Mott Community College

Board WorkshopMay 23, 2011

College Finances

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STRATEGIC PLAN• 7-0. Budget/Finance

• 7-1. Focus on controllable revenues and costs to sustain our current reputation and facilities and provide funding for strategic priorities

• 7-2. Establish short and long-term budget and finance priorities that provide a balanced approach to the needs of a learning organization with the flexibility to realign resources

• 7-3. Implement a comprehensive strategy to address the long-term deficit which enables us to continue to provide affordable high quality education

• A balanced approach

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2011-2012 RECOMMENDATIONS

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FYE 2012 Impact in Dollars

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$8,128,658

Tuition Keeps Up with Lost Funding/Increase in Non-controllable costs for FYE 2012

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$56.73

$155.41

COMPARISON PRIOR YEAR/CURRENT YEAR

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2011 2012

Reserve Requirements

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In m

illio

ns

Still need $183K

Still need $950K Still need $36K

Adequately funded

No State Aid Cut

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850,000 Debt Millage Resets to .89

250,000 Contribution from FMCC

2,000,000 Minimum Funding to 72

900,000 Salary Lag

500,000 Contingency reduction

500,000 Discretionary Cuts

Use of Fund Balance 1,500,000 Use of Fund Balance

Remaining Deficit

If tuition were used to cover remaining deficit, the increase would be $7.47 per contact hour or 7.6%

Beginning Deficit (7,694,950)$

1,194,950 Remaining Deficit

3.4% State Aid Cut

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850,000 Debt Millage Resets to .89

250,000 Contribution from FMCC

2,000,000 Minimum Funding to 72

900,000 Salary Lag

500,000 Contingency reduction

500,000 Discretionary Cuts

Use of Fund Balance 1,500,000 Use of Fund Balance

Remaining Deficit

If tuition were used to cover remaining deficit, the increase would be $10.18 per contact hour or 10.3%.

1,628,658 Remaining Deficit

Beginning Deficit (8,128,658)$

4% State Aid Cut

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850,000 Debt Millage Resets to .89

250,000 Contribution from FMCC

2,000,000 Minimum Funding to 72

900,000 Salary Lag

500,000 Contingency reduction

500,000 Discretionary Cuts

Use of Fund Balance 1,500,000 Use of Fund Balance

Remaining Deficit

If tuition were used to cover remaining deficit, the increase would be $10.75 per contact hour or 10.9%.

1,719,389 Remaining Deficit

Beginning Deficit (8,219,389)$

7% State Aid Cut

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850,000 Debt Millage Resets to .89

250,000 Contribution from FMCC

2,000,000 Minimum Funding to 72

900,000 Salary Lag

500,000 Contingency reduction

500,000 Discretionary Cuts

Use of Fund Balance 1,500,000 Use of Fund Balance

Remaining Deficit

If tuition were used to cover remaining deficit, the increase would be $13.84 per contact hour or 14%.

2,214,950 Remaining Deficit

Beginning Deficit (8,714,950)

15% State Aid Cut

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850,000 Debt Millage Resets to .89

250,000 Contribution from FMCC

2,000,000 Minimum Funding to 72

900,000 Salary Lag

500,000 Contingency reduction

500,000 Discretionary Cuts

Use of Fund Balance 1,500,000 Use of Fund Balance

Remaining Deficit

If tuition were used to cover remaining deficit, the increase would be $21.53 per contact hour or 21.8%.

3,444,950 Remaining Deficit

Beginning Deficit (9,944,950)

$3,732$3,909

$4,094$4,253

$4,477$4,353

$4,106

$3,783

3000

3500

4000

4500

5000

5500

6000

Expenditures Per Student

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Contact Hour Costs vs. Increase in Total Contact Hours

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COMMENTS/QUESTIONS?

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