May 9, 2024

Time	Agenda Item	Purpose | Discussion Leader	DRAFT Notes
3:00 p.m.	Approve the notes from February 22, 2024	A Co/Vice Chairs	The notes were approved
3:05 p.m.	April 30, 2024 - Fiscal Future Town Hall Chancellor Lee Lambert Recording Slideshow Basic Aid/Community Supported Funding slideshow Budget glossary https://www.fhda.edu/_chancellor/InformationalSessions.html	I/D Varela	Varela asked for feedback/comments on the Chancellor’s webinar. Balanced budget for FY23/24. FY24/25 will likely be ok but the years after are expected to be very financially challenging. Start working on planning for fiscal challenges. Look at the district as one unit may benefit De Anza if resources are redistributed De Anza’s size should be of benefit when rebalancing resource allocations. Nervousness around loss of local control at colleges/losing college identity. District looking to stabilize enrollment rather than chase enrollment. Enrollment is an average of 3-years. Chancellor stated he wanted the district to do things differently. Waiting for more detailed information from him.
3:30 p.m.	Discuss the status of programs experiencing financial challenges	I/D Varela	Fiscal services has been monitoring several fiscally concerning self-sustaining programs for years. Bringing back to BAC for information sharing and review. All figures are estimates/projections & subject to change. Facility Rental & Printing services: DA Use of Facilities is projected to be in deficit of $124,856 due to increasing expenses and lowering revenues. DA VPAC Facility rental projected a modest increase of $68,343. Areas have fund balances of $845,275 & $80,1669 respectively. DA has Board approval to increase the VPAC fees for the first time in over 7 years. DA Reprographics closed due to lack of work &  sole employee retiring. EFB for DA Reprographics will be used for the whole area. DA ePrintit is running a deficit of $4,272. Plan is to replace e-Printit with the managed print system for the students as well. Losses are covered by carryforward. DASG runs the Flea Market & is not included. HEERF provided income from lost revenue of $1,384,461. HEERF funds have protected the funds from deficit. Campus Center Student Use Fee has a net change of $27,605  for FY23/24. Projected to have a deficit of $59,575 in FY24/25. Ending fund balance of $898,351. Funds cannot be carried forward. DA Heath Fees net change FY23/24 $218,417. Cannot have a deficit in this account and there is no fund balance. Dean looking to expense transfers to balance the fund. Board approval to increase the health fee to assist with balancing the budget. Need to monitor closely. Financial Aid 7 funds: unrestricted, BFAP Promise, Pell, technology, Work Study. Recovery block grant $1.5M is only avail for 2-years and is supporting the other funds. Once the block grant has expired these funds will be in deficit. Director is working to resolve budget issues. HEERF funds have protected the funds from deficit. Need to monitor closely. OTI: 10 funds. Minimal resources and increasing expenses. Very tight budget. Two staff layoffs last year. $17k EFB predicted. HEERF funds $564,931 have protected the funds from deficit. Need to monitor closely. DA Dining Services. HEERF funds of $3,528,418 have protected the fund from EFB deficit. Approx. $900k loses each year. DA did an RFP for dining services. The DA Dining Services background & timeline submission was pulled from the 02/12/2024 Board agenda (see 02/22/2024 BAC notes). No direction from the district on how to backfill the losses. Director continues to work hard on the bottom line by reviewing  pricing, reducing student workers, changing menus, etc. Need to monitor closely.
3:50 p.m.	Carryforward Fund Balance Q3 (Jan. 1-Mar. 31) and Tentative Projections for 2024-25	I/D Varela	Carryforward fund balance FY23/24 projected at deficit of $42,086. Includes a one-time transfer of $1,416,427 from capital projects. Tentative budget projections for FY24/25 show a deficit of $1,376,103. Need to look at other one-time funding sources to balance the budget. Bookstore $1.4M was used to cover deficit in FY22/23. De Anza has been lobbying for resource reallocation of funds under the district reimagining project but so far nothing has changed. DA has been using various one-time funding to balance the EFB for approx. 4-years. Very tight B budget which has no capacity for increasing funding to divisions/departments across campus. Already relying on eligible  funding from non-general funds to balance the B budget. This model is unsustainable. DA would need approx. $2.5M more annually to balance the budget. District has a fund balance of approx. $8M annually. Staffing reclassification costs come from the campus B budget. This model has not been reviewed in many years. COLA awarded to FHDA employees is problematic for some non-B budget funds (i.e. categorical, grants, self-sustaining) as they still have to have to cover the COLA employee expenses even if there is no COLA allocated for that particular fund.
4:10 p.m.	Upcoming agenda items for Spring 2024 May Revise (The traditional May Revision adjustments are due by May 14, and consist of an update of General Fund revenues and changes in expenditures for school funding requirements pursuant to Proposition 98, caseload, enrollment, or population.) Joint RAPP/BAC 50% law training Current vacant position report	All	Agenda setting 50% law information comes from the district who will supply an estimate later in the quarter. Some positions can be excluded from the 50% law. DA has requested more direction and information from district to help guide the college.

A = Action
D = Discussion
I = Information
R = Recommendation

BAC supporting documents are posted here: Budget Advisory Committee Documents

Food Services RFP#1926 Winter 2024 (Request for Proposal)
B Budget (General Fund/Discretionary funds)
Budget Advisory Committee (BAC)
District Budget Advisory Committee (DBAC)
Ending Fund Balance (EFB)
Fiscal Year (FY)
Legislative Analyst's Office (LAO)
Resource Allocation and Program Planning (RAPP)

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2024 General funds release Tranche #3  BAC Agenda 02/01/2024 = $934,926.45
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Total General Funds released to RAPP Jan-June, 2023 = $2,332,319.38
2023 General funds release Tranche #1 BTF Agenda 03/09/2023 = $1,533,134.24
2023 General funds release Tranche #2 *FINAL* BAC Agenda 6/15/2023 = $435,065.79
2023 SRP #2 release BTF Agenda 03/09/2023 = $364,119.35