Budget Discussion Session IV

Transcription

1 Board of Trustees Budget Discussion Session IV August 9,

2 A g e n d a Budget Forecast Proposed Operating Budget Considerations Discussion SUCCESS WITHIN REACH. 2

3 BUDGET FORECAST Providing Excellence in Teaching and Learning Revenue Summary Contact Hours State Appropriation Tuition Property Tax Salary and Benefits 3

4 Estimated Revenue Summary Includes Tuition Rate Increase Revenue Increase (Decrease) State Appropriation $ 55,345,475 $ 55,345,475 $ - Maintenance Tax 202,139, ,679,447 14,539,933 Credit Hour-Tuition 59,400,000 62,960,000 3,560,000 Community & Industry Education-Tuition Funded Community & Industry Education-Tuition Non-Funded 2,600,000 2,600,000-1,400,000 1,400,000 - Rental Income & Other 1,250,000 1,800, ,000 Interest Income 1,650,000 2,400, ,000 Designated Reserve 5,000,000 5,000,000 - Total Educational & General Income $ 328,784,989 $ 348,184,922 $ 19,399,933 Tax Revenue: Renewal & Replacements 27,309,920 27,309,920 - Total Educational Gen & CIP Income $ 356,094,909 $ 375,494,842 $ 19,399,933 * INCLUDES 2019 SPRING AND SUMMER TUITION INCREASE 4

5 Estimated Revenue Summary Without Tuition Rate Increase Revenue Increase (Decrease) State Appropriation $ 55,345,475 $ 55,345,475 $ - Maintenance Tax 202,139, ,679,447 14,539,933 Credit Hour-Tuition 59,400,000 59,400,000 - Community & Industry Education-Tuition Funded Community & Industry Education-Tuition Non-Funded 2,600,000 2,600,000-1,400,000 1,400,000 - Rental Income & Other 1,250,000 1,800, ,000 Interest Income 1,650,000 2,400, ,000 Designated Reserve 5,000,000 5,000,000 - Total Educational & General Income $ 328,784,989 $ 344,624,922 $ 15,839,933 Tax Revenue: Renewal & Replacements 27,309,920 27,309,920 - Total Educational Gen & CIP Income $ 356,094,909 $ 371,934,842 $ 15,839,933 5

6 Budget Summary Three-Year Comparison FY 2016 FY 2017 FY 2018 INCOME OPERATION & MAINTENANCE State Appropriation $ 56,290,151 19% $ 56,290,151 18% $ 55,345,475 17% Maintenance Tax: Operation & Maintenance 173,218,176 58% 180,941,230 59% 202,139,514 61% Tuition & Fees 61,787,415 20% 63,400,000 20% 63,400,000 19% Rental Income & Other 2,658,552 1% 2,436,000 1% 1,250,000 0% Interest Income 600,000 0% 1,000,000 0% 1,650,000 1% Designated Reserve 5,000,000 2% 5,000,000 2% 5,000,000 2% TOTAL OPERATION & MAINTENANCE 299,554, % 309,067, % 328,784, % Maintenance Tax: Capital Improvement Plan 27,309,920 34,309,920 27,309,920 TOTAL INCOME 326,864, ,377, ,094,909 EXPENDITURES OPERATION & MAINTENANCE Instruction 117,674,108 39% 122,505,561 40% 128,858,730 39% Academic Support 18,732,090 6% 19,342,312 6% 18,839,067 6% Student Services 22,384,087 7% 23,087,759 7% 24,747,387 7% General Administration 34,395,924 12% 35,660,726 12% 38,508,750 12% General Institutional Expense 26,256,164 9% 25,213,137 8% 27,066,710 8% Staff Benefits 34,270,000 11% 36,820,000 12% 38,973,853 12% Contingency: Other Operational 16,711,394 6% 17,743,655 6% 23,075,892 7% Physical Plant Operation 29,130,527 10% 28,694,231 9% 28,714,600 9% TOTAL OPERATION & MAINTENANCE 299,554, % 309,067, % 328,784, % Non-Mandatory Transfers 27,309,920 34,309,920 27,309,920 TOTAL EXPENDITURES 326,864, ,377, ,094,909 OPERATIONAL BUDGET BY TYPE OF EXPENDITURES: Salaries 175,853,140 59% 184,512,424 60% 192,292,146 58% Staff Benefits 34,270,000 11% 36,820,000 12% 38,973,853 12% Fixed Charges 11,396,376 4% 10,676,376 3% 10,397,330 3% Operating Expenses 78,034,778 26% 77,058,581 25% 87,121, % TOTAL $ 299,554, % $ 309,067, % $ 328,784, %

7 State Appropriation LBB nd Year of Biennium Instructional Funds = $55.3M Same as Core Operations $0.7M Student Success Points Points $6.7M Student Success Contact Hour Funding $47.9M 7

