COCONINO COMMUNITY COLLEGE BUDGETING 102  Budget Projections

COCONINO COMMUNITY COLLEGE BUDGETING 102 Budget Projections & Assumptions CCC Sustainable Financial Plan & Due Diligence Cost of Academic Programs 2013 Special Override Election Fall 2013 Budgeting 102 Coconino Community

COCONINO COMMUNITY COLLEGE BUDGETING 102 Budget Projections & Assumptions Fall 2013 Budgeting 102 Coconino Community

COCONINO COMMUNITY COLLEGE BASE ASSUMPTIONS: Revenues: Property Taxes Collections – 3% per year Based on legally allowed 2% base growth and 1% attributable to “new construction” Tuition Revenue – 2% per year Increase in per credit hour tuition rate (will compound by student growth) State Aid – 0% per year Has been falling over time – May increase slightly in FY 2014 Expenditures: Enrollment Growth – 1% per year Cost Inflation – 3% per year Applies to all categories (will compound by student growth) Fall 2013 Budgeting 102 Coconino Community

Budget Projection Through FY 2024 25,000,000 4000 3500 20,000,000 FTSE 3000 15,000,000 FTSE 1% 10,000,000 Property 3% Tuition 3% 5,000,000 2500 2000 1500 State Aid 0% Property Tax Tution State Aid TOTAL REV Fall 2013 Budgeting 102 Coconino Community TOTAL EXP 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 1000 2002 - FTSE

COCONINO COMMUNITY COLLEGE BUDGETING 102 CCC Sustainable Financial Plan & Due Diligence Fall 2013 Budgeting 102 Coconino Community

CCC’S SUSTAINABLE FINANCIAL PLAN & DUE DILIGENCE Fall 2013 Budgeting 102 Coconino Community

CCC’S SUSTAINABLE FINANCIAL PLAN & DUE DILIGENCE Fall 2013 Budgeting 102 Coconino Community

COCONINO COMMUNITY COLLEGE BUDGETING 102 Cost of Academic Programs Fall 2013 Budgeting 102 Coconino Community

Fall 2013 Budgeting 102 Coconino Community

COST OF ACADEMIC PROGRAMS FULL-TIME STUDENT EQUIVALENT (FTSE) COSTS High vs. lower cost programs Average cost per full-time student equivalent (FTSE) is 7,000 The per FTSE cost of a high tech program student is 64% higher than a non high tech program student Reasons for higher costs: Specialized equipment lower student to faculty ratio More labs Fall 2013 Budgeting 102 Coconino Community

COST OF ACADEMIC PROGRAMS FULL-TIME STUDENT EQUIVALENT (FTSE) COSTS Examples of two programs: Nursing Cost Per FTSE: Direct instructional costs only 19,800 or 845,000 per year With all other indirect costs is 31,000 or 1.33 million per year EMS/Fire Science Cost Per FTSE: Direct instructional costs only 3,774 or 359,500 per year With all other indirect costs is 6,288 or 599,000 per year Fall 2013 Budgeting 102 Coconino Community

COST OF ACADEMIC PROGRAMS BEYOND TUITION Beyond Tuition, State Aid, and Property Tax Class fees - consumables Grants Perkins – Career & Tech Support Arizona Hospital Association – Start up Costs First Things First – Early Childhood Education Gifts and Donations FMC/NAH – Beds, Equipment, and Funding WL Gore – Computer Servers NAU – Lab Equipment City of Flagstaff - 35K for Chemistry Lab Fall 2013 Budgeting 102 Coconino Community

COST OF ACADEMIC PROGRAMS STARTUP COST OF NEW PROGRAM Example: San Juan Community College Industrial Process Operator Program (IPOP) 1.2 million in start-up equipment 500,000 salary/fringe for 5 FT faculty hires 74 credit hours Fall 2013 Budgeting 102 Coconino Community

PROGRAM ASSESSMENT CCC regularly performs various reviews of their programs to ensure quality and viability Program Review (5 year cycle) Full budget review (when indicated) Advisory council meetings Community feedback through surveys, conversations, etc. Student feedback Fall 2013 Budgeting 102 Coconino Community

