The document outlines challenges facing a college including permanent state funding cuts, rising health insurance and retirement costs, and a declining accumulated fund balance. It discusses various strategies under consideration to address the budget issues such as adjusting the allocation model, increasing tuition, managing health insurance and compensation costs, and generating additional revenue through annexation or grants. A timeline is proposed for negotiating changes to take effect in 2012.

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2.  Permanent Core State Cuts (5% in FY’11; 17% proj. for FY’12)
 Heath Insurance Increases (100% in past 8 years)
 Early Retirement Costs (92% in past 8 years)
 Other Post-Employment Benefits (OPEB) (141% in past 8 years)
◦ Health, Dental, Vision & Life Insurance for Retiree’s
 Compensation Package
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3. Personal College
Assets Assets
Checking and Savings Cash and Investments $ 88,791,000
House, Cars & Property Capital Assets 148,645,000
I.O.U. (Loan to Family/Friend) Receivables (Student, Clients and Grants) 7,444,000
Total Assets 244,880,000
Liabilities Liabilities
Amounts due (Car pymt and Credit cards) Commitments (payroll/vendors) 25,158,000
House Mortgage Bonds Payable 96,407,000
121,565,000
Net Worth Net Assets
Equity in home Invested in Capital Assets 59,705,000
Escrow Restricted for Debt 9,579,000
Spendable Checking and Savings Unrestricted 54,031,000
123,315,000
Total Liabilities & Net Assets $244,880,000
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4. Accum Fund Balance *
Operating Funds Plant Fund (Spendable Savings)
 Beg Bal $54,031,000
 2011 ($ 1,289,000) ($2,422,000) $50,320,000
 2012 ($ 5,873,000) ($2,563,000) $41,884,000
 2013 ($10,637,000) ($2,312,000) $28,935,000
 2014 ($13,686,000) $ 436,000 $15,685,000
 2015 ($16,296,000) ($ 862,000) ($ 1,473,000)
 2016 ($18,738,000) ($ 864,000) ($21,075,000)
* - Excludes the investment in capital assets.
( ) = Loss
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5.  Annexation
 Auxiliary
 Class Size
 Enrollment Management – class schedule
 Grants
 Institute for Workforce Innovation
 Leasing
 MCC Priority Teams
 Tuition Increase
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6.  Health Insurance Adjustment (Officer, Administrator, Faculty, Staff & Retiree)
 Early Retirement Adjustment (Officer, Administrator, Faculty & Staff)
 Premium Pay Elimination (Retiree)
 Essential Hiring (Officer, Administrator, Faculty & Staff)
 “Doing More with Less” (Officer, Administrator, Staff)
 Lock Down Spending (Officer, Administrator, Faculty & Staff)
 Process Improvement (Office, Administrator, Faculty & Staff)
 Compensation Package Negotiations (Officer, Administrator, Faculty & Staff)
 Allocation Model (Officer, Administrator, Faculty & Staff)
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7.  Current allocation formula works well when there are
sufficient resources to fund it, but because of recent revenue
issues, the formula allocates more resources than MCC can
currently afford. As a result, this allocation formula must be
adjusted to bring it back in line with our actual revenue. This
will require adjustments to bring expenditures and revenues
back into equilibrium.
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8.  Officers
 Budget Response Team (BRT)
 Board Presentation
 Campus Meetings
 Compensation Negotiations
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9.  January Budget allocation model review begins
 February Health insurance RFP to CBIZ
 March Health insurance bid out to insurance carriers
Compensation package negotiations begin
Tuition increase and general fee brought to Board
 June Health insurance recommendation to the Board
 October Annual open enrollment
Compensation package negotiations finalized
 November Budget allocation model finalized
Financial plan presented to Board
 January ’12 New health insurance enacted
 July ’12 New compensation contract enacted
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10. Thank you!
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