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Board of Trustees Committee Meeting - June 26, 2017 Budget Proposal

Detailed breakdown of proposed budget adjustments for FY16-17 and projections for FY17-18 revenue and expenditures, highlighting key financial trends and policies.

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Board of Trustees Committee Meeting - June 26, 2017 Budget Proposal

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  1. budgets Board of Trustees Committee of the Whole Meeting - June 26, 2017 Larry Gawthrop – Chief Financial Officer

  2. For Consideration and Vote

  3. General Fund FINAL FY 16-17 AMEND BUDGET 01

  4. Final FY16-17 General Fund Budget Revenues: Overall downward amendment to revenue is $380,375; (-.51%) change from February 2017 amendment. State Aid Tuition and Fees Property Taxes $468,000: Reclassification from property taxes, slight adjustment for overestimation on Renaissance reimbursement. $621,000: Error in calculation with conversion to BudgetPak. $478,000: Reclassification to State Aid revenue.

  5. Final FY16-17 General Fund Budget Expenditures: Amended upward by $842,000; (1.15%). Salary & Fringe Benefits Contracted Services Transfers $324,000: Course section management & release of open position pool offset by the lump sum payout. $312,000: Vacant positions filled by Kelly temps and increase in professional fees. $884,000: Transfer to Maintenance & Replacement & reserves. Offset by lump sum.

  6. Final FY16-17 General Fund Budget * Target = 5% - 10% of expenditure budget

  7. Reserves Required by Board Policy #3930

  8. Recent Financial & operating trends

  9. 2017 -2018 Funding Sources State Aid Property Taxes Tuition

  10. THEN and NOW State Funding $15,813,494 State Funding $16,229,838

  11. ($19.4 Million lost between 09/10 and 13/14) Projected Property Tax Funding FYE 2010 through FYE 2018 $3.1 M $1.3 M $1.3 M $500K

  12. Percentage of TOTAL FUNDING: Property Tax and State Aid

  13. Salaries/Benefits as % of Budget

  14. Tuition & Financial Aid Total aid comprises 82% of MCC’s total tuition revenue (FY ended 6/16)

  15. Proposed Fiscal Year 2017-2018 Budget

  16. Relevant Board Policies

  17. Strategic Plan

  18. Revenues – Key Assumptions Proposed FY17-18 General Fund Budget Tuition and Fees Property Taxes Grants & Other ($350,000): enrollment decline $177,000: property taxes $325,000: future funding transfer

  19. Expenditures – Key Assumptions Proposed FY17-18 General Fund Budget Transfers Salaries and Fringes $821,000: Restore open positions, step increases, minimal increase in health insurance (hard cap), blended MPSERS rate $799,000: budgeted minimum transfers to reserves. Decreased compared to 16/17 final budget which included Designated Transfers

  20. Initial FY17-18 General Fund Budget * Target = 5% - 10% of expenditure budget

  21. Proposed “Other Funds” FY 17-18 Budgets • Designated Fund (Fund 02) $4.7 Million Revenue Budget • Scholarships, Student Enrichment, Copy Machines, Paid Parking, Designated Technology Fee, Future Funding, Student Success and Professional Development • Auxiliary Enterprise Fund (Fund 03) $861,000 Budget • $500,000 Net “Profit” Supplements General Fund • Catering, Vending, Bookstore, Computer Lab Printing, Day Care and College Initiatives

  22. Proposed “Other Funds” FY 17-18 Budgets • Debt Retirement Fund (Fund 73) • Millage rate stayed the same at 0.82 mills to meet debt obligations • Capital Fund (Fund 72) repair, upgrade of buildings, equipment, technology & vehicles • Instructional Technology Fee = $1.36 Million per year • $797,000 per year planned transfer from General Fund (minimum required annual expenses plus reserves) • Building & Site (Fund 78) • $500,000 planned transfer from General Fund

  23. Projected Reserve Balances 1Lapeer Installment Purchase Payment

  24. Questions?

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