8 Decrease in State Funding 20% State Appropriations % 19% 18% 17% State appropriations as % of overall TCCD revenue 8

9 Tax Comparison 25-Jul Jul Jul-18 Appraised Value 190,805,873, ,396,524, ,106,611,550 Absolute Exemptions 19,862,566,953 22,656,506,841 23,537,573,356 Case Before ARB 9,939,935,317 9,865,354,317 5,878,560,391 Incompletes 5,608,036,445 3,238,454,412 5,913,773,919 Partial Exemptions 11,108,485,480 11,341,501,209 11,862,072,317 In Process 616,472,581 47,413,825 5,905,409 47,135,496,776 47,149,230,604 47,197,885,392 Net Taxable Value 143,670,377, ,247,293, ,908,726, % 13.63% 10.82% Tax Revenue 215,251, ,449, ,989, % 6.60% 6.34% TCC Tax Rate /$ /$ /$100 Effective Tax Rate /$ /$ /$100 9

10 Enrollment Data Term Fall 8,118,562 8,159,448 7,909,312 7,901,060 7,770,160 8,027,088 Spring 7,487,326 7,483,224 7,591,624 7,287,320 7,232,500 7,395,308 Total 15,605,888 15,642,672 15,500,936 15,188,380 15,002,660 15,422,396 10

11 Tuition Resident Status Three-Year Tuition Rate Increase Current (3-Year Increase Adopted ) (Beginning Spring) Propose In-District $ 59 $ 64 $ 64 $ 64 Out-of-District Out-of-State Non-Resident

12 Tuition Rate Survey Texas Top Ten Community Colleges Preliminary/Proposed College Increase Alamo Community College $13 Austin Community College Collin College Dallas County Community College No increase $4 In-District, $8 Out-of-District, $13 Non-Resident No increase El Paso Community College $11 Houston Community College Lone Star College San Jacinto College South Texas College Proposing an increase for tuition and technology fee $10 Out-of-District, $30 Non-Resident, $2 for differential fee $2 SCH fee increase No tuition increase, but differential fee increase 12

13 Same Ranking Ranking Top Ten In-District Tuition Community College District Per Semester Credit Hour 1 El Paso Community College District $ South Texas College Alamo Community College District Austin Community College 85 5 Lone Star College System District 76 6 Houston Community College System* 68 7 San Jacinto College 65 8 Tarrant County College District 64 9 Dallas County Community College District Collin College District 50 Top Ten Average 82 *HCC TBD: $ tuition; proposing an increase 13

14 Same Ranking Ranking Top Ten Out-of-District Tuition Community College District Per Semester Credit Hour 1 Austin Community College $ Alamo Community College District Lone Star College System District Houston Community College System* South Texas College Tarrant County College District El Paso Community College District Dallas County Community College District San Jacinto College Collin College District 96 Top Ten Average 158 *HCC TBD: $ tuition; proposing an increase 14

15 Same Ranking Ranking Top Ten Out-of-State Tuition Community College District Per Semester Credit Hour 1 Alamo Community College District $ Austin Community College Tarrant County College District South Texas College El Paso Community College District Lone Star College System District San Jacinto College Dallas County Community College District Collin College District Houston Community College System* 157 Top Ten Average 253 *HCC TBD: $ tuition; proposing an increase 15

16 Salary and Benefits Salary Cost for Each 1% $1.8M Benefits Cost for Each 1% $499K *Faculty overload and one-time only increase cost shown on next slide. 16

17 Salary and Benefits Cost Summary Full-Time Employee* 2% Increase 2.25% Increase 2.5% Increase Salary $ 3,570,000 $ 4,016,250 $ 4,620,500 $1,000 one-time only increase 2,382,000 2,382,000 2,382,000 Benefits 1,398,000 1,522,750 1,647,000 Sub-Total $ 7,350,000 $ 7,921,000 $ 8,649,500 Faculty Overload, Adjunct, PT and On-Call 3.5% Increase 3.75% Increase 4% Increase Cost of Increase 1,607,000 1,662,000 1,717,000 Benefits 321, , ,400 Sub-Total $ 1,928,400 $ 1,994,400 $ 2,060,400 Total $ 9,278,400 $ 9,915,400 $ 10,709,900 *Employed by May 31,

18 Salary Survey Texas Top Ten Community Colleges Preliminary/Proposed Salary Increases College Increase Alamo Community College 0% Austin Community College 3% Collin College 4% Dallas County Community College 3% El Paso Community College 3% Houston Community College 2% Lone Star College 2% San Jacinto College 3% South Texas College 3% 18

19 Salary Survey Tarrant County ISDs & Governmental Employers Preliminary/Proposed Salary Increases Arlington ISD 2% Birdville ISD 2.25% Crowley ISD 3% all professional employees 4% all paraprofessional employees Fort Worth ISD 2% Mansfield ISD 1% City of Arlington To Be Determined City Euless 2.5% City of Fort Worth City of Hurst City of Mansfield To Be Determined To Be Determined To Be Determined 19

