College Budget

Budget Development Guidelines and Procedure

The President, in consultation with the President’s Leadership Team (PLT), is responsible for:

  • Reviewing the base budget prior to the beginning of each budget development cycle to ensure alignment with core needs.
  • Realignment of the base budget during the initial budget review process.
  • Approving the annual Budget Development Cycle.
  • Approving and/or modifying budget allocation recommendations.

The Vice President of Administrative Services (VPAS) and Director of College Budget and Grants are responsible for overseeing financial planning and monitoring processes for the college. Oversight includes:

  • Initial development of the annual budget and periodic reviews to determine if budget objectives are being met and if spending is within allocations.
  • Incorporating the efforts of the Finance and Budget Committee advises the President and the President’s Leadership Team (PLT), within the context of the College’s mission on the long-term goals, strategic planning process and budgetary priorities of the College.
  • Providing appropriate budget updates to PLT.
  • Ensuring transparency of the college budget.
  • Maintaining a three-year rolling financial plan to enable the college to assess long-term consequences of budget decisions.

The primary source of new revenue will be enrollment growth funding from MCCCD.

  • Enrollment growth will be funded prospectively as outlined by District Office.
  • Enrollment growth will be funded at the current resident tuition rate.
  • The college will manage the risk of estimated and projected enrollment funding.

The college will pursue other revenue, as appropriate, from rental of facilities, partnerships, fund raising, etc.
Salary and benefit increases (COLA's, steps) and other increases, required by policy manual, will be funded by allocation of required funds from MCCCD.
Budget proposals for new college programs and/or initiatives must be approved through the new program proposal process prior to entering the budget request process.
Only budget requests submitted through the budget development system will be considered for budgetary prioritization and allocation.
Capital budget decisions include replacement plans for technology and elsewhere (vehicles, furniture, and equipment) as appropriate.
Budget requests are ranked within fund type based on alignment with college planning priorities and objectives. The following funding requirements defined by FBC in developing recommendations:

  • First Priority -Fixed Operating Needs - An annual review of fixed operating needs and review of funding reserves is a requirement of the budget development process and are funded as a first priority.
  • Second Priority – FBC  Recommendations– Available enrollment growth funding should be allocated as follows:
    • Direct instructional costs of new enrollment.
    • A portion to support functions for whom demand increases with enrollment.
  • Third Priority– Remediation of current program funding levels.
  • Fourth Priority- New or expanded college initiatives in accordance with the college strategic plan. Investments in quality improvement initiatives will also be considered.

Budget decisions shall focus on the best interest of the college and its students rather than separate units or divisions.
The annual budget will be developed to allow flexibility should the college be required to respond to a negative impact to the budget such as a sharp decrease in FTSE or a large, unplanned expense.
The college reserves the right, on an annual basis, to reallocate/realign existing base or current budget allocations to best meet the needs of the overall college.
The annual budget development will begin by recognizing and incorporating mandatory price and volume increases for all commitments & obligations.
Vacancy savings strategies will be included as part of the budget development cycle.
Increased expenditure requirements for reserve funds will be reviewed and realigned as appropriate.
Anticipated base budget includes estimated adjustments for FTSE changes.
Funding increases for new construction will first meet commitments and obligations of the new construction, any remaining funds allocation will be determined by PLT.
Program Review will incorporate a zero based budget practice and financial performance measures for the unit.
The college budget will be developed holistically, incorporating all funds (grants, course fees, and auxiliary/enterprise) and consideration of desired use or maintenance of fund balances.
Enrollment growth funding will be allocated:

  • First, to the direct instructional costs of new enrollment;
  • Second, a portion to the support functions for whom demand increases with enrollment;
  • Third, remediation of current program funding levels.
  • Fourth, new or expanded college initiatives in accordance with the college strategic plan. Investments in quality improvement initiatives will also be considered.

Operational expenses existing in other funds will be identified to determine Fund 1 impact.
Capital budget development and decisions will consider consequences to Fund 1.
The college will maintain a minimum reserve of $500,000 for unanticipated needs.
Revenue programs will be self-sufficient, direct program expense must be offset by revenues generated from the program. Each program will develop action and financial plans to meet this expectation.
The college will live within base budget allocations in funding recurring expenses.
The college budget development cycle will include a focused effort to reduce its impact on the environment and thereby decrease budget requirements for utilities, paper, etc.
The college will include a funding plan to maintain or grow the college as outlined in the strategic goals.
Funding allocations will be communicated to the divisions/department in sufficient time for adequate planning purposes; this information will be transparent to the full college.
At the end of each fiscal year, all divisions receiving additional funding will report on the use of those funds as part of the future budget planning cycle,
Financial Reports & Documentation
Financial data and related analysis are used to support the prioritization process. To establish a comprehensive understanding of college financials sufficient to prioritize budget requests, FBC members are provided the following reports.
Financial report identifying the current base and one-time allocations.
Financial Summary reports for all Funds.
Burn Report
Vacancy Position Control Report
President approved FPAC recommendations.
List of prior year commitments and obligations.
President’s budget message identifying college priorities and objectives.
Projection of future year carry-forward.
Other information as requested and applicable.

