2006-2007 BudgetApproved

2

ContentsState Funding Picture 3

Effect on North Central State College 4

Board of Trustees’ Planning Goals 5

State Share of Instruction Allocation by Sector 6

State Share of Instruction by Institution 7/8

FY State Allocation 9

State Appropriation as a Percent of Total Budget 10

State Support Comparison 11

Assumed Local vs. Actual Contributions 12/13

Comparison with other Institutions 14/15/16

Tuition Comparison 17

Enrollment Fall Quarter Comparison 18

Enrollment Data 19

Analysis of Net Assets 20

Fund Balance 21

Budget Planning Proposals/Recommendations 22

Budget Overview 23

Revenue by Source 24

Expenditure by Type 25

Revenue by Source (Approved) 26

Expenditure by Type (Approved) 27

Approved Budget Planning Proposals/ Recommendations 28

3

State Funding Picture• Higher Education cut $10 million in FY 2004.

• Higher Education cut $17.4 million in FY 2005.

• State funding per FTE has dropped over 22% since FY 2001.

• Excluding Debt Service, Higher Education appropriations increased by $10.4 million in FY 2006 and by $64.2 million in FY 2007(assumes + $30 million SSI FY ’07)

4

What this means for NC State

• Despite increase in overall higher education funding appropriations, Fiscal Year 2006 appropriation was reduced by $160,645.

• Fiscal Year 2007 appropriation reduced by $153,463.

• Lost over $1,000 per student (FTE) in state funding.

5

Board of Trustees’Planning Goals

• Maximize Student Access

• Guarantee Quality Education

• Guide Towards Educational Success

• Workforce Development

• Resource Development

• Community Resource

• Community Input

6

State Share of Instruction Allocation by Sector

Distribution Subsidy

Fall 2002 FTE

Fall 2003 FTE

Fall 2004 FTE

Fall 2005 FTE

Fall 2006 FTE

Universities $1,131,669,633 72.60% 62.43% 61.17% 60.31% 59.83% 59.81%

Branch Campuses 96,639,157 6.20% 8.99% 9.18% 9.34% 9.34% 9.29%

Community Colleges 263,975,754 16.93% 23.34% 24.33% 24.67% 25.12% 25.06%

Technical Colleges 66,562,345 4.27% 5.24% 5.32% 5.68% 5.71% 5.84%

Total $1,558,846,889

7

State Share of InstructionActual FY 2006 and Projected FY 2007

FY 2006 FY 2007 FY 2006 FY 2007UNIVERSITIES Actual Projected BRANCHES Actual ProjectedUNIVERSITY OF AKRON $80,529,342 $78,828,081 AKRON-WAYNE $2,945,676 $2,913,263BOWLING GREEN 71,990,428 69,888,955 BGSU-FIRELANDS 3,759,053 4,171,492CENTRAL STATE 5,623,566 5,504,753 KENT-ASHTABULA 2,916,255 2,977,183UNIV. CINCINNATI 140,076,482 141,283,434 KENT-EAST LIVERPOOL 1,781,510 1,782,568CLEVELAND ST. 63,098,133 61,205,189 KENT-GEAUGA 1,439,085 1,520,027KENT STATE 84,075,600 83,787,419 KENT-SALEM 2,681,339 2,627,076MCOT 23,363,093 23,834,897 KENT-STARK 6,949,811 6,891,454MIAMI UNIVERSITY 56,603,803 54,905,689 KENT-TRUMBULL 4,538,266 4,382,375NEOUCOM 10,631,386 10,191,433 KENT-TUSCARAWAS 4,031,876 3,923,217OHIO STATE 305,587,990 307,869,007 MIAMI-HAMILTON 5,894,860 5,894,149OHIO UNIVERSITY 99,283,330 96,476,970 MIAMI-MIDDLETOWN 5,801,422 5,627,379SHAWNEE STATE 10,593,852 10,862,741 OSU-LIMA 3,756,664 3,643,964UNIVERSITY OF TOLEDO 75,478,247 75,724,626 OSU-MANSFIELD 3,900,664 3,783,644WRIGHT STATE 71,793,259 72,588,084 OSU-MARION 3,794,603 3,686,766YOUNGSTOWN ST. 39,436,598 38,718,355 OSU-NEWARK 4,869,126 4,751,942

