Hillsborough Community College State of the Budget Fall 2008.
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Transcript of Hillsborough Community College State of the Budget Fall 2008.
FY 2007-08 (Actual)
Student Tuition/Fees
35.8%
State Appropriations
59.8%
Other4.3%
State Appropriations
56.6%
Student Tuition/Fees
39.6%
Other3.8%
FY 2008-09(Adopted)
Two Year Operating Budget Comparison
FY 2008-09 Adopted Expenditures (General
Operating Fund)
Personnel68.9%
Current Expenses
26.5%
Capital4.6% Chart Title
Operating Expenditures = $95,130,077
Two Year Operating Expenditure Comparison
Personnel71.8%
Current Expenses25.5%
Capital2.6%
Personnel68.9%
Current Expenses
26.5%
Capital4.6%
FY 2007-08 Actuals FY 2008-09
Adopted
$4.4 million in Capital Costs, $3.9 of this Funded
through Fund Balance
FY 2008-09Adopted Revenues =
$91,237,506
Adopted Expenditures =$95,237,506
Diff. from Fund Balance = ($3,892,571)
Fund Balance
Why do Public Organizations need Fund Balances? Revenues are not always timed to
match expenditure cycle (tuition revenue 3 times per year, yet payroll runs every 2 weeks)
Ability to build reserves for large capital projects without debt financing.
A contingency for the unexpected (e.g., hurricane) or an unfunded opportunity.
HCC’s Unallocated, Unreserved Fund Balance
at June 30, 2009 Projected Unallocated/Unreserved
Fund Balance at June 30, 2009 = $11,187,905
Average Monthly Personnel Expenditures = +$5.4 million
Average Monthly Operational Expenditures = + $7.9 million
Unallocated, Unreserved Fund balance approximates 42 Days of Operations
Current Budget Projection is not Sustainable in Future
Years
FY 2006-07 FY 2007-08 Adopted 2008-09 Projected 2009-10
Projected 2010-11
$85,000,000
$90,000,000
$95,000,000
$100,000,000
HCC Revenues
HCC Expenditures
Funding Gap
Preparing Now for 2009-2010 Balanced Budget
While too early to know, State Revenues May Decline another $2 to $5 Million Dollars Next Year
How do we sustain our Core mission, maintain equipment and facilities, and fund new Initiatives?
FY 2008-09 Personnel Costs $65,511,244
FT Salaries, $39,430,819, 60%
PT Salaries, $13,196,158, 20%
Health Insurance, $4,388,450, 7%
Payroll Taxes, $8,495,817, 13%
FY 2008-09 Current Expenses $25,198,352
Travel; 914544; 4%
Utilities; 4838235; 19%
Other Services; 7611866; 30%
Prof. Fees; 1492932; 6%Supplies; 2185753;
9%
Other Curr. Ex-pense; 8155022;
32%
Telecommunications, Repairs, Insurance, Postage, Rentals,
Housekeeping , Security Contracts, Grounds, Memberships, Advertising, Etc.
Hillsborough Community College General Fund Revenue History, Adopted FY
2008-09
Revenues FY 2006-07 Actuals
FY 2007-08 Projected
FY 2008-09 Adopted Change
Percentage Change
All Student Fees
$31,217,463
$33,579,891
$36,152,230
$2,572,339 7.66%
State Funds
$52,144,244
$53,094,507
$51,635,276
($1,459,231)
-2.75%
Other Revenue
$3,782,053 $3,647,900 $3,450,000 ($197,900) -5.43%
Total $87,143,760
$90,322,298
$91,237,506
$915,208
1.01%
6% Tuition Increase included in Projected Student Fee Total, with no increase in enrollmentOther Revenue Includes Interest Income, Rental Income, Auxiliary Transfers in, and other Misc. Revenues
HCC Overview of State Funding
$52,153,801
$55,868,707
$53,594,507
$51,862,219
$48,231,864
$44,000,000
$46,000,000
$48,000,000
$50,000,000
$52,000,000
$54,000,000
$56,000,000
FY 2006-07 FY 2007-08Adopted
FY 2007-08Final
FY 2008-09Adopted
FY 2008-09Reality?
