Transcript Proposed FY2010 Budget Presentation to the Board March 2009

Proposed FY2010 Budget
Northeast Wisconsin Technical College
Board of Trustees
March 11, 2009
FY 2010 Budget Proposal
Tax Levy and Fund Balances
FY 2008
Actual
FY 2009
Modified Budget
FY 2010
Budget
% Change
FY10 vs FY09
Tax Levy:
Operating Levy
37,678,063
39,131,103
40,409,681
3.27%
Debt Levy
14,854,059
15,891,445
16,143,072
1.58%
52,532,122
55,022,548
56,552,753
2.78%
Total Levy before TIF
Ashwaubenon TIF#2 *
Total Levy
Equalized Value (000)
577,742
614,789
614,789
53,109,864
55,637,337
57,167,542
2.75%
35,894,768,860
37,167,200,122
37,538,872,123
1.00%
Operating Mill Rate
1.04968
1.05284
1.09285
3.80%
Debt Mill Rate
0.41382
0.42757
0.43004
0.58%
1.46350
1.48041
1.52289
2.87%
Total Mill Rate
Changes to Fund Balances:
General Fund Balance - Beginning:
Reserved for other post-employment benefits
1,434,053
1,620,218
Other reserves
1,049,322
1,147,627
1,175,000
Unreserved
13,354,135
13,644,135
13,616,762
15,837,510
16,411,980
16,249,980
Total Fund Balance - Beginning
Revenues over (under) expenditures
Transfers from other funds
Transfers to other funds
Rev/Transfers over (under) expenditures
General Fund Balance - Ending
514,618
(310,539)
59,852
148,539
574,470
16,411,980
Total General Fund Expenditures
Unreserved Fund Balance as a % of Expenditures
Total Reserved and Unreserved Fund Balance as a % of Expenditures
(162,000)
16,249,980
1,458,218
(554,591)
392,591
(476,855)
(638,855)
15,611,125
71,412,574
19.1%
22.8%
* FY2008 and FY2009 Levy went to the TIF district, FY2010 Levy will come to NWTC.
TIF Total Levy Link
2
Minimum Cash Balance
$30
$25
Millions
$20
$15
$10
$5
$0
JUL AUG SEP
FY2006
OCT NOV DEC JAN
FY2007
FEB MAR APR MAY JUNE
FY2008
FY2009
• Average bi-weekly payroll and accounts payable equals $2+ million
3
Capital Budget
4
FY 2010 Capital Budget
Only 61% of February Requests are Proposed in March Budget
February Requests
Total Projects $25,000 & Greater
Total Projects Under $25,000
Total Capital Expenditures
March Proposal
$12,061
1,598
$13,659
$6,870
1,459
$8,329
February Requests
March Proposal
$12,049
1,786
$13,835
$7,500
1,590
$9,090
Compared to FY2009 Capital Budget:
Total Projects $25,000 & Greater
Total Projects Under $25,000
Total Capital Expenditures
(In $1,000s)
5
Capital Budget Projects Provide Continued
Equipment and Facility Upgrades
• 66.6% of the $5,962,128 Capital Equipment and Software/Media is
for instruction or instructional support.
• 13.7% of $2,366,500 Building & Site Improvement is for
instruction or instructional support.
