2013-14 Board of Trustees Budget Workshop

June 19, 2013

1

Mission, Vision and ValuesAdopted by Board of Trustees, October 2012

MissionMissionHillsborough Community college delivers teaching and

learning opportunities that empower students to achieve their educational goals and become contributing members

of the local community and a global society.

Hillsborough Community College will excel in proactively responding to the evolving educational needs of our students, staff, workforce, and community through

assessment and continuous improvement.

Vision

2

Mission, Vision and ValuesAdopted by Board of Trustees, October 2012

Values

• Student Success• Community Service• Diversity and Inclusion• Sustainability• Integrity• Innovation• Accountability• Professional Development

3

Funding Trends, Florida College System

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5

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The Florida College System Program Fund Appropriations by Source Lower and Upper Levels Combined

The Florida College System Program Fund Appropriations per FTE Lower and Upper Levels Combined

9

The Florida College System Comparison of FTE to State Funding per FTE, Lower and Upper Level Combined

10

Florida College System, State & Student Share of Operating Budgets

Hillsborough Community College

2013-14 Budget Parameters

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ASSUMPTIONS FOR HCC’S 2013-14 BUDGET PLANNING

• No Increases in Tuition & Across-the-Board* Fees

• Assume 3% Enrollment Decline• Consider 3% salary adjustments• Inflationary adjustments to current

expenses *Two User Fees Recommended, Pay-for-Print and Textbook Rental, non-return of Book

13

HCC State Appropriations

• State Appropriated Funds of $52,640,686, a $4,380,941 increase– Community college Program Funds $42,836,763– Lottery Funds

$9,803,923

• Funds for Construction & Renovation Needs $2,049,692

14

Funding Inequities

• 17 colleges below 70.35% system average

• Amount to bring all colleges up to a minimum of 70.35% of model funded, $47.4 million

• Amount to bring HCC up to 70.35% of model funded $9.3 million

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HCC Tuition and Fee Considerations

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Tuition & Fees, No Changes Proposed for FY 2013-14

2012-13 2013-14 % Change

Tuition $80.45 $80.45 0.0%

Access Fee 0.54 0.54 0.0%

Financial Aid Fee 4.03 4.03 0.0%

Technology Fee 3.91 3.91 0.0%

Student Activity 7.23 7.23 0.0%

Capital Improvement Fee 8.23 8.23 0.0%

Total Resident /Credit Hr $104.39 $104.39 0.0%

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Proposed Tuition & Fees Compared to Authorized Maximum

2013-14Proposed

Maximum Authorized % Change

Tuition $80.45 $82.78 2.9%

Access Fee* 0.54 0.54 0.0%

Financial Aid Fee 4.03 4.14 2.7%

Technology Fee 3.91 4.14 5.9%

Student Activity 7.23 8.26 14.3%

Capital Improvement Fee 8.23 10.23 24.3%

Total Resident /Credit Hr $104.39 $110.09 5.46%

20*Access Fee Amount can be established by Board of Trustees.

User Fees, Recommendation #1Pay for Print

PROPOSED FEES JUSTIFICATION

Single-Sided Black & White $0.10 Color $0.35

Double-Sided Black & White $0.08 Color $0.30

Supports the College’s sustainability initiatives, and also serves to recover costs of paper, toner and equipment leases.

Review of other schools identified that recommended charges are within ranges for similar pay-for-print programs.

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User Fees, Recommendation #2Textbook Rentals, Non-return of Book

PROPOSED FEE JUSTIFICATION

$20 for Non-Return of Rented Textbook

The Bookstore is instituting a textbook rental program. Textbooks can be rented for 50% of current retail price. If student fails to return the textbook at semester end, the student will be charged for the difference between rental and retail price, plus a $20 fee for processing costs related to recovery.

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Legislative Hot Topics• Dual Enrollment• Incentive Funding for Certain Industry

Certifications• Future Performance Funding• Developmental Education• Fund Balances: New Data Request

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Dual Enrollment

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Change to Dual Enrollment

• Senate Bill 1514 requires school districts to pay the standard tuition per credit hour (now $71.98) for courses taken by dual enrollment students on a college campus.