SUBTOTAL $1,138,165,107 $1,131,669,633 OU-CHILLICOTHE 4,635,145 4,856,337OU-EASTERN 2,921,468 2,833,824OU-LANCASTER 3,589,627 3,481,938OU-SOUTHERN 4,390,953 4,495,880OU-ZANESVILLE 4,965,696 5,004,329UC-CLERMONT 5,204,502 5,466,430UC-WALTERS 9,281,290 9,770,033WRIGHT-LAKE 2,204,762 2,153,885

SUBTOTAL $96,253,655 $96,639,157

8

State Share of InstructionActual FY 2006 and Projected FY 2007

FY 2006 FY 2007 FY 2006 FY 2007

COMMUNITY COLLEGES Actual Projected TECHNICAL COLLEGES Actual ProjectedCINCINNATI STATE $21,605,508 $22,048,643 AGRICULTURAL $4,309,649 $4,180,360CLARK STATE 6,493,171 6,686,446 BELMONT TECH 4,508,141 4,498,714 COLUMBUS STATE 45,048,956 43,697,487 CENTRAL OHIO 6,009,600 6,589,392 CUYAHOGA 48,676,480 50,765,569 HOCKING 13,956,933 14,254,134 EDISON STATE 5,202,153 5,088,768 JAMES RHODES STATE 6,732,834 7,058,529 JEFFERSON 3,119,186 3,182,507 MARION TECH 4,234,624 4,370,600 LAKELAND 13,908,665 13,621,366 ZANE STATE 4,244,900 4,117,553 LORAIN COUNTY 17,801,558 18,354,905 NORTH CENTRAL 6,670,985 6,543,917 NORTHWEST STATE 6,610,633 6,536,391 STARK STATE 13,503,032 14,949,146 OWENS STATE 33,328,243 35,155,765 SUBTOTAL $64,170,697 $66,562,345RIO GRANDE 4,139,883 4,316,875SINCLAIR 39,901,194 39,873,950 STATEWIDE TOTAL $1,558,846,889 $1,558,846,889

SOUTHERN STATE 4,594,992 4,711,594TERRA STATE 5,059,094 4,951,937WASHINGTON STATE 4,767,715 4,983,552

SUBTOTAL $260,257,430 $263,975,754

9

FY State Allocation

Revenues

Actual FY 2006

Projected FY 2007

$ Change

FY ’06 – FY ’07

% Change

FY ’06 – FY ‘07

State Share of Instruction $6,670,985 $6,543,917 ($127,068) -1.90%

Access Challenge 832,697 806,302 (26,395) -3.17%

Jobs

Challenge 111,354 111,354 0 0.0%

$7,615,036 $7,461,573 ($153,463)

10

State Appropriation as a Percent of Total Budget

Total Budget

OBR State Share of Instruction & Access

Challenge% of Total Budget

FY ’07 $19,512,369 $7,350,219 38%

FY ’06 19,641,971 7,503,682 38%

FY ’05 18,091,500 7,668,178 42%

FY ’04 16,744,411 7,018,038 42%

FY ’03 16,316,545 6,856,649 42%

FY ’02 14,465,047 7,071,485 49%

FY ’01 14,967,227 7,549,845 51%

FY ’00 14,147,298 7,252,804 52%

11

12

Student Revenue Compared to LocalContribution Assumption (per FTE)

Student Fees Local Student Fees as % ofInstruction and General Contribution Assumed Local Contribution

FY '07 $3,634 $4,943 74%% of Change 5.90% -0.08%Accumulated % of change 43.49% 58.46%FY '06 $3,431 $4,984 69%% of Change 4.00% -7.67%Accumulated % of change 37.59% 58.54%FY '05 $3,299 $5,398 61%% of Change 9.89% 0.03%Accumulated % of change 33.59% 66.21%FY '04 $3,002 $5,382 56%% of Change 5.89% 17.72%Accumulated % of change 23.71% 66.18%FY '03 $2,835 $4,572 62%% of Change 8.70% 12.25%Accumulated % of change 17.82% 48.46%FY '02 $2,608 $4,073 64%% of Change 12.22% 20.43%Accumulated % of change 9.11% 36.21%FY '01 $2,324 $3,382 69%% of Change -5.07% 5.73%Accumulated % of change -3.11% 15.78%

