Budget Approved

2 Contents State Funding Picture3 Effect on North Central State College4 Board of Trustees’ Planning Goals5 State Share of Instruction Allocation by Sector6 State Share of Instruction by Institution7/8 FY State Allocation9 State Appropriation as a Percent of Total Budget10 State Support Comparison11 Assumed Local vs. Actual Contributions 12/13 Comparison with other Institutions 14/15/16 Tuition Comparison17 Enrollment Fall Quarter Comparison18 Enrollment Data19 Analysis of Net Assets20 Fund Balance 21 Budget Planning Proposals/Recommendations22 Budget Overview23 Revenue by Source24 Expenditure by Type25 Revenue by Source (Approved)26 Expenditure by Type (Approved)27 Approved Budget Planning Proposals/ Recommendations28

3 State Funding Picture Higher Education cut $10 million in FY Higher Education cut $17.4 million in FY State funding per FTE has dropped over 22% since FY Excluding Debt Service, Higher Education appropriations increased by $10.4 million in FY 2006 and by $64.2 million in FY 2007(assumes + $30 million SSI FY ’07)

4 What this means for NC State Despite increase in overall higher education funding appropriations, Fiscal Year 2006 appropriation was reduced by $160,645. Fiscal Year 2007 appropriation reduced by $153,463. Lost over $1,000 per student (FTE) in state funding.

5 Board of Trustees’ Planning Goals Maximize Student Access Guarantee Quality Education Guide Towards Educational Success Workforce Development Resource Development Community Resource Community Input

6 State Share of Instruction Allocation by Sector DistributionSubsidy Fall 2002 FTE Fall 2003 FTE Fall 2004 FTE Fall 2005 FTE Fall 2006 FTE Universities$1,131,669, %62.43%61.17%60.31%59.83%59.81% Branch Campuses96,639, %8.99%9.18%9.34% 9.29% Community Colleges263,975, %23.34%24.33%24.67%25.12%25.06% Technical Colleges66,562, %5.24%5.32%5.68%5.71%5.84% Total$1,558,846,889

7 State Share of Instruction Actual FY 2006 and Projected FY 2007

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9 FY State Allocation Revenues Actual FY 2006 Projected FY 2007 $ Change FY ’06 – FY ’07 % Change FY ’06 – FY ‘07 State Share of Instruction $6,670,985$6,543,917($127,068)-1.90% Access Challenge 832,697806,302(26,395)-3.17% Jobs Challenge 111, % $7,615,036$7,461,573($153,463)

10 State Appropriation as a Percent of Total Budget Total Budget OBR State Share of Instruction & Access Challenge % of Total Budget FY ’07$19,512,369$7,350,21938% FY ’0619,641,9717,503,68238% FY ’0518,091,500 7,668,17842% FY ’0416,744,4117,018,03842% FY ’03 16,316,545 6,856,64942% FY ’0214,465,0477,071,48549% FY ’0114,967,2277,549,84551% FY ’0014,147,2987,252,80452%

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12 Student Revenue Compared to Local Contribution Assumption (per FTE)

13 Assumed Local Contribution vs. Actual Local Contribution (Instructional and General Fees) Year Assumed Local Contribution Actual Local ContributionDifferenceFTE’s OBR Assumption Deficit Total Assumption Deficit FY 2001$3,382$2,324$1,0581,745$1,846,210 FY 20024,0732,6081,4651,9402,842,1004,688,310 FY 20034,5722,8351,7372,1003,647,7008,336,010 FY 20045,3823,0022,3802,1135,028,94013,364,950 FY 20055,3983,2992,0992,0724,349,12817,714,078 FY 20064,9843,4311,5531,9683,056,30420,770,382 FY 2007 * 4,943** 3,6341,309 *** 1,9682,576,11223,346,494 * Projected ** Assumes 5.9% tuition increase $4.50/hr. *** Flat enrollment

14 Comparison with Other Institutions

15 Comparison with Other Institutions

16 Comparison with Other Institutions Three-Year Success Measures for First-Time Degree-Seeking Students Full-Time Students Enrolled in Fall 2001 Pages 13, 14 & 15 data from: The Performance Report for Ohio’s Colleges and Universities 2005 (Ohio Board of Regents) Percent of StudentsEarned Degree Persisting at Same Institution in FY 2004 Persisting at a Different Institution in FY 2004 Total Successful FTPT Belmont68%32%21%26%6%53% COTC45%55%18%23%6%47% Hocking72%28%19%24%11%53% James A. Rhodes51%49%24%31%5%60% Marion43%57%19%25%2%46% NC State34%66%19%29%9%57% Stark State41%59%20%30%7%58% Zane State61%39%31%23%8%61%

17 Tuition Comparison Note: Tuition is based on 15 credit hours for 3 quarters or 2 semesters. FY 2006 (Fall 2005) actual, FY 2007 (Summer 2006) estimates in discussion.

