Fiscal Year Budget Planning & Outlook and FY Tuition Discussion

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1 Fiscal Year Budget Planning & Outlook and FY Tuition Discussion Board of Governor s Finance and Audit Committee Meeting March 8, 2016 David Bea Executive Vice Chancellor for Finance and Administration

2 Major Factors Impacting Budget No State Appropriations Continued Enrollment Declines Expenditure Limitation Risk Ongoing College Reorganization

3 Expenditure Limitation Plan: Update $130 M Dollars (Millions) $120 M $110 M $100 M $90 M 23,000 FTSE Levels 20,000 19,000 $7.5 M $5.0 M $2.5 M Budget Cuts $80 M $70 M Estimated EL $123.0 M $125.9 M $126.0 M $115.8 M $112.3 M $114.4 M $101.0 M $97.4 M $98.9 M $105.6 M Actual $ $94.8 M $98.1 M $105.1 M $108.7 M $108.6 M $101.1 M $96.1 M $93.6 M $95.0 M $96.4 M Actual FTSE EL $107.5 M $108.4 M $106.8 M $96.2 M $87.7 M $81.9 M $80.8 M $87.1 M $93.7 M $100.3 M Dollars (Millions) by Fiscal Year

4 Senate Bill 1322 Community College Expenditure Limitation (EL) Modifies, calculations of community college s expenditure limits, the calculation of full-time equivalent student enrollment, career and technical education (CTE) course weights and excludable revenues. CTE course weighting = 1.3 Changes to FTSE calculation to permit one of the following FTSE estimates for EL purposes: the most recent audited FTSE count; the average of the five most recent audited FTSE counts; or a FTSE count up to 5 percent more than the most recent audited FTSE count if the current Fall semester 45th day actual FTSE count exceeded the previous Fall semester 45th day actual FTSE count. Allows, as session law, a community college district to submit the average of the ten most recent audited FTSE for the next three years. Adds additional exclusions for local revenues

5 FY 2017 Budget Supports PCC s Mission, Strategic Planning, and Assessment

6 Preliminary Budget Estimates: FY 2017 General Fund Revenues ($ millions) FY 16 Property Tax Levy $ FY 17 Preliminary estimates $ 2.0 $ 2.1 State Appropriations 0.0 $ 0.0 Tuition and Fees 46.7 Other Revenue 0.7 College Equity % - FY 2016 Growth 2.00% - Requires Truth in Taxation process in May $1.00 credit hour increase = $450,000 additional revenue, presented at March Board Meeting Total Resources $ 152.2

7 Preliminary Budget Estimates: FY 2017 General Fund Expenses ($ millions) FY 16 FY 17 Preliminary Estimates Personnel $ 90.1 Fringe 27.0 $ 2.0 Benefits (Health, Retirement, Other) Subtotal $ Operations $ 27.7 $ 0.5 Contractual Services and Utilities Capital 0.4 Transfers (net) 1.3 $ 0.5 Athletics Reserves 5.7 Total $ 152.2

8 Expenditure Limitation (EL) Cost Reduction Strategies Reorganization/Reductions Campus/Department Consolidation Hiring / Recruitment Reviews Eliminate Positions Reduce Capital Budget Lease purchase equipment vs. purchase Tuition Increase Tax Levy Fund future capital needs Program innovation Resource reallocation/consolidation $ $

9 Change in Number of Vacant Positions by Month and Personnel Account Code Non Exempt Exempt Instructional Academic Support Admin Sep-15 Oct-15 Nov-15 Dec-15 Jan-16

10 Staff 29% PCC General Fund Budget Expenses, FY 2016 Administrators 4% PCC Administrator Positions (FY , All Funds) Adjunct Faculty / Other Comp. 10% Faculty 16% Operations, Capital, etc. 23% Fringe Benefits 18% # Administrator Positions - Other Funds # Administrator Positions - General Fund Total

11 FY 2017 Priorities for Discussion Health Benefit Costs Contractual Obligations Athletics Depreciation / Capital Project Funding Strategic Resource Reallocation Personnel Reductions Tuition/Enrollment Initiatives

12 FY 2016 Tuition & Service Fees FY 2015 Tuition Rates for Credit Classes Cost Per Unit In-State Resident $ Non-resident $ Non-resident Online $ Non-resident Summer $ Differential Tuition A (30%) (In-State Resident) $ Differential Tuition B (40%) (In-State Resident) $ Student Services Fee $ 3.00 Technology Fee $ 2.50 Semester Processing Fee $ 15.00

13 FY 2016 Arizona Community Colleges Tuition + Fees per unit $ $90.00 $80.00 $70.00 $60.00 $50.00 $40.00 $30.00 $20.00 $10.00 $0.00 Coconino Mohave Maricopa Pinal - Central Pima Yuma/La Paz - AZ Western Cochise Yavapai Graham - Eastern Navajo - Northland Pioneer FY 16 Fees Per Unit $7.00 $7.00 $0.00 $0.00 $5.50 $0.00 $0.00 $0.00 $0.00 $0.00 FY 16 Tuition Per Unit $92.00 $81.00 $84.00 $82.00 $75.50 $78.00 $77.00 $75.00 $69.33 $68.00

14 Tuition Options under Consideration Traditional In-State Tuition increase $1 per unit = $450,000 Tuition cap Lifelong learning program discount for 55+ Out of State Tuition International Tuition Other Differential Tuition?

15 Units Taken in Term by Students 4,000 3,500 3,000 2,500 Number of In-State Students by Units per Term 100% 90% 80% 70% Proportion of Students Taking Various Units By Student Type, Combined Fall/Spring Terms 2,000 60% 1,500 50% 40% 1,000 30% % 10% % In-State Out of State International 0-3 units >3-6 units >6-9 units >9-12 units >12-15 units >15-18 units 18+ units

16 Population vs. Student Age Data 60,000 50,000 Two Term Average of Credits Taken by Student Age (based on FY15, FY16) Two Term Average of Credits Taken by Student Age Group (FY15, FY16) vs Pima County Population 180, , ,000 40,000 30,000 20,000 10,000 Quantity 120, ,000 80,000 60,000 40, ,000 0 Age Groupings Average # Credits taken by Age Grouping for 2 Terms 2008 Pima County Population by Age Grouping

17 Out of State and International Tuition Comparisons 2 Year Colleges $450 $400 $350 $300 Out of State Online Tuition Charges Arizona Colleges Peer Institutions Other Institutions PCC $450 $400 $350 $300 International Tuition Arizona Colleges Peer Institutions Other Institutions PCC $250 $250 $200 $200 $150 $150 $100 $100 $50 $50 $0 0 20,000 40,000 60,000 80, ,000 $0 0 20,000 40,000 60,000 80, ,000

18 Tuition Scenarios Tuition Type Change Change per Unit In-State Resident Increase +$3.00 Out-of-State Non-Resident Online Decrease - $ Out-of-State Non-Resident Classroom Decrease - $52.00 International Tuition Decrease - $52.00 New Tuition Discount In-State, 55 yrs. old and above Decrease 50% of In-State Tiered/Capped Tuition at 15 units Budget Reduction - $3.6 million

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