Madison College FY2020-21 Preliminary Budget April 1, 2020 Dr. - PowerPoint PPT Presentation

Madison College FY2020-21 Preliminary Budget April 1, 2020 Dr. Jack Daniels, President Mark Thomas, CFO/Vice President for Administrative Services Sylvia Ramirez, Associate Vice President for Budget & Management 1

Agenda • FY2020-21 Budget • Anticipated impact of COVID-19 • Tax Levy • Next Steps 2

Ten-year Projection Beginning FY2019-20 3

FY2020-21 Balancing the Budget • Set budgeted FTES to 8,000 • Set a contingency at 2.8% of budgeted revenue • Personnel reductions of over 40 positions and $2.8 million in other salary • Personnel spending is at 82.0% • Continued work with Shared Governance • Decisions informed by focus on students and how we serve them • Budget Recommendation is balanced with assumptions 4

Past Budget Deficit Reductions Prior Fiscal Years Direct Impact on Employees • Increase pension contribution under Act 10 • Increase health insurance contributions • Changed health insurance offerings • Negotiated wage increases capped at a maximum of CPI • Significant reductions to additional pay (overtime, special assignment, etc.) • Dozens of positions reduced over the past 6 years Capital Investments to Offset Operational Expenses • Solar panels at Truax and South to reduce utilities expenses • Investing in energy efficient infrastructure Non-personnel reductions to offset $5.5 million in: • Software licenses shifted to the General Fund • Change in capital equipment threshold; another $0.5M+ pressure on the General Fund over three years

Board Metrics: FY2020-21 Budget Assessment Current Budget Position 82.0% 24.4% Percent Spending General Fund on Personnel Operating Reserve 2.8% 8,000 Budgeted Budgeted FTES Contingency 6

FY2020-21 Enrollment Projection Team Considerations: • Megan Conlin, Strategic Academic • Economy and unemployment Initiatives • COVID-19 • Bill Dougherty, Registrar • Zong Her, Institutional Research & • Current enrollment trends for Effectiveness • Ben Monty, Budget Office summer 2020 and fall 2020 • Sylvia Ramirez, Budget Office • Continuing students versus new • Denise Reimer, Academic Administration students • Susan Weber, Academic Administration • Ali Zarrinnam, Institutional Research & Effectiveness

Enrollment Scenarios 9,000 8,500 8,100 8,500 8,000 7,800 7,500 7,600 7,000 6,500 6,000 5,500 5,000 Low Plausible High Estimate Range Estimate

FTES Drop to 7,600 • 400 FTES mean about: • Program Fees: $1.7M • Material Fee: $0.1M • Other Student Fee: $0.1M • State Aids: $0.4M Lost Revenue $2.3M • In total, we would lose: $2.3M in revenue • The unallocated contingency is $3.7M • We would cut $0.5M in spending • Recouped in fewer sections • Balance in contingency: $1.9M 9

FY2020-21 Revenue Assumptions Tax Levy 5.1% increase in net new construction State Aids Minimal change 8,000 student FTES Program, Material, & 1.75% tuition increase Student Fees 10

FY2020-21 Expenditure Assumptions Salary & Fringe 1.8% increase in FT Faculty wages related to FT Faculty compensation 0.5% increase in salaries/wages due to other factors 0.0% increase in salaries and wages in an economic adjustment 2.5% budgeted salary savings, 3.0% fringe savings Fringe estimates based on contracted increases Non-personnel All based on planned actual Additional utilities savings expected from solar projects 11

82.0% Personnel FY2020-21 General Fund Budget Increased $2.0M from FY19-20 Initial Budget Category February Final Budget Difference Property Tax 45,394,000 45,394,000 0 State Aids 74,339,000 74,339,000 0 Program Fees 34,520,000 33,817,000 (703,000) Material Fees 1,221,000 1,176,000 (45,000) Other Student Fees 1,740,000 1,702,500 (37,500) Institutional Revenue 2,010,000 2,015,000 5,000 Federal Aids 245,000 255,000 10,000 Other Sources 2,400,000 2,400,000 0 Total Revenue 161,869,000 161,098,500 (770,500) Salaries 101,732,000 99,961,000 (1,771,000) Fringe Benefits 32,333,000 32,106,000 (227,000) Supplies & Services 15,296,000 14,718,000 (578,000) District Ins, Utilities, Leases 4,842,000 4,569,000 (273,000) IT/Data Processing 6,025,000 6,091,000 66,000 Contingency 4,017,000 3,653,500 (363,500) Total Expenditure 164,245,000 161,098,500 (3,146,500) Net (2,376,000) 0 12

