Insights into SCFF Funding Formula for California Community Colleges

Full Throttle: A Roller Coaster on the New SCFF Evolutions and Opportunities Dr. Omar Torres, Assistant Superintendent/Vice President of Instruction Jason Hinkle, Associate Vice President, Business Services

Student Centered Funding Formula (SCFF) Hold Harmless vs. Stability Presentation Overview Emergency Conditions Allowance (ECA) Effects of ECA Ending Enrollment Management Opportunities

Student Centered Funding Formula (SCFF)

The general purpose of the funding formula is to: Encourage access for underrepresented students and recognize the cost for additional support needed for low- income students Governor s Intent for SCFF (as stated in new CA Ed Code 84750.4) Reward colleges for moving the metrics in student success (completion) Improve overall predictability of community college funding Colleges may more readily plan and implement instruction and programs

California community colleges are funded annually by 3 separate allocations: 70% Base allocation (FTES + campus & center allocation) 20% Supplemental allocation (low-income student population) 10% Student success allocation (completion metrics) SCFF-Funding Process FY22-23 Rates: Credit (3-year avg) CDCP Dual Enrollment Incarcerated Non-Credit $4,840 $6,787 $6,787 $6,787 $4,081

SCFFBase Allocation 2020/21 Metrics 2021/22 Metrics 2022/23 Metrics (Projected) FTES 15,600.00 1,008.00 16,636.30 2022/23 SCFF 2022/23 Rates 2022/23 Dollars Base Allocation Credit FTES Credit Special Admit - Dual Enrollment Incarcerated Total Base FTES Allocation FTES 15,232.00 999.00 16,256.00 FTES 15,405.00 1,002.00 16,434.00 FTES 15,412.33 1,008.00 16,448.63 FTES 4,840.04 $ 6,787.33 $ 6,787.33 $ FTES 74,596,251 $ 6,841,625 $ 192,081 $ 81,629,957 $ 25.00 27.00 28.30 28.30 Non Credit FTES CDCP Non Credit Traditional Non Credit Total Non Credit Allocation $ 2,341,628 $ 1,852,960 $ 4,194,588 $ - 330.00 405.00 735.00 335.00 423.00 758.00 345.00 454.00 799.00 345.00 454.00 799.00 $ $ 6,787.33 4,081.41 Total FTES 16,991.00 17,192.00 17,435.30 17,247.63 85,824,545 $

Allocated to each district based on total points calculated annually 1 point for each student who receives financial aid (Pell) 1 point for each student who is granted an exemption for non- resident tuition (AB540) Supplemental Allocation (Low-Income/Equity) Non-resident student who attended a CA high school for at least 3 years & earned diploma 1 point for each student who receives a Promise/Board Of Governors (BOG) fee waiver 2022-23 each point funded at $1,145 2023-24 rate to be determined and adjusted upward for any future COLA

SCFF-Supplemental Allocation 2020/21 Metrics 19/20 Counts 13,656 16,633 2021/22 Metrics 20/21 Counts 12,522 15,886 2022/23 Metrics 20/21 Counts 2022/23 SCFF 21/22 Counts 12,578 16,211 2022/23 Rates 21/22 Rates 1,144.51 $ 1,144.51 $ 1,144.51 $ 2022/23 Dollars 21/22 Dollars 3,561,726 $ 596,291 $ 14,395,690 $ 18,553,707 $ Supplemental Allocation Pell Grant head count, not awards AB 540 Students California Promise Grant Students Total 2,525 452 2,877 487 3,112 521 12,578 16,211 3,112 521

