FY21 Proposed Budget (Second Reading) 1 Where We Were at 1 st - PowerPoint PPT Presentation

Presented to the LCCC Board of Trustees 7.15.2020 FY21 Proposed Budget (Second Reading) 1

Where We Were at 1 st Reading Established 4 Major Themes: 1. Continuing Investment in Our People 2. Tightening Operating Expenses 3. Accumulating Resources for the Future 4. Preparing for Sudden Impacts & Changes Produced a Balanced Budget Then, Breaking News Hit: Advised to Expect $470K in Additional Costs Due to Health Insurance Increases Over Biennium Advised That Current Fund Budget Now in Deficit by $235K 2

What Has Happened Since May 15 th State Reductions Plan for a 10% Cut Across All Funding Streams State Aid: $1.999M Major Maintenance: $592K Health Insurance Reimbursement Shortfall Reductions Finalizing 1 st Reading: $315K Right After 1 st Reading Budget Printing: $656K Now: $1.044M More than $2.7M in Financial Impacts to Current Fund Since May 15 th 3

How We Achieved Revised Balanced Budget Made Full Use of the $816K in State One-time Funds Captured Unspent Funds at Year End, $1.032M Reduced Budget Allocations, $115K Paused Implementation of Compensation Plan, $656K More Breaking News May Occur 10% Cut Could Increase in Coming Months 4

Estimated Funds Available CURRENT 1st. READING New Funds: State Aid (August 2019 Recapture/Redistribution)-Actual -$849,394 Local Appropriation (August 2019 Recapture/Redistribution)-Actual 810,505 State Aid-Estimate (Includes 10% Cut) -781,590 $850,933 State Aid (Completion Funding for FY2021)-Estimate (Includes 10% Cut) -523,333 -156,836 State Aid (FY2021 One-Time Funds) 816,650 $408,325 Business Training Tuition (Estimate) 65,000 Tuition (Estimate) 313,262 Course Fee (Net Increase/Decrease) (Estimate) 25,485 Subtotal -$123,415 $1,467,280 Internal Funds: (Positions include Salary and Benefits) Vacancies/Replacements (FY 2020) $138,227 $69,147 Uncommitted Funds Available 336,524 End-of-Year Pull Plan 1,032,672 Subtotal $1,507,423 $405,671 Total Estimated Funds Available for FY2021 $1,384,008 5

Proposed Distribution CURRENT 1st. READING Compensation Package: Compensation Study (Phase II - First of Five Years) (Salaries and Benefits) $0 $656,742 Health Insurance Reimbursement Shortfall (One Half of Biennium Amount) 1,044,761 $315,316 Market Adjustments (FY2020) (Salaries and Benefits) 119,685 Employer Retirement Contribution (38.41% of the .25% Employer Portion) 19,959 Retirees Health Insurance (Two-Year Rate Holiday has ended) 120,485 Educational Advancements 45,000 Subtotal $1,349,890 Academic Affairs Continuation of Services: Operating Budget -$2,353 -$853 Business Training 65,000 Course Fees (Net Increase/Decrease) 25,485 Subtotal $88,132 $89,632 Student Services Continuation of Services: Operating Budget $14,335 Scholarships 212,728 Subtotal $227,063 President Continuation of Services: Operating Budget -$22,262 Subtotal -$22,262 6

Proposed Distribution Continued CURRENT 1st. READING Albany County Campus Continuation of Services: Operating Budget -$111,370 Subtotal -$111,370 Institutional Effectiveness Continuation of Services: Operating Budget -$21,206 Subtotal -$21,206 Administration and Finance Continuation of Services: Operating Budget -$126,239 -$11,893 Subtotal -$126,239 Total Proposed Distribution $1,384,008 7

One Mill Fund FY2020 FY2021 1st. READING REVENUES Mill Levy $1,627,788 $1,627,788 Motor Vehicle Fees $355,293 $355,293 NEW FUNDS Mill Levy $0 $244,571 Motor Vehicle Fees $0 $0 Subtotal $1,983,081 $2,227,652 Carryover $538,701 $616,782 $0 Total $2,521,782 $2,844,434 $2,521,782 $2,844,434 EXPENSES Eastern Laramie County $100,838 $100,526 $102,727 Professional Development $50,000 $50,000 Equipment Repairs and Replacement $100,000 $100,000 IT Salaries/Benefits and Operating Expenses $605,501 $606,156 $691,850 College Insurance $524,592 $590,618 $585,855 Subtotal $1,380,931 $1,447,300 Remaining Amount to Budget $1,140,851 $1,397,134 Small Maintenance Projects $663,701 $796,267 $200,000 One-Time Requests/Innovation Fund Requests $246,162 $233,720 $247,220 FY2020 One-Time Funds Carryover $0 $34,015 $0 Facilities Planning (Ag Master Plan) $112,170 $0 Facilities Planning $0 $250,000 Guided Pathways Funding (Summer work, marketing, etc.) $77,337 $0 Reserve $41,481 $83,132 $0 Subtotal $1,140,851 $1,397,134 Total $2,521,782 $2,844,434 8

Other Budgeted Funds – Changes Since May 15th Auxiliary Funds - Up $301K Compensation Plan Delayed Child Discovery Center will have 11 months of revenue Child Discovery Center tuition will not increase for now, as previously planned Increased Carry Over for E-gaming Space, Dining Center Furniture, Sodexo Expenses Restricted Fund - Budget is Up $108K New Grant: “Expanding Community College Apprenticeships” Endowment Fund Budget Remains Unchanged Plant Fund - Down $296K Cuts to Major Maintenance Funding 9

Going Forward… August Recapture/Redistribution 2020 Laramie County Valuation Increased 7.3% (24% year prior) Due to Laramie County Rising, and Other Key Community College Districts Likely Declining, Expect LCCC to Again Receive Recapture Impacts 10

Going Forward Continued… • We Balanced FY21 Using One-time Funds Have to Duplicate Cuts in 2 nd Year of Biennium (FY22) • Early Planning for FY22 Budget At Least $2.8M in Absolute Reductions – Likely More Will Be Identified Need Exists to Curtail FY21 Spending for Savings in FY22 Restricting Travel Substantially Reducing Many Events & Activities Reducing Community Sponsorships Cuts Likely Determined This Fall & Implemented Within FY21 11