GOVERNING BOARD STUDY SESSION - FISCAL YEAR 2019-2020 BUDGET - - PowerPoint PPT Presentation

GOVERNING BOARD STUDY SESSION - FISCAL YEAR 2019-2020 BUDGET DISCUSSION

MARCH 4, 2019 PRESENTED BY: DR. DAVID BEA

FY20 COLLEGE PRIORITIES

• Provide a cost of living increase for faculty and staff
• Minimize additional position reductions
• Keep tuition increases to a minimum
• Review high-cost programs with regards to changing the Differential Tuition structure
• Increase funding for Student Life and co-curricular activities
• Fund the first phase of the employee classification & compensation study
• Create a mechanism to financially support outcomes and recommendations from

program review

• Add professional advisors to improve advisor to student ratio
• Increase marketing, particularly digital

PROGRESS TOWARDS FY20 COLLEGE PRIORITIES

• Position reductions
• Restructure of Athletics budget
• Student Services Fee will now fund a larger share of

Student Life and co-curricular activities

• Increased investment income
• No increase to employee medical benefit costs

CHALLENGES

• Decrease in FY19 tuition revenue
• Lower-than-planned annual tuition rate increases
• Projected Expenditure Limit based on FY19 FTSE

projections

• Providing a cost of living increase without

adversely affecting Expenditure Limitation

ACTUAL EXPENDITURES

• VS. EXPENDITURE LIMITATION

$87,572 80,000 85,000 90,000 95,000 100,000 105,000 110,000 115,000 120,000 125,000 130,000 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

($ 000s) Fiscal Year

Expenditure Limit Actual Expenses

FY18 REVENUES BY SOURCE PER ACTUAL FTSE FOR AZ COMMUNITY COLLEGES

Cochise Coconino Eastern Maricopa Mohave Northland Pima Western Yavapai AZ CC TOTAL Other Revenue $1,012 $2,140 $3,125 $1,560 $1,623 $2,791 $2,265 $3,140 $3,390 $1,832 Tuition and Fees $1,484 $3,793 $2,530 $3,226 $3,897 $2,785 $3,019 $2,677 $3,415 $3,077 State Sales Tax $182 $253 $210 $161 $237 $266 $164 $200 $207 $172 State Appropriations $1,724 $1,071 $5,736 $0 $722 $4,904 $0 $701 $386 $422 Property Taxes $3,444 $5,082 $1,935 $7,756 $10,181 $8,397 $7,531 $6,785 $13,842 $7,475 EL/Actual FTSE $10,087 $7,974 $9,994 $6,486 $11,442 $7,891 $6,859 $10,959 $12,987 FY21 EL Est. $5,473

$0 $5,000 $10,000 $15,000 $20,000 $25,000

Revenues in $1,000s

SALARIES AND WAGES

• Make current salary levels permanent (2.5% increase to

salary scales approved for FY18 & FY19)

• Increase to employee salaries and wages for FY20
• Consumer Price Index increased approximately 2% over

last year and approximately 4% over past two years

• Notes
• $1.00 per credit increase to tuition = $450K in revenue
• 1.00% increase to salaries and wages = $900K in expenditures

TUITION INCREASE OPTIONS

• Increase per credit hour tuition rate
• Increase differential tuition rates for high-cost

disciplines

• Differential tuition rate based on share of actual cost
• f instruction, instead of a percentage of In-State

Resident tuition rate

• Re-evaluate differential tuition as Centers of

Excellence are established

FISCAL YEAR 2019 TUITION AND FEES FOR ALL AZ COMMUNITY COLLEGES (PER CREDIT HOUR)

$74.00 $84.00 $85.00 $85.00 $86.00 $87.00 $88.00 $88.00 $90.00 $109.00 $- $20.00 $40.00 $60.00 $80.00 $100.00 $120.00 Northland Az Western Cochise Maricopa Central Yavapai Mohave Pima Eastern Coconino

Cost Per Credit Hour In-State Tuition Rate Per Credit Fees

FY18 REVENUES BY SOURCE PER ACTUAL FTSE VS. AZ CCS AND PCC PEERS

$0 $5,000 $10,000 $15,000 $20,000 $25,000 Cochise Coconino Eastern Maricopa Mohave Northland Pima Western Yavapai AZ CC TOTAL CuyahugaCC Portland CC C.NM CC Austin El Paso Tarrant

