maricopa community colleges financial planning update fall 2010
TRANSCRIPT
A recession, but all things considered…
Maricopa has done pretty well
Annual State tax support cut $23.3 million since June 2008, but we escaped with no additional cut in FY2010-11
Property tax revenue down – no 2%, new property down
No tuition increase for two years
Maricopa is doing pretty well
No massive lay-offs
Governing Board gave money to ASRS and Flex Benefit increases so employee pay was not cut
Colleges received enrollment growth
funding to help offset the cost of serving more students
FY 2011 General Fund Increase
General Fund reflects most of the operational costs of running 10 colleges and the district office
FY 2011 increased $20.5m for a total of $655.4m
Amount In
Millions
Revenue Increases, including carryforward $ 20.5
Plus:
• Carryforward Adjustment (for one-time expenses) $ (0.6)
• Enrollment Growth Funding $
(12.6)• Other Adjustments: ( for uncollected tax levy and bad debt)
$ (0.4)
• Move Scholarships and Other Expenditures from Fund 2 to Fund 1
$ (2.5)
• ASRS, salary, health insurance, plus other mandatory adjustments
$ (8.6)
• Budget Cut Reallocation $ 5.8
Available for Allocation $ 1.6
Disability Resources - $300k Permanent Funding for Prop 301 Faculty -
$500k Operating Support for new Facilities
constructed through the Bond Program - $600k
Higher than anticipated mandatory contract costs - $200k
FY 2011 Discretionary Funding
Allocation of the $1.6 million:
Source: JLBC Budget Status Update, June 3, 2010
State Has an Unresolved Deficit
NOTE: A “structural deficit” means that it’s built in
State Aid Very slow economic recovery No stimulus protection All paths lead to more state cuts; the
unknown is how much and when
Property Tax Estimated 50% drop in new property; $5 to $6 million less to us Levy increases capped at 2%
Tuition Rate based on Governing Board decision
FY 2012 Resources
FY 2012 Preliminary Look
Mandatory Expenses
• ASRS Rate Increase .8%
• Bond Operating New Building
• Bond Operating Technology
• Salary Adjustments in Policy
• Tuition Waivers – Staff/Dependents
• Support Prop 301 Faculty
• Student Financial Aid
New Resources and Internal
Reallocation can cover the cost of
Mandatory Expenses
estimated at $6.6 Million
STATE AID APPROPRIATION$45.3 MILLION
FY 2012 Additional Issues
Discretionary Expenses
Not in Any Particular order
Flex Benefit Increase @ 21% (maybe more)
Meet & Confer Adjustment
Strategic Initiatives (21st Century Maricopa)
Specific College Needs
Consideration of Discretionary Expenses and the possibility of additional State Aid cuts also will occur during the FY 2012 Budget Development Process
Bad News
• More budget cuts are likely
• Arizona’s economic recovery will occur slowly over an extended period of years
• We will see increasing service demands as well as demands for accountability and improved performance
Good News
• We saw this coming & have been planning for it
• We are not living in the shadow of massive layoffs, salary cuts or mandatory furlough days.
• We have momentum and are moving forward to fulfill a critical role of educating students for the 21st Century
Financial Update Summary