Allocated to each district based on total points accumulated Completion Measures All Students BOG/Promise Students Pell Students Points $/Point Total $ Points $/Point Total $ Points $/Point Total $ Success Allocation ADT 4 $ 675 $ 2,700 4 $ 255 $ 1,021 6 $ 255 $ 1,532 AA/AS 3 $ 675 $ 2,025 3 $ 255 $ 766 4.5 $ 255 $ 1,149 Baccalaureate 3 $ 675 $ 2,025 3 $ 255 $ 766 4.5 $ 255 $ 1,149 Credit Certificates (16+ units) 2 $ 675 $ 1,350 2 $ 255 $ 511 3 $ 255 $ 766 Transfer Math & English (Yr1) 2 $ 675 $ 1,350 2 $ 255 $ 511 3 $ 255 $ 766 Transfer 1.5 $ 675 $ 1,012 1.5 $ 255 $ 383 2.25 $ 255 $ 575 9+ CTE Units 1 $ 675 $ 675 1 $ 255 $ 255 1.5 $ 255 $ 383 Regional Living Wage 1 $ 675 $ 675 1 $ 255 $ 255 1.5 $ 255 $ 383

Success Metrics averaged over three years Success Allocation Only highest degree/award counted Transfer based on UC/CSU criteria and only awarded to one District with 12+ units in prior year

SCFF-Success Allocation Points 2020/21 Metrics 2021/22 Metrics 20/21 Counts 10,015 2022/23 Metrics 20/21 Counts 2022/23 SCFF 2022/23 Rates 2022/23 Dollars 19/20 Counts Student Success Incentive Allocation Success Metrics Associate degree for transfer Associate degree Baccalaureate Degree Credit certificates requiring 16+ units Completion of transfer-level math and English Transfer to 4-year institution Completion of 9 CTE units Attainment of regional living wage Total Average 866.00 777.33 155.67 1,011.67 1,153.67 2,436.00 3,918.33 10,318.67 Rates 674.88 $ 674.88 $ 674.88 $ 674.88 $ 674.88 $ 674.88 $ 674.88 $ 674.88 $ Dollars 2,337,772 $ 1,573,812 $ $ 210,112 $ 1,365,500 $ 1,167,874 $ 1,643,999 $ 2,644,391 $ 10,943,461 $ 4 3 3 2 2 868 796 - 165 854 754 - 145 985 876 782 - 157 998 - - 1,052 1,100 2,323 4,102 10,406 1.5 1 1 1,105 2,487 3,685 1,256 2,498 3,968 10,535

SCFF-Success Allocation Points 2020/21 Metrics 2021/22 Metrics 20/21 Counts 2022/23 Metrics 20/21 Counts 2022/23 SCFF 2022/23 Rates 2022/23 Dollars 19/20 Counts Student Success Incentive Allocation Success Equity Metrics (Add ons With Pell) Associate degree for transfer - Pell Students Associate degree - Pell students Baccalaureate Degree - Pell students Credit certificates requiring 16+ units - Pell Students Transfer-level math and English - Pell Students Transfer to 4-year institution - Pell Students Completion of 9 CTE units - Pell Students Attainment of regional living wage - Pell Students Total Average 363.67 327.67 319.00 468.33 799.33 522.67 2,869.67 Rates 170.23 $ 170.23 $ 170.23 $ 170.23 $ 170.23 $ 170.23 $ 170.23 $ 170.23 $ Dollars 371,438 $ 251,002 $ $ 35,237 $ 162,908 $ 179,378 $ 204,104 $ 133,459 $ 1,337,526 $ 6 358 302 - 77 322 418 780 511 336 335 - 68 304 485 796 522 397 346 - 62 331 502 822 535 4.5 4.5 3 3 2.25 1.5 1.5 - - 69.00 2,768 2,846 2,995

