Oregon Community College Distribution Formula - PowerPoint PPT Presentation

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Oregon Community College Distribution Formula

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Oregon Community College Distribution Formula – PowerPoint PPT presentation

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Title: Oregon Community College Distribution Formula


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 Oregons 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)

3
Objectives and Principles
4
Distribution Formula Objectives
  • The State Board of Educations 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

5
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.

6
Formula Overview
7
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 Limit
  • Total 486.1 million

8
Total Public Resources
  • General Fund Property Taxes
  • Total Public Resources (TPR)
  • The formula considers 100 of the next years
    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.

9
CCSF Funding Diagram Total Public Resources
10
Total Public Resources (in thousands)
11
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 _at_ 5.0
12
Reimbursable FTE
13
Reimbursable FTE
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

14
History of Reimbursable FTE
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
(85,36640) (86,61130) (87,65930)
86,427
16
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
18
The Base
  • Increases 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

20
Harm Limit
  • Prevents loss gtX 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
  • the percent change in total public resources from
    one year to the next
  • 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
21
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 Level Governors
Recommended Budget
  • The 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 tax
  • Property 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 M
  • Standard Inflation (2.8) 20.9 M
  • Property Tax Growth (8.4) (20.7 M)
  • CCSF EBL 500.2 M

23
2009-11 Essential Budget Level Community College
Revenue Forecast Committee
  • DAS Recommendation based on the Executive Order
  • Estimate 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.

24
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
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