BOARD OF TRUSTEES HARFORD COMMUNITY COLLEGE December 13, 2011

AGENDA ITEM: VII. A. FY 2013 PROPOSED OPERATING BUDGET

Background

Budget Development Framework

As operating budget deliberations began for FY 2013, we were reminded of the continuing trends in public funding of higher education. Harford Community College (HCC) has benefited from strong financial support from both the County and State that has enabled the College to provide higher education at a substantially discounted tuition. Historically, tuition has covered approximately one-third of operating costs. Beginning with FY 2008, the reduction in revenues below State budgeted estimates required action. In July 2007, the Board of Public Works (BPW) reduced State funding to community colleges during the fiscal year. The FY 2011 State funding was reduced below the previous years funding despite increases in enrollment. Further, the BPW actions have also included reductions to the University System of Marylands (USM) operations which form the future base for community college funding. A reduced level of funding per student at the USM translates into less funding per student at the community college. Similar economic pressures have also resulted in funding reductions from Harford County. HCC understands the constraints on public funding. The funds that have been reduced represent what would have been recurring operating revenues to support the College. Extrapolating the cumulative effects of these reductions over the past three years demonstrates the Colleges funding has been reduced by $3.2 million between State and County funding. A tuition increase of $5 per credit hour in FY 2011 supplanted a portion of those revenues. HCC remains aware of the present economic status of the County and the State. The structural deficit for the State continues to loom around $2 billion, and federal stimulus funding that was used in the State operating budget in FY 2010 and FY 2011 is due to expire. Community colleges were not directly included in the American Recovery and Reinvestment Act of 2009 (stimulus) funding that passed through the State. Harford County faces similar challenges as the asset base valuation in the County has declined. While much discussion concerning public funding is couched in the present economy and the notion that this may be the new normal, it may take several years before community college funding is restored to previous levels. This results in more emphasis to contain expenditures and generate additional tuition and fee revenue and other revenues to supplant public funds. A college that is expected to meet the demands of students, even if enrollment does not grow, will need to generate revenues from other resources as public funding remains flat or declines. In addition, colleges continue to struggle with earnings on balances as rates of return have virtually become zero. This outcome has significantly reduced Other Revenue. Fortunately, with the (OVER)

restrictions on investment options for College funds, HCC has not lost money in the market decline. The FY 2013 operating budget is framed around several broad revenue-related assumptions. The College wants to remain prudent about enrollment growth and has budgeted a very minimal increase in tuition and fee revenues over the revised projection for FY 2012. However, the College is also aware that continued growth in enrollment is not sustainable over time. A $5 increase in tuition is included in FY 2013. Interest rates will likely continue to remain at historic lows during FY 2013, minimizing potential growth of cash balances. State funding will increase slightly as the Keeping Maryland Community Colleges Affordable grant is ended. An administrative fee for employees participating in the state retirement systems will continue to be funded by the College.

General Operating Fund Revenues

The FY 2013 operating budget of $46,588,634 contains an overall increase of .61% in total revenues and transfers. Three primary sources, Harford County Government, the State of Maryland, and student tuition and fees (Table 1) provide the majority of Harford Community Colleges operating revenues. Other sources, including building use fees and interest earnings, account for the remaining budget resources. The budget also includes fund transfers for support of the capital budget. The general operating fund supports the Colleges mission and the State law and its attendant expectations to provide accessible and affordable higher education; it includes all instructional programs and services as well as projects, personnel, and related costs. Table 1 General Operating Fund Revenues

ACTUAL 2009-2010 Revenue Tuition and Fees State of Maryland Harford County Other Sub-total - Revenue Transfers In (Auxiliary and Operating) Total - Revenue and Transfers $ 15,463,161 10,039,487 15,939,806 1,056,198 $42,498,652 1,952,178 $44,450,830

ACTUAL 2010-2011 $ 17,123,431 9,719,168 14,512,764 800,755 $42,156,118 3,084,103 $45,240,221

BUDGET 2011-2012 $17,163,743 9,719,168 14,961,612 1,019,759 $42,864,282 3,440,718 $46,305,000

Preliminary 2012-2013 $17,816,736 9,987,866 14,961,612 680,764 $43,446,978 3,141,656 $46,588,634

