Academic Senate Study Session: Part-Time Instructional Budget

October 22, 2015

Presented by:Michelle MarquezVice President, Administrative Services

Today’s Session

• What is the 50% Law?• What is FON?• How does the college budget for part-time faculty and

# of sections?• What impact does load have on our budget?

A Bit of History…

• Education Code 84362: 50% Law (1961) – Protecting K-12 classroom size• 75/25 Ratio (1988) – Goal for a 75/25% ratio of FT to

PT faculty• FON (1989) – Faculty obligation number

Today’s Session

• What is the 50% Law?• What is FON?• How does the college budget for part-time faculty and

# of sections?• What impact does load have on our budget?

50% Law

• Education Code 84362 and California Code of Regulations 59200 requires California Community College Districts to spend 50% of general funds each fiscal year on salaries of classroom instructors. The intent of the statute is to limit class size and contain the relative growth of administrative and non-instructional costs. Source: California Community Colleges Budget and Accounting Manual

• This is not a straightforward “50% of Fund 1” calculation. There are many exclusions we have to consider (student transportation, food services, external facility rentals, capital improvement projects, team sports, lottery expenditures, and a few others)

50% Law

• Developed to protect K-12 class size, not to guarantee levels of compensation or funding to instruction• Issues surrounding 50% Law:• Has not been reviewed since 1961. Educational practices

have evolved since then:• Learning now takes place in multiple venues, inside and outside the

classroom• Support services are recognized as a critical component of student

success

• Workload reductions during budget reductions• Faculty release time counts against the 50%• Librarians and counselors count against the 50%• We report as a District (and District has $0 instructional

expenses)

Fun Fact:

No other state in the U.S. has

anything remotely close to the 50%

Law

50% Law

• Where did we end up for 2014/2015:• Cañada College = 61.7%• District = 50.1%

Good Side of the 50 Percent Law  Salaries of classroom teachers Instructional Aid Full-Time &

Hourly In-Classroom Tutors      

Wrong Side of the 50 Percent Law  Distance Education

Coordinators Instructional Designer Counselors Faculty Reassign Time Faculty Director: EOPS, NSF,

Transfer Center, Athletic Director

Faculty Compensation for Special Assignments

Librarians 

Today’s Session

• What is the 50% Law?• What is FON?• How does the college budget for part-time faculty and

# of sections?• What impact does load have on our budget?

75/25

• The “75/25” is a goal to achieve a ratio of 75% Full-Time faculty to 25% Part-Time faculty• Official calculation: • #FT LHE/#PT LHE

• Common calculation:• Total LHE/PT LHE = % PT

• 75/25 often does not account for release time• Overload counts toward PT LHE

FON

• Faculty obligation number (FON) is the number of full-time faculty a district is required to employ as of Fall semester (Ed Code 87482.6, Title V 51025)• FON was developed to help colleges meet the 75/25

goal• FON does not include non-credit faculty, but does

include librarians and counselors

FON

• FON calculation is very complicated. Our obligation is adjusted annually by the lower of:• Projected fundable growth at budget adoption• Actual percent change in funded credit FTES from the prior

year P2 report

• Faculty Obligation (FON)• Obligation 2014/2015 = 328• Actual = 334

What Happens if we Don’t Comply?

• 50% Law:• No financial penalty, but there is a political price to pay (and

gets reported to BOG)

• FON:• Financial penalty

• # of faculty below FON * Avg replacement cost of faculty (4 faculty * $76,000 = $304,000)

• 75/25:• No penalty (this is a goal, not a mandate)

Considerations

• These laws/mandates/goals were established individually as a response to specific issues• No one has studied the collective impact of the 50%

law, FON, and other mandates together

Today’s Session

• What is the 50% Law?• What is FON?• How does the college budget for part-time faculty and # of sections?• What impact does load have on our budget?

FY 2015/2016 College Budget

Cañada College 2015-2016 Unrestricted Budget Summary

ExpensesUnrestricted Allocation    Regular Employees (salaries & benefits) $ 16,824,767 Hourly Salaries $ 4,167,310Discretionary $ 788,293

 Total Expenses $ 21,780,370

Nuts and Bolts – Some acronyms and calculations

• 1 FTEF = 15 LHE (lecture hour equivalent)• 1 FTES = 525 contact hours• FTES = (census day enrollment*wsch*term)/525

• LHE:• 1 hour lecture = 1 LHE• 1 hour lab = 0.75 LHE

• WSCH (weekly student contact hours)• WSCH = class enrollment * weekly hours

• 1310 = Refers to our hourly faculty budget

How is the 1310 Budget Developed?