Instructional
Software and
Media, $61 ,
1%
Capital
Equipment,
$5,901 , 71%
(Chart in $1,000s)
Building & Site
Improvement,
$2,367 , 28%
6
Direct Investment in Instructional Equipment, Software, and
Building Improvement in Learning
•
•
•
•
•
•
•
•
•
•
FY09
FY10
Business & Information Technology
$200,742
$258,764
General Education
152,761
47,780
Health Sciences
430,855
419,441
Public Safety
838,233
402,076
Trades and Technical
1,578,620
1,691,422
Regional Learning
261,135
209,200
Learning Support Services/Instructional Software
124,500
49,520
Corporate Training & Economic Development
109,120
295,650
Smart Classrooms/Media
181,200
190,800
Computer/Laptop Refresh
1,047,800
731,250
TOTAL
$4,924,966 $4,295,903
7
FY 2010 Capital Budget for Items with
Total Cost of $25,000 and Greater
#
Learning
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
61
Item
Network Classroom Drives And Bays
Upgrade Digital Media Lab
Mobile Oral Health Clinic
High Density Storage
SimNewB (Newborn) Manikin
EMS Simulation Center
Projector Room
Snap On Project, Phase I
Virtual Paint System
4-Wheel Alignment Machine
FANUC Robotics Education Training
Gyratory Compactor
Straight Truck
Simulator Practical, MF100-TSE
Diesel Lab Computers - St. Bay
Digger Derrick Truck
Rotalign Ultra Laser Shaft Alignment System
Photovoltaic Laboratory
Tractor Loader Backhoe, Case 580
EZ Path Lathes, Replacement
Tensile Tester
Torsion Tester
Adira DNC-Controlled Press Brake
Argon/CO2 75/25 Mix Manifold System (GB)
Learning Capital Software Requests
Video Conferencing Equipment for RLC
Client Management System Upgrade
St Bay V/C Room PC'S
Total Cost
37,500
129,204
350,000
74,000
40,500
35,000
38,000
117,000
53,300
58,400
29,400
30,000
43,260
28,350
40,000
75,600
43,020
100,000
65,500
80,200
71,800
37,275
70,100
28,100
28,500
144,900
270,000
30,000
Information Technology
28 - 32 Computers Services
34 - 35 Media Services
36 - 45 Network Services
33
Printer/Copier Refresh
63
IIT Capital Project Labor
Facilities
46
Facilities Improvement - Green Bay
47
Facilities Improvement - Marinette
48
Facilities Improvement - Sturgeon Bay
49
Energy/HVAC Improvements
50
Landscape Development
51
Security/Safety Improvements
52
Design Services
53
Sustainability Consulting
54
Roof Replacement
55
St Bay South Wing Roof
56
Re-pavement of Lot G
57
Expansion of UPS for Data Center
58
Oconto Falls RLC Improvements
59
Re-pavement East Campus Drive
60
BAC Shop Improvements
Administration
62
Capital Support Positions
Capital Budget Requests with Total Cost of $25,000 and Greater
Capital Budget Requests with Total Cost Less Than $25,000
265,350
$ 6,869,619
1,459,009
Total FY2010 Capital Budget
$8,328,628
975,500
123,000
577,500
80,000
377,360
75,000
40,000
40,000
745,000
35,000
110,000
125,000
60,000
175,000
167,000
250,000
160,000
60,000
150,000
130,000
8
Discussion
Items $25,000 and greater
make up 82% of the Capital Budget
Link to Capital Budget Justifications
9
Capital Budget Items
Less than $25,000
•
•
•
•
•
Facilities Improvement
Facilities Equipment
Learning Equipment
Furniture and Fixtures
Information Technology Equipment
TOTAL $25,000 and under
FY09
FY10
$144,725
70,500
1,136,119
49,800
188,500
$1,589,644
$142,500
55,800
1,013,624
24,935
222,150
$1,459,009
10
Sources of Funding for Capital Budget
•
•
•
•
•
•
Debt Proceeds
Grant Funding
Bookstore
Capital Contingency
Interest Earnings
Equipment Sales
Total Funding
$7,950,000
165,360
20,000
133,037
30,231
30,000
$8,328,628
11
Contingency Balance
January 2009
• Equipment
$167,001
• Building Remodeling & Improvements
333,847
• Land Improvements
26,946
Total Contingency
527,794
• Less amount used for FY10 Capital
(133,037)
Current Remaining Balance
$394,757
• College’s goal is to maintain a 5% contingency in the
Capital Budget based on FY10 capital requests.
5% would be $416,431
12
IIT Capital Equipment
Computers and Infrastructure
FY10 Budget
•
•
•
•
•
Laptops
Desktop PCs
Apple Macs
Servers
Network Switches
New
Refresh
0
26
18
17
6
134
691
105
4
4
Current
534
2,686
315
150
163
13
IIT Capital Equipment
Peripherals
FY10 Budget
•
•
•
•
LCD (flat panels)
CRT (monitors)
Laser Printers
Copiers
New
Refresh
0
0
0
8
0
0
15
2
Current
2,049
585
271
82
Note:
•
•
Monitors are only refreshed as they fail; now being replaced as needed with
LCD flat panel monitors.
Laser printers are being replaced with centrally located multi-function
copiers.
