grand rapids community college board of trustees 2015-16 proposed budget june 1, 2015
TRANSCRIPT
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Grand Rapids Community CollegeBoard of Trustees
2015-16Proposed Budget
June 1, 2015
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AGENDA1. General Operating Fund 2. Restricted Fund 3. Designated Fund 4. Auxiliary Fund5. Plant Fund6. Looking Ahead
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General Operating FundSummary
Based on the tuition adjustments approved in March, the following budget is presented for your approval (no changes
from the May work session):Revenues $107,431,692Expenditures & Net Transfers 107,175,702Addition to Fund Balance 255,990Fund Balance - 7/1/2015 9,451,515Fund Balance - 6/30/2016 $9,707,505Fund Balance - % of Revenues 9.04%
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General Operating FundRevenue Sources
Tuition & Fees
49.3%Property Taxes27.4%
State Aid21.5%
Other1.8%
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General Operating FundPrimary Revenue Sources - Historical
2008-092009-10
2010-11
2011-12
2012-13 2013-14
2014-15 (mid year)
2015-16 (budget)0%
10%
20%
30%
40%
50%
60%
45%
50%53%
55% 54%53% 51%
49%
33%31%
28% 27% 27% 27% 27% 27%
18% 17% 16% 16%18% 19% 20%
22%
Tuition & Fees
Property Taxes
State Aid
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General Operating FundExpenditures
Salaries54.4
%Fringes29.6
%
Other
15.4%
Transfers0.6%
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Restricted Fund
Used to account for funds restricted as to use by external funding sources:
Federal sources $53,900,910 94.8%State sources 1,382,146 2.4%Local sources 379,232 0.7%College match (via transfer) 1,214,314 2.1%Total funds available 56,876,602Expenditures 56,876,602Net Revenue (Exp) $0
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Restricted FundSignificant changes from 2014-15 Mid Year
• Federal: $1 million decrease – due primarily to substantial completion of equipment purchases (approx. $830,000) related to the U.S. Dept. of Labor’s M-CAM grant. Various decreases in other programs such as TRIO student support services, ASCET Work First, special populations and the caregiver support grant account for the remainder of the decrease.
• State/Local: comparable to the prior year; includes activity for Michigan New Jobs Training Grant, Kellogg pathways and other smaller state/local grant programs.
• Transfers: $74,000 decrease – due to completion of the Kellogg-funded culture audit and the Ad Hoc committee recommendation to reduce support for the TRIO grant program. These decreases are partially offset by a required increase in funding (now 50%) to support a Data Analyst position related to the Title III program.
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Designated FundFunds internally designated for specific purposes and/or receiving
substantial external revenues (e.g. admission fees, contract revenues, etc. )
Significant Changes from 2014-15 mid year:• Training Solutions is projecting decreased revenues due to a change
in the contract for CNA training (more expenses paid directly by the client) and a more conservative estimate of training needs by manufacturers. Related expenses have been adjusted accordingly.
• Transfers from the GF have been reduced by $46,000 due to the Ad Hoc budget committee recommendation related to the Older Learner Center.
• We do not anticipate using funds from Budget Stabilization in 2015-16, thus the transfer to the GF has been eliminated.
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Auxiliary FundBookstore Food Service Parking
PrintingService Total
Revenue $640,000 $1,333,500 $2,527,500 $1,079,500 $5,580,500
Expense (247,790) (1,297,500) (1,111,000) (1,079,500) (3,735,790)
Capital (38,750) (12,000) (650,000) -0- (700,750)
Operating Rev (Exp) 353,460 24,000 766,500 -0- 1,143,960
Trans to GF (350,000) (100,000) (1,230,000) -0- (1,680,000)
Net Rev (Exp) $3,460 ($76,000) ($463,500) $-0- ($536,040)
• Overall, revenues decreased approximately 8.5% largely due to lower enrollment levels.• One position has been eliminated in Printing Services to better align costs with expected revenue.• A $30,000 increase in the Transfer to GF represents a recommendation of the Ad Hoc budget
committee to increase public (non-student) parking rates.• Key projects to be funded from Auxiliary revenues in 2015-16 include:
- Technology and equipment upgrades for the Bb Raider Card system - $38,750- Cafeteria equipment replacements - $12,000- Parking ramp maintenance and repairs - $650,000
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Plant FundOperating
Expenditures planned in the 2015-16 budget:• IT Capital/Tactical Plan - $1,011,000
– Includes classroom technology upgrades, phone system upgrade, PC “cascading”, etc.
• Capital Allocation and Deferred Maintenance - $1,256,397– Deferred maintenance allocation - $1,000,000– Recurring funding for vehicle replacement, SWD equipment, ADA
compliance and bond amortization - $256,397
• Matching funds for the CCSTEP Grant - $430,000– Will augment donor funds to meet grant match requirements
• Debt service on bond indebtedness - $7,393,618
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Looking Ahead
• Second year of VESP departures• Implementation of GASB #68 as of June 30, 2015• Continued implementation/exploration of the longer-term Ad
Hoc budget committee recommendations• Enrollment fluctuations• On-going prioritization of need for reinvestment in academic
programs and capital resources
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Questions/Comments