18 North Central State College Enrollment Data Fall Quarter

19 North Central State College Enrollment Data

20 Analysis of Net Assets Adoption of Governmental Accounting Standards Board No. 34/35 02/03 Actual 03/04 Actual 04/05 Actual Total Revenue$20,891,029$20,988,039$20,778,856 Total Expenditures 18,971,818 19,770,03920,494,705 Increase (Decrease) 1,919,2111,218,000284,151 Net Assets19,989,19821,207,19821,491,349 Unrestricted Net Assets2,097,9472,883,2473,545,373 Unrestricted Percent of Expenditures11.06%14.59%17.30% Planned Appropriation600,000440,0001,537,136

21 Estimated Fund Balance Calculation FY ’06 Operating Income (Loss)$175,554 Estimated Depreciation Depreciation FY '05(1,036,930) Depreciation FY '06(37,000) Capital Purchases175,000 Increase (Decrease) in Net Assets(723,376) Unrestricted Net Assets Beginning of Year3,545,373 Unrestricted Net Assets End of Year2,821,997 Estimated 10% Reserve (Operating Budget)(1,951,237) Estimated Available Fund Balance$870,760

22 Budget Planning Proposals/Recommendations Assume SSI (+ 30 million) increase not available Assume enrollment increase of 2% for Assume vacant positions not filled –Staff positions –Institutional Research –Workforce Development Hiring freeze pending review at mid year Reduce overload/adjunct dollars by 10% Implement compensation review 50% FY ’07 & 50% FY ’08 Implement 2.5% Wage Increase Use Fund Balance to cover projected deficit

23 Budget Overview

24 Revenue by Source FY ’06 AMENDED FY ’07 PROJECTED DIFFERENCE State Share of Instruction $6,670,985$6,543,917($127,068) Access Challenge 832,697806,302(26,395) Jobs Challenge 0111,354 Student Tuition and Fees 8,149,8658,557,454407,589 Non-Credit Nursing 5,40010,0004,600 Other Revenues 323,500328,5755,075 University Center 85,000105,50020,500 Capital Debt Service 150,000160,00010,000 Child Development Center 459,148570,121110,973 Workforce and Community Development 1,356,2401,435,96079,720 Facilities 72,00042,000(30,000) Fund Balance 1,537,136841,186(695,950) Total $19,641,971$19,512,369($129,602)

25 Expenditure by Type FY BudgetFY Budget$ Change Payroll$8, $8,129,468$82,642 Benefits2,769,1712,999,173230,002 Printing111,871106,871(5,000) Advertising164,908168,5283,620 Postage104,155 0 Shared Campus Expense1,591,000 0 Professional Development196,940196,740(200) Grants and Scholarships320,000326,0006,000 Equipment Lease & Rental206,216204,816(1,400) New Equipment335,225303,000(32,225) Professional Fees456,940399,986(56,954) Debt Service54,020 0 All Other Expenses1,347,9151,358,40110,486 Child Development Center574,001634,48160,480 Corporate1,506,5121,459,642(46,870) Appropriated Reserve512,969100,000(412,969) Facilities1,343,3031,376,08832,785 Total Budget$19,641,971$19,512,369($129,602)

26 Revenue by Source June 28, 2006 FY ’06 AMENDED FY ’07 APPROVED DIFFERENCE State Share of Instruction $6,670,985* $6,670,099($886) Access Challenge 832,697806,302(26,395) Jobs Challenge 0111,354 Student Tuition and Fees 8,149,8658,557,454407,589 Non-Credit Nursing 5,40010,0004,600 Other Revenues 323,500328,5755,075 University Center 85,000105,50020,500 Capital Debt Service 150,000160,00010,000 Child Development Center 459,148570,121110,973 Workforce and Community Development 1,356,240** 1,285,960(70,280) Facilities 72,00042,000(30,000) Fund Balance 1,537,136841,186(695,950) Total $19,641,971$19,488,551($153,420) * Increase $126,182 OBR Projections dated 6/27/06 with additional $30M ** Decrease $150,000 updated GM revenue projections

27 Expenditure by Type June 28, 2006 FY Budget Approved FY Budget$ Change Payroll$8, $8,129,468$82,642 Benefits2,769,1712,999,173230,002 Printing111,871106,871(5,000) Advertising164,908168,5283,620 Postage104,155 0 Shared Campus Expense1,591,000 0 Professional Development196,940196,740(200) Grants and Scholarships320,000326,0006,000 Equipment Lease & Rental206,216204,816(1,400) New Equipment335,225303,000(32,225) Professional Fees456,940399,986(56,954) Debt Service54,020 0 All Other Expenses1,347,9151,358,40110,486 Child Development Center574,001634,48160,480 Corporate1,506,5121,435,924(70,688) Appropriated Reserve512,969100,000(412,969) Facilities1,343,3031,376,08832,785 Total Budget$19,641,971$19,488,551($153,420)

28 Approved Budget Planning Proposals/Recommendations Assume SSI (+ 30 million) increase is available Assume enrollment increase of 2% for Assume vacant positions not filled –Staff positions –Institutional Research –Workforce Development Hiring freeze pending review at mid year Reduce overload/adjunct dollars by 10% Implement compensation review 50% FY ’07 & 50% FY ’08 Implement 2.5% Wage Increase Use Fund Balance to cover projected deficit

29 Questions