MCC’s proposed budget for fiscal year 2012 was presented by Vice Chancellor Tuesday Stanley to the MCC board of trustees on Thursday, June 16, 2011. The budget was ratified by unanimous vote. To view the full budget book, now posted on InfoEx, click here
. (After you log in, click on ‘Financial Reports’ tab and then click on the ‘FY 2012’ link near the top of the page. If you have trouble viewing the pdf, you may need to update your Adobe Reader. Do so by clicking here
Following is an exerpt from Vice Chancellor Stanley’s presentation to the board:
This year, 93% of the operating budget comes from local tax (26%), state aid (24%) and student tuition (43%). The increased proportion of the budget coming from student tuition is due to enrollment increases, increased tuition and reduced state funding.
Pages B1 & B2 of the budget book contain a summary of the highlights of the financial plan, including:
· A projected 4.6% enrollment increase for a total of 490 thousand credit hours, which will again be the highest enrollment in MCC history. Enrollment after this year is expected to be moderate as MCC reaches a saturation point in many markets. Further growth will be the result of several initiatives underway including geographic market expansion, online class building and innovative course scheduling.
· .1% increase over last year’s local property tax revenue due to a decrease in new construction but an increase in the collection of back taxes.
· Assessed Value is estimated at $12.4 billion as compared to $12.5 billion last year
· State aid has declined again for FY 12. The reduction is 7% bringing total state dollars to less than $30 million. These reductions are expected to be permanent.
· Tuition and fee revenue is estimated to increase 12% due to the expected enrollment increase and the tuition increase.
· Investment income continues to decline and is expected to only contribute $150,000 to the operating budget.
· This budget provides a 3.6% total compensation package for all employees
· The budget reflects further reductions to operations of $5.9 million to bring total reductions over the last three years to roughly $18.8 million
· Under the assumptions of this plan, the operational fund balance will be depleted by FY 15 and the unexpended plant fund balance will be depleted by FY 17. However, just as recent actions have deferred this budget crisis, further actions being undertaken are in place to balance the budget long-term.
· This plan is based upon the College’s current allocation model, which is more than a decade old. Over the FY 12 budget year, MCC is undergoing a process to explore other budgeting processes to re-allocate resources based upon strategic priorities that will ensure the long-term viability of MCC and its students.
Once again, this past year proved to be challenging with additional state funding cuts, increased costs for employee benefits, and decreasing investment income. All employees have worked extremely hard to accommodate the record-breaking enrollment, the continued need for change, all while reducing expenditures.