NCCCS Overview for House Appropriations Education meeting

1. North Carolina Community College System
Budget Overview
Stephen Bailey
Fiscal Research Division
February 16th, 2023
Agenda – NC Community College System
1. Governance and structure
2. Enrollment and tuition
3. Funding overview
 How colleges generate funds
 How State funds are used in the System
 How State funds may be expended by the colleges
4. FY 2023-25 biennium outlook
February 16, 2023
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2. North Carolina Community
College System (NCCCS)
Governance and Structure
3 February 16, 2023
NCCCS and the State Constitution
4
 Article IX, Section 8: “The General Assembly shall maintain a public system of higher education,
comprising The University of North Carolina and such other institutions of higher education as the
General Assembly may deem wise. The General Assembly shall provide for the selection of trustees
of The University of North Carolina and of the other institutions of higher education, in whom shall be
vested all the privileges, rights, franchises, and endowments heretofore granted to or conferred upon
the trustees of these institutions. The General Assembly may enact laws necessary and expedient for
the maintenance and management of The University of North Carolina and the other public
institutions of higher education.”
 Article IX, Section 9: “The General Assembly shall provide that the benefits of The University of
North Carolina and other public institutions of higher education, as far as practicable, be extended
to the people of the State free of expense.”
February 16, 2023
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3. NCCCS General Statute Purpose Statement
5 February 16, 2023
 “…educational institutions throughout the State offering courses of
instruction in one or more of the general areas of two-year college parallel,
technical, vocational, and adult education programs.”
 “…designated as the primary lead agency for delivering workforce
development training, adult literacy training, and adult education
programs.”
G.S. 115D-1
North Carolina Community College System (NCCCS)
6 February 16, 2023
58 colleges
41 multi-campus centers
~575,000 students enrolled
in 1 or more courses
~220,000 budgeted full-time
equivalent (FTE) students
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4. Number of Public 2-Year Institutions, by State, Top 10
7 February 16, 2023
101
58 55
48
36
31
25 25 24 24
0
20
40
60
80
100
120
California North
Carolina
Texas Illinois New York Minnesota Kansas Ohio Michigan Virginia
NCCCS Governance Structure
8 February 16, 2023
State Board of
Community Colleges
Local Boards of
Trustees
• Serves as the governing authority for
NCCCS
• Serve as the governing authority for
each college
• 21 members
• 18 appointed
• 3 ex-officio
• Elects system president
• 13 members (minimum)
• 12 appointed
• 1 ex-officio
• Elect college presidents
• Sets system policies and regulations
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5. NCCCS
Enrollment and Tuition
9 February 16, 2023
Major Instructional Program Areas
10 February 16, 2023
Curriculum
Credit courses that
lead to certificates,
diplomas, or associate
degrees
Includes Career &
College Promise (high
school students
earning college credit)
Workforce
Continuing
Education
Non-credit courses
that provide job
training
opportunities to
individuals
Basic Skills
Includes Adult
Basic Education,
GED, Adult High
School, English as a
Second Language
(ESL), and
Compensatory
Education
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6. Instructional Programs by Headcount
11 February 16, 2023
Curriculum
258,247
(45%)
Workforce
Continuing
Education
245,477
(43%)
Basic Skills
43,195
(7%)
Multiple
27,262
(5%)
Total: 574,181 (FY 2021-22)
Total Headcount by Age Range, FY 2021-22
12 February 16, 2023
68,459
182,186
209,195
98,956
15,357
0
100,000
200,000
300,000
400,000
500,000
600,000
65+
45-64
25-44
18-24
<18
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7. NCCCS Total Enrollment (Headcount)
