October 8, 2024

Attendance, Voting Members:

Sam Bliss, Sushini Chand, Adam Contreras, Nazy Galoyan, Lydia Hearn, Michelle Hernandez, Zachary Ho, Andre Meggerson, Eric Mendoza, Rob Mieso, Mallory Newell, Van Nguyen,  Aditya Sharma, Tim Shively, Daniel Solomon, Martin Varela, Chia Wen, Erik Woodbury

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Approval of  10/1 Minutes

Erik Woodbury welcomed everyone to the 2nd meeting of the RAPP.

Minutes approved.

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Enrollment and Budget Information

Student Center Funding Formula (SCFF), Enrollment, and Strategic PLANNING 

Lydia Hearn shared with RAPP members and guests information on how budget and enrollment interact and work together.

This was part of the training for RAPP members to understand the processes and terminologies, as they move forward with their duties and responsibilities, to make better informed decisions.

In the FHDA district there are many different types of budgets: General Fund, Categorical Funding, Federal and State Grants, Enterprise accounts which are self-sustaining money, foundation fund that is donated, lottery, instructional equipment, Bond Measure, Strong Workforces, etc.

Lydia focused on the General Fund where the bulk of the money comes from the State. She went over how enrollment affects the funding. She started with the previous funding model that was solely based on student enrollment. In the past the college gets a base apportionment by the size of the college. Then, it gets additional funding per FTES, full time equivalent student up to a cap,On the other hand, if enrollment goes over the cap, the college will not receive more funding unless the State is in a growth mode. Therefore, the college will be serving more students with less funds. In the past, the college has decided that they have a moral imperative to serve the students who need it regardless of the funding. the maximum of students the State will fund. If enrollment falls below minimum, the college must stabilize it or the State will rebase the apportionment. Therefore, it was important to keep up enrollment.

Lydia then talked about Productivity, EFEF, and Breaking Even

She explained WSCH, weekly student contact hours, and how they calculated productivity. The target was low 500s. De Anza reached their goal in 2023-24 at 528.

Under FTEF she explained the budget for faculty, full and part-time that comes from the General Fund. There was an explanation on the 1320 dollars. The allocation includes part time salary, PDL leave, sick leave, and reassigned time.

They calculated the budget for classes based on $10k per class to determine the number of classes they may offer per year and per quarter.

The break even target is 38 students per class. With every class they let go at 20, they will need another class at a much higher number to maintain productivity. 10 productivity points equals $1 million. Any drops and increases in productivity points translate to losing and saving money for the district.

Tim Shively pointed out that non-resident fees as another source of revenue that is less restrictive.

Lydia continued with the introduction to the new funding model, the Student-Centered Funding Formula (SCFF)  that is not entirely based on enrollment. This formula is how the State is funding the community colleges. It is still based on enrollment with 70% base allocation to FTES. Then, there is 20% apportionment from equity, 10% under success. In this new formula, the base allocation funding per student varies.

The majority are traditional credit students. The State has identified specific categories like special admit, dual enrollment, and incarcerated students that are funded at a higher rate.

There is supplemental funding for low-income students served under equity. The student success allocation is awarded for students completing degrees, certificates, certain transfer level courses, transfer to 4 year college, etc.  

Tim Shively pointed out that the supplement funding is inequitable as it does not take into account the cost of living in different areas.

Lydia explained how De Anza is being funded currently under the hold harmless protection. The college has been funded at the 2017-18 levels that is in effect through 2024-25.

Enrollment has decreased since 2017-18. The restoration attempts have increased enrollment in 2023-24 but not to the 17-18 level. The college and the district need to decide on the strategy to pursue. They went through some analysis. Lydia presented some  different options, different scenarios.  They may be able to hit their target by balancing traditional credit students with students under some of the specialized categories.

To Restore or Not To Restore.

The question is do we want to restore? Do we want to try to shrink down? Or do we want to chase enrollment?

Other factors for consideration include the Fifty Percent Law.

Lydia ended her presentation here and will continue at a later meeting.

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District Budget Presentation

Raquel Puentes-Griffin, Specialized categories, gave an overview on the 50% law.

Definition

Enacted in 1961, per Education Code 84362

“There shall be expended during each fiscal year for payment of salaries of classroom instructors by a community college district, 50 percent of the district’s current expense of education.”

All community college districts are required to spend at least half of their “Current Expense of Education” for “Salaries of Classroom Instructors.”

Key Components of the 50% Law

INSTRUCTIONAL (Numerator):

Classroom Salaries and Benefits, Instructional Aides Salaries and Benefits (under direct supervision of classroom instructor) 

These are included under the 50% Law.

NON-INSTRUCTIONAL (Denominator): 

Release Time Counselors and Librarians Student Services Administrative Services Human Resources Technology Services Supplies & Materials Facilities, Maintenance & Custodial Utilities Other Operating Services

These are not included under the 50% Law.

EXCLUDED: 

Rents and Leases, Student Co-curricular Activities -Transportation/Intercollegiate, Contract Ed/Economic Development/Community Services, Sites, Buildings, Books and Media and New Equipment Costs Charged to Lottery Funds, Retiree Benefits.

Challenges with the 50% Law

The law was established when community colleges were considered part of the K-12 (or K-14) system.

Instruction is no longer restricted to the classroom, but the law applies only to classroom instruction. It does not recognize that learning has changed and is no longer restricted to traditional norms.

Online education has required new technology, support services, and both hardware and software, that is not considered instructional.

Timing and Monitoring the 50% Law

Use prior year expenditure patterns as a guide.

Track and model major changes across the District and Campus from year-to-year.

Evaluate mitigation options of newly added expenditures – exclusions, other funds, etc.

Understand resource decisions impact the balance of numerator and denominator (items that solely decrease the numerator or increase the denominator)

Review projections quarterly for early identification for corrective action, but actual year-end figures typically do vary from projections.

Consequences of Noncompliance

What Happens if a District Doesn’t Meet the 50% Law Requirement?

File an exemption

CCC Chancellor’s Office provides recommendation to Board of Governors to accept or deny or some combination. If denied, the district must develop a plan to correct. Withhold apportionment equal to deficiency.

District’s History with the 50% Law

The district has been in compliance with the 50% law since 2019-20.

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The following agenda item was postponed to the next meeting 

Review forms:

• Annual Program Review Form (new)
• Annual Program Review Reflection Form (new)
• Resource Request form (updated)
• Faculty Request Form (slightly updated)

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Adjornment

Meeting adjorned.