Potential State Aid Reductions of 4 to 10 %
State Appropriations
$51,635,276
Tuition & Fees $36,152,23
0
4% Reduction
$2,065,411
A 5.7% increase in tuition revenue is needed, with no increase in costs, to make up for this shortfall
7% Reduction
$3,614,469
A 10% increase in tuition revenue is needed, with no increase in costs, to make up for this shortfall.
10% Reduction
$5,163,528
A 14.3% increase in tuition revenue is needed, with no increase in costs, to make up for this shortfall.
The Perfect Storm?
Flat or Declining Revenues while Salaries and Benefit Costs Increase TECO Energy rates expected to
Increase 10 to 20% beginning January 2009 (College’s Electricity Budget is $4,066,916 in FY 2008-09)
First Full-year of SouthShore Operation Other inflationary increases driven by
rising fuel costs
How we had Addressed the Problem
Early Planning– Board Adopted Goal to Reduce Percentage of Budget for Institutional Support FY 2003-04 19.30% FY 2004-05 20.56% FY 2005-06 22.00% FY 2006-07 20.87% FY 2007-08?
Eliminated 15 Non-Instructional Positions
7 From District Functions 1 from Brandon 2 from Dale Mabry 2 from Plant City 1 from SouthShore 2 from Ybor City
Other 2007-08 Budget Reductions
Campuses and District Functions reduced by varying percentages to spare direct instruction as much as possible:
Campus $ Reduction % Reduction
Brandon ($75,252) -0.86%
Dale Mabry ($232,000) -0.96%
Plant City ($225,978) -3.26%
Ybor City ($211,749) -1.62%
South Shore ($85,000)-6.74%
District ($1,118,576) -4.15%
TOTAL ($2,148,555) -2.64%
2008-09 Reductions Included
Decrease in Insurance Premium ≈ $163,556
Reduction in Copier Lease (moved to Purchase) ≈ $150,000
Collection Costs Recovered from Students ≈ $75,000
Payoff of WT Edwards Loan ($78,000 in recurring debt service payments)
Elimination of non-faculty positions, salary savings and reorganizations ≈ $802,000
Other Considerations
Examining Utilities– Rules of thumb--for every degree change in AC or heating there is a cost impact of 2% savings or increase.
At current rates, 2% reduction yields $80,000!
As a result of various cost-cutting measures we were able to set aside $3 million in non-recurring dollars for various future projects
$3,000,000 in Non-Recurring Projects
$750,000 for Enrollment Growth Contingency
$350,000 for Enhanced Web-based Student Services
$300,000 for Strategic Planning Objectives
$475,000 for Disaster Recovery, Phase II $345,000 for Imaging Project, Year 3 $500,000 for Improved Infrastructure to
support Security Operations $280,000 for Non-Instructional
Equipment & Technology
Why are we building and renovating buildings during difficult financial times?
Why are we purchasing new and replacement equipment in classrooms and labs?
Different funding streams support different College activities.
Most large construction projects are 100% supported by State Public Education Capital Outlay (PECO) funding.
The Student’s Capital Improvement Fee (currently $6.26 per credit hour for Residents) funds classroom equipment and capital improvements, and will raise $2.8 million this year.
The Student Activity Fee, also currently $6.26 per hour, is expected to raise $2.8 million in FY 2008-09.
2007-08 Actual Expenditures by Fund Type
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
Exp
en
ditu
res
in M
illio
ns
CurrentFund
Unrestricted
CurrentFund
Restricted
AuxiliaryFund
ScholarshipFund
Plant Fund DebtService
Fund
We Need Your Input
How do we collectively address the College’s financial challenges and emerge as a stronger institution? Gathering ideas (through College and campus
meetings and in the Budget Ideas Forum Blog on Campus Cruiser)
Reporting back to the College community on which ideas may be implemented, with projected costs or new revenues resulting from them.
Planning for a balanced budget for 2009-10
“Lack of money is no obstacle. Lack of an idea is an obstacle.”- Ken Hakuta