• Requires school districts to reimburse colleges for instructional costs when sections are taught at the high school.

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HCC Dual EnrollmentPublic High Schools Private High Schools Home Schooled

HeadcountCredit Hours Headcount

Credit Hours Headcount

Credit Hours

On HCC Campus

839 5,546 98 727 61 809

@ High School

1,365 6,078 74 727 0 0

TOTALS 2,204 11,624 172 1,454 61 809

Reporting Periods: Fall 2012, Spring 2013 (NOTE: Colleges are not to charge school districts for Summer Dual Enrollment credits)

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Potential Revenue Return

• The standard tuition rate is currently $71.98 per credit hour.

• Cannot bill for Summer semester credits.• Assuming 2012-13 Fall & Spring

Enrollments, Potential Additional Revenue to HCC = $451,530.

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Potential Cost Reimbursement

• HCC offered 141 sections taught at high schools.

• Approximate reimbursement for instructional costs = $248,000.

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Performance Funding for Industry Certifications

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Industry Certifications

• SB 1076 appropriated $5,000,000 for Performance Based Incentives for industry certifications in 2013-14

• Colleges may earn bonus funding ($1,000 per certification) when students obtain certain industry certifications.

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Industry Certifications Identified for FY 2013-14

• Automotive service technology• Cyber security• Cloud virtualization technology• Advanced manufacturing• Welding• Federal Aviation Administration airframe

mechanics• Pharmacy technician• Heating, ventilation and air-conditioning techs

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Performance Funding for Florida College System

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Performance Funding• Requires that by October 31, 2013, State Board

of Education recommends methodology to distribute performance funding based upon percentage of graduates employed or enrolled in further education, average wages of employed graduates, and average cost of graduate.

• No Funding provided for FY 2013-14

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Developmental EducationSB 1720

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Developmental Education• SB 1720 includes Developmental

Education Reforms to affect Advising, Testing & Placement, Curriculum & Instruction, Implementation and Reporting

• No Funding Reductions in FY 2013-14 due to Developmental Education Changes.

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Developmental Education

• Each Florida College System institution board of trustees shall develop a plan to implement the developmental education strategies defined in s. 1008.02 and rules established by the State Board of Education. The plan must be submitted to the Chancellor of the Florida College System for approval no later than March 1, 2014, for implementation no later than the fall semester 2014.

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HCC Enrollment & Budget Trend Data

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Review of HCC 2012-13 Enrollment

Planned for 5% enrollment decline:• Fall 2012 -1.9%

• Spring 2013 -4.4%

• Summer 2013 -6.3%

Projected FTE Enrollment (UNOFFICIAL)

-5.7%38

HCC Full-time Equivalent (FTE) Enrollment History & Projection

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2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 Estimated 2012-13

Projected 2013-14

0

5,000

10,000

15,000

20,000

25,000

16,623 16,99818,775

20,88621,771 21,676

20,436 19,823

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2007/08 2008/09 2009/10 2010/11 2011/12 Estimated 2012/13

Projected 2013/14

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$3,153

$2,652

$2,186$2,254

$2,219

$2,362 $2,656

$1,969$2,098

$2,371

$2,576$2,710

$2,844 $2,852

State Aid Per FTE

Tuition Per FTE

Note: State Aid for 2009/10 and 2010/11 does not include Federal pass-through Fiscal Stabi-lization Funding per FTE of approximately $190.

HCC State Aid vs. Student Tuition Revenue per Full-time Equivalent Student (FTE)

41State Approriations Student Fees Other Sources

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

51.2%

44.9%

3.8%

48.0% 49.0%

3.0%

43.9%

53.9%

2.2%

44.3%

53.4%

2.3%

47.2%

50.6%

2.2%

HCC Revenue Trends, % of OperatingBudget, 2009-10 to 2013-14

FY 2009/10

FY 2010/11

FY 2011/12

FY 2012/13

FY2013/14

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Instructi

on

Public Se

rvice

Academ

ic Support

Staff/Pro

gram Deve

lopment

Studen

t Support

Institutional

Support

Plant O

perations

Studen

t Aid

Transfe

rs, Contingen

cies, E

tc.0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

40,000,000

45,000,000

50,000,000

HCC Expenditures by Function

Renovation and Maintenance Needs

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Prior to 1970 1970 to 1979 1980 to 1989 1990 to 1999 2000 to 2009 2010 or Newer0