13 February 16, 2023
Thousands
845
826 825
780
734
710
697
681
668
640
525
574
500
550
600
650
700
750
800
850
900
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
Budgeted Full-Time Equivalent (FTE) Enrollment Trend
14 February 16, 2023
250
240 238
230 225 220 222 219
230 234
214 220
150
200
250
300
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
Budgeted FTE = CurrentYear
FTE or 2-Year Average
Thousands
1 FTE = 512 hours of instruction
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8. Enrollment Trend – By Instructional Area (FTE)
15 February 16, 2023
199
172
30
36
21
10
0
50
100
150
200
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
Curriculum Workforce/Con. Ed Basic Skills
Thousands
Change in Total Students – FY 2010-11 to FY 2021-22
16 February 16, 2023
-4,000
-3,000
-2,000
-1,000
0
1,000
2,000
3,000
4,000
5,000
Wake
TCC
Fayetteville
TCC
Brunswick
CC
South
Piedmont
CC
Blue
Ridge
CC
Sampson
CC
James
Sprunt
CC
Richmond
CC
Montgomery
CC
Carteret
CC
Beaufort
County
CC
Pamlico
CC
Tri-County
CC
Nash
CC
Craven
CC
Southwestern
CC
McDowell
TCC
Martin
CC
Roanoke-Chowan
CC
Coll
of
The
Albemarle
Sandhills
CC
Lenoir
CC
Central
Piedmont
CC
Durham
TCC
Wilson
CC
Bladen
CC
Surry
CC
Mitchell
CC
Cape
Fear
CC
Rowan-Cabarrus
CC
Randolph
CC
Stanly
CC
Wilkes
CC
Robeson
CC
Cleveland
CC
Johnston
CC
Davidson-Davie
CC
Central
Carolina
CC
Mayland
CC
Rockingham
CC
Alamance
CC
Isothermal
CC
Catawba
Valley
CC
Pitt
CC
Halifax
CC
Caldwell
CC
&
TI
Haywood
CC
Wayne
CC
Coastal
Carolina
CC
Southeastern
CC
Asheville-Buncombe
TCC
Vance-Granville
CC
Piedmont
CC
Edgecombe
CC
Gaston
College
Western
Piedmont
CC
Forsyth
TCC
Guilford
TCC
Full-Time Equivalent Student Changes
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9. Student Enrollment Changes - By Student’s County
17 February 16, 2023
Fall 2017 to Fall 2021, By Headcount
Screenshot of NCCCS Data Dashboard
Number of NC High School Students Dually Enrolled
18 February 16, 2023
29,079
35,835
43,677 48,976 51,135
62,238 59,031
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
14-15 15-16 16-17 17-18 18-19 19-20 20-21
General Assembly allows high school students to take community college courses
through Career and College Promise pathways at no tuition cost.
Source: NCCCS Dashboard, Percentage of NC public school students who are dually enrolled in NCCCS.
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10. Transfers into the UNC System
19 February 16, 2023
NCCCS students account for majority of transfer students into the UNC System.
Source: UNC Data Dashboard, Transfer Student Data Less UNC-to-UNC transfers
7,861 8,321 8,835 9,338 10,426 10,336 11,159 10,765 10,409 9,986
4,628 4,402
4,829 4,716
4,542 4,501
4,557 4,295 4,298 4,652
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
Fall 2012 Fall 2013 Fall 2014 Fall 2015 Fall 2016 Fall 2017 Fall 2018 Fall 2019 Fall 2020 Fall 2021
NCCCS to UNC Out-of-State/Private Institution to UNC
Tuition & Fees, FY 2022-23
20 February 16, 2023
Curriculum
(Tuition)
Workforce
Continuing Education
(Fees)
Basic Skills
In-State
$76 per credit hour
$2,432 full-time
Out-of-State
$268 per credit hour
$8,576 full-time
$70 for 0-24 hours
$125 for 25-50 hours
$180 for 51+ hours
$0
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11. Curriculum Tuition, Full-Time Student, Annual
21 February 16, 2023
$1,600
$2,432
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
2009‐10 2011‐12 2013‐14 2015‐16 2017‐18 2019‐20 2021‐22
In-State Tuition and Fees, Regional Comparison, 2019-20
22 February 16, 2023
$2,547
$2,560
$2,838
$3,003
$3,280
$3,360
$4,083
$4,169
$4,175
$4,344
$4,368
$4,662
$4,785
$4,795
$4,800
$4,945
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
Source: Southern Regional Education Board (SREB) State Ranks, Two-Year Public, 2019-20
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12. Tuition and Fee Waivers, FY 2021-22
23 February 16, 2023
The General Assembly provided tuition waivers to 203,365 students in FY 2021-22
for a value of $107.2 million in FY 2021-22 for a variety of purposes.