$ Change FY 12 to FY 13 $652,993 $268,698 $0 -$338,995 $582,696 -$299,062 $283,634

% Change FY 12 to FY 13 3.80% 2.76% 0.00% -33.24% 1.36% -8.69% 0.61%

County Funding Harford County has consistently provided substantial operating support to its community college (Diagram 1). The FY 2013 proposed operating budget contains $14,961,612 in funding from Harford County. The College recognizes that County revenues have declined from FY 2010 levels, and the ability to restore funding levels to previous levels may take several years. In FY 2009, Harford County initially allocated $16,778,743 to support HCCs operations. Based on a slowing of the Countys revenue and its need to maintain a balanced budget, the County administration requested a reduction of 5% of total County funding. HCCs funding from the 2

County was reduced by $838,937 to $15,939,806. This funding level was carried forward in FY 2010. In FY 2011, County operating funding was ultimately reduced by 9%, or $1,427,042. This was approximately the equivalent to the total revenues generated from $10 per credit hour during the fiscal year. In FY 2012, additional funding of $448,848 was restored. This represents the amount the County cut in late FY 2011. The College expects this $14,961,612 funding level to remain flat in FY 2013. Despite the economic environment, a comparison of the local portion of funding to support community colleges throughout the State indicates that Harford Countys funding level remains proportionately larger than the State and metro area averages (Table 2), although the trend has been downward in recent years. The proportion of revenues from tuition and fees is below both State and metro averages. The budgeted transfer-in from fund balance is included in the Other category of the data supporting Table 2.

Diagram 1 Operating Budget

Distribution of Funding by Source

Tuition & Fees

40.0% 30.0% 20.0% 10.0% 0.0%
'03 04 05 06 07 08 09 10 11 12p 13p

Harford County State of Maryland Other Income/ Transfer

Fiscal Year

Table 2 Composition of Operating Funds

Community Colleges, Percentage of Unrestricted Revenues FY 2010 Institution Metro Area Colleges Anne Arundel Baltimore County Carroll Cecil Frederick Harford Howard Metro Area Composite State State 28% 25% 27% 24% 20% 23% 18% 24% 25% Local 34% 27% 32% 39% 37% 36% 36% 34% 33% Tuition and Fees 38% 47% 41% 36% 41% 35% 44% 40% 40% Other 1% 1% 0% 1% 3% 7% 2% 2% 2%

Source: MHEC, CC Audited Financial Reports; numbers have been rounded, inc. State contribution for employee benefits

State Funding State funding is projected to increase $268,698 which represents the amount that was previously included in Other Revenues as the Keeping Maryland Community Colleges Affordable grant. Total State operating funding of $9,987,866 is included in this operating budget. The recent history of State funding has been turbulent given the ongoing structural deficit in State revenues coupled with the economic climate. During the 2006 Maryland General Assembly, the legislature passed, and the Governor signed, legislation to increase the Cade Funding Formula from 25% of the University System of Maryland (USM) full-time equivalent (FTE) student expenditure base to 30% by 2013. While the State initially budgeted increases in funding, mid-year reductions were instituted each year. The most recent State reduction eroded the Cade multiple to 20% of the USM student expenditure base. Further, the USM has faced reductions that will impact their FTE expenditure, which is the basis for community college funding. This may further reduce future funding. Given the most recent State revenue estimates, it may be several years before community colleges return to even a 25% multiple of the USM base, although the Budget Reconciliation and Financing Act of 2011 modified the formula beginning in fiscal 2013 with the Cade Funding Formula reaching 29% in fiscal 2023. In recent history, the State has not achieved these long-range targets. The State also pays 100% of the employers share of the retirement costs associated with many College employees, those participating in the Teachers Retirement and Pension Systems. This cost is not included in the Colleges operating budget. For the current year the employer contribution rate is 13.29% of eligible base salaries. Employees in the state pension system currently contribute 7% of their salary through payroll withholdings. The Optional Retirement Program, a defined contribution plan, is a reimbursement program provided through the State to the College based on a contribution rate of 7.25% of base salary. The State-funded, employer contribution was $2.05 million in FY 2011 for the eligible College participants. Participants in the Employees Retirement and Pension Systems are funded through the College at a cost of $78,539. Beginning in FY 2012, the College began to pay an administrative and operating fee associated with each member of the state retirement systems defined benefit plans. The fee is assessed at $162.77 per plan member. This will cost the College $54,691 based on current participation. Employees participating in the Optional Retirement Program are not included. Tuition and Fees Tuition and fees represent the most significant source for funding College operations at $17,816,736. Tuition is generated through credit and noncredit courses. A budgeted increase of 3.8% in this revenue source, or $652,993, is estimated over the FY 2012 budget based on a minimal increase in enrollment and a projected increase in tuition and fee per credit hour. In FY 2013, an enrollment increase of 0.5% is projected for credit tuition and fee revenue, yielding an estimated $64,348. A projected tuition increase of $5 per credit hour equates to approximately $788,645 additional credit tuition and fee revenue. Noncredit revenue in FY 2012 is projected to be below budget by approximately $200,000, this projection remained flat in FY 2013. The College administration recognizes that this is a conservative approach, but feels it is prudent at this time and will continue to monitor revenue projections as the operating budget is developed. 4