COCONINO COMMUNITY COLLEGE BUDGETING 102 2013 Special Override Election Fall 2013 Budgeting 102 Coconino Community

Coconino Community College’s Three Core Missions: 1.) Arts & Sciences – Transfer/Transition 2.) Career & Technical Education 3.) Workforce Training Fall 2013 Budgeting 102 Coconino Community

Coconino Community College’s Three Funding Sources FY 2013 General Fund Tuition (Estimated Actual Revenues) and Fees 45% State Aid 12% Other 1% Property Taxes 42% Fall 2013 Budgeting 102 Coconino Community

CCC’s Financial Dilemma 1.) State Aid Cuts 15 million cut cumulatively from FY2007 to FY2014 State Aid & Full-Time Student Enrollment (FTSE) State aid was 23% share of CCC’s budget in 2007; now it’s 12%. Struggling to meet core missions! Fall 2013 Budgeting 102 Coconino Community

CCC’s Financial Dilemma 2.) Property Taxes Since 1991, CCC’s primary property tax rate has virtually stayed the same even though CCC’s student body has grown. Property Tax & Full-Time Student Enrollment (FTSE) Struggling to meet core missions! Fall 2013 Budgeting 102 Coconino Community

CCC’s Financial Dilemma Lowest Property Tax Rate in Arizona! FY2014 Primary Property Tax Rates by Arizona Community College Struggling to meet core missions! Fall 2013 Budgeting 102 Coconino Community

CCC’s Response 3.) Tuition & Fees 89% higher tuition since 2007! 1,296 tuition increase is the largest increase among Arizona community colleges. Academic Year Tuition & Fees Tuition was 33% share of CCC’s budget in 2007; now it’s 43%. Struggling to meet core missions! Fall 2013 Budgeting 102 Coconino Community

CCC’s Response Highest Student Tuition in Arizona! FY2014 Tuition & Fees by Arizona Community College Struggling to meet core missions! Fall 2013 Budgeting 102 Coconino Community

CCC’s Response 100 Cost Saving Initiatives 15% employee reduction 20% classes cut 30% programs eliminated Closed Williams Campus FY2014 Operating Budget & Reductions 4 Million in Budget Reductions -18% CCC is now drawing on minimal reserves and struggling to meet core missions! Fall 2013 Budgeting 102 Coconino Community

CCC’s Financial Situation Raising tuition & cost saving initiatives are not enough to maintain current levels of service. Sustainable Options: Eliminate core missions OR Increase revenue Fall 2013 Budgeting 102 Coconino Community

Coconino Community College’s Three Core Missions: 1.) Arts & Sciences – Transfer/Transition - Navigating students seamlessly from high school to CCC, to a bachelor’s degree and beyond through CCC’s educational pipeline. 2.) Career & Technical Education - Preparing local students for better jobs in Fire Science, Criminal Justice, Nursing & Paramedics, etc. 3.) Workforce Training - Keeping jobs in Coconino County with customized curriculums, business retention & expansion, community partnerships, etc. Fall 2013 Budgeting 102 Coconino Community

Override Election – November 5, 2013 On June 25, 2013, the Coconino Community College District Governing Board unanimously called for a voter-approved override election. Temporary: 7 Years 4.5 Million/Year Requires Voter Approval Property Tax Effects: 100K Home Value 2.40/month 29/year 170K Home Value (Average in Coconino County) 4.20/month 50/year Fall 2013 Budgeting 102 Coconino Community

Override Election – November 5, 2013 Schedule: October 7, 2013 Last day to register to vote October 25, 2013 Last day to request early ballot by mail November 5, 2013 Election Day Polling hours: 6 a.m. to 7 p.m. For election information visit: www.coconino.az.gov/elections Fall 2013 Budgeting 102 Coconino Community

Thank You! For more information, visit: www.coconino.edu/ VoterInformation Fall 2013 Budgeting 102 Coconino Community

COCONINO COMMUNITY COLLEGE BUDGETING 102 Questions? Citizens’ Review Panel Meeting #2 April 8, 2013 Coconino Community