Financial Overview and Revenue Anticipations for Hartnell College District

FINANCIAL OVERVIEW Graciano Mendoza Vice President of Administrative Services March 1, 2024 GROWING LEADERS Opportunity. Engagement. Achievement. www.hartnell.edu

AGENDA 1) Budget Update: On-Going General Unrestricted Fund 2) Future Fiscal Considerations 3) Resource Requests -Funding Summary GROWING LEADERS Opportunity. Engagement. Achievement. www.hartnell.edu

1) ONGOING REVENUE GROWING LEADERS Opportunity. Engagement. Achievement. www.hartnell.edu

SUMMARY OF ANTICIPATED INCREASES TO ON-GOING REVENUE FY 22-23 => 6.56 Percent Funded COLA => $6M FY 23-24 => 8.22 Percent Funded COLA => $6.2M FY 24-25 => 0.76* Percent Estimated COLA => $451K FY 25-26 => TBD FY 26-27 => TBD FY 27-28 => TBD * As of December, 2023, the ACBO Board informed that the current estimated State Funded COLA for FY 2023-24 is 1 percent. In early Spring 2024, the estimated State Funded COLA was reduced to .76%. (Awaiting further updates in Spring 2024.) GROWING LEADERS Opportunity. Engagement. Achievement. www.hartnell.edu

ESTIMATED NEW ADDITIONAL REVENUE

Multi-Year Projections for FY 2022-23 thru FY 2027-28 (Reflecting Recent Agreement with Bargaining Groups)

HARTNELL COMMUNITY COLLEGE DISTRICT FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 1. Assumptions COLA Potential Labor Agreements -salary increase (as a percent) 6.56 8.22 0.76 - - - 6.25 4.22 1.00 - - - 2. Difference between ongoing Revenues & Expenses [Structural Surplus/(Deficit)] - (980,335) (0) (1,711,970) (3,136,995) (4,454,327) 3. Total Estimated Revenue Increase (COLA @ 6.56%, 8.13%, 3.54%, 0% and 0%) 5,987,568 6,176,755 451,090 - - - 4.A. Salary and Benefit Allocation Step, Column, Longevity Increases, etc. Medical Plan Rate Increase (estimated @ 7.4%, 7.12%, 7.12%, 7.12% and 7.12%) PERS Rate Increase (2.46%, 1.31%, 0%, 0% and 0%) STRS Rate Increase (2.18%, 0%, 0%, 0% and 0%) Worker's Comp Rate Increase (.01%, 0%, 0%, 0% and 0%) Labor agreements 339,208 364,116 394,966 403,176 405,275 405,275 530,602 510,525 510,525 510,525 510,525 510,525 247,786 306,003 3,060 3,041,245 131,951 1,002,477 - - - - - - - - - - - - - - 3,766,835 256,232 146,441 146,441 4.B. Total Salary and Benefit Allocation 4,467,904 4,773,427 1,907,968 1,169,933 1,062,241 1,062,241 Operating Allocation Fixed Costs (Utilities/Net Operating Increases (@ five year average of 2.9%)) Learning Sites: King City, Soledad, Alisal and Castroville Sites Program Planning and Resource Allocation (Includes new positions and new initiatives.) 4.C. Total Operating Allocation 600,000 422,993 255,092 255,092 255,092 255,092 400,000 1,500,000 2,500,000 - - - - - - - - - - 422,993 255,092 255,092 255,092 255,092 4. Total Estimated Expenditure Increase 6,967,904 5,196,420 2,163,060 1,425,025 1,317,333 1,317,333 5. Ongoing Surplus/(Shortfall) (980,335) (0) (1,711,970) (3,136,995) (4,454,327) (5,771,660)

2) FUTUE CONSIDERATIONS GROWING LEADERS Opportunity. Engagement. Achievement. www.hartnell.edu

FUTURE CONSIDERATIONS 1) Escalating Operating Expenses Requiring New/Additional Funding to Cover Existing Commitments. 2) District Commitment to Forgo New Operational Funding Augmentations through FY 27-28. 3) End of Hold Harmless Emphasizing Importance of Growing Enrollment through Enrollment Management Efforts. 4) Local Impact from California s Declining State Economy. GROWING LEADERS Opportunity. Engagement. Achievement. www.hartnell.edu 5) Other?

FY 2023-24 Resource Requests 3) Funding Summary GROWING LEADERS Opportunity. Engagement. Achievement. www.hartnell.edu

FY 2023-24 Resource Requests Summary REQUESTS SUBMITTED BY DEPARTMENTS: One Time Requests On-Going Requests Total Academic Affairs Student Services Administrative Services Human Resources Information Technology 1,775,899 85,640 546,950 TBD 230,000 4,745,556 1,716,586 232,534 144,283 282,000 Total 2,638,489 7,120,959 9,759,448 GROWING LEADERS Opportunity. Engagement. Achievement. www.hartnell.edu

Overview 1. No on-going requests will be funded at this time. 2. Approximately $1.5M of one-time requests are tentatively approved based on the following: Confirmation of funding availability. Confirmation that items are still needed. Note: Funding cannot be used for a different purpose other than what is identified and listed on schedule. GROWING LEADERS Opportunity. Engagement. Achievement. www.hartnell.edu

Summary of One-Time Requests REQUESTS FUNDED: Approved as a Percent of Total One Time Requests Submitted One Time Requests Approved One-Time Academic Affairs Student Services Administrative Services Human Resources Information Technology 1,775,899 85,640 546,950 1,164,549 60,641 216,950 0.66 0.71 0.40 - 0.07 TBD - 230,000 15,000 Total 2,638,489 1,457,140 0.55 GROWING LEADERS Opportunity. Engagement. Achievement. www.hartnell.edu

FUNDING SOURCES: Approved One-Time Capital Outlay Instructional Equipment Strong Workforce/Instructional Equpment General Unrestricted Carry Over Foundation Lottery Professional Development Outreach Funds Misc Grant Funded Department Funding Total 537,000 240,981 236,000 163,000 120,350 84,199 65,200 5,000 3,000 2,410 1,457,140 GROWING LEADERS Opportunity. Engagement. Achievement. www.hartnell.edu

END GROWING LEADERS Opportunity. Engagement. Achievement. www.hartnell.edu