HARFORD COMMUNITY COLLEGE
Board of Trustees Work Session
November 30, 2012
The Board of Trustees of Harford Community College met on Friday, November 30, 2012, at
9:00 a.m. in the Chesapeake Center Board Room.
Trustees present: Mrs. Doris G. Carey; Mr. John F. Haggerty; Rev. Cordell E. Hunter, Sr.;
Mr. Bryan E. Kelly; Mr. Richard D. Norling; Dr. James J. Valdes; and, Dr. Dennis
Golladay as Secretary-Treasurer
Trustees absent: Mrs. April L. Fritts and Mr. Bradley R. Stover
Staff present: D. Cruise, N. Dysard, A. Haggray, R. Johnson, B. Morrison, A. Pagura, and
C. Sherman
Call to Order. B. Kelly called the work session to order.
Roll Call. Carol Sherman called the roll; quorum was present.
FY 2014 Proposed Operating Budget. R. Johnson, vice president for finance and operations,
provided an overview of the FY 2014 proposed budget. He noted a 15% decline in total county
and state funds per FTE since 2008 while at the same time enrollment increased. In reviewing
the historical distribution of funding by source (state, county and tuition and fees), tuition
exceeded county funding as the leading revenue source beginning in FY 2011.
The FY 2014 operating budget is framed around several broad revenue-related assumptions.
 A $5 per credit hour increase in tuition.
 Flat state and county funding.
 Minimal growth of cash balances due to interest rates likely remaining at historic lows.
Data were on percent of change in the credit tuition rate since 2004 compared to the percent of
change in the higher education price index (HEPI) and the consumer price index (CPI). HEPI
increased 23.8% during the period FY 2003-2011; tuition per credit hour increased 9.3% during
that same period.
A transfer-in from HCC’s undesignated fund balance of $2,934,000 will be required to fund
capital projects outlined in the FY 2014 CIP ($1,000,000), fund institutional scholarships
($503,421), subsidize certain operational costs associated with the APGFCU Arena auxiliary
($134,000), and balance the structural deficit within the FY 2014 Operating Budget
($1,296,579). It was noted that the FY 2014 transfer-in is $155,677 less than the FY 2013
transfer-in and $506,718 less than the FY 2012 transfer-in.
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The budget process was reviewed. Budget managers submitted request for FY 2014 funding
which were reviewed by the supervisor and the respective vice president. The vice presidents as
a group reviewed the total budget requests and at that point reduced the initial requests by $1.2M
resulting in the $46,748,886 budget presented to the Board of Trustees.
With regard to general operating revenue and transfers, the following was noted:
 $5 increase in tuition rate yields 4.09% versus FY 2013 budget.
 State and county funding will be flat at FY 2013 levels.
 Transfers-in reduced 5.04% ($155,677)
Related to general operating expenditures:
 The budget includes a 1.21% increase in total expenditures over FY 2013.
 A 1.5% wage adjustment is included for full- and part-time employees.
 Recent health claims experience trending has resulted in a 13% increase in health care costs.
College staff continue to explore opportunities to reduce health premium costs. Looking to
the future, the impending national changes in 2014 to health care may impact the College’s
plan. It is possible that since the current College plan exceeds health care options required by
the national plan, participants in the College plan could be taxed on the benefit.
 Two new instructional positions are included: (1) chemistry tenure-track faculty to support
STEM initiatives and (2) medical office/allied health coordinator to support growth in
nursing and allied health.
 Tuition waivers are another expense which has grown over the years. The College has
experienced a 54% increase in waiver expenses from 2008-2014. Many waivers are unfunded
mandates through state legislation.
 Approximately 70.0% of the budget is assigned to salaries and benefits, which
accommodates the Board of Trustees’ guideline to keep such expenditures at no more than
75% of the total operating budget. If the budgeted contracted services portion of costs for
security, housekeeping, and grounds are included in this calculation, then the ratio would be
approximately 73.2% of the operating budget.
B. Morrison will prepare talking points to assist trustees in their advocacy role with state and
county officials.
Budget materials will be presented as an information item at the December Board meeting;
action on the proposed FY 2014 budget will be taken at the January Board meeting.
FY 2014 Proposed Capital Budget. FY 2014 proposed capital budget was presented to the Board
at the November 13 meeting. During the presentation, reference was made to a space
consultant’s report on the library. Detailed report and executive summary prepared by the library
director were distributed. The report provided the impetus for reconsidering of the capital project
request for a single story plant services annex. The revised request is for an expanded facility
(two-story facility) to include space for computing and technology services which would open
space in the library for small study areas and other library space needs identified in the
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11/30/12
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consultant’s report. Additionally, the copy center will move to the new plant services annex from
student center freeing space to meet student services needs.
The schedule for Edgewood Hall renovation has been moved forward. It is included in the
Maryland Association of Community College’s capital projects list and if county and state
funding is provided, project design would occur in FY 2014.
Other discussion concerned auxiliary enterprises which have helped fund capital projects.
R. Johnson noted there are eight auxiliary operations, i.e., food services, college store, sports
complex, the arena. Profits from auxiliaries have provided supplemental funds for capital
projects.
Update on Susquehanna Arena Ribbon Cutting/Court Dedication. B. Morrison provided an
update on the APGFCU ribbon cutting/court dedication which will take place on Tuesday,
December 4, at 3:30 p.m. Ken Krsolovic will serve as master of ceremonies. J. Valdes will offer
a welcome on behalf of the Board of Trustees; comments will be given by county and stated
elected officials. In addition, Dr. Golladay and representatives from APG Federal Credit Union
will make brief remarks. Program is expected to last 30 minutes, followed by ribbon cutting,
tours of the building, and refreshments. Women’s basketball team will play at 5 p.m.; men’s
basketball game will follow. About 200-225 guests are expected; media coverage is planned.
Update on Nursing and Allied Health Building. Timeline for the nursing and allied health
building was distributed. Recommendation for contract award will be presented to the Board in
April; construction is expected to begin in June 2013, and the project is expected to be completed
in August 2014.
Other. D. Golladay provided an update on the Towson building. The contract was not on the
Board of Public Works (BPW) November agenda as originally planned. The paperwork is being
processed through the University System of Maryland and the project will be on an upcoming
BPW agenda. Towson expects the project to be on track for a spring 2013 groundbreaking and
2014 building opening (probably fall 2014).
The work session adjourned at 11:15 a.m.
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Dennis Golladay
Secretary-Treasurer Chair
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Bryan E. Kelly