Tuition for County residents will increase $5 to $87 per credit hour. The consolidated fee will be at $10.44 per credit hour. A full-time student taking 15 credit hours for Fall and Spring semesters would pay $2,923 in tuition and consolidated fees. A full-time student taking similar lower division, undergraduate courses at Towson University is projected to pay $7,666 in tuition and fees, absent the $303 annual parking permit. Other Sources Other revenue sources of $680,764 comprise dividends, interest, and building use fees. The loss of our portion of the States $5 million designated as the Keeping Maryland Community Colleges Affordable grant is estimated at $268,698. Transfers The budget includes transfers from the operating budgets undesignated fund balance and College Store fund balance. Transfers represent one-time funds from the fund balance for the operating budget. When transferred, such funds are allocated to non-recurring costs, such as equipment or capital programs. In FY 2013, $2,941,656 from the fund balance is allocated as a transfer-in to support the Colleges commitment to the capital budget. Additionally, $200,000 is transferred from the Auxiliary fund balances to support student scholarships and financial aid.

General Operating Fund Expenditures

The proposed FY 2013 operating budget request (Table 3) is a composition of allocations designed to maintain service levels for the increased enrollment. This budget includes a 2% wage increase for full-time and part-time employees, modest increases in the number of adjunct faculty, and equipment refresh. In addition, there are price escalations associated with software maintenance agreements, housekeeping and security services, health insurance, liability coverage, and credit card processing fees. As the College has continued to experience substantial demand, servicing 7,152 credit students in Fall 2011, the pent up need for services to support students and faculty requires consideration. There is also a transfer to support the on-going capital improvement program to advance the Colleges mission. This budget will increase overall expenditures .61%, or $283,634, for a total of $46,588,634. Table 3 General Operating Fund Expenditures
ACTUAL 2009-2010 Expenditures Instruction Academic Support Student Services Institutional Support Operations/Maintenance of Plant Waivers/Work Study Non-mandatory Transfers Total - Expenditures $ 15,885,442 5,463,571 4,440,649 7,021,420 4,584,975 873,816 2,648,421 $40,918,294 ACTUAL 2010-2011 $ 16,589,926 5,705,107 4,454,093 7,253,061 4,142,589 986,375 3,158,421 $42,289,572 BUDGET 2011-2012 $17,946,881 6,345,815 4,831,104 8,133,386 4,699,489 1,036,500 3,311,825 $46,305,000 Preliminary 2012-2013 $18,610,862 6,475,674 4,990,579 8,508,747 4,745,426 1,008,931 2,248,415 $46,588,634
$ Change FY 12 to FY 13 $663,981 $129,859 $159,475 $375,361 $45,937 -$27,569 -$1,063,410 $283,634 % Change FY 12 to FY 13 3.70% 2.05% 3.30% 4.62% 0.98% -2.66% -32.11% 0.61%

