The Governor signed the State Budget on June 27, 2019 and takes effect on July 1, 2019. Policy changes in the SCFF implementation are included in the 2019-2020 state budget. The changes are as follows:

1. Breakdown of Allocations - keeping the 70% base allocation (enrollment), 20% supplemental allocation (low income), and 10% student success allocation (outcomes) for 2019-2020. Originally, for 2019-2020, the allocation should have been 65%-20%-15%, respectively. 
2. Hold Harmless - extending for another year the hold harmless for community college districts negatively impacted with the implementation. The hold harmless will now be through FY 2021-2022. The SCFF without hold harmless provisions will be in effect on FY 2022-2023.
3. Student Success Metrics - providing some changes on calculations and definitions changes.
   1. Degrees and Certificates - only the highest degree earned by a student is considered in the formula regardless of the number of the degrees a student obtained the prior year.
   2. Transfer to 4-year Universities - only students who earned at least 12 units from the prior year of transfer to a four-year university is considered in the formula.
   3. Average of prior 3 years - each metric in the Student Success allocation will be calculated based on the average of the prior three years. For example, for FY 2019-2020, each metric will be calculated based on 2016-2017, 2017-2018, and 2018-2019 outcomes.

To provide clarity, the sections on this page that were affected by the change in 2019-2020 state budget are in blue with the old text striked out. 

May 17, 2019

Ohlone Family,

I want to thank all of you who have been participating in the Funding Formula Workgroup and the others who have contributed ideas to address the impact of the new funding formula on Ohlone.  The formula presents a moving target, and we hear about changes and proposed changes continuously.  Still, we need a plan based on the information we have and our best estimates of enrollment and performance on the ever-changing metrics.  With your help, the vice presidents and I have been working diligently to prepare this plan, which includes projections for enrollment, success and supplemental metrics, targets for budget reductions, and estimates of future non-apportionment revenue.  Over the next few years, we will implement the plan we have developed.  As our efforts start to take effect, we will check in regularly to see how accurate these estimates are turning out to be.  We will have the opportunity to make adjustments and incorporate new ideas at those junctures.

The plan includes improvements in our performance on metrics—increased enrollment; more degrees, certificates, and transfer; and assisting low-income students to come to Ohlone.   We will apply the restricted monies we receive for Guided Pathways, Student Equity and Achievement, Strong Workforce, etc., coupled with a small amount of General Fund money and marketing budget to improve on the metrics.  With your participation, we will also take advantage of the Educational Master Plan process and the upcoming Strategic Plan process to determine new directions for programs and services.

The plan also requires some belt-tightening in the form of paring down our operating budget and reducing the number of employees through attrition.  This will mean we continue to ask each budget manager to find ways to reduce operating costs.  I am happy to report that this effort has saved the College $1 million in operating expenses this year and the savings are anticipated to increase for next year.  In order to allow for the full picture of the funding formula to develop, we put most hiring on hold except where there was a mandated position or a position that is critical for us to maintain an income stream.  We will examine each vacancy strategically to determine if the work can be done differently, if the work can be shared, or whether we can do without the position altogether, but always keeping students first.  For full-time faculty hiring, we will also consider the FON and the 50% law, and we will follow our Faculty Position Planning process in determining which disciplines to hire.  

The final effort in the plan is to advocate for changes to the formula that will benefit Ohlone.  We have already begun by meeting with legislators, the CCLC leadership charged with CCC advocacy, and some of the CEOs from Bay Area colleges similarly affected by the formula.  We are working on a cohesive plan for next year.

I realize that the predicted impact of the funding formula on Ohlone’s finances is concerning.  I want to reassure you that we are doing everything possible to ensure that Ohlone continues to serve students with high-quality programs and services and that we avoid drastic solutions like laying off our employees.  Our plan is well considered and thorough, and I am confident that it will help us grow and thrive in the future.  In the meantime, I urge you to stay informed and get involved.

We are Ohlone and I know that together we will weather this storm and continue to put our students at the center of all we do.  We stand together in making sure that we continue to focus on our mission and vision.

Gari Browning, Ph.D.
President/Superintendent

Download the Budget Plan.

• Share data on the Ohlone’s enrollment.
• Share and discuss the new SCFF. 

• Recap of the New Funding Formula Workgroup #1.
• Share the Three-Pronged Approach to SCFF.
• Share what are we doing so far in Academic Affairs and Student Services to help with the SCFF.
• Discuss other ideas to grow enrollment.

• Recap of what we did and where we are going.
• Present Ohlone's Multi-Year Budget Projection from 2018-2019 to 2021-2022.
• Discussion and Brainstorming.

• Information on the budget, growth targets, and proposed cost reduction strategies
• Outreach and Marketing Efforts

The assumptions are:

• We are a smaller college. Our FTES has steadily declined since 2007-2008 by approximately 20%.
• We are “held harmless” for the next two fiscal years. We are currently receiving and operating on one-time funds that will be discontinued effective June 30, 2021. 
  •  We are unable to make long-term on-going commitments on one-time money.
• Our students’ needs and demographics have changed – ethnicity, age group, instructional delivery. 
• Reductions must address our long term fiscal health.

The following are draft principles that we will use to guide the way in which we make reductions:

• Operate as a smaller and efficient college. Ohlone’s operations must reflect the number of students served while being cognizant of Ohlone’s long-term fiscal stability. 
• Ensure that our programs, services, resources, and infrastructure align with the needs of students in our community and fit with Ohlone’s mission and the Strategic and Education Master Plans.
• Budget decisions will be transparent.
• Reductions and cost cutting are shared across employee groups (in compliance with the 50% law) and all areas of the College.
• Decisions will be informed by data.