Property Taxes State Appropriations State Sales Tax Tuition and Fees Other Revenue Tuition and Fees

FY18 EXPENSES PER FTSE BY FUNCTIONAL CATEGORY VS. AZ CCS AND PCC PEERS

$3,905 $6,153 $7,652 $5,969 $7,385 $7,149 $6,984 $6,334 $8,440 $6,185 $5,651 $8,988 $7,823 $8,366 $5,461 $6,984 $6,876 $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000 Cochise Coconino Eastern Maricopa Mohave Northland Pima Western Yavapai AZ CC TOTAL CuyahugaCC Portland CC C.NM CC Austin El Paso Tarrant non PCC Avg

Instruction/Student Svcs Scholarships Institutional Support/Plant/Aux Tuition and Fees

CURRENT DIFFERENTIAL TUITION (DT) FOR COLLEGE DISCIPLINES

FTSE Average Cost per FTSE Tuition & Fees (T&F) per FTSE Current % of T&F Covering Program Delivery Current DT as a % of In-State Resident Rate Current DT Rate

PCC Average Discipline 13,160.9 $11,872 $2,640 22.2%

• Differential Tuition A

Disciplines 544.6 $17,580 $3,375 19.2% 30% $25.00 per credit Differential Tuition B Disciplines 313.3 $21,610 $3,615 16.7% 40% $33.00 per credit CRC, CDA, MCT, PHT, and HRM 75.2 $15,907 $2,640 16.6%

HIGH-COST PROGRAM COMPARISON TO PCC AVERAGE PROGRAM COST AND TUITION PER FTSE, FY18 ACTUALS

0% 5% 10% 15% 20% 25% $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 PCC Avg AUT AVM CAD DAE DHE DLT LEA MLT MUP NRS RAD RTH TDT TMA WLD CRC CDA MCT PHT HRM Instruction Academic Sppt and Stud Svcs Scholarships IS, Plant, Other In State Tuition Tuition % of Costs

PROPOSED CHANGES TO DIFFERENTIAL TUITION

FTSE Average Cost per FTSE Tuition & Fees (T&F) per FTSE Current % of T&F Covering Program Delivery New Differential Tuition Rate (per credit) Additional Revenue Generated by Change Proposed – Option 1 Differential Tuition A Current Disciplines + CRC, CDA, MCT, PHT, and HRM 619.8 $17,378 $3,286 18.9% $41.00 $353,899 Differential Tuition B Current Disciplines 313.3 $21,610 $3,615 16.7% $72.00 $366,596 $720,495 Proposed – Option 2 Combined (New) Differential Tuition 933.2 $18,799 $3,396 18.1% $51.00 $709,043

CURRENT AND PROPOSED TUITION AND SERVICE FEES

$0 Increase $1.00 Increase $2.00 Increase $3.00 Increase $4.00 Increase $5.00 Increase Tuition In-State Resident (per credit) $82.50 $83.50 $84.50 $85.50 $86.50 $87.50 Non-Resident Classroom - Fall/Spring (per credit) $304.00 $305.00 $306.00 $307.00 $308.00 $309.00 Non-Resident Classroom - Summer (per credit) $233.00 $234.00 $235.00 $236.00 $237.00 $238.00 Non-Resident Online (per credit) $214.00 $215.00 $216.00 $217.00 $218.00 $219.00 Service Fees Processing Fee (per semester) $15.00 T echnology Fee (per credit) $2.50 Student Services Fee (per credit) $3.00

