Budget Update

Tri-County Technical College

Faculty /Staff Meeting

December 3, 2008

OVERVIEW

Historical Funding of Technical College System

Comparison of Enrollment, Tuition and State Funding from 2000 to 2008

Funding Allocation and Trend Comparison to Peer Group Budget Adjustments to Date Future Outlook

TECHNICAL COLLEGE FUNDING

Theory for Funding

State Appropriations – Fund SalariesState Funding currently covers only 44% of our salaries

Local Funds – Fund Facilities

Tuition and Fees – Fund Operations

CURRENTLY2000

53,623

$3,162

$153,089,780

39,036

$1,290

$171,310,188

Average Tuition

and Fees:

FTE Enrollmen

t:

State Appropriatio

ns:

SC Technical College System

STUDENT FTE AND STATE FUNDING, 2000-2008

BUDGET IMPACT ON OUR PEER GROUP

Medium Colleges General Funds

Federal Funds

Other Funds

Total Funds

14.4%Reduction to

General Funds

% Reduction

to Total Funds

Aiken Technical College $5,486,604 $516,000 $16,822,069 $22,824,673 $797,338 3.49%

Central Carolina Technical College $6,100,716 $919,240 $16,529,816 $23,549,772 $886,584 3.76%

Florence-Darlington Technical College

$9,059,894 $2,198,397 $25,814,576 $37,072,867 $1,316,624 3.55%

Horry-Georgetown Technical College $10,395,557 $1,663,835 $23,281,691 $35,341,083 $1,510,730 4.44%

Orangeburg-Calhoun Technical College

$5,790,563 $919,396 $14,855,624 $21,565,583 $841,511 3.90%

Piedmont Technical College $9,861,497 $3,331,201 $23,436,121 $36,628,819 $1,433,118 3.91%

Spartanburg Community College

$9,381,824 $933,449 $26,556,331 $36,871,604 $1,363,410 3.70%

Tri-County Technical College $9,711,175 $1,030,241 $25,276,869 $36,018,285 $1,411,272 3.92%

York Technical College $8,579,932 $4,253,969 $17,873,689 $30,707,590 $1,246,874 4.06%

Average $8,263,085$1,751,748

$21,160,754$31,175,586

$1,200,829 3.84%

Funds include Unrestricted and some Restricted Funds

TRI-COUNTY TECHNICAL COLLEGE HISTORICAL FUNDING

FTE Enrollment

$15,336,000$3,810,000

40572591

State Funding

Tuition & Fees

$9,670,000 $8,109,000*

FY2000 FY2009

* State Funding Adjusted for 16.5% projected reduction.

OUR CHALLENGE…

State Funding was projected to be $9,711,000 for FY09

Our Budget Challenge to date is a 16.5% reduction in State Funding or $1,602,000

$1,602,000 represents 5% of our Unrestricted Operating Budget.

We can get there…but we have to be smart and diligent!

2 Year and 4 Year Colleges & UniversitiesReducing travel costs, contractual services, repairs,

dues, membershipsDefer and Reduce Capital SpendingHiring Freezes, reduction in force, layoffs, retirements,

attrition, furloughsCutting operating hoursRestructuring/Cancelling programs

WE’RE NOT IN THIS ALONE. WHAT ARE OTHER COLLEGES DOING?

We have to be very calculated with our actions so as not to jeopardize our mission.

OUR BUDGET ADJUSTMENTS TO DATE…

Initial Budget Reduction built into the Plan $293,300

Increased Revenue from Enrollment $400,000

Operating Expenses $328,300

Hold on Replacing Open Perm. Positions $485,000

Reductions-to-Date $1,506,600

Our Challenge $1,602,000

WHERE WE ARE TO DATE? Budget Adjustments To Date include:

Fall Revenue from Enrollment $400,000

Previous Reduction Built into The Plan $293,300

Hold on Refilling Permanent Positions $485,000

Reduce Temporary Employment $88,000

Cancel Travel to SCTEA $10,000

Divisional Operating Expenses

Academic Affairs $50,000

Business Affairs $90,400

Economic Development/CE $20,600

Institutional Advancement $26,500

Presidents Office $16,300

Student Affairs $26,500

Total Adjustments $1,506,600

OUR 3 YEAR SPENDING TREND……WE STILL HAVE WORK TO DO.

Personnel

$3,789,000$2,767,000

$22,169,000$17,292,000

Fixed Charges

Contractual Services

$980,000 $1,194,000

FY2006 Actual FY2009 Budget

Supplies

Travel

$343,000 $1,078,000*

$210,000$220,000

* Fixed charges include $630k for the Anderson Campus Lease

OUR GUIDING PRINCIPLES

Focus on our Mission Keep students in the forefront Protect employees jobs as much as possible Provide essential services Aggressively challenge everything we do, looking

for improvements and savings Take the opportunity to better position ourselves for

the future Recognize the extraordinary times and pull together

for the good of the College Recognize that we each have a role to play

WHAT’S AHEAD OF US…

We are likely to have more cuts for FY2010.

We anticipate another 2% before January, 2009

Could see another cut after January 1, 2009

Total of at least $1.8million for FY09

Fiscal Year 2010, we anticipate a cut of $2.5million

While this is a significant amount of money, it represents only 7.7% of our Unrestricted Budget

We can do this without compromising our core mission.

IS THERE ANYTHING “OFF LIMITS?”

Like all colleges across South Carolina, we will not increase tuition in the spring. Next Fall is yet to be decided.

We will not dip into our cash contingency Since reductions are permanent we cannot permanently

reduce our operating contingency

WHERE DO WE GO FROM HERE…

We’ll have to ensure that our reductions are recurring We’ll all need to contribute. We all own the issue and the

solution We’ll need to be aggressive in all areas We will be very calculated in our decision process We’ll need your ideas and suggestions

I anticipate setting up several small groups to brainstorm ideas in regard to revenue enhancement and expense reduction

We’ll get there through hard work, compromise and teamwork!

FUTURE POSSIBILITIES Reducing Tuition Remission & Fee Waivers Developing Differential Tuition Rates Implementing Supply and Equipment Fees by Program

Health Science - $62 per semester

I & ET - $170 per semester

A & S - $10 per semester

B & PS - $23 per semester Changing Printing Practices & Implementing Charges Developing a Rigorous Energy Management Plan Implementing Travel Restrictions Evening Coverage – shared responsibilities Aligning services between GTC and rest of College Reviewing and Reducing Memberships Assessing Overload Pay Implementing Summer School Sustainability

FUTURE POSSIBILITIES

Implementing a Furlough - $65,000 per day

Reassignments of Duties Outsourcing Services RIP VSP RIF