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1
Oregon Community College Distribution
Formula
2
What is the Distribution Formula? The method the State Board of Education and
CCWD use to allocate state funds for general education programs to Oregon’s community colleges
Governing principles in ORS 341.626
Policy and procedures in OAR 589-002-0100 (http://arcweb.sos.state.or.us/rules/OARS_500/OAR_589/589_002.html)
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Objectives and Principles
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Distribution Formula Objectives The State Board of Education’s commitment to access
and equity Student-centered; equitable support Investment focuses on the student; funds follow the student
Maintain high levels of service to current students Avoid consequences negatively impacting students’ access to
services
Long-term predictability and stability Provide colleges with reasonable stability and predictability,
particularly when resources are uncertain Formula is sustainable; review/alteration of formula focused on
refinement
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Six Principles of the Formula
1. An expectation that equalization will be achieved in six years.
2. Significant additional funds in a biennium compared to the previous biennium will benefit every college. The State Board of Education will determine what level is significant on a biennial basis.
3. Historic share of total public resources will be based on the immediate previous year for every year, with the exception of 2005-06. For 2005-06, historic share of public resources will be based on the average of 2003-04 and 2004-05.
4. Buffered FTE will be used in the formula. The buffering is accomplished by using a three-year weighted average.
5. If significant additional resources are available compared to the previous biennium, equalization can go faster. The State Board of Education will determine what level is significant on a biennial basis.
6. The resource level available compared to the previous biennium may impact the pace of progress toward equalization.
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Formula Overview
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Formula Components Total Available 2007-09 =$494,524,220.00 Categorical funding comes off the top
Department of Corrections ($1.6 million) Contracts Out-of-District (COD) ($0.44 million) Distributed Learning ($1.4 million) SBE Strategic Fund ($5.0 million {1% of total})Total $8.4 million
Remainder goes into the Distribution Formula Base (Basic district operations) Projected Property Taxes CCSF Available for Formula Distribution Reimbursable FTE Harm LimitTotal $486.1 million
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Total Public Resources
General Fund + Property Taxes = Total Public Resources (TPR)
The formula considers 100% of the next year’s projected property tax revenue and the current General Fund appropriation when determining how resources are distributed.
Property taxes are not redistributed. They are only used as a formula input. Property tax projections are provided by the Oregon Department of
Administrative Services.
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CCSF Funding Diagram: Total Public Resources
Equity Add Lever 4.4%
Equity43.5%
Historical Add Lever 4.4%
Historical43.5%
Base 3.1%
Categorical 1.1%
Equity Add Lever 4.4%
Equity57.3%
Historical Add Lever 4.4%
Historical29.7%
Base 3.1%
Categorical 1.1%
Equity Add Lever 0.0%
Equity79.7%
Historical Add Lever 0.0%
Historical15.9%
Base 3.3%
Categorical 1.0%
Equity Add Lever 0.0%
Equity95.8%
Historical Add Lever 0.0%
Historical0.0%
Base 3.2%
Categorical 1.0%
Fiscal Year 2007-08($378 Million Total)
Fiscal Year 2008-09($379 Million Total)
Fiscal Year 2009-10($358 Million Total)
Fiscal Year 2010-11($366 Million Total)
Harm Limit Lever 0.0005% Harm Limit Lever 0.0001% Harm Limit Lever 0.0% Harm Limit Lever 0.0%
Footnote: Assumes 2009-11 CCSF at $450.5 million and Strategic Fund at 1.0%