SUMMARY OF PROPOSED INCREASES TO REVENUES AND EXPENDITURES

$0 Increase per Credit Hour $1.00 Increase per Credit Hour $2.00 Increase per Credit Hour $3.00 Increase per Credit Hour $4.00 Increase per Credit Hour $5.00 Increase per Credit Hour Revenues Tuition $0 $450,000 $900,000 $1,350,000 $1,800,000 $2,250,000 Differential Tuition $750,000 $750,000 $750,000 $750,000 $750,000 $750,000 Total Increase $750,000 $1,200,000 $1,650,000 $2,100,000 $2,550,000 $3,000,000 Expenditures Personnel Salary Pool Increase $774,154 (+1.0%) $774,154 (+1.0%) $1,161,230 (+1.5%) $1,548,307 (2.0%) $1,548,307 (2.0%) $1,935,384 (+2.5%) Adjunct Faculty $0 (+0%) $145,548 (+1.0%) $218,322 (+1.5%) $291,096 (+2.0%) $291,096 (+2.0%) $363,870 (+2.5%) Programs & Operations Student Life/Cocurricular $100,000 $100,000 $100,000 $100,000 $100,000 Program Review Fund $50,000 $50,000 $50,000 $50,000 $50,000 Marketing $100,000 $100,000 $100,000 $100,000 $100,000 Institutional Scholarships $50,000 $50,000 $50,000 $50,000 $50,000 Advising (5.0 new positions) $351,172 $351,172 PimaOnline $100,000 $0 Total Increase $774,154 $1,219,702 $1,679,552 $2,139,403 $2,590,575 $2,950,426

FEEDBACK FROM STUDENT SENATE MEETING ON 02/15/19

• $2 increase is mostly reasonable; $3 also understandable
• Increase in maximum Pell Award would cover increase for full-

time students

• In favor of new tuition rate for Arizona high school graduates
• More scholarships
• Minimum wage has gone up
• Want to see an increase to Student Life
• Cost of books and access codes, transportation are concerns
• Rent and other costs go up

DISCUSSION AND FEEDBACK

ADDITIONAL RESOURCES AND DATA

STRATEGIC PRIORITIES

• 2017-2021 College Strategic Plan
• Educational Master Plan
• Facilities Master Plan
• Diversity, Equity, and Inclusion Plan
• Strategic Enrollment Management Plan
• Chancellor’s Goals, Objectives, and Timelines,

2018-2019

COLLEGE BUDGET INFORMATION

• Fiscal

Year 2019 Adopted Budget

• Fiscal

Year 2019 General Fund Budget Detail

• Fiscal

Year 2020 Budget Development Calendar

2018-2019 COST OF ATTENDANCE FOR FULL-TIME (12 CREDITS)

* Direct Costs associated with going to school

$0 $5,000 $10,000 $15,000 $20,000 $25,000 Living with Parent Living Off Campus Non-Resident

Cost

Tuition & Fees* Books and Supplies* Room & Board Transportation Loan Fees Personal Maximum Pell Award $6,095

2018-2019 COST OF ATTENDANCE FOR PART

• TIME (6 CREDITS)

* Direct Costs associated with going to school

$0 $5,000 $10,000 $15,000 $20,000 $25,000 Living with Parent Living Off Campus Non-Resident

Cost

Tuition & Fees* Books and Supplies* Room & Board Transportation Loan Fees Personal

MEDIAN ANNUAL EARNINGS FOR HIGH-COST PROGRAMS

$0.00 $10,000.00 $20,000.00 $30,000.00 $40,000.00 $50,000.00 $60,000.00 $70,000.00 $80,000.00 $90,000.00 $100,000.00 AUT AVM CAD CRC DAE DHE DLT MCT MLT MLT NRS RAD RTH WLD

CURRENT AND PROPOSED DIFFERENTIAL TUITION

$0 Increase $1.00 Increase $2.00 Increase $3.00 Increase $4.00 Increase $5.00 Increase Current Structure Differential Tuition A Disciplines + CRC, CDA, MCT, PHT, and HRM (30% of In-State Resident Rate per credit) $25.00 $25.00 $25.50 $26.00 $26.00 $26.50 DifferentialTuition B Disciplines (40% of In-State Resident Rate per credit) $33.00 $33.50 $34.00 $34.00 $34.50 $35.00 Proposed – Option 1 Per Credit Differential Tuition A Disciplines + CRC, CDA, MCT, PHT, and HRM $41.00 Differential Tuition B Disciplines $72.00 Proposed – Option 2 Per Credit Combined (New) Differential Tuition Rate $51.00