1 / 34

Hillsborough Community College State of the Budget

Hillsborough Community College State of the Budget. Fall 2008. FY 2008-09 Adopted Revenues (General Operating Fund). Operating Revenues = $91,237,506. FY 2007-08 (Actual). Two Year Operating Budget Comparison. FY 2008-09 (Adopted). FY 2008-09 Adopted Expenditures (General Operating Fund).

fiona
Download Presentation

Hillsborough Community College State of the Budget

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Hillsborough Community CollegeState of the Budget Fall 2008

  2. FY 2008-09 Adopted Revenues (General Operating Fund) Operating Revenues = $91,237,506

  3. FY 2007-08 (Actual) Two Year Operating Budget Comparison FY 2008-09(Adopted)

  4. FY 2008-09 Adopted Expenditures (General Operating Fund) Operating Expenditures = $95,130,077

  5. Two Year Operating Expenditure Comparison FY 2007-08 Actuals FY 2008-09 Adopted

  6. $4.4 million in Capital Costs, $3.9 of this Funded through Fund Balance FY 2008-09 Adopted Revenues = $91,237,506 Adopted Expenditures = $95,237,506 Diff. from Fund Balance = ($3,892,571)

  7. Fund Balance Why do Public Organizations need Fund Balances? • Revenues are not always timed to match expenditure cycle (tuition revenue 3 times per year, yet payroll runs every 2 weeks) • Ability to build reserves for large capital projects without debt financing. • A contingency for the unexpected (e.g., hurricane) or an unfunded opportunity.

  8. HCC’s Unallocated, Unreserved Fund Balance at June 30, 2009 • Projected Unallocated/Unreserved Fund Balance at June 30, 2009 = $11,187,905 • Average Monthly Personnel Expenditures = +$5.4 million • Average Monthly Operational Expenditures = + $7.9 million • Unallocated, Unreserved Fund balance approximates 42 Days of Operations

  9. Current Budget Projection is not Sustainable in Future Years Funding Gap

  10. Preparing Now for 2009-2010 Balanced Budget • While too early to know, State Revenues May Decline another $2 to $5 Million Dollars Next Year • How do we sustain our Core mission, maintain equipment and facilities, and fund new Initiatives?

  11. FY 2008-09 Personnel Costs $65,511,244

  12. FY 2008-09 Current Expenses $25,198,352 Housekeeping , Security Contracts, Grounds, Memberships, Advertising, Etc.

  13. Hillsborough Community College General Fund Revenue History, Adopted FY 2008-09

  14. HCC Overview of State Funding

  15. Potential State Aid Reductions of 4 to 10 %

  16. The Perfect Storm? • Flat or Declining Revenues while • Salaries and Benefit Costs Increase • TECO Energy rates expected to Increase 10 to 20% beginning January 2009 (College’s Electricity Budget is $4,066,916 in FY 2008-09) • First Full-year of SouthShore Operation • Other inflationary increases driven by rising fuel costs

  17. ATTEMPTS TO ADDRESS GATHERING STORM

  18. How we had Addressed the Problem • Early Planning– Board Adopted Goal to Reduce Percentage of Budget for Institutional Support • FY 2003-04 19.30% • FY 2004-05 20.56% • FY 2005-06 22.00% • FY 2006-07 20.87% • FY 2007-08?

  19. Eliminated 15 Non-Instructional Positions • 7 From District Functions • 1 from Brandon • 2 from Dale Mabry • 2 from Plant City • 1 from SouthShore • 2 from Ybor City

  20. Other 2007-08 Budget Reductions Campuses and District Functions reduced by varying percentages to spare direct instruction as much as possible: • Campus $ Reduction % Reduction • Brandon ($75,252) -0.86% • Dale Mabry ($232,000) -0.96% • Plant City ($225,978) -3.26% • Ybor City ($211,749) -1.62% • South Shore ($85,000) -6.74% • District ($1,118,576) -4.15% • TOTAL ($2,148,555) -2.64%

  21. 2008-09 Reductions Included • Decrease in Insurance Premium ≈ $163,556 • Reduction in Copier Lease (moved to Purchase) ≈ $150,000 • Collection Costs Recovered from Students ≈ $75,000 • Payoff of WT Edwards Loan ($78,000 in recurring debt service payments) • Elimination of non-faculty positions, salary savings and reorganizations ≈ $802,000

  22. Other Considerations Examining Utilities– Rules of thumb--for every degree change in AC or heating there is a cost impact of 2% savings or increase. At current rates, 2% reduction yields $80,000!

  23. As a result of various cost-cutting measures we were able to set aside $3 million in non-recurring dollars for various future projects

  24. $3,000,000 in Non-Recurring Projects • $750,000 for Enrollment Growth Contingency • $350,000 for Enhanced Web-based Student Services • $300,000 for Strategic Planning Objectives • $475,000 for Disaster Recovery, Phase II • $345,000 for Imaging Project, Year 3 • $500,000 for Improved Infrastructure to support Security Operations • $280,000 for Non-Instructional Equipment & Technology

  25. Why are we building and renovating buildings during difficult financial times? • Why are we purchasing new and replacement equipment in classrooms and labs?

  26. Different funding streams support different College activities. • Most large construction projects are 100% supported by State Public Education Capital Outlay (PECO) funding. • The Student’s Capital Improvement Fee (currently $6.26 per credit hour for Residents) funds classroom equipment and capital improvements, and will raise $2.8 million this year. • The Student Activity Fee, also currently $6.26 per hour, is expected to raise $2.8 million in FY 2008-09.

  27. 2007-08 Actual Expenditures by Fund Type

  28. So What’s Next?

  29. We Want to Hear from You!

  30. We Need Your Input • How do we collectively address the College’s financial challenges and emerge as a stronger institution? • Gathering ideas (through College and campus meetings and in the Budget Ideas Forum Blog on Campus Cruiser) • Reporting back to the College community on which ideas may be implemented, with projected costs or new revenues resulting from them. • Planning for a balanced budget for 2009-10 “Lack of money is no obstacle. Lack of an idea is an obstacle.”- Ken Hakuta

  31. QUESTIONS?

More Related