Washington Community andTechnical CollegesState Operating and Capital Budgets
New Trustee Orientation
January 22, 2012
Denise Graham
SBCTC Deputy Executive Director, Finance
Outline
•State of Washington Budget Process
•Operating Budget
•Capital Budget
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State of WashingtonBudget Process
State of WashingtonBiennial Budget Process
•SBCTC prepares budget requests,based upon State Board StrategicDirection
•SBCTC submits operating and capitalbudget requests to Governor
–Fall, even years
•Governor makes biennial budgetproposal to Legislature
–December, even years
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State of WashingtonBiennial Budget Process
•Each chamber of the Legislature writesits own budget
–The Governor’s proposed budget isconsidered by the Legislature
–The Legislature is not required to follow theGovernor’s proposal
–The budget is a law! (with a two-year life)
–Both chambers must agree on everything,down to the last word
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State of WashingtonBiennial Budget Process
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•Legislature appropriates state funds tothe SBCTC
•The Governor signs the budget – haspower to veto subsections
•In the even-numbered years,“supplemental” budgets adjust thebiennial budget
•SBCTC allocates funds to colleges
OperatingBudget
State of WashingtonGeneral Fund Operating Budget2011-13 Biennium
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Washington State = $32.0B
Higher Education = $2.6B
CTCs serve 60% of higher education enrollments
2011-13 Sources of General FundEstimated Revenues
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Where Does College OperatingMoney Come From?FY 2011
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* Includes the General Fund-State and Near General Fund accounts.
Sources of CollegeOperating ExpendituresFYs 2000, 2005 and 2011
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* Includes the General Fund-State and Near General Fund accounts.
Community and Technical College SystemDependency by FundFY 2011
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How Colleges Spend their MoneyGeneral Fund State & Operating FeesFY 2011
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Expenditures by Program
Types of Expenditures
SBCTC State Funds AllocationsState Operating Budget
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•Allocations based upon State Boardpriorities and legislative direction
•“Base Plus/Minus” approach
–Start with prior year allocations
–Remove one-time funding
–Add new funds – typical new funds include:
•Growth enrollment slots
•Compensation increases
•New programs/specified funding
–Adjust for budget reductions
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•State Board allocates some funds for itsstrategic priorities
•Most allocated money is unrestricted –colleges develop local priorities
SBCTC State Funds AllocationsState Operating Budget
Statutory Authority:Salary Setting
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•College Governing Boards
–Hire/set salaries for presidents, faculty andadministrative officers
–Set compensation and salary increaseswithin legislative limits
•Collective bargaining for faculty andclassified staff salaries
Compensation Increases
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•Legislature controls salary increases
•Increases are delineated in biennialappropriations act
•Compensation increases are limited tothose allowed in the appropriations act –no other increases may be provided by thecolleges!
•Until June 30, 2013, additionallegislative restrictions apply: with afew exceptions, no salary increasesallowed
Authorized Increases for the2011-13 Biennium
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•The only allowable salary increases arethose associated with normallyoccurring promotions and increasesrelated to faculty and staff retention(subject to freeze legislation, whichallows for labor negotiated salary andretention increases)
Authorized Increases for the2011-13 Biennium
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•CTC Bottom line – TC classified maynegotiate salary increases; Faculty maynegotiate increases based on promotionsand retention; Exempt employees mayreceive retention increases; CC classifiedreceive step increases.
–All Increases must be reported to theLegislature by July 31 of each year.
Tuition
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•Legislature delegates authority to StateBoard to increase CC resident tuition upto a maximum percentage increase
–State Board has authority to set CC non-resident tuition
–Technical Colleges’ Boards of Trustees setTC tuition and fees, cannot exceedlegislative maximum percentage increase
–Since 1992, tuition revenues (exceptbuilding fees) are retained by colleges
Tuition
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•Components of Tuition and Fees
–3.5% of student’s payment set aside at college forassistance to needy students (state law)
–2.0% of student’s payment transferred to the Community andTechnical College Innovation Account
–Remainder divided as follows:
•Operating Fees (80%)
–Retained locally to help pay general expenses of the college
•Building Fees (10%)
–Sent to State Treasurer, funds a portion of the colleges’ capitalbudget
•Service and Activity Fees (10%)
–Retained locally; used to fund student activities such as sports,clubs, childcare, etc.
–Colleges may charge less than maximum
Website: http://www.sbctc.ctc.edu/college/f_tuition.aspx
CapitalBudget
Who received the State’s 2011-13General Obligation Bonds Funds?
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Dollars in millions
$1.01 billion total
Where Does SBCTC 2011-13 CapitalMoney Come From?
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$400.3 million total
Dollars in millions
SBCTC Capital Objectives
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•Construct quality buildings
•Design in flexibility to respond tochanging program requirements
•Keep facilities from deteriorating andeliminate temporary structures on maincampuses
•Take care of what we have
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•Colleges prepare capital projectrequests every two years
•A single, prioritized capital projectrequest list is developed and submittedto the Governor/Legislature
•System strives to request only solid,well-justified projects
•CTC prioritized request is generallyrespected by state budgeters – projectsfunded in priority order
SBCTC Capital Process
How Do Colleges Get Projectson the Request List?
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•Project conformance with collegestrategic and master plans
•Well-planned and justified programneeds
•Facility condition
•State projections for student growth
Who Decides Which Projects are onthe Request List, and in What Order?
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•Scoring criteria developed by committee ofpresidents, business officers, Instructionand Student Services Commissionrepresentatives, facility coordinators,trustees and State Board staff.
•Common criteria used to score and rankeach request
•Capital Budget Task Forcerecommendation to the State Board
SBCTC 2011-13 Types of CapitalProjects Requested
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Percentage of Requested Funding
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Capital Requests for New Appropriated Funds in2011-13
Future Capital Requests
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The existing pipeline represents about $1B worth ofprojects that will take about six more years tocomplete at recent funding levels.With so many projects already in the pipeline thePresidents and State Board staff are recommendingno new major projects be added for the 2013-15request.However, we would have new minor repair andprogram requests whose funding is formula drivenbased on facility inventories, building conditions, andstudent FTEs.
Questions?