FY21 Proposed Budget (Second Reading) 1 Where We Were at 1 st - - PowerPoint PPT Presentation

FY21 Proposed Budget

(Second Reading)

Presented to the LCCC Board of Trustees 7.15.2020

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Where We Were at 1st Reading

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Established 4 Major Themes:

• 1. Continuing Investment in Our People
• 2. Tightening Operating Expenses
• 3. Accumulating Resources for the Future
• 4. Preparing for Sudden Impacts & Changes

Produced a Balanced Budget Then, Breaking News Hit: Advised to Expect $470K in Additional Costs Due to Health Insurance Increases Over Biennium Advised That Current Fund Budget Now in Deficit by $235K

What Has Happened Since May 15th

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State Reductions

Plan for a 10% Cut Across All Funding Streams State Aid: $1.999M Major Maintenance: $592K Health Insurance Reimbursement Shortfall Reductions Finalizing 1st Reading: $315K Right After 1st Reading Budget Printing: $656K Now: $1.044M More than $2.7M in Financial Impacts to Current Fund Since May 15th

How We Achieved Revised Balanced Budget

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Made Full Use of the $816K in State One-time Funds Captured Unspent Funds at Year End, $1.032M Reduced Budget Allocations, $115K Paused Implementation of Compensation Plan, $656K More Breaking News May Occur 10% Cut Could Increase in Coming Months

Estimated Funds Available

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CURRENT

• 1st. READING

New Funds: State Aid (August 2019 Recapture/Redistribution)-Actual

• $849,394

Local Appropriation (August 2019 Recapture/Redistribution)-Actual 810,505 State Aid-Estimate (Includes 10% Cut)

• 781,590

$850,933 State Aid (Completion Funding for FY2021)-Estimate (Includes 10% Cut)

• 523,333
• 156,836

State Aid (FY2021 One-Time Funds) 816,650 $408,325 Business Training Tuition (Estimate) 65,000 Tuition (Estimate) 313,262 Course Fee (Net Increase/Decrease) (Estimate) 25,485 Subtotal

• $123,415

$1,467,280 Internal Funds: (Positions include Salary and Benefits) Vacancies/Replacements (FY 2020) $138,227 $69,147 Uncommitted Funds Available 336,524 End-of-Year Pull Plan 1,032,672 Subtotal $1,507,423 $405,671 Total Estimated Funds Available for FY2021 $1,384,008

Proposed Distribution

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CURRENT

• 1st. READING

Compensation Package: Compensation Study (Phase II - First of Five Years) (Salaries and Benefits) $0 $656,742 Health Insurance Reimbursement Shortfall (One Half of Biennium Amount) 1,044,761 $315,316 Market Adjustments (FY2020) (Salaries and Benefits) 119,685 Employer Retirement Contribution (38.41% of the .25% Employer Portion) 19,959 Retirees Health Insurance (Two-Year Rate Holiday has ended) 120,485 Educational Advancements 45,000 Subtotal $1,349,890 Academic Affairs Continuation of Services: Operating Budget

• $2,353
• $853

Business Training 65,000 Course Fees (Net Increase/Decrease) 25,485 Subtotal $88,132 $89,632 Student Services Continuation of Services: Operating Budget $14,335 Scholarships 212,728 Subtotal $227,063 President Continuation of Services: Operating Budget

• $22,262

Subtotal

• $22,262

Proposed Distribution Continued

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CURRENT

• 1st. READING

Albany County Campus Continuation of Services: Operating Budget

• $111,370

Subtotal

• $111,370

Institutional Effectiveness Continuation of Services: Operating Budget

• $21,206

Subtotal

• $21,206

Administration and Finance Continuation of Services: Operating Budget

• $126,239
• $11,893

Subtotal

• $126,239

Total Proposed Distribution $1,384,008

One Mill Fund

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FY2020 FY2021

• 1st. READING

REVENUES Mill Levy $1,627,788 $1,627,788 Motor Vehicle Fees $355,293 $355,293 NEW FUNDS Mill Levy $0 $244,571 Motor Vehicle Fees $0 $0 Subtotal $1,983,081 $2,227,652 Carryover $538,701 $616,782 $0 Total $2,521,782 $2,844,434 $2,521,782 $2,844,434 EXPENSES Eastern Laramie County $100,838 $100,526 $102,727 Professional Development $50,000 $50,000 Equipment Repairs and Replacement $100,000 $100,000 IT Salaries/Benefits and Operating Expenses $605,501 $606,156 $691,850 College Insurance $524,592 $590,618 $585,855 Subtotal $1,380,931 $1,447,300 Remaining Amount to Budget $1,140,851 $1,397,134 Small Maintenance Projects $663,701 $796,267 $200,000 One-Time Requests/Innovation Fund Requests $246,162 $233,720 $247,220 FY2020 One-Time Funds Carryover $0 $34,015 $0 Facilities Planning (Ag Master Plan) $112,170 $0 Facilities Planning $0 $250,000 Guided Pathways Funding (Summer work, marketing, etc.) $77,337 $0 Reserve $41,481 $83,132 $0 Subtotal $1,140,851 $1,397,134 Total $2,521,782 $2,844,434

Other Budgeted Funds – Changes Since May 15th

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Auxiliary Funds - Up $301K

Compensation Plan Delayed Child Discovery Center will have 11 months of revenue Child Discovery Center tuition will not increase for now, as previously planned Increased Carry Over for E-gaming Space, Dining Center Furniture, Sodexo Expenses

Restricted Fund - Budget is Up $108K

New Grant: “Expanding Community College Apprenticeships”

Endowment Fund

Budget Remains Unchanged

Plant Fund - Down $296K

Cuts to Major Maintenance Funding

Going Forward…

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August Recapture/Redistribution

2020 Laramie County Valuation Increased 7.3% (24% year prior) Due to Laramie County Rising, and Other Key Community College Districts Likely Declining, Expect LCCC to Again Receive Recapture Impacts

Going Forward Continued…

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• We Balanced FY21 Using One-time Funds

Have to Duplicate Cuts in 2nd Year of Biennium (FY22)

• Early Planning for FY22 Budget

At Least $2.8M in Absolute Reductions – Likely More Will Be Identified Need Exists to Curtail FY21 Spending for Savings in FY22

Restricting Travel Substantially Reducing Many Events & Activities Reducing Community Sponsorships

Cuts Likely Determined This Fall & Implemented Within FY21