one-time funds for systemwide antiracism
efforts and implementation of the new ethnic studies
course requirement
District must draft actionable plans as a condition for
receiving the COLA included in the FY2021/22 budget
14Other Actions
Required to offer online courses in 2021/22 that is 10%
higher than the number offered in 2018/19.
Increased production of Associate Degrees for Transfer
(ADT) and adoption of a common learning management
system (CANVAS)
Maintains implementation of the FY2021/22 PERS and
STRS employer contribution reduction
15PROPOSED AUGMENTATION SUMMARY
Technical Adjustments in millions
Adjustments to Student Centered Funding Formula (excludes COLA and
growth), and state budget technical adjustments $49
Ongoing in millions
Provide 1.5% COLA for Student Centered Funding Formula $111.10
Provide 1.5% COLA for certain categorical programs 6.1
Increase access to online technology as well as mental health services 30
Fund 0.5% enrollment growth for SCFF 23.1
Expand California Apprenticeship Initiative 15
Invest in online education ecosystem and infrastructure 10.6
Cover increased costs for broadband access provided by CENIC 8
Subtotal Ongoing Policy Adjustments $203.90
One-Time in millions
Provide emergency financial assistance grants for students $250
Address students’ basic needs related to food and housing insecurity 100
Support retention and enrollment strategies 20
Expand work-based learning 20
Increase faculty professional development 20
Expand Zero-Textbook Cost pathways 15
Provide instructional materials for dual enrollment students 2.5
AB 1460 implementation and anti-racism initiatives 0.6
16 Subtotal One-Time Policy Adjustments $428A S Ongoing Funds
U U Item
2020-21 Approved 2021-22 Proposed
Notes MCCD Projection
Budget Act Budget - January
G M SCFF Cost of Living Proposed 1.5% increase for cost of living allocation
$0 $111.1M N/A
Adjustment (COLA) adjustment
M M Cost of Living Adjustment
Proposed 1.5% increase for cost of living allocation
E A (COLA) for Specified
Categorical Programs
$0 $6.1M
adjustment
$34K
N R Enrollment Growth $0 $23.1M Proposed 0.5% increase allocation for enrollment growth N/A
No Allocation change but
Student Equity and
T Y Achievement (SEA) formerly $475M $475M
Maintains SEA fund allocation , but removes 77.5% of estimate $1M will deferred to
amount deferred 2022-23. The 2020-21 deferral
A SSSP, Equity and Basic Skills
was $3.8M
Proposed increase to support quality distance learning,
T On-line Education Block
$0 $10.6M online tutoring, counseling and student support services
TBD, If allocated by FTES
Grant would be approx. $106K
such as mental health
I
Proposed increase to support the creation of apprenticeship
O California Apprenticeship
$0 $15M opportunities in priority and emerging industries and
TBD - Competitive Grant
Initiative process
sectors.
N
Student Technological Access Proposed increase for student mental health and TBD, If allocated by FTES
$0 $30M
and Mental Health Resources instructional technology. would be approx. $300K
17One-Time Funds
A S
2020-21 Approved 2021-22 Proposed
U U Item
Budget Act Budget - January
Notes MCCD Projection
Proposed one-time funds for emergency financial assistance TBD- Proposal based on full
G M Emergency Financial
Assistance Funding for $0 $250M
grants to support low-income, full-time students and other time students and GPAs. If
students who were previously working full-time and allocated by FTES would be
students
M M demonstrate financial need approx. $2.5M
Proposed one-time available over three years to address
E A Basic Needs for Food and
Housing Insecurity (one-time)
$0 $100M student basic needs at community colleges, including
housing and food insecurity
TBD - If allocated by FTES
would be approx. $1M
N R CCC Retention and Re-
$0 $20M
Proposed one-time funds for student retention and re-
enrollment efforts to engage former students who may have
TBD - If allocated by FTES
enrollment Strategies would be approx. $200K
withdrawn from college due to COVID-19
T Y Instructional materials for
$0 $2.5M
Proposed one-time funding for dual enrollment student TBD - If allocated by FTES
dual enrollment students instructional materials would be approx. $25K
A Proposed one-time for grants to expand access to work-
based learning models including working with faculty and
Work-based Learning $0 $20M TBD, Competitive Grant
T employers to incorporate work-based learning into the
curriculum
Proposed one-time allocation for a zero textbook cost
I Zero-Textbook Cost Degree
Initiative
$0 $15M degree initiative for additional rounds of competitive grants
and technical assistance for colleges.
