NMC Board of Trustees Study Session October 30, 2017 Timothy J. - - PowerPoint PPT Presentation

NMC Board of Trustees Study Session

October 30, 2017 Timothy J. Nelson, President

1

Board Study Session Learning Outcomes

Enrollment – Environment and Activities

• Understanding of the current enrollment environment
• Awareness of enrollment initiatives tied to strategic plan
• Greater understanding of student support services

Revenue – Current and Trends

• Grasp current and future trends in revenue sources and how this

influences strategic decisions

2

Board Study Session Learning Outcomes

Underlying Principles of Planning and Budgeting

• Review Environmental Assumptions – MCCA-NMC
• Understand Reserves and Debt – Levels and Uses
• Evaluate Resource Guidelines

3

Enrollment – Environment and NMC Activities

• Demographics
• Historical Enrollment
• Specialty Programs
• Enrollment and Retention Initiatives
• Student Support Services
• Board Metrics for Student Success and Retention

4

About Northwestern Michigan College - Context

• 5,100 unduplicated credit students annually
• University Center, Museum, Radio Station, Training and

Community Extended Education together with traditional credit students yields 50,000 “learners”

• Accredited by the Higher Learning Commission (AQIP);

multiple program accreditations

• Five on-campus housing facilities
• Baccalaureate programming
• Policy governance organization
• $54M enterprise with $40M Foundation

5

Learner Types

• Learners served annually

–Traditional college – 5,100 –University Center – 1,200 to 1,500 –Training – 1,200 to 2,000 in industry –Extended Education – approximately 10,000 –Dennos visitors 60,000 – 70,000 –Radio station – 7,500

• Best estimate - 50,000 different learners

6

Where They Come From

1% 50% 16% 4% 29%

Fall 2017 Registration

International Grand Traverse Other Michigan Out of State Service Area

7

What They Look Like

63% 37%

Status

Part Time Full Time 51.30% 48.60%

Gender

Female Male

8

Contact Hours Follow Unemployment Rate

9

Age Group Enrollment Enrollment by Headcount

2010 2011 2012 2013 2014 2015 2016 2017 % Change <=17-20 2,078 2,001 2,002 2,122 2,153 2,051 2,094 2,085 0% 21+ 3,362 3,175 2,845 2,605 2,394 2,222 2,073 1,871

• 44%

Total 5,440 5,176 4,847 4,727 4,547 4,273 4,167 3,956

• 27%

10

Age Group Enrollment in Contact Hours

2010 2011 2012 2013 2014 2015 2016 2017 % Change <=17-20 25,348 24,125 23,505 24,491 24,222 22,980 22,750 23,440

• 8%

21+ 35,580 32,648 28,994 26,708 24,499 22,841 21,206 18,858

• 47%

Total 60,928 56,773 52,499 51,199 48,721 45,821 43,956 42,298

• 31%

11

Specialty Programs

• Aviation
• Maritime
• BS Marine Technology
• Water Studies
• Engineering Technology
• Culinary
• Nursing
• Audio Tech

12

Capacity and Enrollment in Specialty Programs

Program Estimated overall capacity Fall 2017 Enrollment Engineering Tech 200 103 Aviation 94 94* BS In Marine Tech 45 26 Water Studies 60 55 GLMA 210 195 Nursing 160 142 Culinary 150 119 Audio Tech 54 40

*Aviation does not include UAS

13

Initiatives to Increase Enrollment and Retention

• Enrollment Initiatives
• Recruitment activities for specialty programs
• Additional housing
• Digital marketing advertisements
• Elimination of application fee
• Expand online offerings
• Retention Initiatives
• Student activities sense of belonging
• Faculty engagement during registration
• Staff and Advisors engagement
• Student success coaches
• Tutoring
• Required orientation
• Structured Guided Pathways (Pg. 14 in Board Packet)
• My Academic Plan

14

Student Support Initiatives

NMC Support

• Food insecurity
• Food pantry
• Transportation insecurity
• Gas cards
• Emergency Bata passes
• Childcare
• Scholarships
• Partnership with Munson for low cost childcare
• Emergency Funds
• Emergency loans
• Student Life has emergency funds in their budget to support food or housing on

temporary basis

Local Resources

• Student Life has contacts for local agencies to assist student needs
• Student Life staff sit on local teams in support of youth housing and suicide prevention

initiatives

15

BOARD LEVEL STRATEGICGOALS KEY RESULTS, GOALS, and TARGETS Learner Success (SD1, IE1, IE2, IE3)

• B1. Develop and implement an integrated and

aligned learning outcomes system.