General Fund Balance Estimate % of Subsequent Designation for Operations Amount Year Budgeted Revenue FY2018-19 Actual Ending $39,394,794 25.0% FY2019-20 Estimated Ending $39,631,000 24.4% FY2020-21 Estimated Ending $38,873,000 24.4% 13

FY2020-21 Capital Estimated Expenditures Non-Academic Personalized Equipment New Education Plan Furniture $35.0 million total (Title III) Construction Other IT Category Amount Projects New Construction $1,500,000 Remodeling $12,020,000 Technology Remodeling Refresh Maintenance/Site Work $2,980,000 Movable Equipment - Projects $3,901,000 Academic Equipment $4,375,000 Technology Refresh $6,000,000 Other IT Projects $2,100,000 Academic Equipment Personalized Education Plan (Title III) $1,500,000 Maintenance/ Movable Non-Academic Equipment $324,000 Site Work Equipment - Furniture $300,000 Projects 14

FY2020-21 All Funds Summary Special Capital Debt Service Proprietary Category General Fund Revenue Total Projects Fund Fund Funds Funds Tax Levy 45.4M 1.8M - 35.2M 0.2M 82.5M Other Budgeted Revenue 113.3M 52.7M 0.4M 0.0M 26.1M 192.4M Budgeted Expenditures 161.1M 54.5M 35.4M 35.3M 26.7M 313.0M Annual Net (2.4M) 0.0M (35.0M) (0.1M) (0.5M) (38.0M) Use of Fund Balance 2.4M - - 0.1M 0.5M 3.0M Proceeds from Debt - - 35.0M - - 35.0M Premium on Notes Issued - - - $1.1M - $1.1M Est. Fund Balance 7/1/20 51.5M 1.5M 0.0M 4.3M 10.2M 67.4M Est. Fund Balance 6/30/21 49.1M 1.5M 0.0M 5.3M 9.7M 65.6M 15

FY2020-21 All Funds Summary Special Capital Debt Service Proprietary Category General Fund Revenue Total Projects Fund Fund Funds Funds Tax Levy 45.4M 1.8M - 35.2M 0.2M 82.5M Other Budgeted Revenue 113.3M 52.7M 0.4M 0.0M 26.1M 192.4M Budgeted Expenditures 161.1M 54.5M 35.4M 35.3M 26.7M 313.0M Annual Net (2.4M) 0.0M (35.0M) (0.1M) (0.5M) (38.0M) Use of Fund Balance 2.4M - - 0.1M 0.5M 3.0M Proceeds from Debt - - 35.0M - - 35.0M Premium on Notes Issued - - - $1.1M - $1.1M Est. Fund Balance 7/1/20 51.5M 1.5M 0.0M 4.3M 10.2M 67.4M Est. Fund Balance 6/30/21 49.1M 1.5M 0.0M 5.3M 9.7M 65.6M 16

Tax Levy 17

Operating Levy History $94.0M $100.0M $92.9M $92.9M $90.0M $80.0M $70.0M ← Levy offset by State Aids $60.0M $47.3M $44.6M $50.0M $42.7M $40.9M $38.5M $36.5M $40.0M $30.0M $34.8M $20.0M $10.0M $0.0M 18

Debt Levy History $40.0M $35.2M $34.8M $34.5M $34.2M $34.1M $35.0M $30.2M $30.2M $30.2M $30.1M $30.0M $25.5M $25.0M $20.0M $15.0M $10.0M $5.0M $0.0M 19

Combined Levy History $140.0M 2.00000 1.80000 $120.0M 1.60000 $100.0M 1.40000 1.20000 $80.0M Mill Rate Operating Levy 1.00000 $60.0M 0.80000 0.60000 $40.0M 0.40000 $20.0M Debt Levy 0.20000 $0.0M 0.00000 20

Combined Mill Rate Projection 0.90000 0.88000 0.86000 0.84000 0.82000 0.80000 0.78000 0.76000 0.74000 0.72000 21

Average Value Home Proposed Levy: 82,507,840 Tax Year Value Mill Rate Tax 2019 $300,967 0.88290 $265.72 2020 $300,967 0.87733 $264.05 Change $0 -0.00557 -$1.68 Rate 0.00% -0.63% -0.63% Average value home statistic is for the City of Madison 22

Budget Approval Timeline Date Action February 5, 2020 Budget Update April 1, 2020 Preliminary Budget Presentation May 6, 2020 Public Hearing June 3, 2020 Final Budget Approval 23

Any questions? 24

COVID-19 Recovery Funding • CARES legislation • FEMA • College’s insurance coverage • Monitor new programs as they develop