BRT Update Meeting – Sept. 24, 2013
Tuesday Stanley shared the FY13 year end and updated the group on HLC ratios.
We went into the year projecting a (11.75 mil) deficit, which was prior to the change in budget process. (For line item reference, see 2013BudgetToActual with notes spreadsheet.)
- We ended up having additional tuition and fees – summer came in better, fall did not (see line 10)
- Tax revenue: up due to additional back taxes received (line 11)
- MCC budgeted for a cut of 8% by the Governor, however it was less. It looks like we received $$, but that is not the case (line 12)
- IWI came in slightly higher than budget (line 13)
- Investment income was priced at June value, however when the books were actually closed, MCC must report the July value. There is about a .5 million swing from June to July. Also received a large donation to the Foundation (contribution is restricted and not used for operation costs). Foundation investments are included in investment income.
- Salaries: held several, several vacant, some removed. This is what really saved us (line 15). The group noted a big thank you to all who have been doing multiple jobs. It was also noted that the “rubber band can only be stretched so far.”
- Benefits and ERIP: Sunset of ERIP continue to take money off books for expenses related to those items. Should see a continued savings over the years (lines 16,17).
- MCC swept operations several times and pulled back money across the district. Variable items include supplies, travel, mileage, etc. (line 18).
Overall operating budget came in 4.5 million over where we thought we would be. The unexpended plant fund original reduction was (7.24mil) offset by the 4.5 mil operating funds. Auxiliary came in at (.26mil) due to text book rental, which will make more money over time. You need to have the textbook rentals for 3 years to get a ROI on rental books.
Add in the capitalized equipment at .89 mil and the end result = 2.06 million out of unexpended plant fund to pay for expenses, which is better than projected. Again, lapsed salary was the key to the difference.
The positions that have been approved (A positions) still have not all been filled, so we will have a few lapsed salary dollars this year, but not many going forward.
The original plan was to have A positions = filled for whole year, B= ½ year, C = next year. However only ended up with enough to fund A positions. Any positions that have become vacant after July 1 will be categorized in A1, B1, or C1 groups if they are to be replaced. As those positions (vacancies after July 1) become open, the officers bring to the officer’s meeting a justification to discuss if the position needs to be filled or combined with something else.
How does this affect our HLC ratios?
The one that could trigger a review is the CFI. Tuesday assumes when we are reaccredited in 2015, MCC will need to write something about what MCC’s game plan is and how we intend to correct these numbers. The group received a draft copy of the HLC ratios as it stands unaudited.
Other items of discussion
- Part time returning employees – netted out (related to fall FY ’14)
- Gross revenue is down forFY14 about $430,000. MCC budgeted a 2% decline in enrollment, but came in at 3.1 decline
- Need to look at the emergency hire plan process for faculty. Paul Long is bringing it back to the officers. Tuesday will verify with Paul.
- How are campuses funded now?
- Already funding positions (that were currently full) plus the A positions.
- Looked at contractual obligations
- Variable expenses
- Officer analysis for campus needs
- All $$ is coded to were the money will actually go.
- SEM update: Recruitment, retention, and communication plan have all been approved. Marketing plan has not been approved. There is a market analysis RFP being reviewed.
- Michelle will add BRT updates to both the Insider and Budget Source
Budget Response Team (BRT)
The MCC Budget Response Team is a shared governance group established to provide input on proposed budget solutions. BRT members represent their constituents’ interests by disseminating information shared by the chancellor’s office and providing feedback on that information.
The members of the BRT are as follows:
Lynn Canaday, Gretchen Blythe, Cheryl Winter
Beverly Jennings, Melissa Marr, LeAnn Bradberry
Jon Burke, Cheryl Carpenter-Davis, Brian Bechtel
Officer Team Representatives:
Tuesday Stanley, Michael Banks
Assisting with Communication:
Please contact a member of the BRT with any questions or input on the budget information.