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Proposed FY2010 Budget

Proposed FY2010 Budget. Northeast Wisconsin Technical College Board of Trustees March 11, 2009. FY 2010 Budget Proposal Tax Levy and Fund Balances. TIF Total Levy Link. Minimum Cash Balance. Average bi-weekly payroll and accounts payable equals $2+ million. Capital Budget.

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Proposed FY2010 Budget

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  1. Proposed FY2010 Budget Northeast Wisconsin Technical College Board of Trustees March 11, 2009

  2. FY 2010 Budget ProposalTax Levy and Fund Balances TIF Total Levy Link

  3. Minimum Cash Balance • Average bi-weekly payroll and accounts payable equals $2+ million

  4. Capital Budget

  5. FY 2010 Capital BudgetOnly 61% of February Requests are Proposed in March Budget February RequestsMarch Proposal Total Projects $25,000 & Greater $12,061 $6,870 Total Projects Under $25,000 1,5981,459 Total Capital Expenditures $13,659 $8,329 Compared to FY2009 Capital Budget: February RequestsMarch Proposal Total Projects $25,000 & Greater $12,049 $7,500 Total Projects Under $25,000 1,7861,590 Total Capital Expenditures $13,835 $9,090 (In $1,000s)

  6. Capital Budget Projects Provide Continued Equipment and Facility Upgrades • 66.6% of the $5,962,128 Capital Equipment and Software/Media is for instruction or instructional support. • 13.7% of $2,366,500 Building & Site Improvement is for instruction or instructional support. (Chart in $1,000s)

  7. Direct Investment in Instructional Equipment, Software, and Building Improvement in Learning FY09FY10 • Business & Information Technology $200,742 $258,764 • General Education 152,761 47,780 • Health Sciences 430,855 419,441 • Public Safety 838,233 402,076 • Trades and Technical 1,578,620 1,691,422 • Regional Learning 261,135 209,200 • Learning Support Services/Instructional Software 124,500 49,520 • Corporate Training & Economic Development 109,120 295,650 • Smart Classrooms/Media 181,200 190,800 • Computer/Laptop Refresh 1,047,800731,250 TOTAL $4,924,966 $4,295,903

  8. FY 2010 Capital Budget for Items with Total Cost of $25,000 and Greater

  9. Discussion Items $25,000 and greater make up 82% of the Capital Budget Link to Capital Budget Justifications

  10. Capital Budget ItemsLess than $25,000 FY09FY10 • Facilities Improvement $144,725 $142,500 • Facilities Equipment 70,500 55,800 • Learning Equipment 1,136,119 1,013,624 • Furniture and Fixtures 49,800 24,935 • Information Technology Equipment 188,500222,150 TOTAL $25,000 and under $1,589,644 $1,459,009

  11. Sources of Funding for Capital Budget • Debt Proceeds $7,950,000 • Grant Funding 165,360 • Bookstore 20,000 • Capital Contingency 133,037 • Interest Earnings 30,231 • Equipment Sales 30,000 Total Funding $8,328,628

  12. Contingency Balance January 2009 • Equipment $167,001 • Building Remodeling & Improvements 333,847 • Land Improvements 26,946 Total Contingency 527,794 • Less amount used for FY10 Capital (133,037) Current Remaining Balance $394,757 • College’s goal is to maintain a 5% contingency in the Capital Budget based on FY10 capital requests. 5% would be $416,431

  13. IIT Capital EquipmentComputers and Infrastructure FY10 BudgetCurrent NewRefresh • Laptops 0 134 534 • Desktop PCs 26 691 2,686 • Apple Macs 18 105 315 • Servers 17 4 150 • Network Switches 6 4 163

  14. IIT Capital Equipment Peripherals FY10 BudgetCurrent NewRefresh • LCD (flat panels) 0 0 2,049 • CRT (monitors) 0 0 585 • Laser Printers 0 15 271 • Copiers 8 2 82 Note: • Monitors are only refreshed as they fail; now being replaced as needed with LCD flat panel monitors. • Laser printers are being replaced with centrally located multi-function copiers.

  15. IIT Capital EquipmentMultimedia FY10 BudgetCurrent NewRefresh • Smart Classrooms 3 32 196 • PolyComm Video 5 8 31 • LCD Projectorsa 4b 6c 70 • Smart Carts 1 0 5 aIndependent of smart classrooms bDivisional request to be used off-campus cUse for instructor checkout District-wide

  16. Timing of Future Debt Issues • June 2009 $1,100,000 FY09 Capital Budget • Sept 2009 $6,950,000 FY10 Capital Budget • May 2010 $1,000,000 FY10 Capital Budget

  17. General Obligation Debt Summary • Outstanding Principal Balance as of 6/30/08 $53,895,000 • FY09 Debt Issues • Actual FY08 & FY09 Capital Budget 7,360,000 • Actual FY09 Capital Budget 1,100,000 • Total Issues 8,460,000 • FY09 Principal Payments (13,610,000) Outstanding Principal Balance as of 6/30/09$48,745,000 • FY10 Debt Issues • Projected FY10 Capital Budget 6,950,000 • Projected FY10 Capital Budget 1,000,000 • Total Issues 7,950,000 • FY10 Principal Payments (13,540,000) Outstanding Principal Balance as of 6/30/10$43,155,000

  18. Debt Financing Plan • Assumptions: • Capital Expenditures expected to grow at 5% annually. • Equalized valuation expected to grow at 1% annually. • All future borrowings assume 7-year repayment @ 4.5 % interest rate. • The $666,855 other funding sources consist of $476,855 from General Fund and $190,000 from Debt Service Fund Balances.