20 Salary Scenarios with Estimated Revenue Tax, Tuition and Interest Income Total Total Educational & General Income Change $ 19,399,933 2% 2.25% 2.5% Salary, benefits, faculty overload increase + $1,000 one-time only increase 9,278,400 Income over Expenditures $ 10,121,533 Salary, benefits, faculty overload increase + $1,000 one-time only increase 9,915,400 Income over Expenditures $ 9,484,533 Salary, benefits, faculty overload increase + $1,000 one-time only increase 10,709,900 Income over Expenditures $ 8,690,033 * INCLUDES 2019 SPRING AND SUMMER TUITION INCREASE 20

21 Salary Scenarios with Estimated Revenue Tax and Interest Income Total Total Educational & General Income Change $ 15,839,933 2% 2.25% 2.5% Salary, benefits, faculty overload increase + $1,000 one-time only increase 9,278,400 Income over Expenditures $ 6,561,533 Salary, benefits, faculty overload increase + $1,000 one-time only increase 9,915,400 Income over Expenditures $ 5,924,533 Salary, benefits, faculty overload increase + $1,000 one-time only increase 10,709,900 Income over Expenditures $ 5,130,033 21

22 P r o p o s e d O p e r a t i n g B u d g e t SUCCESS WITHIN REACH. 22

23 Proposed Budget Requests (22) Faculty Positions Recommended (Total: $1,112,166) South Campus Southeast Campus English Physics Economics English Academic Foundations Economics Welding Math Northeast Campus Trinity River Campus Biology Medical Assistant Government Geology / GIS CS/IT (Cyber Security) Economics CS/IT (Data and Information Science) Psychology / Sociology Northwest Campus Connect Campus Logistics and Supply Chain Management Education Math Human Resources Non-Destructive Testing Criminal Justice 23

24 N N N N O N = Non-Faculty (12) O = Operating X = Other Requests Proposed Budget Requests Recommended (Total: $1,744,035) Chancellor s Executive Leadership Team (CELT) VC Communication and External Affairs (1) Publications Manager, District Increase in District work load (3) HR Specialists needed based on Evergreen Report (2) Talent & Acquisition Specialists needed based on Evergreen Report (1) Title IX Specialist needed based on Evergreen Report VC Information Technology (1) ERP Administrator Expanding Self-Service and Colleague Information Security O Administration role and Digital Resources VC Finance (1) Police Captain - needed as a Special Operations Lieutenant Business Services on-call pool To help support extended weekend hours O ATM Services Executive VC & Provost/Campuses (2) Academic Advisor Northwest Campus (CEATL Site) and Connect Campus (1) Veterans Specialist Admissions & Records Campuses Academic Support Areas Intercultural Student Engagement Program Center for Teaching and Learning Campus Support: expansion O venue and speaker fees, materials and supplies Teaching Materials Projected increase Student Success CSI Inventory & CSSE/SENSE Survey Student Travel Projected increase X 24 Academic Affairs Faculty stipend rate adjustment

25 Proposed Non-Faculty (12) and Faculty (22) Benefits for New Positions Total: $700,000 25

26 Proposed Budget Requests Renewal & Replacements (Fund 40): Recurring Expenditures Contingency Professional Services Project Support Furniture District South Campus Northeast Campus District South Campus Northeast Campus Recommended: $27M District Code Blue Access Control Roofing Space Renovation Northwest Campus/Alliance Southeast Campus Trinity River Campus MEP Infrastructure Northwest Campus Southeast Campus Trinity River Campus 26

27 Proposed Budget Requests Building Fund (Fund 70) Recommended: $23M Pending Board Approval New Construction: Estimates for programing, design and pre-construction Northwest Campus Southeast Campus 27

28 Proposed Staff and Operations New Request Estimated Expenditure Summary Expenditure Total Operating 969,054 Non-Faculty (12) 647,981 Faculty (22) 1,112,166 Benefits (new positions) 700,000 Faculty Stipend Rate Adjustment 127, % Salary Increase, $1,000 One-time Only Increase & Benefits 10,709,900 Fund 10 Total $ 14,266,101 28

29 Proposed Estimated Revenue & New Request Expenditure Summary Revenue (Tax, Tuition & Interest) Expenditures-Fund 10 (Staff and Operations) 19,399,933 14,266,101 Income Difference $ 5,133,832 29

30 C o n s i d e r a t i o n s SUCCESS WITHIN REACH. 30

31 Consideration 2.5% salary and benefits increase and $1,000 one-time only increase for all full-time employees employed by May 31, % increase for faculty overload, adjunct, part-time and on-call 31

32 Consideration Tax Rate Increase (Decrease) ( ) 32

33 Consideration Tuition Rate Increase for Three Years Resident Status Beginning Spring Current Spring Total SCH Increase SCH In-District $ 59 $ 64 $ 5 Out-of-District Out-of-State Non-Resident

34 Board of Trustees Next Budget Discussion August 16 34

35 Questions~Comments~Discussion O N E C O L L E G E S T U D E N T R E A DY C O L L E G E S E R V E T H E C O M M U N I T Y Providing Excellence in Teaching and Learning 35