GOVERNING BOARD STUDY SESSION - FISCAL YEAR 2019-2020 BUDGET DISCUSSION MARCH 4, 2019 PRESENTED BY: DR. DAVID BEA
FY20 COLLEGE PRIORITIES • Provide a cost of living increase for faculty and staff • Minimize additional position reductions • Keep tuition increases to a minimum • Review high-cost programs with regards to changing the Differential Tuition structure • Increase funding for Student Life and co-curricular activities • Fund the first phase of the employee classification & compensation study • Create a mechanism to financially support outcomes and recommendations from program review • Add professional advisors to improve advisor to student ratio • Increase marketing, particularly digital
PROGRESS TOWARDS FY20 COLLEGE PRIORITIES • Position reductions • Restructure of Athletics budget • Student Services Fee will now fund a larger share of Student Life and co-curricular activities • Increased investment income • No increase to employee medical benefit costs
CHALLENGES • Decrease in FY19 tuition revenue • Lower-than-planned annual tuition rate increases • Projected Expenditure Limit based on FY19 FTSE projections • Providing a cost of living increase without adversely affecting Expenditure Limitation
ACTUAL EXPENDITURES VS. EXPENDITURE LIMITATION 130,000 125,000 Expenditure Limit 120,000 Actual Expenses 115,000 110,000 ($ 000s) 105,000 100,000 95,000 90,000 85,000 $87,572 80,000 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Fiscal Year
FY18 REVENUES BY SOURCE PER ACTUAL FTSE FOR AZ COMMUNITY COLLEGES $25,000 $20,000 $15,000 Revenues in $1,000s $10,000 $5,000 $0 Cochise Coconino Eastern Maricopa Mohave Northland Pima Western Yavapai AZ CC TOTAL Other Revenue $1,012 $2,140 $3,125 $1,560 $1,623 $2,791 $2,265 $3,140 $3,390 $1,832 Tuition and Fees $1,484 $3,793 $2,530 $3,226 $3,897 $2,785 $3,019 $2,677 $3,415 $3,077 State Sales Tax $182 $253 $210 $161 $237 $266 $164 $200 $207 $172 State Appropriations $1,724 $1,071 $5,736 $0 $722 $4,904 $0 $701 $386 $422 Property Taxes $3,444 $5,082 $1,935 $7,756 $10,181 $8,397 $7,531 $6,785 $13,842 $7,475 EL/Actual FTSE $10,087 $7,974 $9,994 $6,486 $11,442 $7,891 $6,859 $10,959 $12,987 FY21 EL Est. $5,473
SALARIES AND WAGES • Make current salary levels permanent (2.5% increase to salary scales approved for FY18 & FY19) • Increase to employee salaries and wages for FY20 • Consumer Price Index increased approximately 2% over last year and approximately 4% over past two years • Notes • $1.00 per credit increase to tuition = $450K in revenue • 1.00% increase to salaries and wages = $900K in expenditures
TUITION INCREASE OPTIONS • Increase per credit hour tuition rate • Increase differential tuition rates for high-cost disciplines • Differential tuition rate based on share of actual cost of instruction, instead of a percentage of In-State Resident tuition rate • Re-evaluate differential tuition as Centers of Excellence are established
FISCAL YEAR 2019 TUITION AND FEES FOR ALL AZ COMMUNITY COLLEGES (PER CREDIT HOUR) $120.00 $109.00 $100.00 $90.00 $88.00 $88.00 $87.00 $86.00 $85.00 $85.00 $84.00 $80.00 $74.00 Cost Per Credit Hour $60.00 $40.00 $20.00 $- Northland Az Western Cochise Maricopa Central Yavapai Mohave Pima Eastern Coconino In-State Tuition Rate Per Credit Fees
FY18 REVENUES BY SOURCE PER ACTUAL FTSE VS. AZ CCS AND PCC PEERS $25,000 $20,000 $15,000 $10,000 $5,000 $0 Cochise Coconino Eastern Maricopa Mohave Northland Pima Western Yavapai AZ CC TOTAL CuyahugaCC Portland CC C.NM CC Austin El Paso Tarrant Property Taxes State Appropriations State Sales Tax Tuition and Fees Other Revenue Tuition and Fees
FY18 EXPENSES PER FTSE BY FUNCTIONAL CATEGORY VS. AZ CCS AND PCC PEERS $20,000 $18,000 $16,000 $14,000 $12,000 $10,000 $8,988 $8,000 $8,440 $8,366 $7,823 $7,652 $7,385 $7,149 $6,984 $6,984 $6,876 $6,000 $6,334 $6,185 $6,153 $5,969 $5,651 $5,461 $4,000 $3,905 $2,000 $0 Cochise Coconino Eastern Maricopa Mohave Northland Pima Western Yavapai AZ CC TOTAL CuyahugaCC Portland CC C.NM CC Austin El Paso Tarrant non PCC Avg Instruction/Student Svcs Scholarships Institutional Support/Plant/Aux Tuition and Fees
CURRENT DIFFERENTIAL TUITION (DT) FOR COLLEGE DISCIPLINES Current % of Current DT T&F as a % of Average Tuition & Covering In-State Cost per Fees (T&F) Program Resident Current DT FTSE FTSE per FTSE Rate Delivery Rate PCC Average Discipline 13,160.9 $11,872 $2,640 22.2% - - Differential Tuition A $25.00 Disciplines 544.6 $17,580 $3,375 19.2% 30% per credit Differential Tuition B $33.00 Disciplines 313.3 $21,610 $3,615 16.7% 40% per credit CRC, CDA, MCT, PHT, and HRM 75.2 $15,907 $2,640 16.6% - -