14
IIT Capital Equipment
Multimedia
FY10 Budget
•
•
•
•
Smart Classrooms
PolyComm Video
LCD Projectorsa
Smart Carts
New
Refresh
3
5
4b
1
32
8
6c
0
Current
196
31
70
5
aIndependent
of smart classrooms
bDivisional request to be used off-campus
cUse for instructor checkout District-wide
15
Timing of Future Debt Issues
• June 2009
$1,100,000
FY09 Capital Budget
• Sept 2009
$6,950,000
FY10 Capital Budget
• May 2010
$1,000,000
FY10 Capital Budget
16
General Obligation Debt Summary
• Outstanding Principal Balance as of 6/30/08
• FY09 Debt Issues
• Actual FY08 & FY09 Capital Budget
• Actual FY09 Capital Budget
• Total Issues
$53,895,000
7,360,000
1,100,000
8,460,000
• FY09 Principal Payments
Outstanding Principal Balance as of 6/30/09
• FY10 Debt Issues
• Projected FY10 Capital Budget
• Projected FY10 Capital Budget
• Total Issues
• FY10 Principal Payments
Outstanding Principal Balance as of 6/30/10
(13,610,000)
$48,745,000
6,950,000
1,000,000
7,950,000
(13,540,000)
$43,155,000
17
Debt Financing Plan
Debt Service
Payments
Other
Funding
Source
Budgeted Debt
Levy
2009
15,991,445
(100,000)
15,891,445
0.42757
2010
16,809,927
(666,855)
16,143,072
1.58% 0.43004
2011
16,143,072
-
16,143,072
0.00% 0.42578
2012
14,792,369
-
14,792,369
-8.37% 0.38629
2013
13,555,404
-
13,555,404
-8.36% 0.35048
2014
12,421,242
-
12,421,242
-8.37% 0.31798
2015
11,383,457
-
11,383,457
-8.35% 0.28853
2016
10,434,001
-
10,434,001
-8.34% 0.26184
2017
9,564,788
-
9,564,788
-8.33% 0.23765
2018
8,767,262
-
8,767,262
-8.34% 0.21568
Calendar
Year
%
Increase
Projected
Mill Rate
Assumptions:
•
Capital Expenditures expected to grow at 5% annually.
•
Equalized valuation expected to grow at 1% annually.
•
All future borrowings assume 7-year repayment @ 4.5 % interest rate.
•
The $666,855 other funding sources consist of $476,855 from General Fund and $190,000
from Debt Service Fund Balances.
18
Long Term Debt
Debt Levy
17,000
16,000
Debt Levy
15,000
14,000
13,000
12,000
11,000
10,000
9,000
8,000
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Calendar Year
19
Debt Service Mill Rate
0.55
0.50
$/000
0.45
0.40
0.35
0.30
0.25
0.20
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Calendar Year
20
Operational Budget
21
Tax Levy Increases by 2.75%
• The operational portion of the tax levy increases by 3.27% or
$1.28M.
• The projected Operating Mill Rate is 1.093 vs. 1.053 this year,
assuming a modest 1.0% increase in equalized property values.
• Debt portion of the tax levy increases by 1.58% or $251,000.
• Projected Debt Mill Rate is 0.430 vs. 0.428 this year.
• Total Mill Rate is projected to be 1.52287 or $152.29 per
$100,000 of equalized value.
• Almost 1% of the tax levy is being used to fund the veterans
remission.
• $610,000 tuition remission budgeted
• $125,000 expected state reimbursement
22
FY09 Total Tax Levy
Percent Increase Over FY08
Percent Increase
16.26%
7%
Percent Increase
6%
State Median 4.81%
5%
4%
3%
2%
23
FY09 Operating Mill Rates
$/000s
1.5
1.4
1.3
$/000s
State Median, $1.195
1.2
1.1
$5.4M
1
0.9
0.8
• Includes operating, capital, and non-operating levy
24
FY09 Levy Subject to 1.5 Limit
Percent Increase Over FY08
11%
10%
9%
8%
7%
6%
State Median, 5.02%
5%
4%
3%
• Includes operating, capital, and non-operating levy
25
FY08 Operational Cost/FTE
District Comparison
$/000s
20.0
$/000s
18.0
16.0
State Median, $13.5
14.0
$14.3M
12.0
10.0
District
26
FY09 Productivity
• Six operational productivity projects have been
completed through February, and four additional
projects are scheduled to be completed by the end of
FY09.
• To this point, 127 employees have participated in Operational
Productivity projects (FY08 – Feb 09)
• Six learning productivity projects are scheduled to be
completed in FY09.
27
FTE Per Employee Increases as Productivity Improves
FTE Per Employee
9
8.14
8
NWTC
7.33
156 employees
88 employees
7
WTCS
6.81
6.53
6
FY03
FY04
FY05
FY06
FY07
FY08
28
FTE Per Employee Productivity
• NWTC ranks highest in faculty productivity and 2nd highest in nonfaculty productivity.
