1. COCONINO COMMUNITY COLLEGE BUDGETING 102  Budget Projections & Assumptions  CCC Sustainable Financial Plan & Due Diligence  Cost of Academic Programs  2013 Special Override Election Coconino Community College Fall 2013 Budgeting 102

2. COCONINO COMMUNITY COLLEGE BUDGETING 102 Budget Projections & Assumptions Coconino Community College Fall 2013 Budgeting 102

3. COCONINO COMMUNITY COLLEGE BASE ASSUMPTIONS:  Revenues :  Property Taxes Collections – 3% per year  Based on legally allowed 2% base growth and 1% attributable to “new construction”  Tuition Revenue – 2% per year  Increase in per credit hour tuition rate (will compound by student growth)  State Aid – 0% per year  Has been falling over time – May increase slightly in FY 2014  Expenditures:  Enrollment Growth – 1% per year  Cost Inflation – 3% per year  Applies to all categories (will compound by student growth) Coconino Community College Fall 2013 Budgeting 102

4. Coconino Community College Fall 2013 Budgeting 102

5. COCONINO COMMUNITY COLLEGE BUDGETING 102 CCC Sustainable Financial Plan & Due Diligence Coconino Community College Fall 2013 Budgeting 102

6. CCC’S SUSTAINABLE FINANCIAL PLAN & DUE DILIGENCE Coconino Community College Fall 2013 Budgeting 102

7. CCC’S SUSTAINABLE FINANCIAL PLAN & DUE DILIGENCE Coconino Community College Fall 2013 Budgeting 102

8. COCONINO COMMUNITY COLLEGE BUDGETING 102 Cost of Academic Programs Coconino Community College Fall 2013 Budgeting 102

9. Coconino Community College Fall 2013 Budgeting 102

10. COST OF ACADEMIC PROGRAMS FULL-TIME STUDENT EQUIVALENT (FTSE) COSTS High vs. lower cost programs  Average cost per full-time student equivalent (FTSE) is $7,000  The per FTSE cost of a high tech program student is 64% higher than a non high tech program student  Reasons for higher costs :  Specialized equipment  lower student to faculty ratio  More labs Coconino Community College Fall 2013 Budgeting 102

11. Coconino Community College Fall 2013 Budgeting 102 COST OF ACADEMIC PROGRAMS FULL-TIME STUDENT EQUIVALENT (FTSE) COSTS Examples of two programs:  Nursing Cost Per FTSE:  Direct instructional costs only $19,800 or $845,000 per year  With all other indirect costs is $31,000 or $1.33 million per year  EMS/Fire Science Cost Per FTSE:  Direct instructional costs only $3,774 or $359,500 per year  With all other indirect costs is $6,288 or $599,000 per year

12. COST OF ACADEMIC PROGRAMS BEYOND TUITION Beyond Tuition, State Aid, and Property Tax  Class fees - consumables  Grants  Perkins – Career & Tech Support  Arizona Hospital Association – Start up Costs  First Things First – Early Childhood Education  Gifts and Donations  FMC/NAH – Beds, Equipment, and Funding  WL Gore – Computer Servers  NAU – Lab Equipment  City of Flagstaff - $35K for Chemistry Lab Coconino Community College Fall 2013 Budgeting 102

13. Coconino Community College Fall 2013 Budgeting 102 COST OF ACADEMIC PROGRAMS STARTUP COST OF NEW PROGRAM Example: San Juan Community College Industrial Process Operator Program (IPOP)  $1.2 million in start-up equipment  $500,000 salary/fringe for 5 FT faculty hires  74 credit hours

14. PROGRAM ASSESSMENT CCC regularly performs various reviews of their programs to ensure quality and viability  Program Review (5 year cycle)  Full budget review (when indicated)  Advisory council meetings  Community feedback through surveys, conversations, etc.  Student feedback Coconino Community College Fall 2013 Budgeting 102

15. COCONINO COMMUNITY COLLEGE BUDGETING 102 2013 Special Override Election Coconino Community College Fall 2013 Budgeting 102