  19. Long Term DebtDebt Levy

  20. Debt Service Mill Rate

  21. Operational Budget

  22. Tax Levy Increases by 2.75% • The operational portion of the tax levy increases by 3.27% or $1.28M. • The projected Operating Mill Rate is 1.093 vs. 1.053 this year, assuming a modest 1.0% increase in equalized property values. • Debt portion of the tax levy increases by 1.58% or $251,000. • Projected Debt Mill Rate is 0.430 vs. 0.428 this year. • Total Mill Rate is projected to be 1.52287 or $152.29 per $100,000 of equalized value. • Almost 1% of the tax levy is being used to fund the veterans remission. • $610,000 tuition remission budgeted • $125,000 expected state reimbursement

  23. FY09 Total Tax LevyPercent Increase Over FY08

  24. FY09 Operating Mill Rates • Includes operating, capital, and non-operating levy

  25. FY09 Levy Subject to 1.5 LimitPercent Increase Over FY08 • Includes operating, capital, and non-operating levy

  26. FY08 Operational Cost/FTEDistrict Comparison State Median, $13.5 $14.3M

  27. FY09 Productivity • Six operational productivity projects have been completed through February, and four additional projects are scheduled to be completed by the end of FY09. • To this point, 127 employees have participated in Operational Productivity projects (FY08 – Feb 09) • Six learning productivity projects are scheduled to be completed in FY09.

  28. FTE Per Employee Increases as Productivity Improves 156 employees 88 employees

  29. FTE Per Employee Productivity • NWTC ranks highest in faculty productivity and 2nd highest in non-faculty productivity.

  30. FY 2010 Budget ProposalExpenditures

  31. Personnel Costs – All Funds

  32. General Fund Personnel Up 5.5%, $3.1M • Additional staff and faculty $764 • General Fund $516 • Previously Grant/Contract Funded 248 • Limited Term (Welding & Machine Tool Instructors) 184 • Position reallocations (155) • Wage increase 1,896 • Vacancies expected (1.375%) (164) • Actual salaries as percent of original budget • Health and dental 137 • Wisconsin Retirement System (115) • Extra contractual/adjunct faculty wages/benefits 729 • FY09 additional sections cost primarily General Studiesand Trades (Machine Tool) $350 • Wage increase for extra contractual faculty 210 • FY10 additional requests 169 • Part-time FICA Alternative (220) (In $1,000s)

  33. FY2010 Requests for Additional Staff and Faculty Link to Additional Staff & Faculty Requests

  34. Program Updates Strong Demand, Modest Increase in Graduates: • Administrative Assistant (from 132 to 193 job openings; from 22 to 30 graduates) • Computer Support Specialist (from 57 to 59 job openings; from 19 to 21 graduates) • Hotel & Restaurant Management (from 31 to 56 job openings; from 7 to 10 graduates) • Print Technology (from 30 to 54 job openings; from 5 to 7 graduates) • Welding (from 78 to 127 job openings; from 32 to 54 graduates) Strong Demand, Flat or Modest Decreases in Graduates: • Criminal Justice, Corrections (from 33 to 56 job openings; from 23 to 18 graduates) • Marketing (from 244 to 301 job openings; from 48 to 36 graduates) • Physical Therapy Assistant (from 36 to 72 job openings; from 24 to 16 graduates) Other: • Apprenticeships continue slow rebound; a more proactive outreach strategy will be developed and implemented in 2009. • Retail Management Program will be suspended; courses will be folded as a retail management track into the Business Management Program.

  35. Position Retirements, Reductions, Eliminations Positions not to be filled as a result of Retirements: • 50% of a full-time Math Instructor (Retirement) • 50% of a full-time General Studies Lab Coordinator (Retirement) Position Reductions/Redefinition: • Respiratory Care Practitioner Instructor 100% to 75% (managing program more efficiently) • 50% of a full-time Alternative High School Instructor position (declining enrollment in Alternative High School option) • Apprenticeship Coordinator redefined as an Non-Unit Professional position reducing cost by $15,460 (currently filled by an instructor) • Retail management position reconfigured to support entrepreneurship and business management instruction Position Eliminations: • ESS Level IV position providing cross division support • Diesel Lab Aide (hourly) • Entrepreneurship Manager position