18
NWTC Faculty
FTE Per Employee
17
16
NWTC Non-Faculty
15
WTCS Faculty
14
WTCS Non-Faculty
13
12
FY03
FY04
FY05
FY06
FY07
FY08
29
FY 2010 Budget Proposal
Expenditures
FY 2008
Actual
FY 2009
Modified
Budget
FY 2010
Budget
Major
Differences
($000,000)
FY10 vs
FY09
%
Change
Expenditures:
General Fund
Personnel
53,855,489
56,408,885
59,492,671
3.1
5.5%
Supplies/Teaching Aids
2,284,271
2,527,441
2,416,054
(0.1)
-4.4%
Purchased Services
3,590,887
3,756,121
3,874,244
0.1
3.1%
Rental & Repair
1,566,980
1,634,145
1,675,899
0.0
Utilities
1,763,658
1,805,348
1,575,561
(0.2)
-12.7%
Travel/Professional Development
2.6%
734,666
834,570
787,534
(0.0)
-5.6%
1,285,210
1,669,855
1,590,611
(0.1)
-4.7%
65,081,161
68,636,365
71,412,574
2.8
4.0%
Restricted Rev-State/Fed Project
3,513,130
4,464,163
4,244,229
-0.2
Restricted Rev-Corp. Training & Econ. Devel.
4,354,758
5,079,704
4,722,600
-0.4
-7.0%
522,215
472,483
265,947
-0.2
-43.7%
7,415,694
9,417,429
8,328,628
-1.1
-11.6%
Institutional/Operational
General Fund Expense
Other Funds
Restricted Rev-Alternative High School
Capital Projects/Equipment/New Dev Cap
Debt Service
-4.9%
14,746,457
15,925,764
15,575,800
-0.3
-2.2%
Enterprise Expense
4,481,634
5,012,036
5,243,804
0.2
4.6%
Self Insurance Fund Exp
9,944,845
10,407,345
10,728,445
0.3
3.1%
806,764
1,019,000
1,094,000
0.1
7.4%
Student Government
Student Financial Aid
7,578,930
8,129,384
8,960,103
0.8
10.2%
Total Other Fund Expenditures
53,364,427
59,927,308
59,163,556
-0.8
-1.3%
Total All Fund Expenditures
118,445,588
128,563,673
130,576,130
2.0
1.6%
30
Personnel Costs – All Funds
Fringes
25%
PT
19%
Salaries
56%
Other PT
6%
Adj/Extra
Contr
Faculty
15%
NUP
19%
Maint
2%
ESS
18%
Faculty
40%
31
General Fund Personnel
Up 5.5%, $3.1M
•
Additional staff and faculty
•
•
•
•
•
•
$516
248
•
•
184
(155)
1,896
(164)
Actual salaries as percent of original budget
• FY06
1.4%
• FY08
1.5%
• FY07
1.9%
• FY09 Proj
1.5%
Health and dental
Wisconsin Retirement System
Extra contractual/adjunct faculty wages/benefits
•
•
General Fund
Previously Grant/Contract Funded
Limited Term (Welding & Machine Tool Instructors)
Position reallocations
Wage increase
Vacancies expected (1.375%)
•
•
•
•
$764
137
(115)
729
FY09 additional sections cost primarily General Studies
and Trades (Machine Tool)
$350
Wage increase for extra contractual faculty
210
FY10 additional requests
169
Part-time FICA Alternative
(In $1,000s)
(220)
32
FY2010 Requests for Additional Staff and Faculty
Total
Amount
Total FTE
Expense
Reduction
Other Funding
Source
Tax Levy
Impact
General Fund Positions:
Learning Division
1 Service Learning Coordinator
2 ESS Level IV Support Staff - Northwest Region
5 Micro-Business Instructor
6 ESS Level V Support Staff - Learning Support Services
8 EMS Instructor
9 Criminal Justice Instructor
10 ElectroMechanical/Electronics Instructor
1.00
0.50
1.00
0.80
1.00
1.00
1.00
Subtotal - New Positions
6.30
Previously Grant/Contract Funded
11 Digital Media Technology Instructor
12 Manufacturing Engineering Technician Instructor
Landscape Horticulture Instructor
13 Entrepreneur Development Specialist
14 Gerontology Instructor
Total Requests for Staff and Faculty Dollars in the General Fund
75,000
32,477
88,266
55,022
88,266
88,266
88,266
$
6.30
515,563
88,266
8,852
41,000
41,000
41,000
$
12,588
64,572
85,539
85,317
$
763,579
75,000
32,477
46,170
47,266
47,266
47,266
131,852
$
88,266
$
12,588
64,572
(64,572)
45,539
-
64,572
40,000
85,317
$
196,424
$
213,583
295,445
$
353,572
Enterprise Fund Positions:
Learning Division
3 Office Coordinator, Dental Clinic
4 ESS Level III Support Staff - Dental Clinic Scheduler/Biller
7 ESS Level V Support Staff - Public Safety
1.00
0.80
1.00
