BUDGET UPDATE FY14 and BUDGET PLANNING FY15

BUDGET Basic Principles for Budget Planning and Development (not Prioritized) Meets Core Values/Goals College is more important than any one individual Student as center Serve mission and goals of college, adjust goals as needed Be truthful Consider effects on community, meet partner expectations and commitments Supported by Evidence/Data Create a sense of urgency – internal and external Provides Return on Investment - Tangible/Intangible Gain efficiencies in operation Realign personnel costs to a realistic level Opportunity to realign to support future growth Supports Faculty and Staff Retain and reassign as possible, layoffs are last option Consider climate/morale, mitigate and communicate

BUDGET Priority Criteria for Ranking budget Request Items 2008 (prioritized) Improve student success Positively impacts quality education Supports operations/infrastructure Promotes customer service Support Community Needs Security / Safety Public Image Supports accreditation Academic programs – scheduling, support growth (weekend, online), faculty ratio of full time and part time, SACS issues, diversity Operational funds – overhead and infrastructure, Newtown Campus Student access and services – recruitment, outreach, promotion/image, inclusion, diversity, retention and completion Revenue generating programs, courses, and services, new program development, new college success course Grant responsibilities Safety/security Economic development/workforce and business services

BUDGET UPDATE FY14 Tuition Revenue Recurring and Non-recurring Fund Balance BUDGET PLANNING FY15 Tuition Revenue State Mandated 2.5% Budget Cut Performance Based Funding Expense Budgets

State Appropriation 14.8% Tuition & Fees65.7% Other19.5% 100% FY2014 BUDGET UPDATE Budget Composition Personnel72.0% Operating12.9% Utilities 2.2% Capital Expenses 2.9% Waivers and Scholarships 3.3% Unallocated Budget/Fund Balance 3.8% Contingency Reserve 2.9% 100%

Tuition Revenue (as of 2/3/14) Fall - $935,732 or 5.3% short of budget Spring - $1,410,716 or 8.86% short of budget Spring 2 enrollments (March 13 last day to enter a class) Spring Dual Credit enrollments not final Summer - $1,912,737 or 60% short of budget (usually we have earned 60% of budget & only need 40% ) Projected FY14 revenue deficit of $2,500,000 - $3,000,000 FY2014 BUDGET UPDATE Revenue

Projected FY14 revenue deficit of $2,500,000 - $3,000,000 Offsets (estimates): Salary Savings as of Jan14$800,000 Bad Debt Expense – Decrease$500,000 Over spend of Waiver Expense($100,000) FY2014 BUDGET UPDATE Revenue

FY2014 BUDGET UPDATE Recurring vs Non-recurring Recurring: happens or occurs again or repeatedly Fund 01 Non-recurring: not occurring or happening again, pertaining to an income or expense considered of a nature not likely to occur or happen again Fund 05 – Fund Balance

FY2013 Fund Balance = $15,750,000 FY14 Authorized to Spend: Newtown North-$1,000,000 NR SO Recharge-$ 167,721 NR Approved 6/2013-$ 241,593 NR Approved 9/2013-$1,545,000 Recurring items funded NR-$1,172,000 Fall 2013 under recognized tuition-$1,000,000 Spring 2014 under recognized tuition-$1,000,000 Summer 2014 under recognized tuition-$ 500,000 FY14 Salary Savings+$ 800,000 FY14 Underspend of Expense Budgets FY14 Overspend of Expense Budgets Estimated Fund Balance January 2014 = $9,923,686 FY2014 BUDGET UPDATE Fund Balance

FY2015 BUDGET PLANNING Due May 9, 2014 Revenue Estimates: Recurring decrease needs to be budgeted Fall Spring Summer State Mandated Budget Cut: Governor’s state budget includes a 2.5% cut for higher education If KCTCS distributes as they have previously, could be as low as 1.6% Since February 2008, BCTC has incurred recurring state mandated budget cuts = $3,148,300 (all but $14,500 was Recurring)

FY2015 BUDGET PLANNING Performance Based Funding: KCTCS Board of Regents has mandated Final process has yet to be determined Draft computations = $160,100 Expense Lines: Must add or adjust expense lines as necessary: Blackboard$210,000 Lumina Grant$ 52,232 Waiver Expense$100,000 Newtown ? Expenses cut in FY14 ? Due May 9, 2014

BUDGET How can we all help? Focus on our important work. Advocate – talk to legislators, students, friends, family Find ways to save or generate funds. Be creative and resourceful. Revenue generating programs – International Students Bad Debt Expense R2T4 Contract re-negotiations Energy Savings from IT (sleep mode/shut down process) Spending “hard frost”