• College budget developed as an average for the year• Estimated targets are developed based on trend data

and goals set for the year• Monitored continuously through each semester to

project any shortfalls and identify when and how adjustments should be made

Hourly Teaching Budget

Projected Hourly Teaching Budget, FY 2015/2016

FTESConvert

to WSCH

WSCH/ FTEFProd

TOTAL # FTEFNeeded

# FTEFAvailable

# FTEFNeeded

(PT)

Average Costper PT FTEF

1310 BudgetNeeded

4,195 62,925 500 125.85 58.17 67.68 $56,963 $3,855,256

# of FTEF available = The total number of FT Faculty minus release/reassign time, medical leave

Historical 1310 Costs

HOURLY FACULTY SUMMARY FY 2012/13 - Fall 2015

Division 2012-2013 2013-2014 2014-2015 FL 2015 ESTIMATE

Counseling $18,395 $10,104 $2,439 $3,564

Business $882,891 $495,677 $532,464 $328,331

Humanities $812,908 $535,501 $684,253 $571,108

Science $749,128 $495,515 $629,158 $515,934

ALL - - $200,192 $100,661Office of Instruction $8,923 $254,065 - -

Total $2,472,247 $1,790,864 $2,048,507 $1,519,600

Note: Measure G not included in this summaryFY 2014/2015 = $1,576,490; 133 sections

Today’s Session

• What is the 50% Law?• What is FON?• How does the college budget for part-time faculty and

# of sections?• What impact does load have on our budget?

2010/2011 2011/2012 2012/2013 2013/2014 2014/2015 As of 10/19/15

616

540

504483 488

480

Productivity

How Does Load Impact Budget?

• Load, productivity, and efficiency are often used interchangeably• Higher productivity means more students served per

FTE• Lower productivity means fewer students are served

per FTE• Type of class has to be considered in evaluating

productivity• The state “standard” productivity level is 525• This number represents the break-even point for a course

1310 Budget Based on Load

Load Amount Financial Impact

525 $

3,513,885 $341,371

520 $

3,579,533 $275,723

515 $

3,646,456 $208,800

510 $

3,714,691 $140,565

500 $

3,855,256 -

490 $

4,001,558 $146,302

480 $

4,153,956 $298,700

475 $

4,232,561 $377,305

470 $

4,312,838 $457,582

465 $

4,394,842 $539,586

State Standard

FY 2015/2016

Goal

Where we are Fall

semester 2015

Historical Enrollments - Summer

COMPARISON OF SUMMER ENROLLMENTS FY1213 - FY1415

 Census

Enrollment FTES FTEF WSCH CRNAvg Class

Size Load

SUM 2012 4,099 459.89 24.89 13,797 156 26 554

SUM 2013 4,455 484.94 27.62 14,548 160 28 527

SUM 2014 4,701 516.68 30.48 15,501 170 28 508

Historical Enrollments - Fall

COMPARISON OF FALL ENROLLMENTS FY1213 - FY1415

 Census

Enrollment FTES FTEF WSCH CRNAvg Class

Size Load

FL 2012 16,924 1,994.60 118.14 59,838 645 26 506

FL 2013 16,078 1,901.54 115.73 57,046 637 25 493

FL 2014 15,673 1,806.25 109.48 54,187 583 27 495

FL 2015 14,837 1,810.38 113.24 54,311 605 25 480

Historical Enrollments - Spring

COMPARISON OF SPRING ENROLLMENTS FY1213 - FY1415

 Census

Enrollment FTES FTEF WSCH CRNAvg Class

Size Load

SPR 2013 16,779 1,946.51 119.01 58,395 656 26 491

SPR 2014 16,281 1,837.87 118.96 55,1236 659 25 463

SPR 2015 15,333 1,778.94 112.10 53,368 622 25 476

Impact of Not Meeting Targets

• Our 1310 budget is the largest variable expense in the college budget• Hourly faculty represent roughly 18% of our general

fund• Perspective:• Our current load projects needing an additional $298,700 for

part time faculty• Current discretionary budget is $788,293• Could we stand to lose 38% of our discretionary budget?

• On average, it costs an additional $15,500 for each productivity point• 9 productivity points = $139,500• Average cost of a new full-time faculty = $109,000

How Is Productivity Improved?

• Ways to improve:• Offering fewer sections (tightening the core schedule)

• Get a strong sense of enrollment patterns, rates of return, and develop a base schedule that is specific to each discipline (and monitor every semester)

• Increase the number of students in sections• Restructure of scheduling (curriculum/program offerings, times that sections

are offered)• Working across departments to identify load targets that are appropriate and

pedagogically sound• Things to avoid:

• Rolling schedules and hoping course enrollment targets are met• Setting enrollment targets that are unrealistic for the type of course or

discipline• Assuming things should be done across the board (ie, 5% less courses, 5%

more enrollment)

Questions/Discussion

Last Thought

We will never have enough funding to do everything we want. Managing a budget has more to do with managing needs and values than being proficient in Banner or Excel. How we allocate our resources (inclusion vs dark room approach) and what values influence these allocation decisions (do we fund administrative support vs. athletics vs. librarians?) is an indication of our fiscal competencies as an institution.