SCFF-Success Allocation Points 2020/21 Metrics 2021/22 Metrics 20/21 Counts 2022/23 Metrics 20/21 Counts 2022/23 SCFF 2022/23 Rates 2022/23 Dollars 19/20 Counts Student Success Incentive Allocation Success Equity Metrics (Add ons With CPG) Associate degree for transfer - CPG Associate degree - CPG Baccalaureate Degree - CPG Credit certificates requiring 16+ units - CPG Completion of transfer-level math and English - CPG Transfer to 4-year institution - CPG Completion of 9 CTE units - CPG Attainment of regional living wage - CPG Total Average 698.00 487.00 106.00 640.33 646.67 1,181.00 881.67 4,640.67 Rates 170.23 $ 170.23 $ 170.23 $ 170.23 $ 170.23 $ 170.23 $ 170.23 $ 170.23 $ Dollars 475,277 $ 248,703 $ $ 36,088 $ 218,006 $ 165,121 $ 201,040 $ 150,085 $ 1,494,320 $ 4 3 3 2 2 687 503 - 111 654 624 695 466 - 102 625 632 712 492 - 105 642 684 - - 1.5 1 1 1,213 984 4,776 1,150 806 4,476 1,180 855 4,670 Student Success Incentive Allocation Total 12,437,782

Hold Harmless vs. Stability

Allows Districts To Maintain Revenue At 2017- 2018 Total Computational Revenue Increased Annually By Each Year s COLA Hold Harmless (ECS 84750.4(h)) This Protection Changes After 2024-2025 Beginning 2025-2026, there will be a new Funding Floor which will be equal to a Districts 2024-2025 Total Computational Revenue

Hold Harmless Example

Began In 2020-2021 A Protection Is Given So Districts Will Receive No Less Then The Prior Year SCFF Plus Current Year COLA. This Protection Is Similar To Former FTES Stability Protection But Is Based On Total SCFF This Protection is On-Going Title 5 Section 58771: Stability Protection (ECS 84750.4(g)(2)) Apportionment allocations for the basic allocation base revenues and base rates are based on the prior year's FTES as reported on the final attendance report Title 5 Section 58771(i)(8): If the recalculation results in a lower funding amount, the reduction will not occur until the third year after the initial recalculation that resulted in the lower calculated funding amount. If the educational center increases the level of FTES served in years subsequent to the reduction in its basic allocation amount, the Chancellor shall recalculate the basic allocation amount using the larger FTES level, but in no case will the basic allocation be recalculated using a level of FTES that exceeds the FTES amount from its initial center certification

Stability Protection Example

Emergency Conditions Allowance (ECA)

Districts May Use The 2019-2020 P1 FTES In Place Of The 2020-2021, 2021-2022, and 2022-23 FTES To Calculate The Base Allocation In The Student Centered Funding Formula Emergency Conditions Allowances (ECA) (Title 5 58146) This Protection Ends After 2022- 2023

Effects of ECAEnding

Assumptions Pre-Pandemic 15,000 FTES (used in ECA) 10% FTES loss Post-Pandemic (Actual FTES in 2023-2024 13,500) Scenario of District in 2023-2024 after ECA expires 15% FTES loss Post-Pandemic (Actual FTES in 2023-2024 12,750) 20% FTES loss Post-Pandemic (Actual FTES in 2023-2024 12,000) 2% FTES Growth 2024-2025 and on. Medium Sized College Basic Allocation 2021-2022 Supplemental and Success Metrics are low point, flat going forward 8.13% COLA in 2023-2024 and 4% COLA each year after

Pre-Pandemic FTES ECA FTES used in SCFF Calculation Credit FTES Credit Special Admit - Dual Enrollment Incarcerated Total Base FTES Allocation FTES 14,000.00 500.00 14,550.00 50.00 ECA -FTES Non Credit FTES CDCP Non Credit Traditional Non Credit Total Non Credit Allocation 150.00 300.00 450.00 Total FTES 15,000.00

2021-2022 Success Metrics used in 2023-2024 SCFF 21/22 Counts Supplemental Allocation Pell Grant head count, not awards (1 point) AB 540 Students (1 point) California Promise Grant Students (1 point) Total 3,800 450 9,000 13,250