• 1. By July 2017, full implementation of a systematic and aligned
• process. B1_T1

Fall 2014 Fall 2015 Fall 2016 Fall 2017 Targets

College‐level Course Completion (all grades‐Ws)/(all grades) 92.9% 93.4% ↑93. 5% 92.6%1 College‐level Course Enrollee Success Rate (2.0 and above)/(all grades) 80.0% 80.2% ↑81. 7% 77.6%1 College‐level Course Completer Success (2.0 and above)/all grades ‐ Ws) 86.1% 85.6% ↑87. 4% 85.7%1 Community College Completion/Graduation Main Cohort rate within six years (cohorts from 2008, 2009, and 2010) 15.6% 16.3% ↓14. 6% 13.7%2 Community College Transfer Main Cohort rate within six years (cohorts from 2008, 2009, and 2010) 38.9% 36.7% ↓35. 0% 37.0%2 Total Community College Main Cohort Completion/Graduation/Transfer rate within six years (cohorts from 2008, 2009, and 2010) 54.5% 53.0% ↓49. 6% 50.7%2

B1 _2 .

Fall‐to‐spring persistence (all currently enrolled less dual enrolled, grads, transfer) 78.2% 77.2% ↑80. 9% 74.5%1 Retention Plan: Fall to fall persistence (all currently enrolled less dual enrolled, grads, transfer) 54.2% ↓53.4 % TBD 51.8%1

16

BREAK

17

Revenue Current and Trends

• Tuition
• State Appropriations
• Federal
• Property Tax
• Portfolio A,B,C

18

Tuition History

• Tuition and fees for general classes have risen 43% in real terms

(2000 adjusted dollars) from $61 per contact hour in 2000-01 to $87 in 2017-18.

• Tuition and fees for general classes have risen from $61 to $148.70 in

nominal terms over the same period.

• NMC tuition and fees (and room and board) are approximately equal

to the national average for two-year public colleges. (See next slide)

2000-01 2017-18 Year 2000 Adjusted Dollars $61 per contact 148.70 per contact $87 per contact

Price per contact hour – general courses

19

Average Charges for Full-Time (30 hours) Two Year Public Undergraduates 2016-17

National Average NMC Tuition and Fees $3,520 $3,876 Room and Board $8,060 $8,150 Tuition and Fees and Room and Board $11,580 $12,026 Source: The College Board. Trends in College Pricing 2016 NMC tuition, fees, room and board is 3.85% above national average.

20

State Appropriatio ions - His istoric ical

• In nominal dollars, State operating appropriations in 2016-17 for

Northwestern Michigan College were $10,521 less than in 2000-01.

• In dollars adjusted for year 2000 equivalency, state operating

appropriations for 2016-17 were $3,593,622 less than in 2000-01.

• Student enrollment in those two years is approximately the same in

contact hour production.

21

State Appropriatio ions - His istoric ical

$- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

State Appropriations by Year – Actual Distribution – Nominal Dollars 2000-2001 2016-2017 Year 2000 Adjusted Dollars $9,428,609 $9,318,088 $5,834,987

22

State Appropriations Percentage Changes

• 0.84%
• 12.72%

28.15%

• 6.65%

0.00% 0.00%

• 4.40%

7.29%

• 1.89%

2.89% 1.34% 2.76%

• 15.00%
• 10.00%
• 5.00%

0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 *excludes UAAL payments

23

State Unfunded Actuarial Accrued Liability Payments (UAAL)

• NMC’s contribution rate is currently capped at 20.96% of payroll

expense (2012 PA300) for two of the seven plans

• The UAAL portion is calculated by MPSERS each year. Calculation is

the difference between the retirement system’s assets and the pensions accrued to current and future retirees

• NMC’s rates range from 20.96%-25.56%
• State UAAL for 2018 is 11.32% of NMC’s payroll expenses

24

State UAAL Payments

Fiscal Year Amount 2017 $1.7 million 2016 $1.8 million 2015 $1.3 million 2014 $ 785 thousand