13

Assumed Local Contribution vs. Actual Local Contribution

(Instructional and General Fees)

Year

Assumed

Local

Contribution

Actual

Local

Contribution Difference FTE’s

OBR

Assumption

Deficit

Total Assumption

Deficit

FY 2001 $3,382 $2,324 $1,058 1,745 $1,846,210 $1,846,210

FY 2002 4,073 2,608 1,465 1,940 2,842,100 4,688,310

FY 2003 4,572 2,835 1,737 2,100 3,647,700 8,336,010

FY 2004 5,382 3,002 2,380 2,113 5,028,940 13,364,950

FY 2005 5,398 3,299 2,099 2,072 4,349,128 17,714,078

FY 2006 4,984 3,431 1,553 1,968 3,056,304 20,770,382

FY 2007 * 4,943 ** 3,634 1,309 *** 1,968 2,576,112 23,346,494

* Projected

** Assumes 5.9% tuition increase $4.50/hr.

*** Flat enrollment

14

Comparison with Other Institutions

Enrollment 9-mo. 12-mo. Contract Days Teaching Days Avg. Salary Avg. $ per Day

Hocking 5330 198 9 170 165 $43,622 $257

Marion 2102 36 1 180 175 43,590 242

Rhodes 3059 58 2 185 165 46,014 249

Belmont 1627 39 0 180 165 40,907 227

Zane State 1820 45 0 173 166 47,708 276

COTC 2968 32 24 171 163 43,032 252

NC State 3127 49 19 168 164 42,185 251

Stark State 7000 115 19 180 165 44,686 248

Average 176 166 $43,968 250

Faculty

15

Comparison with Other Institutions

Teaching Load Lecture Lab Lecture Lab

Hocking 21 contact 26 21 18% 36%

Marion Not reported 22 17 24% 52%

Rhodes 25 contact 19 12 36% 83%

Belmont Not reported 17 17 41% 44%

Zane State 21 contact 17 14 43% 61%

COTC 20 contact 23 16 24% 67%

NC State15 credit / 18 contact

18 14 51% 66%

Stark State Not reported 19 15 40% 67%

Average Class Size Percent of students in classes less than 20

16

Comparison with Other InstitutionsThree-Year Success Measures for First-Time Degree-Seeking Students

Full-Time Students Enrolled in Fall 2001

Pages 13, 14 & 15 data from: The Performance Report for Ohio’s Colleges and Universities 2005 (Ohio Board of Regents)

Percent of Students Earned Degree

Persisting at Same Institution

in FY 2004

Persisting at a Different

Institution in FY 2004

Total Successful

FT PT

Belmont 68% 32% 21% 26% 6% 53%

COTC 45% 55% 18% 23% 6% 47%

Hocking 72% 28% 19% 24% 11% 53%

James A. Rhodes 51% 49% 24% 31% 5% 60%

Marion 43% 57% 19% 25% 2% 46%

NC State 34% 66% 19% 29% 9% 57%

Stark State 41% 59% 20% 30% 7% 58%

Zane State 61% 39% 31% 23% 8% 61%

17

Tuition Comparison

Note: Tuition is based on 15 credit hours for 3 quarters or 2 semesters.

FY 2006 (Fall 2005) actual, FY 2007 (Summer 2006) estimates in discussion.

Credit Hour Credit HourCollege Term Fall 2005 Annualized Summer 2006 Annualized % Change

North Central State Qtr. $76.75 $3,431 $80.75 $3,634 5.9%Belmont Qtr. 79.30 3,570 4% - 6%Central Ohio Qtr. 75.20 3,384 4% - 6%Hocking Qtr. 74.40 3,348 78.80 3,546 5.91%Rhodes Qtr. 89.50 4,026 5% - 6%Marion Qtr. 77.30 3,480 81.30 3,659 5.2%Zane State Qtr. 81.00 3,647Stark State Sem. 120.00 3,600 127.00 3,810 5.87%OSU Main Qtr. 176.80 7,956 187.40 8,433 6.00%OSU Mansfield Qtr. 130.80 5,886 138.65 6,239 6.00%Ashland University Sem. 628.60 18,858 661.75 19,853 5.2%Mt. Vernon Nazarene Sem. 529.50 15,885 545.50 16,365 3.0%