Total Requests for Staff Dollars in the Enterprise Fund
2.80
$
188,142
Total All Funds
9.10
$
951,721 $
Link to Additional Staff & Faculty Requests
70,950
48,414
68,778
70,950
48,414
68,778
$
-
-
$
188,142
$
196,424 $
401,725
$
-
353,572
33
Program Updates
Strong Demand, Modest Increase in Graduates:
•
•
•
•
•
Administrative Assistant (from 132 to 193 job openings; from 22 to 30 graduates)
Computer Support Specialist (from 57 to 59 job openings; from 19 to 21 graduates)
Hotel & Restaurant Management (from 31 to 56 job openings; from 7 to 10
graduates)
Print Technology (from 30 to 54 job openings; from 5 to 7 graduates)
Welding (from 78 to 127 job openings; from 32 to 54 graduates)
Strong Demand, Flat or Modest Decreases in Graduates:
•
•
•
Criminal Justice, Corrections (from 33 to 56 job openings; from 23 to 18 graduates)
Marketing (from 244 to 301 job openings; from 48 to 36 graduates)
Physical Therapy Assistant (from 36 to 72 job openings; from 24 to 16 graduates)
Other:
•
•
Apprenticeships continue slow rebound; a more proactive outreach strategy will be
developed and implemented in 2009.
Retail Management Program will be suspended; courses will be folded as a retail
management track into the Business Management Program.
34
Position Retirements, Reductions, Eliminations
Positions not to be filled as a result of Retirements:
• 50% of a full-time Math Instructor (Retirement)
• 50% of a full-time General Studies Lab Coordinator (Retirement)
Position Reductions/Redefinition:
• Respiratory Care Practitioner Instructor 100% to 75% (managing
program more efficiently)
• 50% of a full-time Alternative High School Instructor position (declining
enrollment in Alternative High School option)
• Apprenticeship Coordinator redefined as an Non-Unit Professional
position reducing cost by $15,460 (currently filled by an instructor)
• Retail management position reconfigured to support entrepreneurship
and business management instruction
Position Eliminations:
• ESS Level IV position providing cross division support
• Diesel Lab Aide (hourly)
• Entrepreneurship Manager position
35
Additional Health Care Savings
Anticipated in FY10
• Deeper discounts with United Options PPO
• Average discount now 32% vs. 20%
• Non-Unit Professionals moved to High Deductible
Health Savings Account in January 2009 plus an
increase in employee share of health premium
• Unions increased health premiums, deductibles, and
drug and emergency room co-pays in current collective
bargaining agreement
• Numerous wellness initiatives underway
• Yields a modest increase in health premiums
• 2.5% increase for Unions
• No plan cost increase for Non-Unit Professionals High
Deductible Plan
36
FICA Alternative Retirement Program
•
All part-time, seasonal, and temporary employees who do not qualify for the
Wisconsin Retirement System with the College are enrolled in FICA
Alternative Retirement Program Under IRC 3121.
•
Instead of reducing salary on an “after-tax” basis by the mandatory FICA tax
contribution of 6.2% and sending it to the Federal government, the College
would establish an account in which the employee contributes 7.5% on a “pretax” basis.
•
Since the 6.2% after tax contribution has the approximate same impact as a
7.5% pre-tax contribution, take home pay is not changed.
•
Unlike Social Security, contributions and interest earnings are available upon
termination of employment, death/disability, or normal retirement age.
•
Participant contributions are invested in a group annuity contract providing
guaranteed interest and principal.
•
This plan is implemented and administrated at no cost to the employee by a
Wisconsin-based third-party administrator.
