SBCTC 2013-15 Biennium Budget Budget Proposals $s in Thousands

Notes

FY 2013 Appropriations

$584,588 Gov Inslee Proposed Senate Proposed Biennial Difference From Gov Total 26,814 510 35,853 500 (11,622) 4,731 56,786 17,980 30,030 48,010 1,273,972 9.0% Inslee (20,000) (768) (5,000) (200) (1,674) (400) 26,814 510 35,853 500 (11,622) (1,030) 22,983 22,983 13 14 1 2 3 4 5 6 7 8 9 10 11 12

2013-15 Budget Changes Budget Increases High Demand and High Cost programs Return to Industry Grants Aerospace and STEM Enrollments Aerospace Training Portal Negotiated Labor Agreement - Step M Labor Center and Archive Performance Funding Maritime Industries Higher Education Funding STEM or Career & Tech Education Administrative Efficiencies New M&O, Leases and Assessments Subtotal Budget Increases Prior Budget Reduction Restorations Restore One Time Reduction in Higher Ed State Funding Restore 3% Salary Decrease Subtotal Prior Budget Reduction Restorations Grand Total Before Technical and Pass-Through Funding Changes % change Before Technical and Pass-Through Funding Changes Technical and Pass-Through Funding Changes Health Insurance Contribution Changes Pension Rate Changes Technical Changes to Funding Subtotal Technical and Pass-Through Funding Changes

FY 2014 8,000 384 2,500 100 532 200 2,121 13,837 8,990 15,015 24,005 622,430 6.47%

FY 2015 12,000 384 2,500 100 1,142 200 3,640 19,966 8,990 15,015 24,005 628,559 7.52%

Total 20,000 768 5,000 200 1,674 400

FY 2012 13,407 255 17,926 500 (5,811) 2,037 28,314 8,990 15,015 24,005 636,907 8.95%

FY 2013 13,407 255 17,927 (5,811) 2,694 28,472 8,990 15,015 24,005 637,065 8.98%

5,761 33,803 17,980 30,030 48,010 1,250,989 7.0%

(2,596) 3,266 925 1,595

(1,298) 3,297 1,928 3,927

(3,894) 6,563 2,853 5,522

3,266 1,482 4,748

3,297 1,429 4,726

6,563 2,911 9,474

3,894 58 3,952

15 16 17

Total Changes to 2013-15 Budget Total Proposed State Funding % change from FY 2013

39,437 624,025 6.8%

47,898 632,486 8.2%

87,335 1,256,511 7.5%

57,067 641,655 9.8%

57,203 641,791 9.8%

114,270 1,283,446 9.8%

26,935 12,717

Prepared by SBCTC Operating Budget Office

4/5/2013

SBCTC 2013-15 Biennium Budget Senate Proposed 2013-15 Biennial Budget

Notes

1. High Demand, High Cost Programs The Governor's budget provides $8.0 million in additional funding for FY 2014 and $12.0 million in FY 2015 to ensure that high demand, high costs can expand to provide programs from aerospace to nursing. No FTE target is included with this investment. 2. Return to Industry Grants Funding is provided to support faculty imersion in participating industries to ensure faculty understand the specific skills employers need from students and to ensure faculty have up-to-date skills. 3. Aerospace and STEM Enrollments The Governor's budget provides funding to support 330 FTEs in Areospace and STEM related degrees. 4. Aerospace Training Portal The Governor's budget provides funding to conduct analysis, and develop and implement strategies to retain and grow aerospace related jobs. 5. Negotiated Labor Agreement - Step M Funding is provide to cover the cost of an additional salary step (M) for those employees at the top of the pay band included in several of the statewide 2013-15 collective bargaining agreements. 6. Labor Center and Archive The Governor's budget provides $200,000 per year in operational support for the Labor Education Center and its archive at South Seattle CC. 7. Performance Funding The Senate proposal provides $13.4 million per year to be distributed using the Student Achievement Intiative performance funding model. 8. Maritime Industries The Senate proposal provides $255,000 per year for South Seattle to operate a center for students in maritime industrial sectors. 9. Higher Education Funding The Senate proposal provides $17.9 million per year to be invested in "core academic functions" at the CTCs 10. STEM or Career & Tech Education The Senate provides one time funding, for the implementation of 2SSB 5624 which requires the development of two STEM or Career and Technical programs that are support the continuation of highquality STEM/Career/Technical programs offered in the K12 system. 11. Administrative Efficiencies

SBCTC Operating Budget Office

4/5/2013

SBCTC 2013-15 Biennium Budget Senate Proposed 2013-15 Biennial Budget

Notes

The Senate reduces the system's appropriation by $5.8 million per year to reflect administrative savings. 12. New M&O, Leases and Assessments The Senate proposal paritally funds the system's M&O request by reducing the dollar invested per square foot to $6.01; withholds funding for facilites dependent upon 2013-15 Capital Budget approval; withholds funding for projects that did not use state funds in their financing. 13. Restore One Time Reduction in Higher Ed State Funding The one-time reductions made in the 2011-13 Biennium are fully restored. 14. Restore 3% Salary Decrease The amounts removed from the SBCTC appropriation which represented the system's share of the statewide 3% reduction in salaries is fully restored. 15. Health Insurance Contribution Changes Monthly employer contributions for employee health insurance are reduced from $800 to $779 for FY 2014. 16. Pension Rate Changes
Supports new contribution rates for state pension system adopted by the Pension Funding Council (link to new rates).

17. Technical Changes to Funding Includes changes to revolving fund charges and biennialization of second year funding.

SBCTC Operating Budget Office

4/5/2013