Transcript COCONINO COMMUNITY COLLEGE BUDGETING 102  Budget Projections & Assumptions  CCC Sustainable Financial Plan & Due Diligence  Cost of Academic Programs  2013 Special.

COCONINO COMMUNITY COLLEGE
BUDGETING 102
 Budget Projections & Assumptions
 CCC Sustainable Financial Plan & Due
Diligence
 Cost of Academic Programs
 2013 Special Override Election
Fall 2013
Budgeting 102
Coconino Community College
COCONINO COMMUNITY COLLEGE
BUDGETING 102
Budget Projections & Assumptions
Fall 2013
Budgeting 102
Coconino Community College
COCONINO COMMUNITY COLLEGE
BASE ASSUMPTIONS:
 Revenues:
 Property Taxes Collections – 3% per year
 Based on legally allowed 2% base growth and 1% attributable to “new
construction”
 Tuition Revenue – 2% per year
 Increase in per credit hour tuition rate (will compound by student growth)
 State Aid – 0% per year
 Has been falling over time – May increase slightly in FY 2014
 Expenditures:
 Enrollment Growth – 1% per year
 Cost Inflation – 3% per year
 Applies to all categories (will compound by student growth)
Fall 2013
Budgeting 102
Coconino Community College
Budget Projection Through FY 2024
$25,000,000
4000
3500
$20,000,000
FTSE
3000
$15,000,000
FTSE 1%
2500
Property 3%
$10,000,000
Tuition 3%
2000
$5,000,000
1500
State Aid 0%
Property Tax
Tution
State Aid
TOTAL REV
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Budgeting 102
Coconino Community College
TOTAL EXP
FTSE
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
1000
2002
$-
COCONINO COMMUNITY COLLEGE
BUDGETING 102
CCC Sustainable Financial Plan & Due Diligence
Fall 2013
Budgeting 102
Coconino Community College
CCC’S SUSTAINABLE FINANCIAL PLAN & DUE
DILIGENCE
Fall 2013
Budgeting 102
Coconino Community College
CCC’S SUSTAINABLE FINANCIAL PLAN & DUE
DILIGENCE
Fall 2013
Budgeting 102
Coconino Community College
COCONINO COMMUNITY COLLEGE
BUDGETING 102
Cost of Academic Programs
Fall 2013
Budgeting 102
Coconino Community College
Fall 2013
Budgeting 102
Coconino Community College
COST OF ACADEMIC PROGRAMS
FULL-TIME STUDENT EQUIVALENT (FTSE) COSTS
High vs. lower cost programs
Average cost per full-time student equivalent (FTSE) is
$7,000
The per FTSE cost of a high tech program student is 64%
higher than a non high tech program student
Reasons for higher costs:
 Specialized equipment
 lower student to faculty ratio
 More labs
Fall 2013
Budgeting 102
Coconino Community College
COST OF ACADEMIC PROGRAMS
FULL-TIME STUDENT EQUIVALENT (FTSE) COSTS
Examples of two programs:
 Nursing Cost Per FTSE:
 Direct instructional costs only $19,800 or $845,000 per year
 With all other indirect costs is $31,000 or $1.33 million per year
 EMS/Fire Science Cost Per FTSE:
 Direct instructional costs only $3,774 or $359,500 per year
 With all other indirect costs is $6,288 or $599,000 per year
Fall 2013
Budgeting 102
Coconino Community College
COST OF ACADEMIC PROGRAMS
BEYOND TUITION
Beyond Tuition, State Aid, and Property Tax
Class fees - consumables
Grants
 Perkins – Career & Tech Support
 Arizona Hospital Association – Start up Costs
 First Things First – Early Childhood Education
Gifts and Donations
 FMC/NAH – Beds, Equipment, and Funding
 WL Gore – Computer Servers
 NAU – Lab Equipment
 City of Flagstaff - $35K for Chemistry Lab
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Budgeting 102
Coconino Community College
COST OF ACADEMIC PROGRAMS
STARTUP COST OF NEW PROGRAM
Example: San Juan Community College Industrial Process
Operator Program (IPOP)
$1.2 million in start-up equipment
$500,000 salary/fringe for 5 FT faculty hires
74 credit hours
Fall 2013
Budgeting 102
Coconino Community College
PROGRAM ASSESSMENT
CCC regularly performs various reviews of their programs
to ensure quality and viability
Program Review (5 year cycle)
Full budget review (when indicated)
Advisory council meetings
Community feedback through surveys, conversations,
etc.
