Mott Community College
Board Workshop
May 23, 2011
College Finances
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
2
2011-2012 RECOMMENDATIONS
3
$9 000 000
FYE 2012 Impact in Dollars
$8 000 000
$453,656
$675,000
$7 000 000
$750 000
$6 000 000
$850 000
$5 000 000
$900 000
$4 000 000
$1 500 000
$8,128,658
$3 000 000
$2 000 000
$3 000 000
$1 000 000
$0
Capital Funding Restoration
Health Insurance Increase
Contingency Restoration
Lost State Aid
Lost Property Taxes
Debt Contribution
MPSERS Increase
4
Tuition Keeps Up with Lost Funding/Increase in
$160 Non-controllable costs for FYE 2012
$155
$150
$145
$140
$135
$130
$125
$120
$115
$110
$105
$100
$95
$90
$85
$80
$3.17
$4.71
$3.11
$ 5,93
$ 6,28
$ 10,47
$56.73
$155.41
$ 20,94
$ 98,68
Current Tuition
Lost Property Taxes
Debt Contribution2
MPSERS Increase
Capital Funding Restoration
Health Insurance Increase
Contingency Restoration
Lost State Aid
5
COMPARISON PRIOR YEAR/CURRENT YEAR
2011
2012
6
Reserve Requirements
8
Still need $183K
7
Current
Reserve
In millions
6
5
4
Still need $950K
Still need $36K
Required
Reserve
3
2
Adequately funded
1
0
General Fund
(01)
Rainy Day (02)
Maint &
Replacement
(72)
Building & Site
(78)
7
No State Aid Cut
Beginning Deficit
$
(7,694,950)
Debt Millage Resets to .89
850,000
Contribution from FMCC
250,000
Minimum Funding to 72
2,000,000
Salary Lag
900,000
Contingency reduction
500,000
Discretionary Cuts
500,000
Use of Fund Balance
1,500,000
Remaining
Deficit
Remaining Deficit
1,194,950
If tuition were used to cover remaining deficit, the increase would be $7.47 per
contact hour or 7.6%
8
3.4% State Aid Cut
Beginning Deficit
$
(8,128,658)
Debt Millage Resets to .89
850,000
Contribution from FMCC
250,000
Minimum Funding to 72
2,000,000
Salary Lag
900,000
Contingency reduction
500,000
Discretionary Cuts
500,000
Use of Fund Balance
1,500,000
Remaining Deficit
Deficit
Remaining
1,628,658
If tuition were used to cover remaining deficit, the increase would be $10.18 per
contact hour or 10.3%.
9
4% State Aid Cut
Beginning Deficit
$
(8,219,389)
Debt Millage Resets to .89
850,000
Contribution from FMCC
250,000
Minimum Funding to 72
2,000,000
Salary Lag
900,000
Contingency reduction
500,000
Discretionary Cuts
500,000
Use of Fund Balance
1,500,000
Remaining
Deficit
Remaining Deficit
1,719,389
If tuition were used to cover remaining deficit, the increase would be $10.75 per
contact hour or 10.9%.
10
7% State Aid Cut
Beginning Deficit
(8,714,950)
Debt Millage Resets to .89
850,000
Contribution from FMCC
250,000
Minimum Funding to 72
2,000,000
Salary Lag
900,000
Contingency reduction
500,000
Discretionary Cuts
500,000
Use of Fund Balance
1,500,000
Remaining Deficit
Deficit
Remaining
2,214,950
If tuition were used to cover remaining deficit, the increase would be $13.84 per
contact hour or 14%.
11
15% State Aid Cut
Beginning Deficit
(9,944,950)
Debt Millage Resets to .89
850,000
Contribution from FMCC
250,000
Minimum Funding to 72
2,000,000
Salary Lag
900,000
Contingency reduction
500,000
Discretionary Cuts
500,000
Use of Fund Balance
1,500,000
Remaining Deficit
Deficit
Remaining
3,444,950
If tuition were used to cover remaining deficit, the increase would be $21.53 per
contact hour or 21.8%.
12
Expenditures Per Student
6000
5500
5000
4500
$4,477
$4,253
$4,094
4000
$3,909
$3,732
$4,353
$4,106
$3,783
3500
3000
13
Contact Hour Costs vs. Increase in
Total Contact Hours
315 589
320 000
$290
$ 278
310 000
300 000
$280
307 226
290 000
280 000
270 000
$260
$250
$ 243
260 000
$ 245
$240
$230
250 000
240 000
$270
$220
233 732
230 000
$210
Contact Hours
Cost per Contact Hour
14
COMMENTS/QUESTIONS?
15