2021-2022 Supplemental Metrics used in 2023-2024 SCFF 21/22 Counts Student Success Incentive Allocation Success Metrics Associate degree for transfer Associate degree Baccalaureate Degree Credit certificates requiring 16+ units Completion of transfer-level math and English Transfer to 4-year institution Completion of 9 CTE units Attainment of regional living wage Total 1,000 700 - 160 1,000 1,100 2,650 4,100 10,710

2021-2022 Supplemental Metrics used in 2023-2024 SCFF 21/22 Counts Student Success Incentive Allocation Success Equity Metrics (Add ons With Pell) Associate degree for transfer - Pell Students Associate degree - Pell students Baccalaureate Degree - Pell students Credit certificates requiring 16+ units - Pell Students Transfer-level math and English - Pell Students Transfer to 4-year institution - Pell Students Completion of 9 CTE units - Pell Students Attainment of regional living wage - Pell Students Total 400 300 - 60 340 400 750 500 2,750

2021-2022 Supplemental Metrics used in 2023-2024 SCFF 21/22 Counts Student Success Incentive Allocation Success Equity Metrics (Add ons With CPG) Associate degree for transfer - CPG Associate degree - CPG Baccalaureate Degree - CPG Credit certificates requiring 16+ units - CPG Completion of transfer-level math and English - CPG Transfer to 4-year institution - CPG Completion of 9 CTE units - CPG Attainment of regional living wage - CPG Total 750 450 - 100 600 600 1,300 950 4,750

Future FTES in SCFF 10%Post Pandemic Decline, with 2% Restoration in Following Years 2022/23 2023/24 2024/25 2025/26 Base Allocation Credit FTES Credit Special Admit - Dual Enrollment Incarcerated Total Base FTES Allocation FTES 14,000.00 500.00 14,550.00 FTES 12,600.00 450.00 13,095.00 FTES 12,852.00 459.00 13,356.90 FTES 13,109.04 468.18 13,624.04 50.00 45.00 45.90 46.82 Non Credit FTES CDCP Non Credit Traditional Non Credit Total Non Credit Allocation 150.00 300.00 450.00 135.00 270.00 405.00 137.70 275.40 413.10 140.45 280.91 421.36 Total FTES 15,000.00 13,500.00 13,770.00 14,045.40

Total Computational Revenue Funding for District with 10% FTES loss 2022/23 2023/24 Total FTES $ 73,736,058 Total FTES $ 76,642,348 Total Basic Allocation $ 9,917,373 Total Basic Allocation $ 10,723,655 Total Supplemental $ 14,306,418 Total Supplemental $ 15,469,529 Total Success $ 14,158,772 Total Success $ 14,879,665 Total SCFF Revenue $ 112,118,620 Total SCFF Revenue $ 117,715,198 Stability Funding Level $ 102,000,000 Stability Funding Level $ 121,233,864 Hold Harmless Funding Level $ 100,000,000 Hold Harmless Funding Level $ 108,130,000 Higher of SCFF/Stability/HH $ 112,118,620 Higher of SCFF/Stability/HH $ 121,233,864 8.13% COLA vs. 8.13% Revenue increase

Total Computational Revenue Funding for District with 10% FTES loss 2024/25 2025/26 Total FTES $ 77,869,569 Total FTES $ 79,303,233 Total Basic Allocation $ 11,152,602 Total Basic Allocation $ 11,598,706 Total Supplemental $ 16,088,311 Total Supplemental $ 16,731,843 Total Success $ 15,238,378 Total Success $ 15,847,913 Total SCFF Revenue $ 120,348,859 Total SCFF Revenue $ 123,481,694 Stability Funding Level $ 122,423,806 Stability Funding Level $ 125,162,813 Hold Harmless Funding Level $ 112,455,200 Hold Harmless Funding Level $ 116,953,408 Higher of SCFF/Stability/HH $ 122,423,806 Higher of SCFF/Stability/HH $ 125,162,813 4% COLA vs. 1% Revenue increase 4% COLA vs. 2.2% Revenue increase