  36. Additional Health Care SavingsAnticipated in FY10 • Deeper discounts with United Options PPO • Average discount now 32% vs. 20% • Non-Unit Professionals moved to High Deductible Health Savings Account in January 2009 plus an increase in employee share of health premium • Unions increased health premiums, deductibles, and drug and emergency room co-pays in current collective bargaining agreement • Numerous wellness initiatives underway • Yields a modest increase in health premiums • 2.5% increase for Unions • No plan cost increase for Non-Unit Professionals High Deductible Plan

  37. FICA Alternative Retirement Program • All part-time, seasonal, and temporary employees who do not qualify for the Wisconsin Retirement System with the College are enrolled in FICA Alternative Retirement Program Under IRC 3121. • Instead of reducing salary on an “after-tax” basis by the mandatory FICA tax contribution of 6.2% and sending it to the Federal government, the College would establish an account in which the employee contributes 7.5% on a “pre-tax” basis. • Since the 6.2% after tax contribution has the approximate same impact as a 7.5% pre-tax contribution, take home pay is not changed. • Unlike Social Security, contributions and interest earnings are available upon termination of employment, death/disability, or normal retirement age. • Participant contributions are invested in a group annuity contract providing guaranteed interest and principal. • This plan is implemented and administrated at no cost to the employee by a Wisconsin-based third-party administrator. Additional Operating Budget Item Requests

  38. Supplies & Teaching Aids Down 4.4%, $111,400 Decreases • Non-instructional consumable supplies $56,000 • Minor equipment 46,300

  39. Purchased ServicesUp 3.1%, $118,100 Increases • SunGard IIT Services contractual increasesbased on CPI $133,500 • Network bandwidth capacity increase to support online instruction at remote campuses and Regional Learning Centers 30,000 • Line charges for additional video conferencing classrooms at Regional Learning Centers 15,000 Decreases • College-wide reduction of purchased services $53,000

  40. Rental & RepairUp 2.6%, $41,800 • Maintenance AgreementsAnnual increases or new contracts $55,800 • Instructional software • Imaging/workflow software purchased in FY09 • Web server security • Blackboard price increase

  41. UtilitiesDown 12.7%, $229,800 Decreases • Heat -26.1% $125,400 • Electricity -12.5% 119,800

  42. Energy Improvement Initiatives - Implemented • Reduced MMBTU/SqFt/DD from 13.01 in FY 07 to 11.6 in FY 08 • Improved Measurement of Energy Consumption • Energy Management Team established/goals set (2007/2008) • Energy Management implementation plan & schedule developed (2008) • Completed Energy Management Administrative Policy (2008) • Adopted Facilities Energy Management Operating Procedure (2008) • Implemented Temperature Settings in Accord with Revised State Energy Management Guidelines (2008) • Operational Productivity event for Energy Management (2008) • Purchase commitments for Natural Gas through November 2009 • $57,000 locked in savings for FY09 • $22,000 locked in FY 10 savings; monitoring market pricing for more opportunity

  43. Energy Improvement Initiatives - Upcoming • Develop Electrical Demand Monitoring • Incorporate Energy into Building Design(capital budget item on Sustainability) • Create Programs to Increase Staff & Student Awareness • Implement (re-lamp to) National Lighting Standards • Continue Conversion to 25-watt Lamps • Retro-commissioning of Building Controls • Implement PC Shutdown • Pilot Virtual Desktop Initiative • Potential for Bio Mass Boiler • Performance Contract w/$40K Savings • Electricity is largest component of Carbon Footprint

  44. NWTC Energy Usage (Gas & Electrical) 5-Year Comparison

  45. NWTC Total Energy Usage5-Year Comparison

  46. WTCS FY08 Energy Usage State Average 11.4

  47. Travel/Professional DevelopmentDown 5.6%, $47,000 Increases • Higher Learning Commission accreditation visit preparation $50,000 • For a total of $100,000 in FY10 Budget Decreases • College-wide, non-instructional travel 90,300 • FY10 budget will be at FY06 actual spending level

  48. Institutional/OperationalDown 4.7%, $79,200 Decreases • Uncollectable student fees $70,000 • Fewer student accounts receivable write-offs resulting from NWTC’s recent participation in the Wisconsin Dept. of Revenue Tax Refund Intercept Program (TRIP)

  49. Operating Contingency Funds Comprise 0.3% of Operational Budget • Contingency remains at $250,000 • $150,000-President • $70,000-Learning • $30,000-Student Services • FY09 Contingency Uses • Increased snow removal costs • Marketing dollars for advertising new programs • Innovative Sustainability Consulting • Global Corporate College Certification for CTED

  50. Changes to Other Funds • Decrease in state/federal projects: • Funding ends FY09 – International, WMEP • State budget reductions • Corporate Training and Economic Development • Slowed growth due to economic environment • Alternative High School - declining enrollment • Self Insurance Fund – modest increase in health care costs projected • Increase in Pell grants

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