IPBM - Background
Integrated Planning & Budget Model (IPBM)
II. Background
In November 2009, the Accrediting Commission for Community and Junior Colleges (ACCJC) conducted a comprehensive site visit at the two colleges in the Chabot-Las Positas Community College District (CLPCCD): Chabot College and Las Positas College.
The ACCJC made the following recommendation under Standard IIIB.“To meet the standards, the team recommends that the district and the college complete the evaluation of the resource allocation process in time for budget development for the 2010-2011 academic year, ensuring transparency and assessing the effectiveness of resource allocations in supporting operations”.
On September 4, 2012, the Accrediting Commission for Community and Junior Colleges notified the Chabot-Las Positas Community College District that after its review of the district’s Annual Fiscal Report (AFR), the District had been identified as having a potential financial risk. The reasons for the review were negative ending balance and significant enrollment loss.
In October 2012, Chabot College and Las Positas College submitted the Midterm Reports outlining the Progress Made, Analysis of Results Achieved, and Evidence, as required for a Midterm Report. The ACCJC accepted the reports from both colleges.
Evidence:
Chabot College Evaluation Report - College/District Recommendation 1 & 2 http://www.chabotcollege.edu/accreditation/documents/AccreditationEvaluation.pdf
ACCJC Letter of Acceptance of Mid-Term Report from Chabot College http://www.chabotcollege.edu/accreditation/letter.asp
Las Positas College Mid-Term Report – College/District Recommendation 1 & 2 http://www.laspositascollege.edu/accreditation/documents/01MidtermReportLPCFinal_10-15 12_withlinks.pdf
ACCJC Letter of Acceptance of Mid-Term Report from Las Positas College http://www.laspositascollege.edu/accreditation/documents/AccredMidtermLetter2-12-13LPC.pdf
On December 18, 2012, the ACCJC notified the CLPCCD that the Financial Review Team had met and conducted an in-depth analysis of the institution’s financial reports. The Team recommended that the District provide a Special Report to the Commission. On February 5, 2013, the ACCJC requested that the Special Report be provided to the Commission by April 1, 2013. The purpose of the Special Report was to develop a long range budget plan to address deficit spending and low reserves.
Progress
Since the writing of the Midterm Reports there has been another Joint Consortium meeting and several DBSG meetings held. The Interim Chancellor held a Joint Consortium Special Meeting on September 11, 2012 with Chancellor’s Cabinet, Chancellor’s Council and the DBSG. The purpose of the Consortium meeting was to create values (how we are going to heal ourselves and each other) that will be used as we work together throughout the year on various issues including the crafting of a Budget Allocation Model, and of CLPCCD, given the changes happening in higher education. The values and compelling statements from this work were carried forward as the DBSG continued to meet.
Evidence:
http://www.clpccd.org/board/Chancellor.php The DBSG met on October 26, 2012; November 16, 2012; December 7, 2012; January 25, 2013, February 8, 2013; and March 15, 2013.
http://www.clpccd.org/business/BusinessServicesDistrictBusinessBudgetStudyGroup.php Response to Financial Review Team Recommendation
Long Range Budget Plan
At its meeting on March 15, 2013, the DBSG approved and adopted a Funding Allocation Model (Attachment 13A and 13B) to be utilized in the development of a 3-year budget cycle starting with fiscal year 2013-14. A vote was taken with 20 yes, 3 no and 3 abstained.
This model was recommended to the Chancellor, who in turn recommended it to the Board of Trustees at its March 19, 2013 meeting.
Recommended Action: The Board of Trustees approves the Funding Allocation Model recommended by the District Budget Study Group (DBSG) and the Chancellor. This approval is a commitment to a three (3) year budget cycle from 2013-14 to 2015-16 and is to be reviewed annually.
By this recommendation, the Board authorizes the Chancellor to develop Board Policy and Administrative Procedures utilizing the appropriate shared governance processes to implement this model beginning FY 2013-14. The Board also authorizes the Chancellor to conduct an external study of District Operations (District Office and Maintenance & Operations) to determine the appropriate size of District operations to support the Colleges. This study is to be completed within the FY 2013-14.