• Human Resources - leverage our employees’ skills and abilities.
• Technology - apply universal-design technology solutions that would enhance efficiency with the students first in mind. 
• Flexibility - investments in some areas may be needed while we reduce in others; focus on realignment of what we do.

From the 2015-2020 Strategic Plan:

• Excellence – we empower students and employees to achieve at their fullest potential, encouraging all to engage in ongoing learning through high quality education and continuous institutional improvement.
• Inclusiveness – we actively reach out to and support students and employees from various backgrounds, socio-economic groups, ages, and abilities to explore their interests in order to define and fulfill their goals. We strive for a diverse workforce that honors and upholds the contributions of all.
• Innovation – we strive to be risk-takers in order to generate new ideas in college planning and the curriculum that inspire students, faculty, and staff to optimize student learning. We endeavor to meet the entrepreneurial and technological needs of the college community to serve and support students.
• Integrity – we practice transparent communication, emphasizing respect, trust, and honesty among students, employees, and the communities we serve in a climate where everyone feels heard and engaged.
• Stewardship – we engage in shared governance to provide an exemplary model of stewardship for human, financial, physical, technological, and environmental resources to maximize institutional effectiveness and efficiency.
• Success – we provide the necessary tools and support to assist students and employees in defining goals, and measuring their success by the attainment of those goals.

Bay Area Industry and Occupations Summary 

July 2018 Chancellor's Office Simulation on SCFF (XLS) 

CCC Chancellor's Office Vision for Success and the Alignment of Tools and Resources

CCC Chancellor's Office Overview of the SCFF (PDF)

Technical FAQs for the SCFF (February 2019 version) (DOC)

Non-Technical FAQs for the SCFF (August 2018 version) (PDF)

CCC Chancellor's Office Hold Harmless Provisions (PDF)

CCC Chancellor's Office Webinar on SFCC (Slide Presentations) - Part 1, Part 2, Part 3, Part 4, Part 4 Q & A

CCC Chancellor's Office Webinar on SFCC (Video Recordings) - Part 1, Part 2, Part 3, Part 4

Student Center Funding Formula Oversight Committee

New Funding Formula Workgroup  - Meeting 1 (slides), Meeting 2 (Growth Ideas) (slides), Meeting 3 (Cost Reduction Ideas) (slides), Meeting 4 (Budget slides) (Outreach slides)

Funding Formula Forum - March 11, 2019 recording, March 12, 2019 recording (slides)

February 2019 Board Meeting - Overview of the Governor's State Budget for 2019-2020

February 2020 Board Meeting - Overview of the Governor's State Budget for 2020-2021

FTES is an acronym for "Full Time Equivalent Student." In simple terms, 1 FTES is equivalent to one student taking 15 units in fall and 15 units in spring or a student taking a total of 30 units per academic year. 

The Research and Planning Office is calculating those numbers right now. Once the figures are verified, it will be posted here. 

Attached is the Average Salary and Benefits per employee group. Please note that this table does not separate positions funded through general fund and categoricals. We will update this information once a more disaggregated information is available.

The Research and Planning Office gathers this information as tool for various planning activities such as program review and strategic planning. Bay Area Industry and Occupations Summary will give provide you more details.

While it is true that Ohlone College is a high-performing college in terms of student success rates, the new SCFF is not based on rates. Unfortunately, the SCFF is based on absolute numbers. Our size as a smaller college, compared to our neighboring colleges, hurts us under the new SCFF.

In terms of class availability, Ohlone College has a multitude of classes any student can take. Unfortunately, we do not have a lot of students who are in financial aid or who are promise grant recipients. The high cost of living in the Bay Area prevents many students who may qualify for financial aid or the California Promise Grant to live in the area.

Nevertheless, Ohlone is doubling its efforts to reach out to high school students and parents in Fremont, Newark, and Union City to fill out the FAFSA as a means to increase awareness of the availability of financial aid to pursue college.

According to the CCC Chancellor's Office, the new SCFF is a tool to align resources geared toward student success. This statement is consistent with the goals of the Vision for Success adopted by CCCCO for the whole California Community College system. The visual, found in the resources section above, may help you understand the rationale behind it. 

The new SCFF took effect in July 1, 2018 when Governor Brown signed the budget act. The details of the SCFF implementation was codified in California Education Code Section 84750.4.

According to the state budget for 2019-2020, there is growth cap in the base allocation category. Enrollment growth (base allocation) is capped at 0.55%.

The "May Revise" happens in May. This is when the governor updates the budget proposal to the state legislature reflecting changes in state revenues and proposed expenses. Usually, the May Revise the basis for the legislature to take action. The legislature is required to adopt a budget ready for the Governor's signature by the end of June.

Unlike K-12, where most of the allocation from Proposition 98 goes, community colleges take what is left of Prop 98 and traditionally receive a small portion. In good economic years, there is more funding for community colleges. However, there is a national phenomenon in higher education that there is a decline in enrollment when the economy is good. Conversely, there is a huge demand for higher education when the economy is not doing well. Unfortunately, when there is money for growth, there is a big demand for the workforce, which leads to lower student enrollment in higher education.  This does not take into account the effects of the new SCFF.

*In the 2019-2020 budget, the rates for 2019-2020 to be the same as that of 2018-2019, temporarily suspending the rate adjustment for one year. This is seen as a temporary measure. These rates do not apply to Ohlone College currently because Ohlone College is in "hold harmless" until 2021-2022.