Largest waivers
1. Career and Collect Promise (High School): 75k students, $64.5 million
2. Law Enforcement Agencies: 39k students, $13.0 million
3. Fire Department (Volunteer): 24k students, $9.9 million
G.S. 115B-2 and G.S. 115B-2
NCCCS
Funding Overview
24 February 16, 2023
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13. NCCCS Main Operating Fund Sources, FY 2021-22
25 February 16, 2023
1,316,388,884
292,855,353
27,677,023
315,104,272
0
200,000,000
400,000,000
600,000,000
800,000,000
1,000,000,000
1,200,000,000
1,400,000,000
State Local Federal Tuition & Fees
Net State Appropriation, FY 2010-11 to FY 2022-23
26 February 16, 2023
$1,051
$1,006
$1,040 $1,029 $1,050 $1,069
$1,102 $1,125
$1,186 $1,212 $1,230
$1,316
$1,358
$600
$800
$1,000
$1,200
$1,400
millions
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14. NCCCS – General Fund Appropriation
27 February 16, 2023
Authorized Budget
FY 2021-22
Authorized Budget
FY 2022-23
Requirements $1,917,581,556 $1,826,285,414
Receipts $601,192,672 $467,855,169
Net Appropriation $1,316,388,884 $1,358,430,245
Source: North Carolina Accounting System - Authorized Budget FY 2021-22 (Year-end) and FY 2022-23 (Jan 2023)
State General Fund authorized requirements equal $1.83 billion in FY 2022-23, with
receipts of $468 million and a net appropriation of $1.36 billion.
How Do Colleges
Generate Funding?
28 February 16, 2023
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15. 29 February 16, 2023
Budget Allocation Formula
$1.4 billion of $1.8 billion total NCCCS State budget is distributed to the 58
colleges by a Formula Budget. Majority of funding is tied to enrollment.
• Instructional ($898 million): based on number of FTEs and type of course
• Institutional and Academic Support ($528 million): campuses are provided a base
allotment but can receive additional funds for additional FTEs and multicampus
centers
• Performance-based Allocation ($18 million) determined by student success on
performance measures
Formula Budget – Instructional Funding Component
30 February 16, 2023
4,889.65
$4,325.46
$3,721.27
$2,380.88
Tier 1A Tier 1B Tier 2 Tier 3
All Basic
Skills
Courses
Ex: Auto
Repair,
Nursing,
Mammography
Ex: Biology,
HVAC,
Plumbing Ex: Art,
Cosmetology,
Upholstery
State funds are allocated for instruction to the 58 colleges based on the number of FTE
they have in each type of course. Certain courses receive more State funds.
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16. Formula Budget – Further Tier Breakdown
31 February 16, 2023
Funding per
FTE (2022-23)
Curriculum
Workforce Continuing
Education
Basic Skills
Tier 1A
$4,889.65
Priority occupations with documented
skills gaps and higher wages in
healthcare and technical education
Priority occupations with
documented skills gaps and
higher wages*
-
Tier 1B
$4,325.46
Other high-cost areas of healthcare,
technical education, lab‐based science,
and college‐level math courses
Priority occupations with
industry credentials*
-
Tier 2
$3,721.27
All remaining curriculum courses State or industry‐recognized
credentials
Transition English
and Math courses
Tier 3
2,380.88
- All remaining workforce
continuing education courses
All remaining basic
skills courses
Instruction Fund Allocation, FY 2022-23
32 February 16, 2023
FTEs are added together for each instructional area and tier. This is an example of an
allocation sheet that summarizes the allocation across all 58 colleges in FY 2022-23.
Source: Screenshot NCCCS State Aid Allocations and Budget Policies, FY 2022-23
When calculating
FTE totals, each
college can use the
higher of their
current year or 2-year
average enrollment in
each academic area
and tier.
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17. Formula Budget – Institution and Academic Support
33 February 16, 2023
Colleges are provided base funding, as well as additional funds for multi-campus
centers and enrollment size, for institutional and academic support.
This is an example of an allocation sheet that summarizes the allocation across all 58
colleges in FY 2022-23.
Source: Screenshot of NCCCS State Aid Allocations and Budget Policies, FY 2022-23
How Are Funds Used in
NCCCS System?
34 February 16, 2023
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18. How is NCCCS Funding Distributed?
