Grand Rapids Community College Board of Trustees Proposed Budget June 1, 2015

AGENDA 1.General Operating Fund 2.Restricted Fund 3.Designated Fund 4.Auxiliary Fund 5.Plant Fund 6.Looking Ahead

General Operating Fund Summary Based on the tuition adjustments approved in March, the following budget is presented for your approval (no changes from the May work session): Revenues $107,431,692 Expenditures & Net Transfers107,175,702 Addition to Fund Balance255,990 Fund Balance - 7/1/2015 9,451,515 Fund Balance - 6/30/2016$9,707,505 Fund Balance - % of Revenues9.04%

General Operating Fund Revenue Sources

General Operating Fund Primary Revenue Sources - Historical

General Operating Fund Expenditures

Restricted Fund Used to account for funds restricted as to use by external funding sources: Federal sources$53,900, % State sources1,382,1462.4% Local sources379,2320.7% College match (via transfer)1,214,3142.1% Total funds available56,876,602 Expenditures56,876,602 Net Revenue (Exp)$0

Restricted Fund Significant changes from Mid Year Federal: $1 million decrease – due primarily to substantial completion of equipment purchases (approx. $830,000) related to the U.S. Dept. of Labor’s M-CAM grant. Various decreases in other programs such as TRIO student support services, ASCET Work First, special populations and the caregiver support grant account for the remainder of the decrease. State/Local: comparable to the prior year; includes activity for Michigan New Jobs Training Grant, Kellogg pathways and other smaller state/local grant programs. Transfers: $74,000 decrease – due to completion of the Kellogg-funded culture audit and the Ad Hoc committee recommendation to reduce support for the TRIO grant program. These decreases are partially offset by a required increase in funding (now 50%) to support a Data Analyst position related to the Title III program.

Designated Fund Funds internally designated for specific purposes and/or receiving substantial external revenues (e.g. admission fees, contract revenues, etc. ) Significant Changes from mid year: Training Solutions is projecting decreased revenues due to a change in the contract for CNA training (more expenses paid directly by the client) and a more conservative estimate of training needs by manufacturers. Related expenses have been adjusted accordingly. Transfers from the GF have been reduced by $46,000 due to the Ad Hoc budget committee recommendation related to the Older Learner Center. We do not anticipate using funds from Budget Stabilization in , thus the transfer to the GF has been eliminated.

Auxiliary Fund BookstoreFood ServiceParking Printing ServiceTotal Revenue$640,000$1,333,500$2,527,500$1,079,500$5,580,500 Expense(247,790)(1,297,500)(1,111,000)(1,079,500)(3,735,790) Capital(38,750)(12,000)(650,000)-0-(700,750) Operating Rev (Exp)353,46024,000766, ,143,960 Trans to GF(350,000)(100,000)(1,230,000)-0-(1,680,000) Net Rev (Exp)$3,460($76,000)($463,500)$-0-($536,040) Overall, revenues decreased approximately 8.5% largely due to lower enrollment levels. One position has been eliminated in Printing Services to better align costs with expected revenue. A $30,000 increase in the Transfer to GF represents a recommendation of the Ad Hoc budget committee to increase public (non-student) parking rates. Key projects to be funded from Auxiliary revenues in include: - Technology and equipment upgrades for the Bb Raider Card system - $38,750 - Cafeteria equipment replacements - $12,000 - Parking ramp maintenance and repairs - $650,000

Plant Fund Operating Expenditures planned in the budget: IT Capital/Tactical Plan - $1,011,000 – Includes classroom technology upgrades, phone system upgrade, PC “cascading”, etc. Capital Allocation and Deferred Maintenance - $1,256,397 – Deferred maintenance allocation - $1,000,000 – Recurring funding for vehicle replacement, SWD equipment, ADA compliance and bond amortization - $256,397 Matching funds for the CCSTEP Grant - $430,000 – Will augment donor funds to meet grant match requirements Debt service on bond indebtedness - $7,393,618

Looking Ahead Second year of VESP departures Implementation of GASB #68 as of June 30, 2015 Continued implementation/exploration of the longer-term Ad Hoc budget committee recommendations Enrollment fluctuations On-going prioritization of need for reinvestment in academic programs and capital resources

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