Additional Operating Budget Item Requests
37
Supplies & Teaching Aids
Down 4.4%, $111,400
Decreases
• Non-instructional consumable supplies
• Minor equipment
$56,000
46,300
38
Purchased Services
Up 3.1%, $118,100
Increases
• SunGard IIT Services contractual increases
based on CPI
$133,500
• Network bandwidth capacity increase to
support online instruction at remote
campuses and Regional Learning Centers
30,000
• Line charges for additional video conferencing
classrooms at Regional Learning Centers
15,000
Decreases
• College-wide reduction of purchased services
$53,000
39
Rental & Repair
Up 2.6%, $41,800
• Maintenance Agreements
Annual increases or new contracts
•
•
•
•
$55,800
Instructional software
Imaging/workflow software purchased in FY09
Web server security
Blackboard price increase
40
Utilities
Down 12.7%, $229,800
Decreases
• Heat
• Electricity
-26.1%
-12.5%
$125,400
119,800
41
Energy Improvement Initiatives Implemented
•
•
•
•
•
•
•
•
•
Reduced MMBTU/SqFt/DD from 13.01 in FY 07 to 11.6 in FY 08
Improved Measurement of Energy Consumption
Energy Management Team established/goals set (2007/2008)
Energy Management implementation plan & schedule developed
(2008)
Completed Energy Management Administrative Policy (2008)
Adopted Facilities Energy Management Operating Procedure (2008)
Implemented Temperature Settings in Accord with Revised State
Energy Management Guidelines (2008)
Operational Productivity event for Energy Management (2008)
Purchase commitments for Natural Gas through November 2009
• $57,000 locked in savings for FY09
• $22,000 locked in FY 10 savings; monitoring market pricing for more
opportunity
42
Energy Improvement Initiatives Upcoming
• Develop Electrical Demand Monitoring
• Incorporate Energy into Building Design
(capital budget item on Sustainability)
• Create Programs to Increase Staff & Student Awareness
• Implement (re-lamp to) National Lighting Standards
• Continue Conversion to 25-watt Lamps
• Retro-commissioning of Building Controls
• Implement PC Shutdown
• Pilot Virtual Desktop Initiative
• Potential for Bio Mass Boiler
• Performance Contract w/$40K Savings
• Electricity is largest component of Carbon Footprint
43
NWTC Energy Usage (Gas & Electrical)
5-Year Comparison
9
MMBTU/SqFt/DD
8.5
8
7.5
7
6.5
6
5.5
5
FY2004
FY2005
FY2006
Electrical
FY2007
FY2008
Gas
44
MMBTU/SqFt/DD
NWTC Total Energy Usage
5-Year Comparison
15
14.5
14
13.5
13
12.5
12
11.5
11
10.5
10
FY2004
FY2005
FY2006
FY2007
FY2008
45
WTCS FY08 Energy Usage
16.0
15.0
MMBTU\SQFT\DD
14.0
13.0
12.0
State Average 11.4
11.0
10.0
9.0
8.0
7.0
46
Travel/Professional Development
Down 5.6%, $47,000
Increases
• Higher Learning Commission accreditation
visit preparation
$50,000
• For a total of $100,000 in FY10 Budget
Decreases
• College-wide, non-instructional travel
90,300
• FY10 budget will be at FY06 actual spending level
47
Institutional/Operational
Down 4.7%, $79,200
Decreases
• Uncollectable student fees $70,000
• Fewer student accounts receivable write-offs resulting from
NWTC’s recent participation in the Wisconsin Dept. of Revenue
Tax Refund Intercept Program (TRIP)
48
Operating Contingency Funds Comprise
0.3% of Operational Budget
• Contingency remains at $250,000
• $150,000-President
• $70,000-Learning
• $30,000-Student Services
• FY09 Contingency Uses
•
•
•
•
Increased snow removal costs
Marketing dollars for advertising new programs
Innovative Sustainability Consulting
Global Corporate College Certification for CTED
49
Changes to Other Funds
• Decrease in state/federal projects:
• Funding ends FY09 – International, WMEP
• State budget reductions
• Corporate Training and Economic Development
• Slowed growth due to economic environment
Fiscal Year
Revenue
2005-06
$2,740,767
2006-07
3,399,465
2007-08
3,477,289
2008-09 Estimate
4,287,774
2009-10 Budget
4,324,800
• Alternative High School - declining enrollment
• Self Insurance Fund – modest increase in health care costs projected
• Increase in Pell grants
50
Revenues
51
FY 2010 Budget Proposal
Revenues
FY 2008
Actual
FY 2009
Modified
Budget
FY 2010
Budget
Major
Differences
($000,000)
FY10 vs
FY09
%
Change
Revenues:
General Fund
Local Taxes/Local Government Payments
52,700,327
55,122,548
57,267,542
2.1
3.9%
Tax to Other Funds
(16,248,904)
(17,318,963)
(17,689,770)
(0.4)
2.1%
State Aid in Lieu of Taxes
State Aid
Federal
Tuition & Fees
Institutional Sales/Other
General Fund Revenues
243,974
250,000
250,000
11,305,025
11,453,977
11,219,600
16,524,920
18,145,624
19,155,811
(0.2)
-
0.0%
-2.0%
-
1.0
5.6%
1,070,437
672,640
654,800
(0.0)
-2.7%
65,595,779
68,325,826
70,857,983
2.5
3.7%
8.3%
Other Funds
Local Taxes-Other Funds
1,394,845
1,427,518
1,546,698
0.1
Local Tax - Debt Service
14,854,059
15,891,445
16,143,072
0.3
1.6%
Restricted Rev-State/Fed Projects
Restricted Rev-Corp. Training & Econ.
