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Hillsborough Community College State of the Budget Fall 2008.

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Presentation on theme: "Hillsborough Community College State of the Budget Fall 2008."— Presentation transcript:

1 Hillsborough Community College State of the Budget Fall 2008

2 FY Adopted Revenues (General Operating Fund) Operating Revenues = $91,237,506

3 FY (Actual) FY (Adopted) Two Year Operating Budget Comparison

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7 FY Adopted Expenditures (General Operating Fund) Operating Expenditures = $95,130,077

8 Two Year Operating Expenditure Comparison FY Actuals FY Adopted

9 $4.4 million in Capital Costs, $3.9 of this Funded through Fund Balance FY Adopted Revenues = $91,237,506 Adopted Expenditures =$95,237,506 Diff. from Fund Balance = ($3,892,571)

10 Fund Balance Why do Public Organizations need Fund Balances? Revenues are not always timed to match expenditure cycle (tuition revenue 3 times per year, yet payroll runs every 2 weeks) Revenues are not always timed to match expenditure cycle (tuition revenue 3 times per year, yet payroll runs every 2 weeks) Ability to build reserves for large capital projects without debt financing. Ability to build reserves for large capital projects without debt financing. A contingency for the unexpected (e.g., hurricane) or an unfunded opportunity. A contingency for the unexpected (e.g., hurricane) or an unfunded opportunity.

11 HCC’s Unallocated, Unreserved Fund Balance at June 30, 2009 Projected Unallocated/Unreserved Fund Balance at June 30, 2009 = $11,187,905 Projected Unallocated/Unreserved Fund Balance at June 30, 2009 = $11,187,905 Average Monthly Personnel Expenditures = +$5.4 million Average Monthly Personnel Expenditures = +$5.4 million Average Monthly Operational Expenditures = Average Monthly Operational Expenditures = + $7.9 million Unallocated, Unreserved Fund balance approximates 42 Days of Operations Unallocated, Unreserved Fund balance approximates 42 Days of Operations

12 Current Budget Projection is not Sustainable in Future Years Funding Gap

13 Preparing Now for Balanced Budget While too early to know, State Revenues May Decline another $2 to $5 Million Dollars Next Year While too early to know, State Revenues May Decline another $2 to $5 Million Dollars Next Year How do we sustain our Core mission, maintain equipment and facilities, and fund new Initiatives? How do we sustain our Core mission, maintain equipment and facilities, and fund new Initiatives?

14 FY Personnel Costs $65,511,244

15 FY Current Expenses $25,198,352 Housekeeping, Security Contracts, Grounds, Memberships, Advertising, Etc.

16 Hillsborough Community College General Fund Revenue History, Adopted FY Revenues FY Actuals FY Projected FY Adopted Change Percentage Change All Student Fees $31,217,463$33,579,891$36,152,230$2,572, % State Funds $52,144,244$53,094,507$51,635,276($1,459,231)-2.75% Other Revenue $3,782,053$3,647,900$3,450,000($197,900)-5.43% Total$87,143,760$90,322,298$91,237,506$915, % 6% Tuition Increase included in Projected Student Fee Total, with no increase in enrollment Other Revenue Includes Interest Income, Rental Income, Auxiliary Transfers in, and other Misc. Revenues

17 HCC Overview of State Funding

18 Potential State Aid Reductions of 4 to 10 % State Appropriations $51,635,276 Tuition & Fees $36,152,230 4% Reduction $2,065,411 A 5.7% increase in tuition revenue is needed, with no increase in costs, to make up for this shortfall 7% Reduction $3,614,469 A 10% increase in tuition revenue is needed, with no increase in costs, to make up for this shortfall. 10% Reduction $5,163,528 A 14.3% increase in tuition revenue is needed, with no increase in costs, to make up for this shortfall.

19 The Perfect Storm? Flat or Declining Revenues while Flat or Declining Revenues while Salaries and Benefit Costs Increase Salaries and Benefit Costs Increase TECO Energy rates expected to Increase 10 to 20% beginning January 2009 (College’s Electricity Budget is $4,066,916 in FY ) TECO Energy rates expected to Increase 10 to 20% beginning January 2009 (College’s Electricity Budget is $4,066,916 in FY ) First Full-year of SouthShore Operation First Full-year of SouthShore Operation Other inflationary increases driven by rising fuel costs Other inflationary increases driven by rising fuel costs

20 ATTEMPTS TO ADDRESS GATHERING STORM

21 How we had Addressed the Problem Early Planning– Board Adopted Goal to Reduce Percentage of Budget for Institutional Support Early Planning– Board Adopted Goal to Reduce Percentage of Budget for Institutional Support FY % FY % FY % FY % FY % FY % FY % FY % FY ? FY ?