Student feedback
Fall 2013
Budgeting 102
Coconino Community College
COCONINO COMMUNITY COLLEGE
BUDGETING 102
2013 Special Override Election
Fall 2013
Budgeting 102
Coconino Community College
Coconino Community College’s
Three Core Missions:
1.) Arts & Sciences – Transfer/Transition
2.) Career & Technical Education
3.) Workforce Training
Fall 2013
Budgeting 102
Coconino Community College
Coconino Community College’s
Three Funding Sources…
FY 2013 General Fund
(Estimated Actual Revenues)
State
Aid
12%
Tuition and
Fees
45%
Property Taxes
42%
Other 1%
Fall 2013
Budgeting 102
Coconino Community College
CCC’s Financial Dilemma…
1.) State Aid Cuts
•
$15 million cut cumulatively from FY2007 to FY2014
State Aid & Full-Time Student Enrollment (FTSE)
State aid was 23% share of CCC’s budget in 2007; now it’s 12%.
Struggling to meet core missions!
Fall 2013
Budgeting 102
Coconino Community College
CCC’s Financial Dilemma…
2.) Property Taxes
• Since 1991, CCC’s primary property tax rate has virtually stayed the same
even though CCC’s student body has grown.
Property Tax & Full-Time Student Enrollment (FTSE)
Struggling to meet core missions!
Fall 2013
Budgeting 102
Coconino Community College
CCC’s Financial Dilemma…
Lowest Property Tax Rate in Arizona!
FY2014 Primary Property Tax Rates by Arizona Community College
Struggling to meet core missions!
Fall 2013
Budgeting 102
Coconino Community College
CCC’s Response…
3.) Tuition & Fees
•
•
89% higher tuition since 2007!
$1,296 tuition increase is the largest increase among Arizona community
colleges.
Academic Year Tuition & Fees
Tuition was 33% share of CCC’s budget in 2007; now it’s 43%.
Struggling to meet core missions!
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Budgeting 102
Coconino Community College
CCC’s Response…
Highest Student Tuition in Arizona!
FY2014 Tuition & Fees by Arizona Community College
Struggling to meet core missions!
Fall 2013
Budgeting 102
Coconino Community College
CCC’s Response…
100 Cost Saving Initiatives
•
•
•
•
15% employee reduction
20% classes cut
30% programs eliminated
Closed Williams Campus
FY2014 Operating Budget & Reductions
$4 Million in Budget Reductions = -18%
CCC is now drawing on minimal reserves and
struggling to meet core missions!
Fall 2013
Budgeting 102
Coconino Community College
CCC’s Financial Situation…
Raising tuition & cost saving initiatives are not
enough to maintain current levels of service.
Sustainable Options:
 Eliminate core missions
OR
 Increase revenue
Fall 2013
Budgeting 102
Coconino Community College
Coconino Community College’s
Three Core Missions:
1.) Arts & Sciences – Transfer/Transition
- Navigating students seamlessly from high school to CCC, to a
bachelor’s degree and beyond through CCC’s educational pipeline.
2.) Career & Technical Education
- Preparing local students for better jobs in Fire Science,
Criminal Justice, Nursing & Paramedics, etc.
3.) Workforce Training
- Keeping jobs in Coconino County with customized curriculums,
business retention & expansion, community partnerships, etc.
Fall 2013
Budgeting 102
Coconino Community College
Override Election – November 5, 2013
On June 25, 2013, the Coconino Community College District Governing Board unanimously
called for a voter-approved override election.
• Temporary: 7 Years
• $4.5 Million/Year
• Requires Voter Approval
Property Tax Effects:
$100K Home Value
• $2.40/month
• $29/year
$170K Home Value (Average in Coconino County)
• $4.20/month
• $50/year
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Coconino Community College
Override Election – November 5, 2013
Schedule:
October 7, 2013
Last day to register to vote
October 25, 2013
Last day to request early ballot by mail
November 5, 2013
Election Day
Polling hours: 6 a.m. to 7 p.m.
For election information visit:
www.coconino.az.gov/elections
Fall 2013
Budgeting 102
Coconino Community College
Thank You!
For more information, visit:
www.coconino.edu/VoterInformation
Fall 2013
Budgeting 102
Coconino Community College
COCONINO COMMUNITY COLLEGE
BUDGETING 102
Questions?
Citizens’ Review Panel
Meeting #2
April 8, 2013
Coconino Community College