  1. The annual budget cycle is opened in the month of September or October of the fiscal year.
    • VPAS/DAS provides a Budget Development Calendar to PLT for review and approval.
  2. The President’s budget message serves as the framework for the budget development cycle.
  3. Division Chairs/Department Managers, with budget management responsibilities, are provided Action Planning and Budget Request Training.
  4. All departments/divisions must complete an action plan; budget requests are contingent on need and are not required.
  5. VPAS/DAS provides future-year funding projections to the President and PLT.
    • Future-year funding includes operational Fund I, other fund 2, fund 3, and fund 7 projections.
    • Projections may be adjusted up or down depending on actual budget impact.
  6. PLT determines future-year funding levels based on VPAS/DAS projections.
  7. VPAS/DAS provides an approved future-year budget projection to FBC, advising that projections may be adjusted up or down depending on actual budget impact.
  8. Commitments & Obligations
    • Commitments and obligations are identified by the divisions/office of the President.
    • The VPAS/DAS submits a report to FBC for review and funding recommendation.
  9. Operational Budget Requests – First Priority/Block
    • Each VP/Dean are set aside a certain operational budget.
    • Each VP/Dean meet with their division managers to prioritize their division’s First Priority Operational Budget Requests using the following guidelines.
    • Ranking must follow funding priority requirements and must be consistent with PVCC’s planning priorities and objectives.
    • Requests are bundled and ranked in the prioritization process as one unit.
    • VPAS/DAS submits a report to FBC for review and funding recommendation.
  10. Strategic Budget Requests – Second Priority
    • Each VP/Dean meet with their division managers to prioritize their division’s all Priority Strategic Budget Requests using the following guidelines.
      1. Ranking must follow funding priority requirements and must be consistent with PVCC’s planning priorities and objectives.
      2. Requests are individually assigned a priority number.
    • VPAS/DAS submits a prioritized report to FBC for review and funding recommendation.
  11. TCT & OccEd
    • Capital Committees determine a review and prioritization process specific to the committee’s charge based on capital type and available funding.
    • Committee chairperson submits a prioritized report to FBC for review and funding recommendation.
  12. Capital Non-Technology Requests
    • Each VP/Dean/the office of the President submits their non-technology requests to the VPAS/DAS.
    • VPAS/DAS submits a prioritized report of Non-Technology Request to FBC for review and funding recommendation.
  13. Furniture & Facilities Project Requests
    • Facilities projects are limited to projects which manage the functional and operational needs related to the college physical environment and college improvement/maintenance projects not funded by GO Bond funds.
    • Using on Online Facility Project Requests and Furniture Request Form at
      https://www.paradisevalley.edu/sites/default/files/docs/college-budget/budget_college_facility_projects_&_furniture_guidelines.docx

       

    • Facilities project submissions are reviewed by the Director of Facility Services to identify facility impact and additional funding needs. Facility impact concerns are resolved prior to proceeding.
    • Requests are reviewed by the appropriate VP/Dean for review and submittal approval.
    • Requests are reviewed by VP of Administrative Services and Facilities Planning Committee in September, December and April.
    • Approved submissions are entered into the budget development system.
    • Requests are submitted to PLT for review and recommendations.
    • The President reviews recommendations. The final decision is communicated to the VPAS/DAS.
    • The VPAS/DAS communicates project approval and budget directives to the requester.
    • Approved request information is communicated to the FBC and the Facilities Planning Committee as an informational item.
  14. FBC reviews the following recommendations, accepts prioritizations as submitted or rejects the recommendations for additional information.
    • First Priority/Block Operational Budget Requests
    • TCT
    • OccEd
    • Other Strategic Incentive Funding
  15. FBC reviews the following recommendations, establishes a priority ranking.
    • Second Priority Strategic Budget Requests
    • Capital Non-technology Requests
  16. Once finalized, FBC submits their funding recommendations to the President.
  17. The President provides final approvals to PLT, the VPAS, Director of Budget and the college.
  18. The VPAS/Director of Budget communicates transfer instructions to the Division Chairs/Department Managers.
  19. FBC provides recommendations for the future-year budget cycle for the President’s consideration.