Budget Development
Budget managers were asked to examine their FY 2011 actual expenditures and budgeted FY 2012 appropriations and make adjustments between their accounts to meet the programmatic goals and objectives for FY 2013 without increasing the bottom line. This process enabled 5

budget managers to realign funds and reduce several allocations. During this process, budget managers and their supervisors and vice president were to develop performance goals for each budget organization. This is intended to better align planning, assessment, and resource allocation decisions as the data is collected and integrated into the budget development process. As budget development was underway, the salary and benefits committee, a standing committee of the College Advisory Council, contributed recommendations to the president for consideration. A 3.5% wage increase was included in the recommendations. For budgetary compliance, expenditures are categorized by function into instruction, academic support, student services, institutional support, operations and maintenance of plant, transfers, and scholarships. The operating budget supports almost 10,000 credit students and 15,000 noncredit students over the course of the year. Diagram 2 FY 2013 Budget by Function
Proposed Operating Budget by Budget Function Transfers,
Institutional Support, $8,508,747, 18.3% Student Services, $4,990,579, 10.7% Academic Support, $6,475,674, 13.9% Instruction, $18,610,862, 39.9% Oper/Maint of Plant, $4,745,426, 10.2% $2,248,415, 4.8% Scholarships, $1,008,931, 2.2%

Examining the proposed operating budget by object, or account type (Diagram 3), demonstrates the distribution of expenditures. Approximately 68.5% of the budget is assigned to salaries and benefits, which accommodates the Board of Trustees guideline to keep such expenditures at no more than 75% of the entire budget. If the budgeted contracted services portion of costs for security, housekeeping, and grounds are included in this calculation, then the ratio would be approximately 73% of the operating budget.

Diagram 3 FY 2013 Operating Budget

Expenditures Classification
Contracted Services 14.4%

Salary and Benefits 68.5%

Supplies and Materials 3.4% Furniture and Equipment 0.3% Transfers 6.6%

Other 3.9%

Utilities 2.9%

The College considers the long-term viability of its decisions to add sufficient resources to attract and retain a strong employee base with competitive benefits in the near term. This guideline ensures that resources are provided to support all the vital aspects of successful educational programs, puts student learning at the forefront, strives to maintain competitive wages with comparable institutions, and provides competitive benefits.

Highlights of Budget Requests

Salary and Benefits Compensation includes salary/wages, health, and benefits adjustments. This budget contains a 2% wage adjustment for full-time and part-time employees, but does not provide step or merit increases. Estimated cost is $526,686. Medical benefits and health claims experience has continued to be within budget estimates. The experience in FY 2011 was historically good, with claims experience well under premiums paid. Based on long-term trends and medical inflation projections, the College increased medical, dental, and vision premiums by 9%; this equates to approximately $281,000. Direct post-retirement health benefits are not provided by the College for current employees. Early retirement options were offered several years ago. The remaining Other Post Employment Benefit (OPEB) obligations associated with these options are fully funded annually at $67,000. HCC is one of a few public organizations that is able to fully fund its obligation. The College does allow access to its medical plan for eligible retirees who purchase their own coverage at the group rate. There are two new instructional positions included in this budget to support the STEM program and the Nursing and Allied Health program. A biology faculty position and medical assisting faculty position are included at $122,631. An increase in the use of adjuncts for instruction and labs is projected at $54,446. This will support approximately 25 course and lab sections. There were 575 adjuncts serving credit and noncredit students during the Fall 2011. 7

Contracted Services As the Financial Accounting and Reporting Manual (FARM) for Higher Education indicates, the contracted services classification is significant monetarily and covers a broad range of expenses including legal, audit, custodial, security, maintenance, grounds, repairs, postage, mailing, printing and duplicating, freight, advertising, rental of property, professional fees, and dues. Because of the breadth of this classification, subclasses are used to specify types of services such as audit, legal, credit card fees, equipment repair, printing, service agreements, leases, field trips, rent, insurance, and maintenance. This budget proposal includes increased funds associated with: Continuing education programs, including CDL training, summer camps, and discovering college Power to Achieve campaign Instructional consulting and business program accreditation Software maintenance agreements, price escalation, additional modules BlackBoard lease escalation for eLearning Cultural Events on-line ticketing Escalation of housekeeping and grounds Snow removal DegreeWorks implementation