100,000

200,000

300,000

400,000

500,000

600,000

101,607

435,600

307,561

505,511

226,909

76,960

Age of HCC's Square FootageSq

uare

Foo

tage

Add

ed p

er D

ecad

e

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General Renovation Needs

• FY 2012-13 Sum-of-the-Digit Appropriation (for minor maintenance) = $264,542, or ≈$0.16 per square foot.

• Proposed for FY 2013-14 Sum-of-the-Digit Appropriation = $2,049,692, or ≈ $1.24 per square foot.

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2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

PECO Funding to HCC for General Renovation/Remodeling + Sum-of-the-Digits, 2006-07 to 2013-14

Revenue Projection, 2013-14$ Change

Increase in State Appropriations $4,380,941

Enrollment Decline, 3% Drop Budgeted ($1,580,872)

Other Revenues ($112,698)

Net Reduction in Operating Funds Available $2,687,371

Cost of Business Increases$ Change

Custodial Services Contractual Increase $95,500

Title V Grant Obligation 38,437

Employee Health Benefits & Retirement Rate 2,133,740

Full-time Salary/Wage increases 1,318,950

Estimated Increases, Terminal Pay 100,000

Additional Adjunct Faculty (primarily Allied Health) 174,833

Call Center, Increase in Funding from Unrestricted Funds

$27,380

Cost of Business Increases (Cont’d)$ Change

Apprenticeship Contracts, Enrollment 31,635

Technical Support, State Reporting Project 71,000

Additional Public Safety Costs 84,250

New 911 Public Safety Telecommunications Program 21,026

Repairs & Maintenance of Facilities 829,397

Materials & Supplies 284,873

General Liability Insurance Premiums 51,839

Cost of Business Increases (Cont’d)$ Change

Additional Funding, Disability Services 200,000

Information Technology, Software Licenses 244,997

Total Estimated Cost of Business Increases $5,687,857

Funding Gap (Deficit) Before Reductions/Cost Savings

($3,000,486)

Funding Reductions from 2012-13 Budgeted Amounts

$ Change

Reductions in District Offices Administrative Budgets $337,864

Grant Matching Funds 200,000

Professional Fees 209,263

Utilities- Sustainability and Energy Savings initiatives 201,713

Other Services 279,179

Corporate and Continuing Education 292,690

Funding Reductions from 2012-13 Budgeted Amounts

$ Change

Other Current Expenses $413,938

Capital Outlay Budget 65,839

Transfer to Plant Fund 1,000,000

Total Expense Reductions $3,000,486

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Stu-dent Tu-

ition & Fees; 56533629; 51%

State Sup-port;

52640686; 47%

Other Revenue; 2428136; 2%

Proposed FY2013-2014 Operating Revenue

$111,602,451

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Per-son-nel

Cost 78979164 71%

Cur-rent Ex-

penses

30296626 27%

Capital Outlay 2326661 2%

Proposed FY 2013-14 Operating Expenditures$111,602,451

Fund Balance Trends & Projection

Unallocated Fund Balance as of: Amount

Fund Balance as % of Available Funds

June 30, 2010 $11,157,037 9.39%June 30, 2011 $15,573,008 11.93%June 30, 2012 $11,851,444 8.73%

June 30, 2013 (Projected) $9,845,621 7.48%

June 30, 2014 (Proposed) $9,845,621 7.68%

Minimum recommended fund balance by the State is 5.1% of Available Funds

Fund Reserves & Board Designated Funds

Estimated Reserve for Encumbrances $2,300,000Budget Stabilization* $4,500,000

Total Reserves & Board Designated Funds

Combining Board Designated and Unallocated Fund Balance Brings June 2014 Fund Balance Projection to 10.88%.

$6,800,000

*Budget Stabilization to offset effects of potential enrollment declines, natural disasters, and other economic uncertainties.

Review of Other Funds

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Questions?

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