Madison College District FY 15 Budget Presentation

• Dr. Jack E. Daniels, III, President • Tim Casper, Executive Director/Special Assistant to the President

04/09/2014

Outline

Revenues

Expenditures

College Contingency

Transfers to General Fund & FY15 Fund Balance Estimate

Future Budget Pressures

Budget Timeline

Revenues

Revenue Sources FY15 Revenue Sources FY15

Source FY15

Local Government/Property Tax $34,513,000

State Aids $73,752,000

Program Fees (Tuition) $38,301,000

Material Fees $1,283,000

Other Student Fees $1,915,000

Institutional $1,000,000

Federal Aids $255,000

TOTAL $151,019,000

FY 15 Revenue Estimates

General Fund Levy

$68,179,503

$72,064,429

$78,403,480

$83,309,880

$90,614,208 $90,648,615

$91,137,150

$92,315,000

$34,513,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

$70,000,000

$80,000,000

$90,000,000

$100,000,000

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 est. 2014-15budget

General Fund Levy

0.000

0.050

0.100

0.150

0.200

0.250

0.300

0.350

0.400

0.450

0.500

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

Projected Debt Service & Mill Rate

Debt Service Mill Rate

Mill rate based on 2013 Equalized Valuation (TID OUT) of $67,454,400,159 with annual growth of 2% in 2014 and 4% thereafter.

Total Levy & Mill Rate

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2.0

$20,000,000

$40,000,000

$60,000,000

$80,000,000

$100,000,000

$120,000,000

$140,000,000

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15(Est.)

Total Levy Total Mill Rate

Average Value Home

Value Mill Rate Tax

2013 $230,831 1.84099 $424.96

2014 $230,831 0.98646 $227.71

Change 0 -0.85453 -$197.25

Rate 0 -46.42% -46.42%

PROPOSED LEVY of $66,541,237

Property Tax & Property Tax Relief Fund

$86,000,000

$88,000,000

$90,000,000

$92,000,000

$94,000,000

$96,000,000

$98,000,000

$100,000,000

$102,000,000

$104,000,000

$106,000,000

FY14-15 Budget FY15-16 Projection FY16-17 Projection

ConservativeVery Conservative

The Tuition Revenue shown does not include Material Fees

Tuition Revenue

$24,130,210 $25,430,152

$27,173,733

$32,517,859

$35,461,329 $36,476,173 $37,274,824 $37,825,000 $38,301,000

$-

$5

$10

$15

$20

$25

$30

$35

$40

$45

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14(est.)

2014-15budget

Mill

ions

Tuition Per Credit Annual Per Credit Tuition and Percentage Increases

$117.90 $124.70

$131.50 $136.10

$142.20

$150.00

$158.25 $165.40

$170.36

$87.00 $92.05

$97.05 $101.40

$106.00 $111.85

$116.90 $122.20

$125.87

8.1%

3.5%

5.5%

3.0%

5.8%

5.5% 4.5%

4.5%

5.5%

4.5% 4.5%

3.0%

-1.0%

1.0%

3.0%

5.0%

7.0%

9.0%

11.0%

13.0%

15.0%

$40.00

$60.00

$80.00

$100.00

$120.00

$140.00

$160.00

$180.00

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15projected

College Transfer Rates Tech./Occ. Rates College Transfer % Increase Tech./Occ. % Increase

Tuition Revenue Projections

$32,500,000

$34,500,000

$36,500,000

$38,500,000

$40,500,000

$42,500,000

$44,500,000

FY14-15 FY15-16 FY16-17

ConservativeVery Conservative

WTCS General Aid and Performance-Based Funding

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

2014-15 2015-16 2016-17

WTCS General AidProjection

Performance FundingProjection

General Fund Revenue Projections

$134,000,000

$144,000,000

$154,000,000

$164,000,000

$174,000,000

$184,000,000

FY14-15 Budget FY15-16 Projection FY16-17 Projection

ConservativeVery Conservative

Expenditures

20.75%

20.33%

58.92%

Fringe Benefits

Materials and Services

Salaries & Wages

Operating Expenditure Components General Fund and Special Revenue Aidable Fund

FY 2014-15

FY15 Expenditures Item FY15

Salaries $88,998,649

Fringe Benefits $31,957,991

Supplies & Services $11,767,700

Leases $2,138,575

Utilities $2,934,811

Other District Expenses $5,779,344

Data Processing (Technology Services) $8,910,930

TOTAL $152,488,000

FY15 Expenditure Estimates

College Initiative Contingency

College Initiative Contingency

• Funded by ~ 3% reduction to modified base budgets, plus minor revenue adjustments o Contingency is approximately $3.679 million

• Purpose o Salary and wage adjustments o Fund new initiatives o Cushion any shortfall in enrollment

Transfers to General Fund & FY 15 Fund Balance Estimate

FY15 Projected Balance FY 15 Transfers to General Fund

Transfer from Reserve - HRA/Sick Leave @ Retirement $280,000

Transfer from Enterprise & Internal Services Funds $1,189,000

General Fund Net Balance $0

Fund Balance Estimate

Fund Balance Estimate

General Fund Reserve for Ops FY14 $37,441,452

Est. General Fund Reserve for Ops for FY15 $39,598,848

Future Budget Pressures

Other Pressures

• FY15 Leases

o The College has leases of $2.2 million

o McAllen Center

The College’s lease at the McAllen Center, which houses the IT program, expires Dec. 2014.

Saving the College $111,000 in lease payments for the rest of FY15

The program is moving into the Health Education Center’s 3rd Floor.

Other Pressures Con’t

• FY16 Leases o West Madison Lease expires - $1.235 million

• FY17 Leases

o South Madison Lease expires - $198,000

• FY16 - Workday o $1.18 million of current staff costs associated with Workday

implementation and supported by the Capital Fund return to the General Fund

Timeline Time Frame Action

April Board Meeting Budget Presentation

May Board Meeting Public Hearing

June Board Meeting Budget Approval

July 1, 2014 FY15 Begins

Budget Timeline

Questions