Future FTES in SCFF 15% Post Pandemic Decline, with 2% Restoration in Following Years 2022/23 2023/24 2024/25 2025/26 Base Allocation Credit FTES Credit Special Admit - Dual Enrollment Incarcerated Total Base FTES Allocation FTES 14,000.00 500.00 14,550.00 FTES 11,900.00 425.00 12,367.50 FTES 12,138.00 433.50 12,614.85 FTES 12,380.76 442.17 12,867.15 50.00 42.50 43.35 44.22 Non Credit FTES CDCP Non Credit Traditional Non Credit Total Non Credit Allocation 150.00 300.00 450.00 127.50 255.00 382.50 130.05 260.10 390.15 132.65 265.30 397.95 Total FTES 15,000.00 12,750.00 13,005.00 13,265.10

Total Computational Revenue Funding for District with 15% FTES loss 2022/23 2023/24 Total FTES 73,736,058 $ Total FTES 75,098,123 $ Total Basic Allocation 9,917,373 $ Total Basic Allocation 10,723,655 $ Total Supplemental 14,306,418 $ Total Supplemental 15,469,529 $ Total Success 14,158,772 $ Total Success 14,879,665 $ Total SCFF Revenue 112,118,620 $ Total SCFF Revenue 116,170,973 $ Stability Funding Level 102,000,000 $ Stability Funding Level 121,233,864 $ Hold Harmless Funding Level 100,000,000 $ Hold Harmless Funding Level 108,130,000 $ Higher of SCFF/Stability/HH 112,118,620 $ Higher of SCFF/Stability/HH 121,233,864 $ 8.13% COLA vs. 8.13% Revenue increase

Total Computational Revenue Funding for District with 15% FTES loss 2024/25 2025/26 Total FTES 74,954,597 $ Total FTES 74,897,498 $ Total Basic Allocation 11,152,602 $ Total Basic Allocation 11,598,706 $ Total Supplemental 16,088,311 $ Total Supplemental 16,731,843 $ Total Success 15,238,378 $ Total Success 15,847,913 $ Total SCFF Revenue 117,433,887 $ Total SCFF Revenue 119,075,959 $ Stability Funding Level 120,817,812 $ Stability Funding Level 122,131,242 $ Hold Harmless Funding Level 112,455,200 $ Hold Harmless Funding Level 116,953,408 $ Higher of SCFF/Stability/HH 120,817,812 $ Higher of SCFF/Stability/HH 122,131,242 $ 4% COLA vs. 0.34% Revenue DECREASE 4% COLA vs. 1.1% Revenue increase

Future FTES in SCFF 20% Post Pandemic Decline, with 2% Restoration in Following Years 2022/23 2023/24 2024/25 2025/26 Base Allocation Credit FTES Credit Special Admit - Dual Enrollment Incarcerated Total Base FTES Allocation FTES 14,000.00 500.00 14,550.00 FTES 11,200.00 400.00 11,640.00 FTES 11,424.00 408.00 11,872.80 FTES 11,652.48 416.16 12,110.26 50.00 40.00 40.80 41.62 Non Credit FTES CDCP Non Credit Traditional Non Credit Total Non Credit Allocation 150.00 300.00 450.00 120.00 240.00 360.00 122.40 244.80 367.20 124.85 249.70 374.54 Total FTES 15,000.00 12,000.00 12,240.00 12,484.80

Total Computational Revenue Funding for District with 20% FTES loss 2022/23 2023/24 Total FTES 73,736,058 $ Total FTES 73,553,897 $ Total Basic Allocation 9,917,373 $ Total Basic Allocation 10,723,655 $ Total Supplemental 14,306,418 $ Total Supplemental 15,469,529 $ Total Success 14,158,772 $ Total Success 14,879,665 $ Total SCFF Revenue 112,118,620 $ Total SCFF Revenue 114,626,747 $ Stability Funding Level 102,000,000 $ Stability Funding Level 121,233,864 $ Hold Harmless Funding Level 100,000,000 $ Hold Harmless Funding Level 108,130,000 $ Higher of SCFF/Stability/HH 112,118,620 $ Higher of SCFF/Stability/HH 121,233,864 $ 8.13% COLA vs. 8.13% Revenue increase