• Direct payments from the State that the college returns as a contribution
• Assumptions are these payments will continue
• College has set aside $651,000 as reserves if payments are discontinued

25

State Capital Outlay

• NMC received authorization in August, 2017 for Innovation Center
• Funding amount $7,500,000
• Last Capital Outlay project was in 2005 for $650,000
• Prior to the 2017 Funding NMC ranked 23rd out of the 28 community

colleges

26

Federal Support

NMC Federal Program Support

• Great Lakes Maritime Academy
• 2017 Funding was $797,901
• General Operations
• Capital improvements
• Fuel
• Perkins – supports Occupational program
• 2017 funding was $234,307
• Equipment
• Professional Development
• Personnel for special projects

27

Federal Supplements

Student Federal Assistance Fiscal Year 2017

Type Total Amount Unduplicated Head Count Pell $4,477,365 1,509 Federal Supp. Opp. Grant $ 111,762 179 Student Loans $8,012,291 1,793 Parent Loans $1,634,606 130

28

Fed ederal Support

Pell Grant has fluctuated over time. It declined by 21% in inflation-adjusted dollars between 1985-86 and 1995-96 before increasing by 35% between 1995-96 and 2005-06, and by another 17% between 2005-06 and 2015-16. Figure 17: Maximum and Average Pell Grants in 2015 Dollars, 1975-76 to 2015-16

29

Grand Traverse County Property Tax – Operating Millage Provided

$0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

Local Property Tax Collections 2000-2001 2016-2017 Year 2000 Adjusted Dollars $5,823,265 $10,043,766 $6,289,406

30

Property Tax Percent Change From Previous Year

5.52% 7.24% 6.62% 4.03% 3.42%

• 1.81%
• 2.36%

0.64% 1.83% 1.82% 3.03% 2.22%

• 4.00%
• 2.00%

0.00% 2.00% 4.00% 6.00% 8.00% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

31

Local l Operatin ing Property Tax- His istoric ical

• Nominal dollar operating tax collections from Grand Traverse County

in 2016-17 for Northwestern Michigan College were $4,220,501 more than in 2000-01.

• In dollars adjusted for year 2000 equivalency, local property tax

appropriations for 2016-17 were $466,141 more than in 2000-01 and $56,141 less than in 2001-02

• Student enrollment in those two years is approximately the same in

contact hour production.

32

Operating and Debt Millage

• Authorized voted millage in February, 1995 was 2.5742
• Current Operating Millage rate is 2.1520
• Headlee rollback reduction of .4222
• In 2017 that amounted to $1.9 million dollar reduction in tax revenue
• Headlee rollback provisions assessed to operating millage have reduced

millage collections by a value of $22,200,795 over those 16 years.

• Capital Improvement Millage unlimited to cover Bond payment
• Current Debt Millage rate is .59 mills
• Expiration in 2019
• College has refinanced three times savings taxpayers $3.2 million dollars

33

Portfolio A,B,C

34

• Portfolio A ... contemporary college subject matter with an emphasis on

experience-based learning and content geared to system/design thinking and work readiness. More integration, connectivity and better linkages. Example: Interdisciplinary Coursework with Gamification

• Portfolio B ... integrated professional program curriculum with highly

specialized and proprietary content and experiences that establish strong pro-credentials, high-value competence with NMC intellectual property. Example: Unmanned Vehicles – Water Studies and Aviation Programs

• Portfolio C ... advanced content, externally-sourced subject matter and

applications integrated with proprietary materials, and delivered through NMC, here, with open-model Learning and Delivery platforms. Example: Custom Subject Matter Program for “XYZ” Enterprise

35

“ONE NMC” with Two Engines

A

B/C

Leverage, Integrate and Exchange :

• Resources
• Revenue
• Reputation
• Results

Characterized by:

• Value
• Quality
• Reputation
• Success
• Access

Characterized by:

• Specialized

Reputation

• Alternative

Delivery

• Alternative

Markets Portfolio Portfolio

36

Low Price Alternative External Subsidies Earned Subsidies

$$$ RISK

Our Response: 2009+ NMC Strategic Agenda

A

B/C

Strategy

• Differentiated products

with higher pricing to alternative markets Strategies

• Efficiency
• Effectiveness
• Cost reduction
• Productivity Increase

37

Targets for Portfoli lio B/C /C Pla latforms

(Under Development)

