Transcript Slide 1
Budget Update Tri-County Technical College Faculty /Staff Meeting December 3, 2008 OVERVIEW Historical Funding of Technical College System Comparison of Enrollment, Tuition and State Funding from 2000 to 2008 Funding Allocation and Trend Comparison to Peer Group Budget Adjustments to Date Future Outlook TECHNICAL COLLEGE FUNDING Theory for Funding State Appropriations – Fund Salaries State Funding currently covers only 44% of our salaries Local Funds – Fund Facilities Tuition and Fees – Fund Operations SC Technical College System 2000 CURRENTLY FTE Enrollment: 39,036 53,623 Average Tuition and Fees: $1,290 $3,162 State Appropriations: $171,310,188 $153,089,780 STUDENT FTE AND STATE FUNDING, 2000-2008 BUDGET IMPACT ON OUR PEER GROUP Medium Colleges Aiken Technical College Central Carolina Technical College Florence-Darlington Technical College Horry-Georgetown Technical College Orangeburg-Calhoun Technical College Piedmont Technical College Spartanburg Community College Tri-County Technical College York Technical College Average General Funds Federal Funds Other Funds Total Funds 14.4% Reduction to General Funds % Reduction to Total Funds $5,486,604 $516,000 $16,822,069 $22,824,673 $797,338 3.49% $6,100,716 $919,240 $16,529,816 $23,549,772 $886,584 3.76% $9,059,894 $2,198,397 $25,814,576 $37,072,867 $1,316,624 3.55% $10,395,557 $1,663,835 $23,281,691 $35,341,083 $1,510,730 4.44% $5,790,563 $919,396 $14,855,624 $21,565,583 $841,511 3.90% $9,861,497 $3,331,201 $23,436,121 $36,628,819 $1,433,118 3.91% $9,381,824 $933,449 $26,556,331 $36,871,604 $1,363,410 3.70% $9,711,175 $1,030,241 $25,276,869 $36,018,285 $1,411,272 3.92% $8,579,932 $4,253,969 $17,873,689 $30,707,590 $1,246,874 4.06% $8,263,085 $1,751,748 $21,160,754 $31,175,586 $1,200,829 3.84% Funds include Unrestricted and some Restricted Funds TRI-COUNTY TECHNICAL COLLEGE HISTORICAL FUNDING FY2000 FY2009 FTE Enrollment 2591 4057 Tuition & Fees $3,810,000 $15,336,000 State Funding $9,670,000 $8,109,000* * State Funding Adjusted for 16.5% projected reduction. OUR CHALLENGE… State Funding was projected to be $9,711,000 for FY09 Our Budget Challenge to date is a 16.5% reduction in State Funding or $1,602,000 $1,602,000 represents 5% of our Unrestricted Operating Budget. We can get there…but we have to be smart and diligent! WE’RE NOT IN THIS ALONE. WHAT ARE OTHER COLLEGES DOING? 2 Year and 4 Year Colleges & Universities Reducing travel costs, contractual services, repairs, dues, memberships Defer and Reduce Capital Spending Hiring Freezes, reduction in force, layoffs, retirements, attrition, furloughs Cutting operating hours Restructuring/Cancelling programs We have to be very calculated with our actions so as not to jeopardize our mission. OUR BUDGET ADJUSTMENTS TO DATE… Initial Budget Reduction built into the Plan $293,300 Increased Revenue from Enrollment $400,000 Operating Expenses $328,300 Hold on Replacing Open Perm. Positions $485,000 Reductions-to-Date $1,506,600 Our Challenge $1,602,000 WHERE WE ARE TO DATE? Budget Adjustments To Date include: Fall Revenue from Enrollment $400,000 Previous Reduction Built into The Plan $293,300 Hold on Refilling Permanent Positions $485,000 Reduce Temporary Employment $88,000 Cancel Travel to SCTEA $10,000 Divisional Operating Expenses Academic Affairs Business Affairs Economic Development/CE Institutional Advancement Presidents Office Student Affairs $50,000 $90,400 $20,600 $26,500 $16,300 $26,500 Total Adjustments $1,506,600 OUR 3 YEAR SPENDING TREND……WE STILL HAVE WORK TO DO. FY2006 Actual FY2009 Budget Personnel $17,292,000 $22,169,000 Contractual Services $2,767,000 $3,789,000 Supplies $980,000 $1,194,000 Fixed Charges $343,000 $1,078,000* Travel $220,000 $210,000 * Fixed charges include $630k for the Anderson Campus Lease OUR GUIDING PRINCIPLES Focus on our Mission Keep students in the forefront Protect employees jobs as much as possible Provide essential services Aggressively challenge everything we do, looking for improvements and savings Take the opportunity to better position ourselves for the future Recognize the extraordinary times and pull together for the good of the College Recognize that we each have a role to play WHAT’S AHEAD OF US… We are likely to have more cuts for FY2010. We anticipate another 2% before January, 2009 Could see another cut after January 1, 2009 Total of at least $1.8million for FY09 Fiscal Year 2010, we anticipate a cut of $2.5million While this is a significant amount of money, it represents only 7.7% of our Unrestricted Budget We can do this without compromising our core mission. IS THERE ANYTHING “OFF LIMITS?” Like all colleges across South Carolina, we will not increase tuition in the spring. Next Fall is yet to be decided. We will not dip into our cash contingency Since reductions are permanent we cannot permanently reduce our operating contingency WHERE DO WE GO FROM HERE… We’ll have to ensure that our reductions are recurring We’ll all need to contribute. We all own the issue and the solution We’ll need to be aggressive in all areas We will be very calculated in our decision process We’ll need your ideas and suggestions I anticipate setting up several small groups to brainstorm ideas in regard to revenue enhancement and expense reduction We’ll get there through hard work, compromise and teamwork! FUTURE POSSIBILITIES Reducing Tuition Remission & Fee Waivers Developing Differential Tuition Rates Implementing Supply and Equipment Fees by Program Health Science - $62 per semester I & ET - $170 per semester A & S - $10 per semester B & PS - $23 per semester Changing Printing Practices & Implementing Charges Developing a Rigorous Energy Management Plan Implementing Travel Restrictions Evening Coverage – shared responsibilities Aligning services between GTC and rest of College Reviewing and Reducing Memberships Assessing Overload Pay Implementing Summer School Sustainability FUTURE POSSIBILITIES Implementing a Furlough - $65,000 per day Reassignments of Duties Outsourcing Services RIP VSP RIF