2. Title Copy Texas Association of Community College Business Officers June 13, 2013 Budget Allocation Model at Lone Star College System Innovation, Efficiency and Accountability

3. SLIDE 3 Lone Star College System 78,000 credit students, total enrollment of 90,000. Fastest-growing college system in the nation in 2012 Largest institution of higher education in the greater Houston area. 34 percent growth since 2008-09. 11 school districts, 1,400 square miles, population of 2 million. 5,500 employees, 5.6 million square feet. LSCS Overview

4. SLIDE 4 LSC System Office LSC-CyFair LSC-Kingwood LSC-Montgomery LSC-North Harris LSC-Tomball LSC-University Park Locations

5. Purpose of Allocation Model A fair, consistent and equitable budget allocation formula that: Recognized college budget realities Aligned with system-wide priorities Allowed for individual college goals Rewarded positive action

6. Base budget -adequate funding for basic needs “Right size” budget (from previous years) Focus on student success initiatives Support enrollment increases Balance full-time faculty ratio Facilities expansion Utilities and leases Specific Goals

7. Administrative spending targets by system and college: 12% - System 6% - College Personnel costs 78% Incentive funding criteria Timing of incentive funding

8. Other Considerations Employee benefits State funding Auxiliary and other revenues Establish/embed accountability

9. Budget Model Team Workforce Representative VC Academic or Student Success - rotating ORIE Representative VC/CFO & AVC Admin & Finance 2 Presidents – rotating

10. Data Sources

11. Timeline Project Planning FY 2010, 2011 Model design/ongoing reviews and adjustments Student Success Space utilization Improve FT Faculty Ratio Instr. Effectiveness Core Budget Workforce/Cooperative Incentives FY 2012, 2013FY 2014, 2015 Phased funding for 2008 bond projects

12. Internal Allocation Issues Core budget-minimums for all colleges Faculty ratios (full/part time) New facility operating dollars Workforce equipment Student success incentives Cooperative incentives Average salaries

13. Internal Allocation Issues Workforce program incentives Space utilization Growth estimates Mid-year adjustments Rewards/penalties

14. Factors in Developing Average expenditures at Texas community colleges Peer comparisons Internal discussions (faculty ratios) Historical Future (developing a sustainable model highlighted by applicability and flexibility)

15. SLIDE 15 Texas Community Colleges Behavior Goals Fill high demand jobs Demonstrate fiscal responsibility efficiencies Administrative efficiencies Partner for efficiency Improve student success

16. Texas Community Colleges Cost per FTSE

23. College Budget Formula based Historical expenditures College priorities Average expenditure per student comparison

24. College Budget $40,000,000 80%Personnel 1%Furniture$400 K 1%Equipment$400 K 2%Professional Dev.$800 K 1%Printing/copying$400 K 1%Marketing$400 K 5%Utilities$2,000,000 7%Services (contracts)$2,800,000

25. Challenges Change Management Resistance to change Growth estimates Rapid/slow growth Accountability

26. Presenter Cindy Gilliam, Vice Chancellor, CFO cindyg@lonestar.edu 832.813.6512

27. Best Grandchild Ever