16. 1.) Arts & Sciences – Transfer/Transition 2.) Career & Technical Education 3.) Workforce Training Coconino Community College’s Three Core Missions: Fall 2013 Budgeting 102 Coconino Community College

17. Coconino Community College’s Three Funding Sources… Fall 2013 Budgeting 102 Coconino Community College

18. 1.) State Aid Cuts $15 million cut cumulatively from FY2007 to FY2014 State aid was 23% share of CCC’s budget in 2007; now it’s 12%. State Aid & Full-Time Student Enrollment (FTSE ) Struggling to meet core missions! CCC’s Financial Dilemma… Fall 2013 Budgeting 102 Coconino Community College

19. 2.) Property Taxes Since 1991, CCC’s primary property tax rate has virtually stayed the same even though CCC’s student body has grown. CCC’s Financial Dilemma… Struggling to meet core missions! Property Tax & Full-Time Student Enrollment (FTSE) Fall 2013 Budgeting 102 Coconino Community College

20. Lowest Property Tax Rate in Arizona! CCC’s Financial Dilemma… Struggling to meet core missions! FY2014 Primary Property Tax Rates by Arizona Community College Fall 2013 Budgeting 102 Coconino Community College

21. CCC’s Response… Struggling to meet core missions! Tuition was 33% share of CCC’s budget in 2007; now it’s 43%. Academic Year Tuition & Fees 3.) Tuition & Fees 89% higher tuition since 2007! $1,296 tuition increase is the largest increase among Arizona community colleges. Fall 2013 Budgeting 102 Coconino Community College

22. Highest Student Tuition in Arizona! CCC’s Response… Struggling to meet core missions! FY2014 Tuition & Fees by Arizona Community College Fall 2013 Budgeting 102 Coconino Community College

23. 100 Cost Saving Initiatives 15% employee reduction 20% classes cut 30% programs eliminated Closed Williams Campus CCC’s Response… CCC is now drawing on minimal reserves and struggling to meet core missions! FY2014 Operating Budget & Reductions $4 Million in Budget Reductions = -18% Fall 2013 Budgeting 102 Coconino Community College

24. Raising tuition & cost saving initiatives are not enough to maintain current levels of service. CCC’s Financial Situation… OR Sustainable Options: Eliminate core missions Increase revenue Fall 2013 Budgeting 102 Coconino Community College

25. 1.) Arts & Sciences – Transfer/Transition - Navigating students seamlessly from high school to CCC, to a bachelor’s degree and beyond through CCC’s educational pipeline. 2.) Career & Technical Education - Preparing local students for better jobs in Fire Science, Criminal Justice, Nursing & Paramedics, etc. 3.) Workforce Training - Keeping jobs in Coconino County with customized curriculums, business retention & expansion, community partnerships, etc. Coconino Community College’s Three Core Missions: Fall 2013 Budgeting 102 Coconino Community College

26. Temporary: 7 Years $4.5 Million/Year Requires Voter Approval Override Election – November 5, 2013 On June 25, 2013, the Coconino Community College District Governing Board unanimously called for a voter-approved override election. Property Tax Effects: $100K Home Value $2.40/month $29/year $170K Home Value (Average in Coconino County) $4.20/month $50/year Fall 2013 Budgeting 102 Coconino Community College

27. Schedule: October 7, 2013 Last day to register to vote October 25, 2013 Last day to request early ballot by mail November 5, 2013 Election Day Polling hours: 6 a.m. to 7 p.m. Override Election – November 5, 2013 For election information visit: www.coconino.az.gov/elections Fall 2013 Budgeting 102 Coconino Community College

28. Thank You! For more information, visit: www.coconino.edu/VoterInformation Fall 2013 Budgeting 102 Coconino Community College

29. COCONINO COMMUNITY COLLEGE BUDGETING 102 Questions? Coconino Community College Citizens’ Review Panel Meeting #2 April 8, 2013