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Total Public Resources (in thousands)
Formula Funding $362.5
Base $11.7
Categorical $4.1
Formula Funding $363.3
Base $11.7
Categorical $4.3
Formula Funding $343.0
Base $11.7
Categorical $3.7
Formula Funding $350.6
Base $11.7
Categorical $3.8
Fiscal Year 2007-08 Fiscal Year 2008-09 Fiscal Year 2009-10 Fiscal Year 2010-2011
Total $378.4 million Total $379.4 million Total $358.5 million Total $366.1 million
2007-09 BienniumTotal Public Resources: $757.7 million
CCSF Appropriation: $500.0 million
2009-11 BienniumTotal Public Resources: $724.6 million
CCSF Appropriation: $450.5 million
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CCSF Formula Funding – Net Change of Funding Through the 2009-11 Biennium (Fiscal Year 2009 to Fiscal
Year 2011) Example at Appropriation Level for 2009-11 = $423 million and Harm Limit @ 5.0%
College
Net Change in Funding
2009-11 Biennium
% of Net Change in Funding 2009-11
Biennium
Net Change in Funding 2009-11
Biennium
% of Net Change in Funding 2009-11
Biennium
% due to FTE
% Change due to
Apprpriation Level
% Change Due to Move
Towards Equalization
% Harm Limit
Blue Mountain (631,903) -6.7% (631,903) -7.3% 2.5% -7.4% -2.4% 0.0%Central Oregon (2,225,976) -12.4% (2,224,194) -12.9% 3.9% -7.4% -9.4% 0.0%Chemeketa (2,469,290) -5.4% (2,469,290) -5.5% 2.1% -7.4% -0.3% 0.0%Clackamas (3,773,297) -11.6% (3,773,297) -11.9% -1.7% -7.4% -2.7% 0.0%Clatsop (942,495) -14.0% (942,495) -15.8% -1.3% -7.4% -7.2% 0.0%Columbia Gorge (629,360) -12.5% (635,443) -15.0% -0.3% -7.4% -7.2% 0.0%Klamath (352,838) -5.6% (352,838) -6.4% -1.4% -7.4% 2.4% 0.0%Lane (3,204,414) -6.9% (3,204,414) -7.0% -1.6% -7.4% 1.9% 0.0%Linn Benton (1,562,849) -5.7% (1,562,849) -5.8% -0.4% -7.4% 1.9% 0.0%Mt. Hood (1,760,752) -4.9% (1,760,752) -5.0% -0.5% -7.4% 2.9% 0.0%Oregon Coast (85,089) -3.6% (88,986) -5.1% 0.0% -7.4% 2.3% 0.0%Portland (5,220,257) -5.5% (5,220,257) -5.5% -0.1% -7.4% 1.9% 0.0%Rogue (2,014,535) -10.7% (2,012,753) -11.1% 0.2% -7.4% -3.9% 0.0%Southwestern Oregon (1,325,877) -10.0% (1,325,877) -10.5% -1.1% -7.4% -2.0% 0.0%Tillamook Bay 69,657 3.8% 60,748 4.9% 4.3% -7.4% 8.0% 0.0%Treasure Valley (684,105) -8.4% (636,915) -8.5% -0.6% -7.4% -0.6% 0.0%Umpqua (843,169) -5.6% (841,387) -5.9% 0.4% -7.4% 1.1% 0.0%Total (27,656,550) -7.2% (27,622,903) -7.4% 0.0% -7.4% 0.0% 0.0%
TRP With Base TPR Without Base
12
Reimbursable FTE
13
Reimbursable FTE
Reimbursable FTE is defined by state law Reimbursable FTE includes in-state and border
state FTE (border states are Idaho, California, Nevada & Washington)
1 FTE = 510 contact hours for three quarters (Contracts Out of District FTE excluded)
Reimbursable courses are:
O Career Technical Education (CTE), o Lower Division Collegiate (LDC)O Postsecondary Remedial (PSR), o Adult Basic Skills (ABS)o Adult High School Diploma (AHSD) o Health/Safety/Workforce Development
FTE
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History of Reimbursable FTE
97,55096,027
96,38996,027
88,837
96,027
87,659
96,027
86,611
93,151
85,366
90,523 89,705
86,427
75,000
80,000
85,000
90,000
95,000
100,000
01-02 02-03 03-04 04-05 05-06 06-07 07-08
Actual FTE Funding Formula FTE (frozen 02-03 to 04-05)
FTE
15
Weighted and Buffered Funding Formula FTE
Weighted Average FTE for 2007-08 Funding
40% of 2006-07 FTE
30% of 2005-06 FTE
30% of 2004-05 FTE
Funding Formula FTE for 2007-08 Funding Year: (85,366*40%) + (86,611*30%) + (87,659*30%) = 86,427
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Reimbursable FTE
2003-4 2004-5 2005-06 2006-07 2007-08
BMCC 1,973.15 2,014.93 1,912.44 1,909.49 2,072.39
Statewide Total 88,837.03 87,659.07 86,611.23 85,366 89,708.38
BMCC % of Statewide Total 2.2% 2.3% 2.2% 2.2% 2.3%
Source: OCCURS, 2008
17
Formula Mechanics
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The BaseIncreases stability and predictability of funding for individual colleges and provides funding for basic district operations.
