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Auxiliary Account

Account Authorization: Act 971 of 1985 as amended by Act 1478 of 1997; R.S. 17:3386

Under the terms of R.S. 17:3386(A) (Act 971 of 1985), higher education institutions which adopt a building and facility preventative maintenance program approved by the Board of Regents may retain any state general fund monies which remain unexpended and unobligated at the end of the fiscal year, provided that not less than fifty percent of the retained funds be used solely for preventative maintenance. The remaining funds may be spent on nonrecurring projects and are subject to approval by the higher education management boards, the Board of Regents, and the Joint Legislative Committee on the Budget. Historically, institutions have been allowed to retain no more than $200,000 in general fund monies for the preventative maintenance and nonrecurring projects. Act 1478 of 1997 further limits the monies and amounts which may be retained. Act 1478 provides that: (1) unexpended, unobligated general fund appropriations which were made for a specific purpose in the General Appropriations Act shall not be retained; and (2) the retained monies that public higher education institutions may carry forward are limited to no more than two percent (2.0%) of their prior year's state general fund appropriation or allocation. Since the retained funds are deposited in a reserve fund before they are utilized, the funds are treated as self-generated revenues for budgetary purposes

SOURCE OF FUNDING

The source of funding for this account is fees and self-generated revenues. Under the terms of R.S. 17:3386(A) (Act 971 of 1985), higher education institutions which adopt a building and facility preventative maintenance account approved by the Board of Regents may retain any state general fund monies which remain unexpended and unobligated at the end of the fiscal year, provided that not less than fifty percent of the retained funds be used solely for preventative maintenance. The remaining funds may be spent on non-recurring projects and are subject to approval by the higher education management boards, the Board of Regents, and the Joint Legislative Committee on the Budget. Historically, institutions have been allowed to retain no more than $200,000 in general fund monies for the preventative maintenance and non-recurring projects. Act 1478 of 1997 further limits the monies and amounts which may be retained. Act 1478 provides that: (1) unexpended, unobligated general fund appropriations which were made for a specific purpose in the General Appropriations Act shall not be retained; and (2) the retained monies that public higher education institutions may carry forward are limited to no more than two percent (2.0%) of their prior year's state general fund appropriation or allocation. Since the retained funds are deposited in a reserve fund before they are utilized, the funds are treated as self-generated revenues for budgetary purposes.

ANALYSIS OF RECOMMENDATION

GENERAL FUND

TOTAL

T.O.

 

DESCRIPTION

 

 

 

 

 

$0

$200,000

0

 

ACT 18 FISCAL YEAR 1997-1998

 

 

 

 

 

 

 

 

 

BA-7 TRANSACTIONS:

$0

$0

0

 

None

 

 

 

 

 

$0

$200,000

0

 

EXISTING OPERATING BUDGET - December 10, 1997

 

 

 

 

 

$0

$698,017

0

 

Adjust surplus funds per Act 1478 of 1997

 

 

 

 

 

$0

$898,017

0

 

TOTAL RECOMMENDED

 

 

 

 

 

$0

$698,017

0

 

DIFFERENCE (TOTAL RECOMMENDED AND EXISTING OPERATING BUDGET)

The total means of financing for this account is recommended at 449.0% of the existing operating budget. It represents 449.0% of the total request ($200,000) for this account. The reason for the increase from the existing operating budget is the adjustment made to place this account in compliance with Act 1478 of 1997. The total recommended funding for this account is derived from this agency's prior year state general fund appropriation or allocation ($44,975,854) less prior year general fund appropriations which were made for a specific purpose in the General Appropriations Act ($75,000). The resulting amount ($44,900,854) is then multiplied by 2.0% to yield the total recommended funding ($898,017).

PROFESSIONAL SERVICES

This account does not have funding for Professional Services for Fiscal Year 1998-1999.

OTHER CHARGES

This account does not have a specific allocation for Other Charges for Fiscal Year 1998-1999.

ACQUISITIONS AND MAJOR REPAIRS

This account does not have funding for Acquisitions and Major Repairs for Fiscal Year 1998-1999.

Role, Scope, and Mission Statement: Delgado Community College (DCC) is a multi-campus community college whose primary service are is the greater New Orleans metropolitan area. As an open admissions institution, DCC serves the education needs of this population primarily through a broad range of programs, including occupational and technical certificate and associate degree programs, parallel lower division programs in the liberal arts and sciences for students wishing to transfer to four-year institutions, and programs designed to foster economic development by responding to the needs of business and industry.

Peer Institutions: Hillsborough Community College, Dekalb, Jefferson Community College, Montgomery College of Rockville, Mississippi Gulf Coast Community College, Central Piedmont Community College, Tulsa Junior College, Greenville Technical College, North Harris Montgomery Community College District, and Tidewater Community College.

BUDGET SUMMARY

This agency's recommended appropriation does not include any funds for short-term debt.

In addition to the above recommended appropriation, $1,053,437 will be paid in Fiscal Year 1998-1999 for long-term debt incurred on behalf of this agency from the previous sale of bonds. Total long-term debt service payments for the state for Fiscal Year 1998-1999 are reflected in the Governor's Executive Budget Supporting Document in Non-Appropriated Requirements, Schedule 22-922.

This agency's recommended appropriation also includes the following amount by means of financing for payments on the unfunded accrued liability of the Louisiana State Employees' Retirement System and the Teachers' Retirement System in accordance with the provisions of Article X, Section 29 of the Constitution of Louisiana:

State General Fund (Direct)

 

$1,142,253

State General Fund by:

 

 

     Fees & Self-gen Revenue

 

     999,138

 

 

 

Total

 

$2,141,391


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