2013-14 Board of Trustees Budget Workshop June 19, 2013 1 Mission, Vision and Values Adopted by Board of Trustees, October 2012 Mission Mission Hillsborough Community college delivers teaching and learning opportunities that empower students to achieve their educational goals and become contributing members of the local community and a global society. Vision Hillsborough Community College will excel in proactively responding to the evolving educational needs of our students, staff, workforce, and community through assessment and continuous improvement. 2 Mission, Vision and Values Adopted by Board of Trustees, October 2012 Values • • • • • • • • Student Success Community Service Diversity and Inclusion Sustainability Integrity Innovation Accountability Professional Development 3 Funding Trends, Florida College System 4 5 6 The Florida College System Program Fund Appropriations by Source Lower and Upper Levels Combined The Florida College System Program Fund Appropriations per FTE Lower and Upper Levels Combined The Florida College System Comparison of FTE to State Funding per FTE, Lower and Upper Level Combined 9 10 Florida College System, State & Student Share of Operating Budgets Hillsborough Community College 2013-14 Budget Parameters 12 ASSUMPTIONS FOR HCC’S 2013-14 BUDGET PLANNING • No Increases in Tuition & Across-the-Board* Fees • Assume 3% Enrollment Decline • Consider 3% salary adjustments • Inflationary adjustments to current expenses *Two User Fees Recommended, Pay-for-Print and Textbook Rental, non-return of Book 13 HCC State Appropriations • State Appropriated Funds of $52,640,686, a $4,380,941 increase – Community college Program Funds – Lottery Funds $42,836,763 $9,803,923 • Funds for Construction & Renovation Needs $2,049,692 14 Funding Inequities • 17 colleges below 70.35% system average • Amount to bring all colleges up to a minimum of 70.35% of model funded, $47.4 million • Amount to bring HCC up to 70.35% of model funded $9.3 million 16 HCC Tuition and Fee Considerations 18 Tuition & Fees, No Changes Proposed for FY 2013-14 2012-13 Tuition 2013-14 % Change $80.45 $80.45 0.0% Access Fee 0.54 0.54 0.0% Financial Aid Fee 4.03 4.03 0.0% Technology Fee 3.91 3.91 0.0% Student Activity 7.23 7.23 0.0% Capital Improvement Fee 8.23 8.23 0.0% Total Resident /Credit Hr $104.39 $104.39 0.0% 19 Proposed Tuition & Fees Compared to Authorized Maximum 2013-14 Proposed Maximum Authorized % Change $80.45 $82.78 2.9% Access Fee* 0.54 0.54 0.0% Financial Aid Fee 4.03 4.14 2.7% Technology Fee 3.91 4.14 5.9% Student Activity 7.23 8.26 14.3% Capital Improvement Fee 8.23 10.23 24.3% Total Resident /Credit Hr $104.39 $110.09 5.46% Tuition *Access Fee Amount can be established by Board of Trustees. 20 User Fees, Recommendation #1 Pay for Print PROPOSED FEES JUSTIFICATION Single-Sided Black & White Color $0.10 $0.35 Supports the College’s sustainability initiatives, and also serves to recover costs of paper, toner and equipment leases. Double-Sided Black & White Color $0.08 $0.30 Review of other schools identified that recommended charges are within ranges for similar pay-forprint programs. 21 User Fees, Recommendation #2 Textbook Rentals, Non-return of Book PROPOSED FEE $20 for Non-Return of Rented Textbook JUSTIFICATION The Bookstore is instituting a textbook rental program. Textbooks can be rented for 50% of current retail price. If student fails to return the textbook at semester end, the student will be charged for the difference between rental and retail price, plus a $20 fee for processing costs related to recovery. 22 Legislative Hot Topics • Dual Enrollment • Incentive Funding for Certain Industry Certifications • Future Performance Funding • Developmental Education • Fund Balances: New Data Request 23 Dual Enrollment 24 Change to Dual Enrollment • Senate Bill 1514 requires school districts to pay the standard tuition per credit hour (now $71.98) for courses taken by dual enrollment students on a college campus. • Requires school districts to reimburse colleges for instructional costs when sections are taught at the high school. 