TBD, Competitive Grant
O Professional Development $0 $20M
Proposed one-time for a systemwide effort to provide
culturally competent online faculty professional
TBD - If allocated by FTES
would be approx. $200K
development.
N Implementation of AB 1460
Proposed one-time funds to implement AB 1460 ethnic
$0 $600K studies course requirements and systemwide anti-racism N/A, system allocation
and Anti-Racism Initiatives
initiatives
Physical Plant & Instructional Proposed no funding again for scheduled maintenance or
$0 $0 No change
18 Equipment instructional materials/equipment again this yearA LOOK FORWARD AT MIRACOSTA‘S
LANDSCAPE FOR FY 2021/22
Estimate a 4.0% property tax revenue increase – ($4.6M)
CalSTRS and CalPERS annual cost increases – ($900K)
Health Care Cost Increases – ( $1.5M)
Property and Liability Insurance Cost Increases – ($250k)
Student Success requirements
› Academic and Career Pathways effort institutionalization
› Student Equity and Achievement (SEA) deferrals – (-$1M)
Enhance diversity, equity, and inclusion
Comprehensive Master Plan, Strategic Plan, and program review
needs
Facilities $455M General Obligation Bond:
› Phase 1: Close out $100M 1st tranche
› Phase 2: 9/2020 to 9/2023, spend 85% of 2nd tranche
Impacts of collective bargaining
50% law requirements
19CALSTRS & CALPERS 20
CARES ACT & COVID-19 BLOCK GRANTS
FIRST STIMULUS PACKAGE Allocation Remaining Expires
COVID-19 FED BLOCK GRANT $500K $0 December, 2020
COVID-19 STATE BLOCK GRANT $613K $583K June, 2022
CARES ACT I- Student Grants $2.7M $0 October, 2021
CARES ACT I – Institution $2.7M $1.5M October, 2021
CARES ACT I – MSI $358K $358K September, 2021
SECOND STIMULUS PACKAGE Allocation Remaining Expires
CARES ACT II - Student Grants (Min) $2.7M $2.7M December, 2021
CARES ACT II - Institutional (Max) 10.1M $10.1M December, 2021
21DRAFT BOARD OF TRUSTEES BUDGET
DIRECTIVES AND PRIORITIES FY2021/22
Allocate funding to satisfy the district’s highest-priority goals and
objectives (enrollment, programs, and services) consistent with the
MCCD Comprehensive Master Plan, MCCD Strategic Plan, and
institutional program review activities, while maintaining the long-term
fiscal health of the college.
PROGRAMS & SERVICES:
Assess and meet community needs within budget constraints
Protect critical educational and support services – keep reductions as
far away from students as possible
Maintain support for student success in an equitable manner
Maximize California College Promise: tuition funding for eligible
students
Conduct market research and tell our impact story better
22DRAFT BOARD OF TRUSTEES BUDGET
DIRECTIVES AND PRIORITIES FY2021/22
FACILITIES and INFRASTRUCTURE
Implement the Master Facilities Plan
› New buildings
› Improve existing buildings/offices
› Technology and Infrastructure
› Align College’s sustainability efforts with the CCC Board of
Governor’s Climate Change and Sustainability Goals prior to
2025
FINANCIAL
Maintain a minimum 15% total fund balance for the FY2020/21
budget
Maximize potential revenue sources
Seek efficiencies and productivity increases to
improve the District’s financial health and meet
its mission
23DRAFT BOARD OF TRUSTEES BUDGET
DIRECTIVES AND PRIORITIES FY 2021/22
STAFFING
Preserve positions to meet the needs of students and the
community
Maintain competitive salaries and benefits to recruit and retain a
quality workforce
Balance the needs of students, employees and the long-term
health of the college
24BUDGET PROCESS AND NEXT STEPS
Date Step
February 5, 2021 Preliminary Budget workshop for
BPC
February 18, 2021 Preliminary Budget Workshop for
Board of Trustees
May 21, 2021 Tentative Budget Workshop for
Budget and Planning Committee
June 10, 2021 Tentative Budget Workshop for Board
of Trustees
June 17, 2021 Board approves Tentative Budget
August 27, 2021 Final Budget Workshop for Budget
and Planning Committee
September 2, 2021 Final Budget Workshop for Board of
Trustees
September 9 or 16, 2021 Board adopts Final Budget
25QUESTIONS? 26
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