• Water Studies
• Culinary
• Aviation – UAS Applied
• Audio Tech
• Training - Lean

38

How to Get t Th There

• Move from incubation to acceleration by developing needed

platforms

• Develop business plan for Board approval – this budget cycle
• Utilize strategic fund, fund for transformation and outside

investments

• Engage with Business Innovation Factory – Providence

Rhode Island – November 5

39

BREAK

40

Underlying Principles of Planning and Budgeting

• Understand Environmental Assumptions – MCCA-

NMC

• Understand Reserves and Debt
• Evaluate and understand Budget Guidelines

41

Assumptio ions NMC and MCCA

(S (See ee addit itional handout)

1. There will be a continuing call for accountability, particularly on student success and our ability to manage costs/financial efficiency. 2. The public compact in support of higher education, and that of the community college mission, is under question – is a community college education a public or private good? A related question is whether the comprehensive mission is sustainable. 3. Due to fiscal and political realities, we will continue to live in a declining subsidy environment impacting student access, and there will be increasing legislative and regulatory threats to institutions and local control.

42

Assumptions NMC and MCCA

4. The commoditization of education, once a threat, is here and

• present. Community colleges need to transition from a

knowledge-transfer model to one that is more focused on the application of knowledge. 5. The community college student population is changing as the number of traditional-age students decrease, and the number of dual enrolled students increase. 6. As the State works to diversity and transform the economy, community colleges will be called to play a bigger role in economic and workforce development.

43

Assumptions NMC and MCCA

7. The competitive environment is no longer geographically bound, and the rapid pace of domestic and global competition will increasingly call for the re-definition of the fundamental value proposition – credentialing – as new competition emerges. 8. The environment for higher education is changing rapidly, and in

• rder to best position institutions for future competiveness and

success, the business model will accordingly need to change. 9. The competition for qualified and diverse talent will increasingly impact the ability of community colleges to compete.

44

Reserves

See Handout – Packet Pgs. 18-21

45

Long-term Liabilities Levels, Use and Repayment

Bond Purpose Total amount remianing Paid in Full Repayment Plan 1999 Bond Great Lakes Campus, Health Science and Scholars Hall 8,255,000 2020 Paid with capital millage 2002 Bond Residential Hall improvements 1,200,000 2022 Paid from housing income 2016 Bond See Below 20,890,000 2037 Paid wth combination of income Current debt 30,345,000.00 $ Future 2018 West Hall Innovation Center 7,500,000 Expected 37,845,000.00 $ Debt excluding 99 Bond 29,590,000.00 $

46

2016 Bond Purposes

2016 Bond Purpose Purpose Amount Repayment Housing North Hall $7,810,000 Housing income Dennos Expansion $5,000,000 Private donations Library New Building $6,000,000 Donation/reserves Infrastructure Various campus projects $2,080,000 Capital budget $20,890,000

47

Budget Revenue Assumptions NMC

• Enrollment budget estimates in 2017 showed 2% decline for

2019

• We will be evaluating this in December and January
• Property tax revenue to see small increase of 2%-3%
• State Appropriations estimated to be flat with UAAL

remaining intact

48

NMC Resource Guid ideli lines

See Handout – Packet Pgs. 16-17

49

NMC will continuously transform the learning experience and its global relevance to those we serve through innovation, agility and thoughtful risk-taking.

The Outcome We Pursue

50

Strategic Directions

• Prepare learners for success in global society and

economy

• National/International competencies linked to

regional assets

• Deliver learning through networked workforce
• Establish lifelong relationships
• Transcribe learning to establish credentials of value

51

NMC Current Strategies for Revenue Margin Growth

• Increased market share in local and regional area in all

learning classifications (Particularly in 21+ market)

• Strengthen areas of expertise – to recruit outside the

region and country

• Allows programs with insufficient local demand
• Addresses local demographic issues
• Higher margins
• Enriches learning experiences
• Execute on select areas for portfolio B & C
• Investment in Foundation Campaign

52

Strategic Plan

See Additional Handouts: NMC Board of Trustees Level Strategic Goals NMC Strategic Plan – PC View

53

Questions/Discussion

54