grand rapids community college board of trustees 2013-14 proposed budget june 3, 2013

Grand Rapids Community CollegeBoard of Trustees

2013-14Proposed Budget

June 3, 2013

AGENDA1. General Operating Fund 2. Restricted Fund 3. Designated Fund 4. Auxiliary Fund5. Plant Fund

General Operating FundSummary

Based on the tuition adjustments approved in April, the following budget is presented for your approval:

Revenues $106,742,766Expenditures & Net Transfers $106,742,766Addition to Fund Balance $-0-Fund Balance - 7/1/13 $10,998,649Fund Balance - 6/30/14 $10,998,649Fund Balance - % of Revenues 10.3%

General Operating FundRevenue Sources

Tuition & Fees

54.9%Property

Taxes26.5%

State Aid16.7%

Other1.9%

General Operating FundRevenue Sources - Historical

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 (mid year)

2013-14 (budget)

0%

10%

20%

30%

40%

50%

60%

42%45%

50%53%

55% 55% 55%

33% 33%31%

28% 27% 27% 26%

20%18% 17% 16% 16% 17% 17%

Tuition & Fees

Property Taxes

State Aid

General Operating FundExpenditures

Salaries

57.7%

Fringes

26.5%

Other 15.2%

Transfers0.6%

Restricted Fund

Used to account for funds restricted as to use by external funding sources:

Federal sources $74,869,627 95.6%State sources $1,553,184 2.0%Local sources $661,168 0.8%College match (via transfer) $1,238,000 1.6%Total funds available $78,321,979Expenditures $78,321,979Net Revenue (Exp) $0

Restricted FundSignificant changes from 2012-13 Mid Year

• Federal: $1.1 million decrease; due primarily to non-renewal of the Ottawa County Employment Services (Michigan Works) contract, and estimated lower federal work study fund due to sequestration.

• State/Local: $23,000 decrease; lower projected future spending for MI New Jobs Training Program contracts is partially offset by a $30,000 grant from the Kellogg Foundation for a culture audit.

• Total revenue decrease = $1,167,749, or 1.5%

Designated Fund

Funds internally designated for specific purposes and/or receiving substantial external revenues (e.g. admission fees, contract revenues, etc. )

Significant Changes:• Training Solutions is projecting lower revenues from contracted training

activity. Related expenses have been adjusted accordingly. • Transfers from the GF have been reduced by approx. $1 million from 2012-

13 mid year due to:– Elimination of the budgeted transfer to budget stabilization and use of $77K this

fund for one-time mandatory requests in 2013-14 ($622,000)– Elimination of GF operating for Training Solutions. This program will need to be self

sustaining from operations and available fund balance ($115,000)– Elimination of the one-time transfer to fund 100th anniversary activities ($100,000)– Temporary reductions in various other transfers, including SLT Initiatives, due to

projected available fund balances at June 30, 2013 ($165,000)

Auxiliary FundBookstore Food Service Parking

PrintingService Total

Revenue $760,000 $1,312,000 $2,285,000 $1,403,000 $5,760,000

Expense ($262,500) ($1,246,500) ($1,295,000) ($1,494,000) ($4,298,000)

Capital ($80,000) $0 ($1,230,000) ($10,000) ($1,320,000)

Operating Rev (Exp) $417,500 $65,500 ($240,000) ($101,000) $142,000

Trans to Gen Fund ($350,000) ($100,000) ($450,000) $0 ($900,000)

Net Rev (Exp) $67,500 ($34,500) $690,000 ($101,000) ($758,000)

Overall, revenues increased 3.9%, largely due to the agreement to provide printing services to the KISD. Auxiliary operations continue to provide $900,000 in GF support, in addition to funding for the following projects:• Technology and equipment upgrades for the Bb Raider Card system - ($80,000)• Bostwick parking ramp lighting - ($830,000)• Sneden parking ramp repaving - ($400,000)• Copier equipment replacement ($10,000)

Plant FundOperating

Expenditures planned in the 2013-14 budget:• IT Capital/Tactical Plan - $600,000

– Includes classroom technology upgrades, phone system upgrade, PC “cascading”, etc.

• Capital Allocation and Deferred Maintenance - $812,000– Deferred maintenance allocation - $600,000– Recurring funding for vehicle replacement, SWD equipment, bond amortization and

classroom & office moving costs - $212,000

• Cook Hall renovations - $8,779,600 (offset by $6,242,000 in donations to be received from the Foundation)

• Debt service on 2012 renovation bonds, paid with revenues from the Facilities Fee - $1,973,393

• Debt service on other bond indebtedness - $5,996,000

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