$23,000 $42,000 $20,000 $61,000 $15,700 $17,500 $185,500 $20,000 $120,000

Communications These accounts have projected increases of $21,401. Most of this increase is attributed to postage associated with promotion of the Susquehanna Center and the Colleges new marketing campaign. Professional Development and Training The decrease of $89,352 in these accounts is tied primarily to transportation associated with the Susquehanna renovation, and various costs related to the College Middle States accreditation in FY 2012. Utilities The College has been able to take advantage of lower commodity pricing equating to a 5.5% decrease, or $79,308 reduction of utility cost. Waivers and Transfers Transfers to capital budget programs for support of Susquehanna, computer equipment and technology, plant services annex, library infrastructure, water and wastewater Transfer to support scholarships Decrease for tuition waivers to align with current trending Transfer to support the Susquehanna facility

$1,601,583 $470,064 ($27,569) $143,411

Fixed Charges These accounts encompass our property and casualty coverages, workers compensation, unemployment, and bad debt expenses. The following increases are budgeted: Workers Comp increase for expanded employee base Bad debt expense $3,500 $46,717

Equipment Equipment represents non-recurring costs for fixed assets supporting the College. Equipment expenditures include textbooks, furniture, computer hardware, building hardware, vehicles, and other equipment. This budget includes $28,764 for equipment and $119,610 for library books and database access. In addition, other resources supporting equipment acquisition include the capital budget though the computer equipment/technology capital program, other capital programs within the Capital Budget that contain allocations for furniture and equipment, and the Equipment Replacement Fund. The attached pages provide additional details of the operating budget by program and account type.

HARFORD COMMUNITY COLLEGE GENERAL OPERATING BUDGET PRELIMINARY OPERATING FUND REVENUE & EXPENDITURE PROJECTIONS FOR FY 2013
ACTUAL 2009-2010 FUND SOURCES Beginning Balance Revenue Tuition and Fees State of Maryland Harford County Other Sub-total - Revenue Transfers In (Auxiliary and Operating) Total - Revenue and Transfers Expenditures Instruction Academic Support Student Services Institutional Support Operations/Maintenance of Plant Waivers/Work Study Non-mandatory Transfers Total - Expenditures Ending Fund Balance
(undesignated)

ACTUAL 2010-2011 $9,612,452

BUDGET 2011-2012 $8,186,500

Preliminary 2012-2013 $5,383,655

$ Change FY 12 to FY 13 -$2,802,845

% Change FY 12 to FY 13 -52.06%

$7,537,450

$ 15,463,161 10,039,487 15,939,806 1,056,198 $42,498,652 1,952,178 $44,450,830

$ 17,123,431 9,719,168 14,512,764 800,755 $42,156,118 3,084,103 $45,240,221

$17,163,743 9,719,168 14,961,612 1,019,759 $42,864,282 3,440,718 $46,305,000

$17,816,736 9,987,866 14,961,612 680,764 $43,446,978 3,141,656 $46,588,634

$652,993 $268,698 $0 -$338,995 $582,696 -$299,062 $283,634

3.80% 2.76% 0.00% -33.24% 1.36% -8.69% 0.61%

$ 15,885,442 5,463,571 4,440,649 7,021,420 4,584,975 873,816 2,648,421 $40,918,294 $9,612,452

$ 16,589,926 5,705,107 4,454,093 7,253,061 4,142,589 986,375 3,158,421 $42,289,572 $8,186,500

$17,946,881 6,345,815 4,831,104 8,133,386 4,699,489 1,036,500 3,311,825 $46,305,000 $4,945,782

$18,610,862 6,475,674 4,990,579 8,508,747 4,745,426 1,008,931 2,248,415 $46,588,634 $2,441,999

$663,981 $129,859 $159,475 $375,361 $45,937 -$27,569 -$1,063,410 $283,634 -$2,503,783

3.70% 2.05% 3.30% 4.62% 0.98% -2.66% -32.11% 0.61% -102.53%

10

HARFORD COMMUNITY COLLEGE FY 2013 BUDGET SUMMARY ACTUAL 2009-2010 $ 15,463,161 10,039,487 15,939,806 1,056,198 42,498,652 1,952,178 $ 44,450,830 ACTUAL 2010-2011 $ 17,123,431 9,719,168 14,512,764 800,755 42,156,118 3,084,103 $ 45,240,221 BUDGET 2011-2012 $ 17,163,743 9,719,168 14,961,612 1,019,759 42,864,282 3,440,718 $ 46,305,000 BUDGET 2012-2013 $ 17,816,736 9,987,866 14,961,612 680,764 43,446,978
$ Change % Change