To be determinedTo be determined

To be determined

To be determined

18

North Central State College Enrollment DataFall Quarter

2,841 2,813

3,102

3,547

3,3443,234

3,127

2,429

2,263 2,262

2,073

916824

948

1,118 1,081972

1,054

1,925 1,9892,154

1,940

1,769 1,745

2,1132,100 2,0721,965

800

1300

1800

2300

2800

3300

3800

FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006

Total Enrollment Part-Time Enrollment Full-Time Enrollment Annual FTE

19

North Central State CollegeEnrollment Data

Year Total

Headcount Change %Accumulated

% ChangeUnduplicated

Headcount Change %Accumulated

% Change

99/00 9,232 3.08 3.08 4,209 2.88 2.8800/01 9,556 3.51 6.59 4,173 -0.09 2.7901/02 10,458 9.44 16.03 4,581 9.78 12.5702/03 10,949 4.69 20.72 4,847 5.81 18.3703/04 10,786 -1.49 19.23 4,630 -4.48 13.9004/05 10,530 -2.37 16.86 4,582 -1.04 12.8605/06 10,210 -3.04 13.82 4,497 -1.89 10.97

FTE DataYear FTE Change %

99/00 1769 10.77 10.7700/01 1745 -1.36 9.4101/02 1940 11.17 20.5902/03 2100 8.25 28.8403/04 2113 0.62 29.4504/05 2072 -1.94 27.5105/06 1965 -5.16 22.35

Accumulated % Change

20

Analysis of Net AssetsAdoption of Governmental Accounting

Standards Board No. 34/35

02/03

Actual

03/04

Actual

04/05

Actual

Total Revenue $20,891,029 $20,988,039 $20,778,856

Total Expenditures 18,971,818 19,770,039 20,494,705

Increase (Decrease) 1,919,211 1,218,000 284,151

Net Assets 19,989,198 21,207,198 21,491,349

Unrestricted Net Assets 2,097,947 2,883,247 3,545,373

Unrestricted Percent of Expenditures 11.06% 14.59% 17.30%

Planned Appropriation 600,000 440,000 1,537,136

21

Estimated Fund Balance Calculation

FY ’06 Operating Income (Loss) $175,554

Estimated Depreciation

Depreciation FY '05 (1,036,930)

Depreciation FY '06 (37,000)

Capital Purchases 175,000

Increase (Decrease) in Net Assets (723,376)

Unrestricted Net Assets Beginning of Year 3,545,373

Unrestricted Net Assets End of Year 2,821,997

Estimated 10% Reserve (Operating Budget) (1,951,237)

Estimated Available Fund Balance $870,760

22

Budget Planning Proposals/Recommendations

• Assume SSI (+ 30 million) increase not available

• Assume enrollment increase of 2% for 2006-2007

• Assume vacant positions not filled

– Staff positions

– Institutional Research

– Workforce Development

• Hiring freeze pending review at mid year

• Reduce overload/adjunct dollars by 10%

• Implement compensation review 50% FY ’07 & 50% FY ’08

• Implement 2.5% Wage Increase

• Use Fund Balance to cover projected deficit

23

Budget Overview

$14,967,227$14,465,047

$16,316,545

$18,091,500

$19,641,971 $19,512,369

$7,549,845$7,018,038

$8,231,278

$4,601,278$5,346,848

$16,744,411

$6,859,100

$7,071,485

$7,503,682 $7,350,219

$6,856,649

$7,372,750 $7,668,178

$8,538,375 $8,557,454

$3,604,696$3,988,424$2,353,623 $2,192,044$2,046,714

$2,816,104

$2,600,796

$1,000,000$2,500,000

$4,000,000$5,500,000

$7,000,000$8,500,000

$10,000,000$11,500,000

$13,000,000$14,500,000

$16,000,000$17,500,000

$19,000,000$20,500,000

$22,000,000

FY 00-01 FY 01-02 FY 02-03 FY 03-04 FY 04-05 FY 05-06 FY 06-07

Total Budget OBR Subsidy/Access Student Fees All Other

24

Revenue by Source

FY ’06 AMENDED

FY ’07 PROJECTED DIFFERENCE

State Share of Instruction $6,670,985 $6,543,917 ($127,068)

