Madison College FY2020-21 Preliminary Budget April 1, 2020 Dr. - - PowerPoint PPT Presentation

Madison College FY2020-21 Preliminary Budget

April 1, 2020

• Dr. Jack Daniels, President

Mark Thomas, CFO/Vice President for Administrative Services Sylvia Ramirez, Associate Vice President for Budget & Management

1

Agenda

• FY2020-21 Budget
• Anticipated impact of COVID-19
• Tax Levy
• Next Steps

2

Ten-year Projection Beginning FY2019-20

3

FY2020-21 Balancing the Budget

• Set budgeted FTES to 8,000
• Set a contingency at 2.8% of

budgeted revenue

• Personnel reductions of over 40

positions and $2.8 million in other salary

• Personnel spending is at 82.0%
• Continued work with Shared

Governance

• Decisions informed by focus on

students and how we serve them

• Budget Recommendation is

balanced with assumptions

4

Past Budget Deficit Reductions

Prior Fiscal Years

• Increase pension contribution under Act 10
• Increase health insurance contributions
• Changed health insurance offerings
• Negotiated wage increases capped at a maximum of CPI
• Significant reductions to additional pay (overtime, special assignment, etc.)
• Dozens of positions reduced over the past 6 years

Direct Impact on Employees

• Solar panels at Truax and South to reduce utilities expenses
• Investing in energy efficient infrastructure

Capital Investments to Offset Operational Expenses

• Software licenses shifted to the General Fund
• Change in capital equipment threshold; another $0.5M+ pressure on the General Fund over

three years Non-personnel reductions to offset $5.5 million in:

Board Metrics: FY2020-21 Budget Assessment

Current Budget Position

82.0%

Percent Spending

• n Personnel

24.4%

General Fund Operating Reserve

2.8%

Budgeted Contingency

8,000

Budgeted FTES

6

FY2020-21 Enrollment Projection

Team

• Megan Conlin, Strategic Academic

Initiatives

• Bill Dougherty, Registrar
• Zong Her, Institutional Research &

Effectiveness

• Ben Monty, Budget Office
• Sylvia Ramirez, Budget Office
• Denise Reimer, Academic Administration
• Susan Weber, Academic Administration
• Ali Zarrinnam, Institutional Research &

Effectiveness

Considerations:

• Economy and unemployment
• COVID-19
• Current enrollment trends for

summer 2020 and fall 2020

• Continuing students versus new

students

7,600 7,800 8,500 5,000 5,500 6,000 6,500 7,000 7,500 8,000 8,500 9,000 Low Estimate Plausible Range High Estimate

Enrollment Scenarios

8,100

FTES Drop to 7,600

• 400 FTES mean about:
• Program Fees:

$1.7M

• Material Fee:

$0.1M

• Other Student Fee:

$0.1M

• State Aids:

$0.4M Lost Revenue $2.3M

• In total, we would lose: $2.3M in revenue
• The unallocated contingency is $3.7M
• We would cut $0.5M in spending
• Recouped in fewer sections
• Balance in contingency: $1.9M

9

FY2020-21 Revenue Assumptions

Tax Levy

5.1% increase in net new construction

State Aids

Minimal change

Program, Material, & Student Fees

8,000 student FTES 1.75% tuition increase

10

FY2020-21 Expenditure Assumptions

11

Salary & Fringe

1.8% increase in FT Faculty wages related to FT Faculty compensation 0.5% increase in salaries/wages due to other factors 0.0% increase in salaries and wages in an economic adjustment 2.5% budgeted salary savings, 3.0% fringe savings Fringe estimates based on contracted increases

Non-personnel

All based on planned actual Additional utilities savings expected from solar projects

Category February Final Budget Difference Property Tax 45,394,000 45,394,000 State Aids 74,339,000 74,339,000 Program Fees 34,520,000 33,817,000 (703,000) Material Fees 1,221,000 1,176,000 (45,000) Other Student Fees 1,740,000 1,702,500 (37,500) Institutional Revenue 2,010,000 2,015,000 5,000 Federal Aids 245,000 255,000 10,000 Other Sources 2,400,000 2,400,000 Total Revenue 161,869,000 161,098,500 (770,500) Salaries 101,732,000 99,961,000 (1,771,000) Fringe Benefits 32,333,000 32,106,000 (227,000) Supplies & Services 15,296,000 14,718,000 (578,000) District Ins, Utilities, Leases 4,842,000 4,569,000 (273,000) IT/Data Processing 6,025,000 6,091,000 66,000 Contingency 4,017,000 3,653,500 (363,500) Total Expenditure 164,245,000 161,098,500 (3,146,500) Net (2,376,000)