35 February 16, 2023
$1,032.0
$590.6
$54.5 $95.4 $45.1
$3.5
$0
$200
$400
$600
$800
$1,000
$1,200
Instruction Institutional
Support
Categorical Aid
& Other Support
Equipment &
Instructional
Resources
System
Office
Reserves &
Transfers
$ millions
Source: NCAS, Jan. 2023 Authorized Budget
$1.8 billion Requirements by Funding Category
36 February 16, 2023
$1,032.0
$590.6
$54.5 $95.4 $45.1
$3.5
$0
$200
$400
$600
$800
$1,000
$1,200
Instruction Institutional
Support
Categorical Aid
& Other Support
Equipment &
Instructional
Resources
System
Office
Reserves &
Transfers
$ millions
What it is:
• Curriculum
• Continuing Education
• Basic Skills
What it pays for:
• Faculty Salaries
• Instructional Supplies
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19. Institutional & Academic Support Requirements
37 February 16, 2023
$1,032.0
$590.6
$54.5 $95.4 $45.1
$3.5
$0
$200
$400
$600
$800
$1,000
$1,200
Instruction Institutional
Support
Categorical Aid
& Other Support
Equipment &
Instructional
Resources
System
Office
Reserves &
Transfers
$ millions
What it is:
• Academic & Student Support
• General College Administration
• Multi-campus college (MCC) funding
What it pays for:
• College Presidents & Senior Administrators
• Guidance Counselors & Financial Aid Officers
• Librarians & IT Staff
• Paraprofessionals & Clerical Staff
Institutional & Academic Support Requirements
38 February 16, 2023
$1,032.0
$590.6
$54.5 $95.4 $45.1
$3.5
$0
$200
$400
$600
$800
$1,000
$1,200
Instruction Institutional
Support
Categorical Aid
& Other Support
Equipment &
Instructional
Resources
System
Office
Reserves &
Transfers
$ millions
What it is:
• Funding provided to colleges outside
the regular allotments
What it pays for:
• Specific campus initiatives
• Specific programs
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20. Special Programs and Centers
39 February 16, 2023
Examples of Programs in this Category (FY 2022-23):
NC Research Campus: $3.5 million
Child Care Grants: $3.0 million
NC Military Business Center (Fayetteville TCC): $2.1 million
Manufacturing Solutions Center (Catawba Valley CC): $1.0 million
Marine Technology (Cape Fear CC): $902,000
Institutional & Academic Support Requirements
40 February 16, 2023
$1,032.0
$590.6
$54.5 $95.4 $45.1
$3.5
$0
$200
$400
$600
$800
$1,000
$1,200
Instruction Institutional
Support
Categorical Aid
& Other Support
Equipment &
Instructional
Resources
System
Office
Reserves &
Transfers
$ millions
What it is:
• Equipment
• Instructional Resources
What it pays for:
• Computers
• Instructional equipment
• Books and other library resources
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21. Community College System Office
41 February 16, 2023
What it is:
• Central system support
• Systemwide initiatives
What it pays for:
• Finance, management, allocations
• System IT
• Academic and student service support
• ApprenticeshipNC
$6.7 million
$14.2 million
$3.5 million
$15.9 million
$4.9 million
$0
$5
$10
$15
$20
Executive
Division
(1100)
Tech. Solutions
& Distance Learning
(1200)
Finance &
Operations
(1300)
Academic &
Student
Services (1400)
Economic
Development
(1500)
82.0 FTE
32.0 FTE
53.0 FTE
31.85 FTE
$ millions
33.7 FTE
How May State Funds Be
Expended By Colleges?
42 February 16, 2023
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22. Funding Flexibility for State Funds
43 February 16, 2023
• The General Assembly provides colleges to have flexibility in order
to meet individual college needs
• The formula budget is for allocation purposes only
• Colleges can spend the allocations for purposes that meet the
demands of the local community except:
- Basic Skills funds
- Customized Training funds
G.S. 115D-31(b1)
44 February 16, 2023
NCGA has funded initiatives that support workforce development in
addition to instructional funds, including:
1. Customized Training Program
2. Small Business Centers
3. ApprenticeshipNC
Workforce Development
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23. NCCCS
FY 2023-25 Biennium
Outlook
45 February 16, 2023
Potential Issues of Interest for the NCGA
46 February 16, 2023
• Enrollment declines across the System
• State COVID funding provided in FY 2021-22, which has supported
colleges and students, is set to end
Longleaf Commitment Program ($25.5 million NR): provided additional
need-based aid to 2022 high school class entering NCCCS
Budget Stabilization ($80.0 million NR): allocated to colleges that
experienced enrollment declines during the pandemic
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24. Questions?
February 16, 2023
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Eric Moore (Public Schools) - eric.moore@ncleg.gov
Amanda Fratrik (Public Schools) - amanda.fratrik@ncleg.gov
Stephen Bailey (UNC/CC) - stephen.bailey@ncleg.gov
Room 619 LOB
(919) 733-4910
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