Total Computational Revenue Funding for District with 20% FTES loss 2024/25 2025/26 Total FTES 72,039,625 $ Total FTES 70,491,763 $ Total Basic Allocation 11,152,602 $ Total Basic Allocation 11,598,706 $ Total Supplemental 16,088,311 $ Total Supplemental 16,731,843 $ Total Success 15,238,378 $ Total Success 15,847,913 $ Total SCFF Revenue 114,518,915 $ Total SCFF Revenue 114,670,224 $ Stability Funding Level 119,211,817 $ Stability Funding Level 119,099,671 $ Hold Harmless Funding Level 112,455,200 $ Hold Harmless Funding Level 116,953,408 $ Higher of SCFF/Stability/HH 119,211,817 $ Higher of SCFF/Stability/HH 119,099,671 $ 4% COLA vs. 1.67% Revenue DECREASE 4% COLA vs. 0.09% Revenue DECREASE

Total Computational Revenue Funding Comparisons 10% v. 15% v. 20% FTES loss 2022/23 6.56% 2023/24 8.13% 2024/25 4.00% 2025/26 4.00% COLA TCR SCFF / Stability / Hold Harmless Revenue Incr./(Decr.) from PY 112,118,620 $ SCFF N/A 121,233,864 $ Stability 8.13% 122,423,806 $ Stability 0.98% 125,162,813 $ Stability 2.24% 10% FTES Decrease TCR SCFF / Stability / Hold Harmless Revenue Incr./(Decr.) from PY 112,118,620 $ SCFF N/A 121,233,864 $ Stability 8.13% 120,817,812 $ Stability -0.34% 122,131,242 $ Stability 1.09% 15% FTES Decrease TCR SCFF / Stability / Hold Harmless Revenue Incr./(Decr.) from PY 112,118,620 $ SCFF N/A 121,233,864 $ Stability 8.13% 119,211,817 $ Stability -1.67% 119,099,671 $ Stability -0.09% 20% FTES Decrease

Faculty Obligation Number (FON)

What Effect Does ECA Going Away Have on the FON? Fall 2023 Fall 2024 Fall 2025 Fall 2026 Prior Year Base FON 200 200 193 188 Credit FTES are 3-Year Average Prior Year Funded Credit FTES Current Year Funded Credit FTES Deficit Factor Funded FTES adjusted by Deficit Factor Change in FTES Percent Change in FTES FTES Adjustment FTEF Ajustment from Funding 14,550.00 14,550.00 14,550.00 14,065.00 14,065.00 13,667.33 13,667.33 13,358.66 0.0% 0.0% 0.0% 0.0% 14,550.00 14,065.00 -3.33% 13,667.33 -2.83% 13,358.66 -2.26% - (485) (398) (309) 0.00% 0 0 -7 0 -5 0 -4 0 Advanced FON P2 FON Compliance FON 200 200 200 193 193 193 188 188 188 184 184 184 Cumulative 8.42% Drop over 3 years

Enrollment Management

Dual Enrollment and passage of AB-102 Synchronous online, asynchronous online, and hyflex expansion Teaching College Short-term scheduling Apprenticeships Enrollment Management Opportunities Continuing Education and Rising Scholars expansion Baccalaureate Degree Federal Appropriations Project-Based Learning and Light the Fire classes 2023/2024 SEM Program: Supporting the Student Journey Program Maps via Program Mapper for all degrees/certificates as well as part-time students and offsite locations Additional ZTC/OER development Intercultural Center