March 16, 2018

Meeting Items

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Approve the Notes from February 23, 2018 Meeting.

The notes were approved.

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Second Quarter Report 2017-18

Enrollment continues to decline. The latest figures show a decline of approx. 1000 FTES. This is a serious concern as this decline impacts our revenue. Our enrollment has been declining since 2009-10.

Other districts in our area are not experiencing comparable budget issues as they are all basic aid funding (not funded by FTES).

The new funding formula is still unclear. The Department of Finance did publish a scenario but it reflected large revenue swings for many colleges. Likely that it will be May before the State can provide any real direction.

Focus from the District level is on productivity rather than chasing FTES. This may impact how many classes are offered and impact full-time faculty assignments. Part-time faculty are already experiencing loss of assignments.

Senior Staff will be discussing discretionary spending caps on such items as travel and conference spending, additional pay, release and reassigned time. etc.

FHDA has a healthy stability fund that gives us some time to work on our structural deficit.

The full 2nd quarter report is posted on the district website: http://business.fhda.edu/budget/annual-budget-and-quarterly-report.html

Highlights include:

Resident Enrollment
Under the 2017-18 adopted budget assumptions, we anticipated serving 30,588 resident and non-resident FTES. This number reflected resident enrollment of 25,967 FTES and non-resident enrollment of 4,621 FTES.

In October 2017, the 2016-17 Apportionment Attendance Report was recertified to include a reduction of seven non-resident FTES, for a recalculated total of 30,581 resident and non-resident FTES. The P-1 320 attendance report filed in January estimates that we will report a decrease of approximately 859 FTES by the end of this fiscal year (see Table 2). Due to the stabilization component included in Senate Bill 361, we will still receive apportionment for 2017-18 based on the 25,968 resident FTES generated in 2016-17. However, our 2018-19 base funding will be lower by approximately $4.3 million dependent upon the final FTES reporting at P-Annual. The colleges and the enrollment management team continue to carefully monitor student enrollment, analyze course offerings, and heighten marketing and recruitment efforts to maximize access for students and to restore the FTES decline from 2016-17. 
 
Non-Resident Enrollment
We are projecting a 237 FTES decline in non-resident enrollment, but an increase in the non-resident tuition fee for 2017-18 results in no change to the projected revenue. Because this revenue stream can be more volatile and is dependent on many external factors, such as fellow districts competing in the area market, access to visas, and exchange rates, we closely monitor our non-resident revenue throughout the year. 
 
Productivity  
Productivity for fiscal year 2017-18 is budgeted at 509 (WSCH/FTEF). However, we anticipate a drop in the budgeted productivity calculation by year-end due to declining enrollment and decisions made earlier in the academic year to maintain lower-enrolled classes to capture all available FTES. This drop in productivity will be primarily reflected in the increased expense for part-time faculty salaries and benefits. As of second quarter, lower-enrolled classes were dropped and we were able to successfully redirect most of those FTES into other classes. As of spring quarter, the colleges are making all efforts to return productivity to the targeted 509 level to minimize the projected over-budget expenditures in the part-time faculty account. The enrollment management teams are carefully monitoring student enrollment and course offerings to maximize access for students while strategically maintaining the projected productivity.

Fiscal Self Assessment

The Sound Fiscal Management Self-Assessment Checklist report is prepared each fiscal year by district Business Office staff as an additional step in the overall process of ensuring fiscal stability and continuous scrutiny of district business practices and operations. Although completion of the report on an annual basis is recommended by the state chancellor’s office, it is not a requirement. Foothill-De Anza Community College District chooses to produce the report each year because it is viewed by staff as a valuable tool for our own internal fiscal assessment and provides a comprehensive narrative document that is presented to both the Audit and Finance committee and the Board of Trustees. The full report is posted at the bottom of the district website: http://business.fhda.edu/financial-reports/index.html

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Approve Draft Tier 3 Budget Reduction Proposal

Cheu started the discussion by acknowledging that this is a very difficult decision that no one wants to make. She advised the team that although the district and Board mandated the college to make budget reduction plans, she recognized the PBT members did not want to lay-off any staff. She also noted that much of the work of the division (mailroom, grounds, custodial etc.) is not the type of work that ever 'goes away'.

Grey shared that the Bookstore and main mailroom may consolidate shipping and receiving functions and thus would be able to move some general fund expenses to self-sustaining funds. All reorganizations are reviewed by HR and if the reorganization doesn’t not go through the $50k savings will be re-visited.

The Print Shop is a self-sustaining fund so any savings here are not included in the general fund. The majority of copy machines in the Print Shop are purchased not leased.

All employees should make the effort to make connections with students across the campus.

Caveat assumes that we have the facilities rental funds available.

Given the charge from the Board, the team agreed that the draft plan, as presented, is the most logical plan and is reluctantly submitted.

Accreditation Re-visit

The Board has approved the follow-up plan and the Accreditation team is coming back for a re-visit on April 26, 2018.

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 2017/18 Program Review Updates

Cheu reminded the team that they should update their program reviews for 2017/18 directly into TracDat prior to the re-visit on April 26, 2018.

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Quick News

At the Convocation day the student panel expressed concerns surrounding security and safety. Lighting, blue lights/phones, and security escorts, especially at night, were specifically mentioned. There is a campus lighting Bond project and recently the campus spent over a million dollars to upgrade campus lighting. There is a further phase to continue work to finalize this project. Suggestion to ensure that the deans/faculty are aware that students may be fearful walking though campus during the evening.

As previously discussed at the October 13, 2017 meeting, for clarity and in order to align with other Californian community colleges, De Anza is renaming two administrative areas. Cheu shared that senior staff and district business managers supported the name change of two divisions. The Finance and College Operations Division has changed to Administrative Services. The vice president's title has also been amended to mirror this change. The Budget and Personnel division name has changed to College Fiscal Services. The director's name has likewise been amended to be consistent with the division name.