22 Eliminated 15 Non-Instructional Positions 7 From District Functions 7 From District Functions 1 from Brandon 1 from Brandon 2 from Dale Mabry 2 from Dale Mabry 2 from Plant City 2 from Plant City 1 from SouthShore 1 from SouthShore 2 from Ybor City 2 from Ybor City

23 Other Budget Reductions Campuses and District Functions reduced by varying percentages to spare direct instruction as much as possible : Campus$ Reduction% Reduction Campus$ Reduction% Reduction Brandon ($75,252)-0.86% Brandon ($75,252)-0.86% Dale Mabry ($232,000)-0.96% Dale Mabry ($232,000)-0.96% Plant City ($225,978)-3.26% Plant City ($225,978)-3.26% Ybor City ($211,749)-1.62% Ybor City ($211,749)-1.62% South Shore ($85,000)-6.74% South Shore ($85,000)-6.74% District($1,118,576)-4.15% District($1,118,576)-4.15% TOTAL($2,148,555)-2.64% TOTAL($2,148,555)-2.64%

24 Reductions Included Decrease in Insurance Premium ≈ $163,556 Decrease in Insurance Premium ≈ $163,556 Reduction in Copier Lease (moved to Purchase) ≈ $150,000 Reduction in Copier Lease (moved to Purchase) ≈ $150,000 Collection Costs Recovered from Students ≈ $75,000 Collection Costs Recovered from Students ≈ $75,000 Payoff of WT Edwards Loan ($78,000 in recurring debt service payments) Payoff of WT Edwards Loan ($78,000 in recurring debt service payments) Elimination of non-faculty positions, salary savings and reorganizations ≈ $802,000 Elimination of non-faculty positions, salary savings and reorganizations ≈ $802,000

25 Other Considerations Examining Utilities– Rules of thumb--for every degree change in AC or heating there is a cost impact of 2% savings or increase. Examining Utilities– Rules of thumb--for every degree change in AC or heating there is a cost impact of 2% savings or increase. At current rates, 2% reduction yields $80,000! At current rates, 2% reduction yields $80,000!

26 As a result of various cost-cutting measures we were able to set aside $3 million in non- recurring dollars for various future projects As a result of various cost-cutting measures we were able to set aside $3 million in non- recurring dollars for various future projects

27 $3,000,000 in Non-Recurring Projects $750,000 for Enrollment Growth Contingency $750,000 for Enrollment Growth Contingency $350,000 for Enhanced Web-based Student Services $350,000 for Enhanced Web-based Student Services $300,000 for Strategic Planning Objectives $300,000 for Strategic Planning Objectives $475,000 for Disaster Recovery, Phase II $475,000 for Disaster Recovery, Phase II $345,000 for Imaging Project, Year 3 $345,000 for Imaging Project, Year 3 $500,000 for Improved Infrastructure to support Security Operations $500,000 for Improved Infrastructure to support Security Operations $280,000 for Non-Instructional Equipment & Technology $280,000 for Non-Instructional Equipment & Technology

28 Why are we building and renovating buildings during difficult financial times? Why are we building and renovating buildings during difficult financial times? Why are we purchasing new and replacement equipment in classrooms and labs? Why are we purchasing new and replacement equipment in classrooms and labs?

29 Different funding streams support different College activities. Most large construction projects are 100% supported by State Public Education Capital Outlay (PECO) funding. Most large construction projects are 100% supported by State Public Education Capital Outlay (PECO) funding. The Student’s Capital Improvement Fee (currently $6.26 per credit hour for Residents) funds classroom equipment and capital improvements, and will raise $2.8 million this year. The Student’s Capital Improvement Fee (currently $6.26 per credit hour for Residents) funds classroom equipment and capital improvements, and will raise $2.8 million this year. The Student Activity Fee, also currently $6.26 per hour, is expected to raise $2.8 million in FY The Student Activity Fee, also currently $6.26 per hour, is expected to raise $2.8 million in FY

30 Actual Expenditures by Fund Type

31 So What’s Next?

32 We Want to Hear from You!

33 We Need Your Input How do we collectively address the College’s financial challenges and emerge as a stronger institution? How do we collectively address the College’s financial challenges and emerge as a stronger institution? Gathering ideas (through College and campus meetings and in the Budget Ideas Forum Blog on Campus Cruiser) Gathering ideas (through College and campus meetings and in the Budget Ideas Forum Blog on Campus Cruiser) Reporting back to the College community on which ideas may be implemented, with projected costs or new revenues resulting from them. Reporting back to the College community on which ideas may be implemented, with projected costs or new revenues resulting from them. Planning for a balanced budget for Planning for a balanced budget for “ Lack of money is no obstacle. Lack of an idea is an obstacle.” - Ken Hakuta “ Lack of money is no obstacle. Lack of an idea is an obstacle.” - Ken Hakuta

34 QUESTIONS?


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