Impact and Implementation of Budget and Legislative Changes NC Community College Adult Educators Association September 28, 2017 Jennifer Haygood Mary Shuping Elizabeth Grovenstein

Overview Highlights of 2017 Legislative Session 2017-18 Budget System Priorities Preview of 2018 Legislative Priorities Please feel free to ask questions at any point!

2017 Budget Highlights: Budget Items Requested by CC System Requested & Funded Restore Salary Funds Cut in 2016 $10,000,000 R Fully Fund Enrollment Growth $4,922,445 R Study Workforce Training Costs Programs (Study will include factors impacting instructional costs, including specialized equipment & salaries) $98,500 NR Additional Career Coaches $1,100,000 R (2017-18) $1,840,000 R (2018-19) Salary Increases for Faculty & Staff Same as State Employees

2017 Budget Highlights: Budget Items Requested by CC System Funding Short Term Workforce Training: Align Con-Ed Funding with CU Funding $15.3 million R $2 million NR in 2017-2018 Start-Up Costs for High Cost Workforce (Must report on use of funds, including start-up costs & costs associated with instruction, student enrollment & outcomes) $3 million R (2017-18) $4 million R in (2018-19) $2.5 million NR in 2018-19 Hurricane Matthew Relief $4.2 million NR $2.7 million NR Increase Student Completion: Funding for Student Supports $22.6 million R $0 Performance-Based Funding for Earnings Gains of Students Stop Loss Funding $5.1 million R Enrollment Growth Reserve $5 million R

2017 Budget Highlights: Non-Budget Items Requested by CC System Included Not Included Allow HS students to enroll in CE programs leading to a State or industry-recognized credential (General Assembly added reporting requirement for number & type of waivers.) Allow colleges to use PBF carryforward for faculty/staff bonuses Allow colleges to earn budget FTE for instruction in jails

2017 Legislative Highlights: Other Items Apprenticeship Transfer Apprenticeship Program from Dept. of Commerce to NC Community College System $3,200,000 NR in 2018-19 for pilot apprenticeship program in Eastern Triad CIHS & CCP Revised funding formula for CIHS based on economic tiers of counties SBCC, UNC-BOG, SBOE must report on success of students participating in CCP & costs of program Military Community colleges (and UNC) must give National Guard members who are called to State active duty excused absences, options to make-up or continue coursework, receive temporary grade of incomplete, or ability to drop without penalty. Extended NCNG tuition assistance to NCNG members enrolled in professional certification courses

2017 Legislative Highlights: Other Items (cont’d) “Closing Interest Gap” Construction Industry $200,000 to support collaboration between the NC Community College System and construction and trade associations to develop communications and outreach plan to increase interest in construction jobs Senior Citizens Permits senior citizens (age 65 & older) to audit CU and CE courses if space is available; colleges do not earn FTE; audit does not apply to self-support courses State Goals/Credential Attainment “Board of Postsecondary Education Credentials” – independent board housed in CC System Office to recommend State goals for adult citizens to hold degrees, certificates, or other postsecondary credentials

State General Fund Appropriations FY 2017-18 (in billions)

State General Fund Appropriations for Education: FY 2017-18 (in billions)

2017-18 Budget

State Budget Allocations Base Allocations - All colleges get the same amount regardless of size or performance. FTE Allocations – Depends on the number of FTE students served. Performance-Based Allocations - Depends on student outcomes. Categorical Allocations – For a specific purpose as directed by the General Assembly

FTE and Budget FTE (BFTE) Curriculum FTE = 512 Student Hours in Membership as defined in 1G SBCCC 200.93 Non-Curriculum FTE = 688 Student Hours in Membership as defined in 1G SBCCC 200.94 A college’s budget FTE is determined by calculating the higher of : - the prior year’s FTE enrollment; or - the average of the two previous years’ FTE enrollment

2017-18 College Allotments $ 836.5 m 58% $496.7 m 34% $30.5 m $51.5 m 2% $51.5 m 4% Source: FY 2017-18 Summary of Budget Allocations. Note that this graph only captures funds distributed to colleges through the routine budget allocation process. This graph does NOT account for any subsequent reversions required by the Governor or allocations.

2017-18 Base Funding

2017-18 BFTE Tier Values Tuition and registration receipts help support these allocations. Receipt collections to date appear to be roughly on target.

Top System Priorities Unifying the System behind a strategic plan focused on improving student outcomes Developing a vision and plan for a future- state technology (ERP) system Developing budget and legislative priorities for upcoming session(s) Transferring Apprenticeship NC to SO Improving data quality

Strategic Planning Themes

Strategic Planning Milestones July – early October: Strategic planning teams meet to develop recommendations on goals, objectives, and strategies Oct. 18 - 20: State Board Planning Meeting Oct. 25 - 27: NC Association of Community College Presidents October – early January: Develop legislative and budget priorities aligned with draft plan KPI team meets to develop recommended metrics Jan. 26: NC Association of Community College Presidents Endorsement of final plan with associated metrics Feb. 16: State Board Meeting Adoption of final plan with associated metrics

Student Success Pathway Students make informed decisions Students progress through programs that lead to valuable credentials, without unnecessary detours Students are provided integrated, targeted supports and interventions when they are most effective Roadmap to completion that includes connected courses, programs, and support services.

ERP Planning & Design: Guiding Principles Students First Develop a reliable, accessible, sustainable, and affordable community college system designed around serving our students first. Business Transformation Unify people, processes, and technology to support student needs and lead us to a more competitive posture in the higher education and continuous learning space. Shared Vision Be transparent in our coordination, communication, and decision making throughout the process to improve outcomes for our students.

2018 Session Preview Budget priorities are being developed to align to the System Strategic Plan. Economic and Workforce Impact goal: Increased funding for workforce programs that lead to an industry-recognized credential Would conform definition of Con Ed FTE with CU FTE (512 membership hours) Requested $15.3 million in 2017, but will revise amount based on Fall estimated FTE data Organizational/System Effectiveness goal: ERP funding