HIGH-COST PROGRAM COMPARISON TO PCC AVERAGE PROGRAM COST AND TUITION PER FTSE, FY18 ACTUALS $30,000 25% $25,000 20% $20,000 15% $15,000 10% $10,000 5% $5,000 $0 0% PCC Avg AUT AVM CAD DAE DHE DLT LEA MLT MUP NRS RAD RTH TDT TMA WLD CRC CDA MCT PHT HRM Instruction Academic Sppt and Stud Svcs Scholarships IS, Plant, Other In State Tuition Tuition % of Costs
PROPOSED CHANGES TO DIFFERENTIAL TUITION New Current % of Differential Additional Average Tuition & Fees T&F Covering Tuition Revenue Cost per (T&F) per Program Rate (per Generated by FTSE FTSE FTSE Delivery Change credit) Proposed – Option 1 Differential Tuition A Current Disciplines + CRC, CDA, MCT, PHT, and HRM 619.8 $17,378 $3,286 18.9% $41.00 $353,899 Differential Tuition B Current Disciplines 313.3 $21,610 $3,615 16.7% $72.00 $366,596 $720,495 Proposed – Option 2 Combined (New) Differential Tuition 933.2 $18,799 $3,396 18.1% $51.00 $709,043
CURRENT AND PROPOSED TUITION AND SERVICE FEES $0 $1.00 $2.00 $3.00 $4.00 $5.00 Increase Increase Increase Increase Increase Increase Tuition In-State Resident (per credit) $82.50 $83.50 $84.50 $85.50 $86.50 $87.50 Non-Resident Classroom - Fall/Spring (per $304.00 $305.00 $306.00 $307.00 $308.00 $309.00 credit) Non-Resident Classroom - Summer (per $233.00 $234.00 $235.00 $236.00 $237.00 $238.00 credit) Non-Resident Online (per credit) $214.00 $215.00 $216.00 $217.00 $218.00 $219.00 Service Fees Processing Fee (per semester) $15.00 T echnology Fee (per credit) $2.50 Student Services Fee (per credit) $3.00
SUMMARY OF PROPOSED INCREASES TO REVENUES AND EXPENDITURES $0 Increase per $1.00 Increase per $2.00 Increase per $3.00 Increase per $4.00 Increase per $5.00 Increase per Credit Hour Credit Hour Credit Hour Credit Hour Credit Hour Credit Hour Revenues Tuition $0 $450,000 $900,000 $1,350,000 $1,800,000 $2,250,000 Differential Tuition $750,000 $750,000 $750,000 $750,000 $750,000 $750,000 Total Increase $750,000 $1,200,000 $1,650,000 $2,100,000 $2,550,000 $3,000,000 Expenditures Personnel Salary Pool Increase $774,154 (+1.0%) $774,154 (+1.0%) $1,161,230 (+1.5%) $1,548,307 (2.0%) $1,548,307 (2.0%) $1,935,384 (+2.5%) Adjunct Faculty $0 (+0%) $145,548 (+1.0%) $218,322 (+1.5%) $291,096 (+2.0%) $291,096 (+2.0%) $363,870 (+2.5%) Programs & Operations Student Life/Cocurricular $100,000 $100,000 $100,000 $100,000 $100,000 Program Review Fund $50,000 $50,000 $50,000 $50,000 $50,000 Marketing $100,000 $100,000 $100,000 $100,000 $100,000 Institutional Scholarships $50,000 $50,000 $50,000 $50,000 $50,000 Advising (5.0 new positions) $351,172 $351,172 PimaOnline $100,000 $0 Total Increase $774,154 $1,219,702 $1,679,552 $2,139,403 $2,590,575 $2,950,426
FEEDBACK FROM STUDENT SENATE MEETING ON 02/15/19 • $2 increase is mostly reasonable; $3 also understandable • Increase in maximum Pell Award would cover increase for full- time students • In favor of new tuition rate for Arizona high school graduates • More scholarships • Minimum wage has gone up • Want to see an increase to Student Life • Cost of books and access codes, transportation are concerns • Rent and other costs go up
DISCUSSION AND FEEDBACK
ADDITIONAL RESOURCES AND DATA
STRATEGIC PRIORITIES • 2017-2021 College Strategic Plan • Educational Master Plan • Facilities Master Plan • Diversity, Equity, and Inclusion Plan • Strategic Enrollment Management Plan • Chancellor’s Goals, Objectives, and Timelines, 2018-2019
COLLEGE BUDGET INFORMATION • Fiscal Year 2019 Adopted Budget • Fiscal Year 2019 General Fund Budget Detail • Fiscal Year 2020 Budget Development Calendar
2018-2019 COST OF ATTENDANCE FOR FULL-TIME (12 CREDITS) $25,000 $20,000 $15,000 Cost $10,000 $5,000 $0 Living with Parent Living Off Campus Non-Resident Tuition & Fees* Books and Supplies* Room & Board Transportation Loan Fees Personal Maximum Pell Award $6,095 * Direct Costs associated with going to school
2018-2019 COST OF ATTENDANCE FOR PART -TIME (6 CREDITS) $25,000 $20,000 $15,000 Cost $10,000 $5,000 $0 Living with Parent Living Off Campus Non-Resident Tuition & Fees* Books and Supplies* Room & Board Transportation Loan Fees Personal * Direct Costs associated with going to school
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