Access Challenge 832,697 806,302 (26,395)

Jobs Challenge 0 111,354 111,354

Student Tuition and Fees 8,149,865 8,557,454 407,589

Non-Credit Nursing 5,400 10,000 4,600

Other Revenues 323,500 328,575 5,075

University Center 85,000 105,500 20,500

Capital Debt Service 150,000 160,000 10,000

Child Development Center 459,148 570,121 110,973

Workforce and Community Development 1,356,240 1,435,960 79,720

Facilities 72,000 42,000 (30,000)

Fund Balance 1,537,136 841,186 (695,950)

Total $19,641,971 $19,512,369 ($129,602)

25

Expenditure by Type

FY 2005-2006 Budget FY 2006-2007 Budget $ Change

Payroll $8,046.826 $8,129,468 $82,642

Benefits 2,769,171 2,999,173 230,002

Printing 111,871 106,871 (5,000)

Advertising 164,908 168,528 3,620

Postage 104,155 104,155 0

Shared Campus Expense 1,591,000 1,591,000 0

Professional Development 196,940 196,740 (200)

Grants and Scholarships 320,000 326,000 6,000

Equipment Lease & Rental 206,216 204,816 (1,400)

New Equipment 335,225 303,000 (32,225)

Professional Fees 456,940 399,986 (56,954)

Debt Service 54,020 54,020 0

All Other Expenses 1,347,915 1,358,401 10,486

Child Development Center 574,001 634,481 60,480

Corporate 1,506,512 1,459,642 (46,870)

Appropriated Reserve 512,969 100,000 (412,969)

Facilities 1,343,303 1,376,088 32,785

Total Budget $19,641,971 $19,512,369 ($129,602)

26

Revenue by SourceJune 28, 2006

FY ’06 AMENDED

FY ’07 APPROVED DIFFERENCE

State Share of Instruction $6,670,985 * $6,670,099 ($886)

Access Challenge 832,697 806,302 (26,395)

Jobs Challenge 0 111,354 111,354

Student Tuition and Fees 8,149,865 8,557,454 407,589

Non-Credit Nursing 5,400 10,000 4,600

Other Revenues 323,500 328,575 5,075

University Center 85,000 105,500 20,500

Capital Debt Service 150,000 160,000 10,000

Child Development Center 459,148 570,121 110,973

Workforce and Community Development 1,356,240 ** 1,285,960 (70,280)

Facilities 72,000 42,000 (30,000)

Fund Balance 1,537,136 841,186 (695,950)

Total $19,641,971 $19,488,551 ($153,420)

* Increase $126,182 OBR Projections dated 6/27/06 with additional $30M** Decrease $150,000 updated GM revenue projections

27

Expenditure by TypeJune 28, 2006

FY 2005-2006 Budget

Approved

FY 2006-2007 Budget $ Change

Payroll $8,046.826 $8,129,468 $82,642

Benefits 2,769,171 2,999,173 230,002

Printing 111,871 106,871 (5,000)

Advertising 164,908 168,528 3,620

Postage 104,155 104,155 0

Shared Campus Expense 1,591,000 1,591,000 0

Professional Development 196,940 196,740 (200)

Grants and Scholarships 320,000 326,000 6,000

Equipment Lease & Rental 206,216 204,816 (1,400)

New Equipment 335,225 303,000 (32,225)

Professional Fees 456,940 399,986 (56,954)

Debt Service 54,020 54,020 0

All Other Expenses 1,347,915 1,358,401 10,486

Child Development Center 574,001 634,481 60,480

Corporate 1,506,512 1,435,924 (70,688)

Appropriated Reserve 512,969 100,000 (412,969)

Facilities 1,343,303 1,376,088 32,785

Total Budget $19,641,971 $19,488,551 ($153,420)

28

Approved Budget Planning Proposals/Recommendations

• Assume SSI (+ 30 million) increase is available• Assume enrollment increase of 2% for 2006-2007• Assume vacant positions not filled

– Staff positions– Institutional Research– Workforce Development

• Hiring freeze pending review at mid year• Reduce overload/adjunct dollars by 10%• Implement compensation review 50% FY ’07 & 50% FY ’08• Implement 2.5% Wage Increase• Use Fund Balance to cover projected deficit

29

Questions