REVENUE & TRANSFERS TUITION AND FEES STATE OF MARYLAND HARFORD COUNTY OTHER SUB-TOTAL - REVENUE TRANSFERS IN TOTAL - REVENUE & TRANSFERS

FY 12 to FY 13 FY 12 to FY 13 $ 652,993 3.80% $ 268,698 2.76% $ 0.00% $ (338,995) -33.24% $ 582,696 1.36% (299,062) 283,634 -8.69% 0.61%

3,141,656 $ $ 46,588,634 $

EXPENDITURES Object/Account Type SALARY AND BENEFITS $ 27,301,347 CONTRACTED SERVICES 5,533,260 SUPPLIES AND MATERIALS 1,656,667 COMMUNICATIONS 389,154 PROFESSIONAL DEVELOPMENT AND TRAINING 606,111 CLEARING ACCOUNTS: GRANTS, WAIVERS, SUBSIDIES & UNFUNDED 3,330,123 UTILITIES 1,183,414 FIXED CHARGES 505,164 FURNITURE AND EQUIPMENT 413,054 $ 40,918,294

$ 28,570,140 5,523,464 1,460,122 415,340 653,782 3,952,427 1,103,386 477,764 133,147 $ 42,289,572

$ 30,954,428 6,103,872 1,597,390 457,157 848,352 4,130,060 1,431,666 565,800 216,275 $ 46,305,000

$ 31,919,516 6,710,799 1,590,567 478,558 759,000 3,053,869 1,352,358 587,637 136,330 $ 46,588,634

$ $ $ $ $ $ $ $ $ $

965,088 606,927 (6,823) 21,401 (89,352) (1,076,191) (79,308) 21,837 (79,945) 283,634

3.12% 9.94% -0.43% 4.68% -10.53% -26.06% -5.54% 3.86% -36.96% 0.61%

11

HARFORD COMMUNITY COLLEGE FY 2013 BUDGETED EXPENDITURES BY FUNCTION

FUNCTION DESCRIPTION
10 Instruction - Includes expenditures for all activities that are part of the College's instructional programs. This includes expenditures for credit and noncredit courses, for academic, vocational, technical, transitional, and tutorial instruction. $

FY2010 ACTUAL
15,885,442 $

FY2011 ACTUAL
16,589,926 $

FY2012 BUDGET
17,946,881 $

FY2013 BUDGET
18,610,862

40

Academic Support - Includes expenditures in support of the College's primary mission of instruction and public service. These funds include library services, instructional resources, instructional support services, curriculum development, educational development, distance education support, HEAT, welfare reform, workforce development, academic administration, and a portion of the College's Network and Computer Services.

5,463,571

5,705,107

6,345,815

6,475,674

50

Student Services - Includes expenditures for enrollment policy and planning, enrollment services (recruitment, outreach, registration, records, financial aid, and student testing), and student development (academic advising, career development, placement, co-op/internships, learning support services, student life, wellness programs, recreation, and intramurals).

4,440,649

4,454,093

4,831,104

4,990,579

60

Institutional Support - Includes expenditures for the College's administration, planning, legal services, fiscal operations, the remainder of network and computer services, personnel, safety, procurement, media connections, HCN, student identification, APG Liaison, grant development and support services.

7,021,420

7,253,061

8,133,386

8,508,747

70

Operation and Maintenance of Plant - Includes expenditures for the operation and maintenance of the physical plant, utilities, property insurance.

4,584,975

4,142,589

4,699,489

4,745,426

80

Scholarships and Fellowships - Includes expenditures for College Work Study stipends, institutional scholarships, and tuition waivers. Non-Mandatory Transfers - Includes expenditures for the College's contribution and match to student scholarships, grants, cultural programs, student activities, and various capital projects.