Devel.
2,483,945
3,425,116
3,191,000
(0.2)
-6.8%
3,477,290
4,842,336
4,324,800
(0.5)
-10.7%
Restricted Rev-Alternative High School
375,221
381,483
230,381
(0.2)
-39.6%
Capital Projects/Equipment
462,924
328,603
234,300
(0.1)
-28.7%
69,813
50,000
30,000
(0.0)
0.0%
Enterprise Revenue
4,805,148
5,184,420
5,658,578
0.5
9.1%
Self Insurance Fund
10,324,768
10,607,345
10,728,445
0.1
1.1%
Student Government
984,411
1,050,000
1,125,000
0.1
7.1%
Student Financial Aid
7,509,640
8,069,281
8,900,000
0.8
10.3%
Debt Service
Total Other Fund Revenues
46,742,064
51,257,547
52,112,274
0.9
1.7%
Total All Revenues
112,337,843
119,583,373
122,970,257
3.4
2.8%
(0.5)
-6.0%
2.9
2.2%
Loan Proceeds
Total All Fund Resources
5,315,000
8,460,000
7,950,000
117,652,843
128,043,373
130,920,257
52
Revenue to Increase 2.8% Overall
34,298
34,061
Other Funds
57,267
55,123
Tax Levy
State Aid
11,470
11,704
19,157
18,146
Tuition/Fees
Inst/Opr
(In $1,000s)
2010
2009
655
673
53
General State Aid Trend
• GPR Appropriation reflects the Governor’s 1.4%
budget reduction
Fiscal Year
Revenue
2005-06
2006-07
2007-08
2008-09 Budget
2009-10 Budget
$10,504,100
11,001,009
11,208,225
11,430,000
11,219,600
54
In Constant CPI
2000 Dollars
In Actual Dollars
Taxpayer Support per FTE
12,000
11,000
10,000
NWTC
9,000
WTCS
8,000
12,000
11,000
NWTC
WTCS
10,000
9,000
8,000
55
Tuition and Fee Revenue
Up 5.6%, $1,010,200
• Reflects tuition and enrollment increases
• Forecasted tuition increase of 5.1%
• Projected FY09 FTE is 6,575
• In FY10 expect an additional 2% FTE to 6,707
• Pass on collection agency fee to students
$80,000
56
Institutional Sales/Other
Down 2.7%, $17,800
Decreases
• Declining investment interest rates
Increases
• Requested contribution to offset costs of
Entrepreneur Development Specialist
position
• Rental income
$85,000
40,000
12,400
57
Previous Investments in Program Development
and Growth from Fund Balances
Commitment
Budget
Year
Amount
Actual
Amount
through FY08
Uses
FY09
Estimate
Amount
Remaining
Balance
6/30/09
Expanded Workplace Learning effort
FY06
$1,000,000
$872,098
$127,902
-
Manufacturing Training Center
FY06
142,000
104,866
37,134
-
International Student Recruitment
FY06
90,000
90,000
-
-
Grant Development
FY08
145,400
51,060
94,340
-
Renewable Energy Technologies
Coordinator/Instructor
FY08
131,721
56,897
74,824
-
$1,509,121
$1,174,921
$334,200
-
58
Funding New Investments in Program
Development and Growth
Program Development Fund Funding Sources
• Enterprise Fund
• Available Balance 6/30/08
• Estimate FY09 addition
• Estimate Balance 6/30/09
• Ashwaubenon TIF closure payment
Total estimated available funds at 6/30/09
FY10 through FY12 Budget
FY10
FY11
FY12
$171,487
$85,317
$57,162
$29,008
Energy/Renewable wages and supplies
184,585
45,975
83,500
55,110
Microbusiness Instructor
177,414
88,266
59,138
30,010
Global Community College Coordinator
200,000
100,000
67,000
33,000
Higher Learning Commission reaccreditation costs
100,000
100,000
0
0
Gerontology Instructor
Commitment
$978,828
153,847
$1,133,675
275,000
$1,408,675
$833,486 $419,558 $266,800 $147,128
59
Budget Strategy Draws on Fund Balances to
Reduce Taxes Needed from Property Tax Payers
• A total of $896,400 is drawn from the General Fund and Enterprise Fund balances.