The Board of Trustees unanimously approved the Funding Allocation Model recommended by the District Budget Study Group (DBSG) and the Chancellor. Adoption of the new model provides the District with the financial tool for long-range budget planning that addresses deficit spending and low reserves. This approval is a commitment to a three (3) year budget cycle from 2013-14 to 2015-16 and is to be reviewed annually.
Evidence:
Draft minutes of March 15, 2013 DBSG meeting http://www.clpccd.org/business/BusinessServicesDistrictBusinessBudgetStudyGroup.php
Draft minutes of March 19, 2013 Board meeting http://www.clpccd.org/board/BoardAgendaArchives.php
Deficit Spending
The District has reversed its deficit spending as shown in Attachment 14. For the 2012-13 fiscal year, district revenues are more than expenditures by about $1.7 million. The two (2) main reasons for the reversal in deficit spending are: 1) expenditure reductions made by the district and 2) the passage of Proposition 30 and avoidance of mid-year trigger cuts.
Evidence:
Board Presentation - Budget Update for FY 2012-13 & New Allocation Model http://www.clpccd.org/business/documents/AllocationModelUpdate3-5-13BoardMtng-BoardPosting- Revc.pdf
Reserves
The District Reserve is now projected at $7.6 million or about 8.37% of expenditures as shown in Attachment 15. And with the district no longer deficit spending, the reserve is expected to increase above its current level. The new Funding Allocation Model also incorporates a process by which reserves can be increased district-wide and by location (College, District Office and Maintenance & Operations).
Evidence:
Board Presentation - Budget Update for FY 2012-13 & New Allocation Model http://www.clpccd.org/business/documents/AllocationModelUpdate3-5-13BoardMtng-BoardPosting- Revc.pdf
March 15, 2013 Meeting Minutes http://www.clpccd.org/business/BusinessServicesDistrictBusinessBudgetStudyGroup.php
March 19, 2013 Meeting Minutes http://www.clpccd.org/board/BoardAgendaArchives.php
The new Funding Allocation Model provides the district with a financial tool that gives the following:
- Treats all employees fairly
- Simple to understand
- It is Revenue Based
- Puts money out to Colleges
- The College Budget Committees are empowered to make decisions
- We are all responsible to live within our means
- Promotes accountability and transparency district-wide
- Incorporates a process to build back our RUMBL and Reserve
- Addresses ACCJC Accreditation Recommendations
The following is the DBSG Committee composition and the constituencies they represent. A step-by-step narrative and the accompanying calculations are shown in Attachment 13.
Chancellor’s Executive Staff:
- Judy E. Walters – Interim Chancellor
- Jeffrey Kingston – Vice Chancellor, Education Planning
- Lorenzo Legaspi – Vice Chancellor, Business Services
- Wyman Fong – Vice Chancellor, Human Resources
- Susan Sperling – President, Chabot College
- Kevin Walthers – President, Las Positas College
District Budget Study Group
- Judy Walters - Interim Chancellor-Ex Officio
- Lorenzo Legaspi - V.C. Business Services
- Barbara Yesnosky- Director - Business Services
- Tim Nelson - Director - M&O
- Judy Hutchinson - Budget Officer - Ex Officio
- Joanne Bishop-Wilbur - Classified Senate
- Pedro Ruiz DeCastilla - Classified
- Linda Wilson – SEIU
- Pushpa Swamy – Business Operations Coordinator
- Kevin Walthers - Presidents- Ex Officio
- Susan Sperling - Presidents- Ex Officio
- Designee - Natasha Lang - V.P. Business Services
- Connie Willis - V.P. Business Services
- Janice Noble - V.P Academic Services
- Dale Wagoner (Interim) - V.P Academic Services
- Diana Rodriguez - V.P. Student Services
- Gerald Shimada (Interim) - V.P. Student Services
- Dave Fouquet - Faculty Association
- Kathy Kelley - Faculty Senate
- Charlotte Lofft - Faculty Senate
- Ming-Lun Ho - Faculty Senate
- Yvonne Wu-Craig - Classified Senate
- Gordon Watt - Classified
- Andrea Preciado- Student
- LaVaughn Hart - Faculty Association
- Sarah Thompson - Faculty Senate
- Bob D'Elena - Faculty Senate
- Justin Garoupa - Faculty Senate
- Todd Steffan - Classified Senate
- Heidi Ulrech - Classified
- Sundeep Sidhu- Student