873,816

986,375

1,036,500

1,008,931

81

2,648,421

3,158,421

3,311,825

2,248,415

12

FUNCTION 10 INSTRUCTION

OBJECT 5000 6000 6100 6200 6300 6400 6500 6600 7200

DESCRIPTION SALARY AND BENEFITS CONTRACTED SERVICES SUPPLIES AND MATERIALS COMMUNICATIONS PROFESSIONAL DEVELOPMENT AND TRAINING GRANTS, SUBSIDIES & CONTINGENCY UTILITIES FIXED CHARGES FURNITURE AND EQUIPMENT

FY2010 ACTUAL $ 14,483,099 747,052 425,469 30,172 138,979 3,158 3,206 54,307 $ 15,885,442

FY2011 ACTUAL $ 15,244,344 775,537 396,222 26,482 127,166 4,731 12,110 3,334 $ 16,589,926

FY2012 BUDGET $ 16,219,086 977,249 440,843 40,039 181,535 4,328 15,210 68,591 $ 17,946,881

FY2013 BUDGET $ 17,012,052 950,018 456,470 31,420 143,861 4,731 12,110 200 $ 18,610,862

FY12 to FY13 $ change % change $792,966 4.9% ($27,231) $15,627 ($8,619) ($37,674) $0 ($3,100) ($68,391) $663,981 -2.8% 3.5% -21.5% -20.8% #DIV/0! 0.0% -20.4% -99.7% 3.7%

This section includes expenditures for all activities that are part of the College's instructional programs. This includes expenditures for credit and noncredit courses, for academic, vocational, technical, transitional, and tutorial instruction.
FUNCTION 40 ACADEMIC SUPPORT FY2010 ACTUAL $3,734,486 950,767 500,739 73,609 81,092 19,786 103,092 $5,463,571 FY2011 ACTUAL $3,842,263 1,220,095 341,006 76,019 99,154 22,100 2,719 101,751 $5,705,107 FY2012 BUDGET $4,343,705 1,303,659 332,394 86,988 115,845 17,225 14,715 131,284 $6,345,815 FY2013 BUDGET $ 4,317,457 1,490,202 329,241 93,727 101,348 17,500 2,719 123,480 $ 6,475,674
FY12 to FY13 $ change % change ($26,248) -0.6% 186,543 14.3% ($3,153) $6,739 ($14,497) $275 $0 ($11,996) $129,859 -0.9% 7.7% -12.5% 1.6% #DIV/0! -81.5% 0.0% 2.0%

OBJECT 5000 6000 6100 6200 6300 6400 6500 6800 7200

DESCRIPTION SALARY AND BENEFITS CONTRACTED SERVICES SUPPLIES AND MATERIALS COMMUNICATIONS PROFESSIONAL DEVELOPMENT AND TRAINING GRANTS, SUBSIDIES & CONTINGENCY UTILITIES FIXED CHARGES FURNITURE AND EQUIPMENT

This function includes expenditures in support of the College's primary mission of instruction and public service. These funds include library services, instructional resources, instructional support services, curriculum development, educational development, distance education support, HEAT, welfare reform, workforce development, academic administration, and a portion of the College's Network and Computer Services.

13

FUNCTION 50 STUDENT SERVICES

OBJECT 5000 6000 6100 6200 6300 6400 6600 7000

DESCRIPTION SALARY AND BENEFITS CONTRACTED SERVICES SUPPLIES AND MATERIALS COMMUNICATIONS PROFESSIONAL DEVELOPMENT AND TRAINING GRANTS, SUBSIDIES & CONTINGENCY FIXED CHARGES FURNITURE AND EQUIPMENT

FY2010 ACTUAL $3,491,190 450,089 233,643 60,727 190,108 9,101 5,791 $4,440,649

FY2011 ACTUAL $3,650,711 379,744 141,047 59,097 208,209 10,891 4,394 $4,454,093

FY2012 BUDGET $ 3,919,224 414,770 170,164 69,717 242,129 9,200 5,900 $ 4,831,104

FY2013 BUDGET $ 3,950,886 571,967 137,525 66,183 240,477 10,891 12,650 $ 4,990,579

FY12 to FY13 $ change $ 31,662 $157,197 ($32,639) ($3,534) ($1,652) $0 $1,691 $159,475 % change 0.8% 37.9% -19.2% -5.1% -0.7% #DIV/0! 18.4% 0.0% 3.3%

This function includes expenditures for enrollment policy and planning, enrollment services (recruitment, outreach, registration, records, financial aid, and student testing), and student development (academic advising, career development, placement, co-op/internships, learning support services, student life, wellness programs, recreation, and intramurals).