2007-08 FTE calculation $600 per FTE up to 1,100 $300 per unrealized FTE if do not reach 1,100
2007-08 FTE size adjustment (small school factor) Multiply FTE by size adjustment (1.1347 for BMCC)
BMCC: Base = $660,000 * 1.1347 = $748,902
19
BMCC Non-Base Total Public Resources per FTE
(Total Public Resources – Base) / FTE
BMCC Actuals for 2007-08: Total Public Resources = $9,129,045.62
(GF = $5,409,753.62; Property Taxes = $3,719,292.00)
Base = $748,902.00
Weighted Funding Formula FTE = 1,942.01
($9,129,045.62 - $748,902.00) / 1,942.01
= $4,315 per FTE for BMCC
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Harm LimitPrevents loss >X% of non-base Total Public Resources due to
equalization
Does not limit losses due to changes in: FTE enrollment, changes in the General Fund appropriation, or changes in public resources.
Determined by combining: a) the percent change in total public resources from one year to the next b) adjustment percent determined by the State Board of Education each year
Percent Change in Total Public Resources from
FY08
Adjustment Determined by State Board of
Education
TOTAL Harm Limit (% Change in TPR + SBE
Adjustment)
FY08 12.93% -8.58% 4.35%
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Formula Development and Maintenance
The actual formula mechanics were developed with substantial input and review from Community College expertise.
The formula is institutionalized in a spreadsheet which is well documented and changes receive peer review.
22
2009-11 Essential Budget LevelGovernor’s Recommended BudgetThe EBL for the CCSF is based on: Standard inflation factor (2.8%)
This is provided by the Office of Economic Analysis and represents the Gross Domestic Product Implicit Price Deflator. The factor is multiplied by the total 2007-09 revenue the colleges receive from the State appropriation ($500.0 M) and property tax ($247.0 M). This results in an increase of $20.9 M.
Estimated growth in property taxProperty tax is estimated by the Legislative Revenue Office at $267.7 M for 2009-11 which is an increase of $20.7 M from 2007-09.
Calculation of CCSF 2009-11 EBL:Base Budget (current biennium) $500.0 MStandard Inflation (2.8%) $20.9 MProperty Tax Growth (8.4%) ($20.7 M) CCSF EBL $500.2 M
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2009-11 Essential Budget LevelCommunity College Revenue Forecast Committee
DAS Recommendation based on the Executive OrderEstimate percent of General Operating Revenue spent on:
Personal Services categories. Salary growth uses K-12 growth factors until college data develops. PERS blended rate. Health benefits growth used in K-12 model.
Materials & Supplies and Capital Outlay. Standard inflation factor used by state agencies (2.8%).
Calculate separate growth factors for each category (salary, insurance, PERS, Materials & Supplies, etc).
Combine into a single weighted growth factor based on the proportion of each category to the whole (5.92%). This factor is applied to the sum of the revenue received from the State appropriation, tuition and property taxes.
Tuition rate increase limited to growth in median family income.
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2009-11 Essential Budget Level Community College Revenue Forecast Committee
DAS Proposal for CCSF 2009-11 EBL:
Base Budget (current biennium) $500.0 M
Weighted Growth Factor (5.92%)$64.4 M
Tuition Growth ($24.3 M)
Property Tax Growth ($20.7 M)
CCSF EBL $519.4 M