coconino community college budgeting 102 budget projections & assumptions ccc sustainable...

COCONINO COMMUNITY COLLEGEBUDGETING 102

Budget Projections & Assumptions

CCC Sustainable Financial Plan & Due Diligence

Cost of Academic Programs 2013 Special Override Election

Coconino Community College

Fall 2013Budgeting 102


Budget Projections & Assumptions



COCONINO COMMUNITY COLLEGEBASE ASSUMPTIONS:

Revenues: Property Taxes Collections – 3% per year

Based on legally allowed 2% base growth and 1% attributable to “new construction”

Tuition Revenue – 2% per year Increase in per credit hour tuition rate (will compound

by student growth) State Aid – 0% per year

Has been falling over time – May increase slightly in FY 2014

Expenditures: Enrollment Growth – 1% per year Cost Inflation – 3% per year

Applies to all categories (will compound by student growth)





2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

$-

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

1000

1500

2000

2500

3000

3500

4000Budget Projection Through FY 2024

Property Tax Tution State Aid TOTAL REV TOTAL EXP FTSE

FT

SE

FTSE 1%

Property 3%Tuition 3%

State Aid 0%


CCC Sustainable Financial Plan & Due Diligence



CCC’S SUSTAINABLE FINANCIAL PLAN & DUE DILIGENCE




Cost of Academic Programs



COST OF ACADEMIC PROGRAMSFULL-TIME STUDENT EQUIVALENT (FTSE) COSTS

High vs. lower cost programs Average cost per full-time student equivalent (FTSE) is $7,000

The per FTSE cost of a high tech program student is 64% higher than a non high tech program student

Reasons for higher costs:Specialized equipment lower student to faculty ratio More labs





COST OF ACADEMIC PROGRAMSFULL-TIME STUDENT EQUIVALENT (FTSE) COSTSExamples of two programs:

Nursing Cost Per FTSE:Direct instructional costs only $19,800 or $845,000 per year

With all other indirect costs is $31,000 or $1.33 million per year

EMS/Fire Science Cost Per FTSE:Direct instructional costs only $3,774 or $359,500 per year

With all other indirect costs is $6,288 or $599,000 per year

COST OF ACADEMIC PROGRAMSBEYOND TUITION

Beyond Tuition, State Aid, and Property TaxClass fees - consumablesGrants

Perkins – Career & Tech SupportArizona Hospital Association – Start up CostsFirst Things First – Early Childhood Education

Gifts and DonationsFMC/NAH – Beds, Equipment, and FundingWL Gore – Computer ServersNAU – Lab EquipmentCity of Flagstaff - $35K for Chemistry Lab





COST OF ACADEMIC PROGRAMSSTARTUP COST OF NEW PROGRAM

Example: San Juan Community College Industrial Process Operator Program (IPOP)

$1.2 million in start-up equipment$500,000 salary/fringe for 5 FT faculty hires74 credit hours

PROGRAM ASSESSMENT

CCC regularly performs various reviews of their programs to ensure quality and viability

Program Review (5 year cycle)Full budget review (when indicated)Advisory council meetingsCommunity feedback through surveys, conversations, etc.

Student feedback




2013 Special Override Election



1.) Arts & Sciences – Transfer/Transition

2.) Career & Technical Education

3.) Workforce Training

Coconino Community College’sThree Core Missions:



Coconino Community College’s Three Funding Sources…

Tuition and Fees45%

Property Taxes42%

Other 1%

StateAid12%

FY 2013 General Fund(Estimated Actual Revenues)



1.) State Aid Cuts• $15 million cut cumulatively from FY2007 to FY2014

State aid was 23% share of CCC’s budget in 2007; now it’s 12%.

State Aid & Full-Time Student Enrollment (FTSE)

Struggling to meet core missions!

CCC’s Financial Dilemma…



2.) Property Taxes• Since 1991, CCC’s primary property tax rate has virtually

stayed the same even though CCC’s student body has grown.



Property Tax & Full-Time Student Enrollment (FTSE)



Lowest Property Tax Rate in Arizona!



FY2014 Primary Property Tax Rates by Arizona Community College



CCC’s Response…

Struggling to meet core missions!Tuition was 33% share of CCC’s budget in 2007; now it’s 43%.

Academic Year Tuition & Fees

3.) Tuition & Fees• 89% higher tuition since 2007!• $1,296 tuition increase is the largest increase among

Arizona community colleges.



Highest Student Tuition in Arizona!CCC’s Response…

Struggling to meet core missions!FY2014 Tuition & Fees by Arizona Community College



100 Cost Saving Initiatives

• 15% employee reduction• 20% classes cut• 30% programs eliminated• Closed Williams Campus

CCC’s Response…

CCC is now drawing on minimal reserves andstruggling to meet core missions!

FY2014 Operating Budget & Reductions

$4 Million in Budget Reductions = -18%



Raising tuition & cost saving initiatives are not enough to maintain current levels of service.

CCC’s Financial Situation…

OR

Sustainable Options: Eliminate core missions

Increase revenue



1.) Arts & Sciences – Transfer/Transition - Navigating students seamlessly from high school to CCC,

to a bachelor’s degree and beyond through CCC’s educational pipeline.

2.) Career & Technical Education - Preparing local students for better jobs in Fire

Science, Criminal Justice, Nursing & Paramedics, etc.

3.) Workforce Training - Keeping jobs in Coconino County with customized

curriculums, business retention & expansion, community partnerships, etc.

Coconino Community College’sThree Core Missions:



• Temporary: 7 Years• $4.5 Million/Year• Requires Voter Approval

Override Election – November 5, 2013On June 25, 2013, the Coconino Community College District Governing Board unanimously called for a voter-approved override election.

Property Tax Effects:$100K Home Value

• $2.40/month• $29/year

$170K Home Value (Average in Coconino County)

• $4.20/month• $50/year



Schedule:October 7, 2013

Last day to register to voteOctober 25, 2013

Last day to request early ballot by mail November 5, 2013

Election DayPolling hours: 6 a.m. to 7 p.m.

Override Election – November 5, 2013

For election information visit:www.coconino.az.gov/elections



Thank You!

For more information, visit:www.coconino.edu/VoterInformation




Questions?


Citizens’ Review Panel

Meeting #2April 8, 2013

coconino community college budgeting 102 budget projections & assumptions ccc sustainable...

Documents

year slide

year cost inflation

nursing cost

year emsfire science

year increase

higher costs

indirect costs

student growth state