FUNCTION 60 INSTITUTIONAL SUPPORT

OBJECT 5000 6000 6100 6200 6300 6400 6600 7000

DESCRIPTION SALARY AND BENEFITS CONTRACTED SERVICES SUPPLIES AND MATERIALS COMMUNICATIONS PROFESSIONAL DEVELOPMENT AND TRAINING GRANTS, SUBSIDIES & CONTINGENCY FIXED CHARGES FURNITURE AND EQUIPMENT

FY2010 ACTUAL $4,425,133 1,486,495 183,766 222,103 191,208 2,100 433,338 77,277 $7,021,420

FY2011 ACTUAL $4,664,678 1,456,928 259,447 251,534 213,057 2,450 392,619 12,348 $7,253,061

FY2012 BUDGET $5,169,897 1,604,552 335,608 256,810 295,010 5,010 455,999 10,500 $8,133,386

FY2013 BUDGET $ 5,380,863 1,783,333 289,922 284,919 264,768 2,450 502,492 $ 8,508,747

FY12 to FY13 $ change % change $210,966 $178,781 ($45,686) $28,109 ($30,242) $46,493 ($10,500) $375,361 4.1% 11.1% -13.6% 10.9% -10.3% 0.0% 10.2% -100.0% 4.6%

This function includes expenditures for the College's administration, planning, legal services, fiscal operations, the remainder of network and computer services, personnel, safety, procurement, media connections, HCN, student identification, APG liaison, grant development and support services.

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FUNCTION 70 OPERATION / MAINTENANCE OF PLANT

OBJECT 5000 6000 6100 6200 6300 6500 6600 7200

DESCRIPTION SALARY AND BENEFITS CONTRACTED SERVICES SUPPLIES AND MATERIALS COMMUNICATIONS PROFESSIONAL DEVELOPMENT AND TRAINING UTILITIES FIXED CHARGES FURNITURE AND EQUIPMENT

FY2010 ACTUAL $ 953,439 1,898,857 313,050 2,543 4,724 1,180,256 59,519 172,587 4,584,975

FY2011 ACTUAL $ 951,225 1,691,160 322,400 2,208 6,196 1,098,655 59,425 11,320 4,142,589

FY2012 BUDGET $1,062,016 1,803,642 318,381 3,603 13,833 1,427,338 70,676 4,699,489

FY2013 BUDGET $ 1,034,831 1,915,279 377,409 2,309 8,546 1,347,627 59,425 4,745,426

FY12 to FY13 $ change % change $ (27,185) $111,637 $59,028 ($1,294) ($5,287) ($79,711) ($11,251) $45,937 -2.6% 6.2% 18.5% -35.9% -38.2% -5.6% -15.9% *** 1.0%

This function includes expenditures for the operation and maintenance of the physical plant, utilities, grounds, security, and property insurance.

FUNCTION 80 WAIVERS/WORK STUDY

OBJECT DESCRIPTION 5000 SALARY AND BENEFITS 6400 GRANTS, SUBSIDIES & WAIVERS

FY2010 ACTUAL $ 214,000 659,816 $ 873,816

FY2011 ACTUAL $ 216,919 769,456 $ 986,375

FY2012 BUDGET $ 240,500 796,000 $1,036,500

FY2013 BUDGET $ 223,427 785,504 $ 1,008,931

FY12 to FY13 $ change % change ($17,073) ($10,496) ($27,569) -7.1% -1.3% -2.7%

This function includes expenditures in support of College Work Study stipends and tuition waivers for both credit and non-credit programs.

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FUNCTION 81 NON-MANDATORY TRANSFERS

OBJECT DESCRIPTION 6400 GRANTS, SUBSIDIES,

FY2010 ACTUAL 2,648,421 $2,648,421

FY2011 ACTUAL 3,158,421 $3,158,421

FY2012 BUDGET 3,311,825 $3,311,825

FY2013 BUDGET 2,248,415 $ 2,248,415

FY12 to FY13 $ change % change ($1,063,410) -32.1% ($1,063,410) -32.1%

This function includes expenditures for the College's support of student scholarships ($470,064), Supplemental Educational Opportunity Grant (SEOG) support ($33,357), Susquehanna auxiliary support ($143,411), and the College's funding of other projects contained in the Capital Budget ($1,601,583).

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