25 HCC Dual Enrollment Public High Schools Headcount Credit Hours Private High Schools Headcount Credit Hours Home Schooled Headcount Credit Hours On HCC Campus 839 5,546 98 727 61 809 @ High School 1,365 6,078 74 727 0 0 TOTALS 2,204 11,624 172 1,454 61 809 Reporting Periods: Fall 2012, Spring 2013 (NOTE: Colleges are not to charge school districts for Summer Dual Enrollment credits) 26 Potential Revenue Return • The standard tuition rate is currently $71.98 per credit hour. • Cannot bill for Summer semester credits. • Assuming 2012-13 Fall & Spring Enrollments, Potential Additional Revenue to HCC = $451,530. 27 Potential Cost Reimbursement • HCC offered 141 sections taught at high schools. • Approximate reimbursement for instructional costs = $248,000. 28 Performance Funding for Industry Certifications 29 Industry Certifications • SB 1076 appropriated $5,000,000 for Performance Based Incentives for industry certifications in 2013-14 • Colleges may earn bonus funding ($1,000 per certification) when students obtain certain industry certifications. 30 Industry Certifications Identified for FY 2013-14 • • • • • • Automotive service technology Cyber security Cloud virtualization technology Advanced manufacturing Welding Federal Aviation Administration airframe mechanics • Pharmacy technician • Heating, ventilation and air-conditioning techs 31 Performance Funding for Florida College System 32 Performance Funding • Requires that by October 31, 2013, State Board of Education recommends methodology to distribute performance funding based upon percentage of graduates employed or enrolled in further education, average wages of employed graduates, and average cost of graduate. • No Funding provided for FY 2013-14 33 Developmental Education SB 1720 34 Developmental Education • SB 1720 includes Developmental Education Reforms to affect Advising, Testing & Placement, Curriculum & Instruction, Implementation and Reporting • No Funding Reductions in FY 2013-14 due to Developmental Education Changes. 35 Developmental Education • Each Florida College System institution board of trustees shall develop a plan to implement the developmental education strategies defined in s. 1008.02 and rules established by the State Board of Education. The plan must be submitted to the Chancellor of the Florida College System for approval no later than March 1, 2014, for implementation no later than the fall semester 2014. 36 HCC Enrollment & Budget Trend Data 37 Review of HCC 2012-13 Enrollment Planned for 5% enrollment decline: • Fall 2012 -1.9% • Spring 2013 -4.4% • Summer 2013 -6.3% Projected FTE Enrollment (UNOFFICIAL) -5.7% 38 HCC Full-time Equivalent (FTE) Enrollment History & Projection 25,000 20,886 20,000 21,771 18,775 16,623 16,998 2006-07 2007-08 21,676 20,436 19,823 15,000 10,000 5,000 0 2008-09 2009-10 2010-11 2011-12 Estimated Projected 2012-13 2013-14 39 HCC State Aid vs. Student Tuition Revenue per Full-time Equivalent Student (FTE) $3,500 $3,153 $2,844 $3,000 $2,852 $2,710 $2,652 $2,576 $2,371 $2,500 $2,186 $2,000 $2,362 $2,254 $2,656 $2,219 $2,098 $1,969 State Aid Per FTE $1,500 Tuition Per FTE $1,000 2007/08 2008/09 2009/10 2010/11 2011/12 Estimated 2012/13 Projected 2013/14 Note: State Aid for 2009/10 and 2010/11 does not include Federal pass-through Fiscal Stabilization Funding per FTE of approximately $190. 