•
•
•
•
This reduces the fund balances to the bare minimum needed to meet cash flow needs without doing
short-term borrowing.
To avoid drawing down the General Fund Balance, we would have to increase the total levy by .86
percentage points.
To avoid drawing down the Enterprise Fund Balance, we would have to increase the total levy by
.74 percentage points.
The total levy, if neither fund balance is used, would be increased to 4.35% compared to the 2.75%
represented in this plan.
• Funds for the General Fund balance are used to make a one-time debt service payment.
This reduces the amount of debt the College will have to levy in FY10.
•
•
FY11 debt levy is expected to be the same as FY10, allowing any increase in the total levy in FY11
to be applied to the operating levy.
The use of the Enterprise Fund balance to create the Program Development and Growth
Fund allows for strategic investments in programs consistent with the strategic directions
in Future 2013: We Deliver the Future without using taxpayer supported funds.
•
•
•
These funds have been generated by enterprise accounts such as the bookstore.
They have been supplemented by a one time payment of $275,000 from the closing of the
Ashwaubenon TIF.
With the exception of paying for two-thirds of the cost of reaccreditation ($100,000), these funds are
used to seed programs over a three-year period with the goal of generating sufficient revenue to pay
for on-going expenses after year three.
60
Anxious Moments
•
Moving to the FICA alternative is subject to a decision by the Wisconsin Retirement
System. The agency’s decision is final and is expected within the next four weeks.
•
•
•
The State Board will not set tuition until late March. The planned 5.1% in this budget is
consistent with an anticipated 5.5% increase in the University System.
•
•
•
•
A negative decision will create a $220,000 hole in this budget.
This would increase the tax levy by approximately 4/10 of a percentage point.
A 4% increase in tuition would create a $170,000 hole in the budget.
This would increase the tax levy by approximately 3/10 of a percentage point.
While we are confident in our ability to reduce energy consumption, the price of energy
and the impact of weather is always uncertain.
This budget presumes that the decrease in State funding will be held to the 1.4%
reduction called for in the Governor’s budget. More rapid increases in enrollments in
our sister colleges could cause some funding to be redistributed away from NWTC to
other technical colleges.
•
•
•
There is a designated stabilization fund in the general fund balance.
The $1,270,000 in this fund should be sufficient to adjust for any redistribution.
This will, however, put further pressure on maintaining a sufficient fund balance to handle cash
flow needs at the end of December.
61
Program Growth and Development Fund Investments
Allow College to Grow Needed Programs
• A new series of courses, certificates, and degrees will be developed
by the Gerontology Instructor.
• The focus will be on health care, independent living, community, and
business services.
• The first set of comprehensive offerings will be provided in fall 2010.
• This is consistent with Future 2013: We Deliver the Future.
• The development and implementation of sustainable energy
development, energy management, and energy distribution courses,
certificates, and degrees will continue to grow.
•
•
•
•
Five certificates are offered in fall 2009.
Utilities Engineering Technician program is operational in fall 2009.
Energy Management degree is in place and offered in fall 2010.
It is anticipated that in FY11 a full-time instructor will be hired in
support of this programming.
62
Program Growth and Development Fund Investments
Allow College to Grow Needed Programs
• A Micro-Business Development program will be created for implementation in fall
2010.
•
•
•
•
This is an economic development initiative in rural areas.
The Farm Management program model will be used in the design of this program.
The focus will be on providing courses leading to an Associate Degree in developing, owning,
and operating a micro-business.
It is expected that micro-businesses will fall into three categories (not exclusively): professional
artisans, food services, and business services.
• A sales person will be assigned exclusively to developing corporate training contracts
in partnership with Global Corporate College (GCC).
•
•
•
It is expected that this position will generate $300,000 of business the first year.
This position will be responsible for coordinating and supporting NWTC’s 12 Wisconsin
Technical College GCC partners.
The individual who will be assigned this position has been identified and trained by GCC as one
of its hot top ten sales agents.
• Needed funding support for Higher Learning Commission reaccreditation is provided.
•
•
•
The anticipated visit from reaccrediting team is October 2010.
The final report to the team is due mid-summer of 2010.
Reaccreditation is necessary in order to maintain eligibility for receipt of federal financial aid
for our students.
63
Questions and Comments
Thank You
64