CHANCELLOR’S FORUM Northwest Vista College June 29, 2011

$60 million Slashed Revised June 1, 2011 (Final HB1)

Where it Hurts General Appropriation Cut Health Insurance Retirement Other Appropriations Unfunded Growth House Bill 1 $(13 Million) (10 Million) ( 9 Million) ( 3 Million) (25 Million) $(60 Million) Revised June 1, 2011 (Final HB1)

5 Times Greater than Prior Years Revised June 1, 2011 (Final HB1)

Pattern of state funding losses Revised June 1, 2011 (Final HB1)

Cyclonic impact that will reduce students and revenues Enrollments and revenues will tumble Revised June 1, 2011 (Final HB1)

A Pattern of State Funding Decline Total decline: 28% $ per Contact Hour Revised June 1, 2011 (Final HB1)

Enrollment Growth Total Growth: 23% Revised June 1, 2011 (Final HB1)

Employee Benefits $19 Million Base Funding Cuts $13 Million Impact of State Cuts on % of Total Budget Revised June 1, 2011 (Final HB1) Tuition & Fees Taxes State Approp. State Pd. Benefits

Budget Pressure $21.5 Million $27.9 Million $10.9 Million FY 10FY 11FY 12 Causes: State aid decline Local tax revenue decline Enrollment growth 24 new buildings Revised June 1, 2011 (Final HB1)

What We’ve Done Revised June 1, 2011 (Final HB1)

Budget Balancing Tactics FY10-12 ⋅ Cost saving strategies: 30.8 M ⋅ Tuition Rate Increase: 11.0 M ⋅ Local Taxes: 5.0 M ⋅ Utilize Fund Balance: 13.5 M (Cost Savings Exceeds Increased Revenues) Revised June 1, 2011 (Final HB1)

Annual Expense Trends Without FY11 and FY12 Strategic Initiatives, Expenses were over $300M to support 93,000 students (credit/non-credit)

Revenues & Expenses Per Contact Hour Since FY09, Expenses outpacing revenues due to Enrollment, Employment & Facilities growth Expense Per Contact Hour Down 6%

EmployeesBoard Absorb work of 150 FTE Other Expense Cuts $ 4.7$ 1.2 $ 5.9 Million 54% Tuition & FeesTaxes Fund Balance Rollover $5.0 Million $0 TBD 46% Summary of FY12 Proposed Actions – Close $10.9M Gap

Three Alamo Colleges Imperatives Revised June 1, 2011 (Final HB1)

#1 Student Performance Must Improve Revised June 1, 2011 (Final HB1)

#2 Baldrige Model and Resulting Efficiencies Revised June 1, 2011 (Final HB1)

#3 Fewer Dollars = Everything Must Be Done Differently “ Does it Make Cents for Students?” Revised June 1, 2011 (Final HB1)

We hold the future of Texas in our hands. Revised June 1, 2011 (Final HB1)