40 HCC Revenue Trends, % of Operating Budget, 2009-10 to 2013-14 60.00% 53.9% 53.4% 51.3% 50.00% 50.6% 49.0% 48.0% 47.2% 43.9% 44.3% 44.9% 40.00% FY 2009/10 FY 2010/11 FY 2011/12 30.00% FY 2012/13 FY2013/14 20.00% 10.00% 3.8% 3.0% 2.2% 2.3% 2.2% 0.00% State Approriations Student Fees Other Sources 41 HCC Expenditures by Function 50,000,000 45,000,000 40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 0 Instruction Public Service Academic Support Staff/Program Development Student Support Institutional Support Plant Operations Student Aid Transfers, Contingencies , Etc. FY 2009/10 43,717,938 324,355 6,638,307 547,634 10,209,715 20,794,694 14,506,068 411,683 2,468,620 FY 2010/11 47,140,201 375,154 7,361,892 681,302 11,052,855 20,867,805 15,490,227 474,601 1,314,937 FY 2011/12 47,246,484 423,737 7,310,349 720,803 10,933,356 23,516,402 17,745,844 476,338 3,777,931 42 Renovation and Maintenance Needs 43 Age of HCC's Square Footage 600,000 505,511 500,000 435,600 Square Footage Added per Decade 400,000 307,561 300,000 226,909 200,000 101,607 100,000 76,960 0 Prior to 1970 1970 to 1979 1980 to 1989 1990 to 1999 2000 to 2009 2010 or Newer 44 General Renovation Needs • FY 2012-13 Sum-of-the-Digit Appropriation (for minor maintenance) = $264,542, or ≈$0.16 per square foot. • Proposed for FY 2013-14 Sum-of-the-Digit Appropriation = $2,049,692, or ≈ $1.24 per square foot. 45 PECO Funding to HCC for General Renovation/Remodeling + Sum-of-the-Digits, 2006-07 to 2013-14 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 Sum of the Digits General Renovations 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 $635,295 $772,876 $523,902 $506,643 $850,511 $252,329 $264,542 $2,049,692 $1,913,020 $2,656,764 $2,383,079 $949,018 $1,709,644 $708,230 $0 $0 46 Revenue Projection, 2013-14 $ Change Increase in State Appropriations Enrollment Decline, 3% Drop Budgeted Other Revenues Net Reduction in Operating Funds Available $4,380,941 ($1,580,872) ($112,698) $2,687,371 Cost of Business Increases $ Change Custodial Services Contractual Increase Title V Grant Obligation $95,500 38,437 Employee Health Benefits & Retirement Rate 2,133,740 Full-time Salary/Wage increases 1,318,950 Estimated Increases, Terminal Pay 100,000 Additional Adjunct Faculty (primarily Allied Health) 174,833 Call Center, Increase in Funding from Unrestricted Funds $27,380 Cost of Business Increases (Cont’d) $ Change Apprenticeship Contracts, Enrollment 31,635 Technical Support, State Reporting Project 71,000 Additional Public Safety Costs 84,250 New 911 Public Safety Telecommunications Program 21,026 Repairs & Maintenance of Facilities 829,397 Materials & Supplies 284,873 General Liability Insurance Premiums 51,839 Cost of Business Increases (Cont’d) $ Change Additional Funding, Disability Services 200,000 Information Technology, Software Licenses 244,997 Total Estimated Cost of Business Increases $5,687,857 Funding Gap (Deficit) Before Reductions/ Cost Savings ($3,000,486) Funding Reductions from 2012-13 Budgeted Amounts $ Change Reductions in District Offices Administrative Budgets $337,864 Grant Matching Funds 200,000 Professional Fees 209,263 Utilities- Sustainability and Energy Savings initiatives 201,713 Other Services 279,179 Corporate and Continuing Education 292,690 Funding Reductions from 2012-13 Budgeted Amounts $ Change Other Current Expenses $413,938 Capital Outlay Budget 65,839 Transfer to Plant Fund 1,000,000 Total Expense Reductions $3,000,486 Proposed FY2013-2014 Operating Revenue $111,602,451 State Support, $52,640,686 , 47% Other Revenue, $2,428,136 , 2% Student Tuition & Fees, $56,533,629 , 51% 53 Proposed FY 2013-14 Operating Expenditures $111,602,451 Capital Outlay $2,326,661 2% Current Expenses $30,296,626 27% Personnel Cost $78,979,164 71% 54 Fund Balance Trends & Projection Unallocated Fund Balance as of: Amount Fund Balance as % of Available Funds $11,157,037 $15,573,008 $11,851,444 9.39% 11.93% 8.73% June 30, 2013 (Projected) $9,845,621 7.48% June 30, 2014 (Proposed) $9,845,621 7.68% June 30, 2010 June 30, 2011 June 30, 2012 Minimum recommended fund balance by the State is 5.1% of Available Funds Fund Reserves & Board Designated Funds Estimated Reserve for Encumbrances Budget Stabilization* $2,300,000 $4,500,000 Total Reserves & Board Designated Funds $6,800,000 Combining Board Designated and Unallocated Fund Balance Brings June 2014 Fund Balance Projection to 10.88%. *Budget Stabilization to offset effects of potential enrollment declines, natural disasters, and other economic uncertainties. Review of Other Funds 57 Questions? 58