FY2020-21 General Fund Budget

12

82.0% Personnel Increased $2.0M from FY19-20 Initial Budget

General Fund Balance Estimate

13

Designation for Operations Amount % of Subsequent Year Budgeted Revenue FY2018-19 Actual Ending $39,394,794 25.0% FY2019-20 Estimated Ending $39,631,000 24.4% FY2020-21 Estimated Ending $38,873,000 24.4%

FY2020-21 Capital Estimated Expenditures

$35.0 million total

14

New Construction Remodeling Maintenance/ Site Work Movable Equipment - Projects Academic Equipment Technology Refresh Other IT Projects Personalized Education Plan (Title III) Non-Academic Equipment Furniture

Category Amount New Construction $1,500,000 Remodeling $12,020,000 Maintenance/Site Work $2,980,000 Movable Equipment - Projects $3,901,000 Academic Equipment $4,375,000 Technology Refresh $6,000,000 Other IT Projects $2,100,000 Personalized Education Plan (Title III) $1,500,000 Non-Academic Equipment $324,000 Furniture $300,000

Category General Fund Special Revenue Funds Capital Projects Fund Debt Service Fund Proprietary Funds Total

Tax Levy 45.4M 1.8M

• 35.2M

0.2M 82.5M Other Budgeted Revenue 113.3M 52.7M 0.4M 0.0M 26.1M 192.4M Budgeted Expenditures 161.1M 54.5M 35.4M 35.3M 26.7M 313.0M Annual Net (2.4M) 0.0M (35.0M) (0.1M) (0.5M) (38.0M) Use of Fund Balance 2.4M

• 0.1M

0.5M 3.0M Proceeds from Debt

• 35.0M
• 35.0M

Premium on Notes Issued

• $1.1M
• $1.1M
• Est. Fund Balance 7/1/20

51.5M 1.5M 0.0M 4.3M 10.2M 67.4M

• Est. Fund Balance 6/30/21

49.1M 1.5M 0.0M 5.3M 9.7M 65.6M

FY2020-21 All Funds Summary

15

Category General Fund Special Revenue Funds Capital Projects Fund Debt Service Fund Proprietary Funds Total

Tax Levy 45.4M 1.8M

• 35.2M

0.2M 82.5M Other Budgeted Revenue 113.3M 52.7M 0.4M 0.0M 26.1M 192.4M Budgeted Expenditures 161.1M 54.5M 35.4M 35.3M 26.7M 313.0M Annual Net (2.4M) 0.0M (35.0M) (0.1M) (0.5M) (38.0M) Use of Fund Balance 2.4M

• 0.1M

0.5M 3.0M Proceeds from Debt

• 35.0M
• 35.0M

Premium on Notes Issued

• $1.1M
• $1.1M
• Est. Fund Balance 7/1/20

51.5M 1.5M 0.0M 4.3M 10.2M 67.4M

• Est. Fund Balance 6/30/21

49.1M 1.5M 0.0M 5.3M 9.7M 65.6M

FY2020-21 All Funds Summary

16

Tax Levy

17

18 $92.9M $92.9M $94.0M $34.8M $36.5M $38.5M $40.9M $42.7M $44.6M $47.3M $0.0M $10.0M $20.0M $30.0M $40.0M $50.0M $60.0M $70.0M $80.0M $90.0M $100.0M

Operating Levy History

← Levy offset by State Aids

$25.5M $30.2M $30.2M $30.2M $30.1M $34.2M $34.1M $34.5M $34.8M $35.2M $0.0M $5.0M $10.0M $15.0M $20.0M $25.0M $30.0M $35.0M $40.0M

Debt Levy History

19

20

0.00000 0.20000 0.40000 0.60000 0.80000 1.00000 1.20000 1.40000 1.60000 1.80000 2.00000

$0.0M $20.0M $40.0M $60.0M $80.0M $100.0M $120.0M $140.0M

Combined Levy History

Operating Levy Debt Levy Mill Rate

0.72000 0.74000 0.76000 0.78000 0.80000 0.82000 0.84000 0.86000 0.88000 0.90000

Combined Mill Rate Projection

21

Average Value Home

22

Proposed Levy: 82,507,840 Tax Year Value Mill Rate Tax 2019 $300,967 0.88290 $265.72 2020 $300,967 0.87733 $264.05 Change $0

• 0.00557
• $1.68

Rate 0.00%

• 0.63%
• 0.63%

Average value home statistic is for the City of Madison

Budget Approval Timeline

Date Action February 5, 2020 Budget Update April 1, 2020 Preliminary Budget Presentation May 6, 2020 Public Hearing June 3, 2020 Final Budget Approval

23

24

Any questions?

COVID-19 Recovery Funding

• CARES legislation
• FEMA
• College’s insurance coverage
• Monitor new programs as they develop