1. Proposed FY2010 Budget Northeast Wisconsin Technical College Board of Trustees March 11, 2009

2. FY 2010 Budget Proposal Tax Levy and Fund Balances 2 FY 2008FY 2009FY 2010% Change ActualModified BudgetBudgetFY10 vs FY09 Tax Levy: Operating Levy 37,678,063 39,131,103 40,409,6813.27% Debt Levy 14,854,059 15,891,445 16,143,0721.58% Total Levy before TIF 52,532,122 55,022,548 56,552,7532.78% Ashwaubenon TIF#2 * 577,742 614,789 Total Levy 53,109,864 55,637,337 57,167,5422.75% Equalized Value (000) 35,894,768,860 37,167,200,122 37,538,872,1231.00% Operating Mill Rate1.049681.052841.092853.80% Debt Mill Rate0.413820.427570.430040.58% Total Mill Rate1.463501.480411.522892.87% Changes to Fund Balances: General Fund Balance - Beginning: Reserved for other post-employment benefits 1,434,053 1,620,218 1,458,218 Other reserves 1,049,322 1,147,627 1,175,000 Unreserved 13,354,135 13,644,135 13,616,762 Total Fund Balance - Beginning 15,837,510 16,411,980 16,249,980 Revenues over (under) expenditures 514,618 (310,539) (554,591) Transfers from other funds 59,852 148,539 392,591 Transfers to other funds - - (476,855) Rev/Transfers over (under) expenditures 574,470 (162,000) (638,855) General Fund Balance - Ending 16,411,980 16,249,980 15,611,125 Total General Fund Expenditures 71,412,574 Unreserved Fund Balance as a % of Expenditures19.1% Total Reserved and Unreserved Fund Balance as a % of Expenditures22.8% * FY2008 and FY2009 Levy went to the TIF district, FY2010 Levy will come to NWTC. TIF Total Levy Link

3. Minimum Cash Balance 3 Average bi-weekly payroll and accounts payable equals $2+ million

4. Capital Budget 4

5. FY 2010 Capital Budget Only 61% of February Requests are Proposed in March Budget February Requests March Proposal Total Projects $25,000 & Greater $12,061$6,870 Total Projects Under $25,000 1,5981,459 Total Capital Expenditures$13,659$8,329 Compared to FY2009 Capital Budget: February Requests March Proposal Total Projects $25,000 & Greater $12,049$7,500 Total Projects Under $25,000 1,7861,590 Total Capital Expenditures$13,835$9,090 5 (In $1,000s)

6. Capital Budget Projects Provide Continued Equipment and Facility Upgrades 66.6% of the $5,962,128 Capital Equipment and Software/Media is for instruction or instructional support. 13.7% of $2,366,500 Building & Site Improvement is for instruction or instructional support. 6 (Chart in $1,000s)

7. Direct Investment in Instructional Equipment, Software, and Building Improvement in Learning FY09FY10 Business & Information Technology$200,742$258,764 General Education152,76147,780 Health Sciences430,855419,441 Public Safety838,233402,076 Trades and Technical1,578,6201,691,422 Regional Learning261,135209,200 Learning Support Services/Instructional Software124,50049,520 Corporate Training & Economic Development109,120295,650 Smart Classrooms/Media181,200190,800 Computer/Laptop Refresh1,047,800731,250 TOTAL$4,924,966$4,295,903 7

8. FY 2010 Capital Budget for Items with Total Cost of $25,000 and Greater 8 #Item Total Cost Learning 01Network Classroom Drives And Bays 37,500 02Upgrade Digital Media Lab 129,204 03Mobile Oral Health Clinic 350,000 04High Density Storage 74,000 05SimNewB (Newborn) Manikin 40,500 06EMS Simulation Center 35,000 07Projector Room 38,000 08Snap On Project, Phase I 117,000 09Virtual Paint System 53,300 104-Wheel Alignment Machine 58,400 11FANUC Robotics Education Training 29,400 12Gyratory Compactor 30,000 13Straight Truck 43,260 14Simulator Practical, MF100-TSE 28,350 15Diesel Lab Computers - St. Bay 40,000 16Digger Derrick Truck 75,600 17Rotalign Ultra Laser Shaft Alignment System 43,020 18Photovoltaic Laboratory 100,000 19Tractor Loader Backhoe, Case 580 65,500 20EZ Path Lathes, Replacement 80,200 21Tensile Tester 71,800 22Torsion Tester 37,275 23Adira DNC-Controlled Press Brake 70,100 24Argon/CO2 75/25 Mix Manifold System (GB) 28,100 25Learning Capital Software Requests 28,500 26Video Conferencing Equipment for RLC 144,900 27Client Management System Upgrade 270,000 61 St Bay V/C Room PC'S 30,000 Information Technology 28 - 32Computers Services 975,500 34 - 35Media Services 123,000 36 - 45Network Services 577,500 33Printer/Copier Refresh 80,000 63IIT Capital Project Labor 377,360 Facilities 46Facilities Improvement - Green Bay 75,000 47Facilities Improvement - Marinette 40,000 48Facilities Improvement - Sturgeon Bay 40,000 49Energy/HVAC Improvements 745,000 50Landscape Development 35,000 51Security/Safety Improvements 110,000 52Design Services 125,000 53Sustainability Consulting 60,000 54Roof Replacement 175,000 55St Bay South Wing Roof 167,000 56Re-pavement of Lot G 250,000 57Expansion of UPS for Data Center 160,000 58Oconto Falls RLC Improvements 60,000 59Re-pavement East Campus Drive 150,000 60BAC Shop Improvements 130,000 Administration 62Capital Support Positions 265,350 Capital Budget Requests with Total Cost of $25,000 and Greater $ 6,869,619 Capital Budget Requests with Total Cost Less Than $25,000 1,459,009 Total FY2010 Capital Budget $8,328,628

9. Discussion Items $25,000 and greater make up 82% of the Capital Budget 9 Link to Capital Budget Justifications

10. Capital Budget Items Less than $25,000 FY09FY10 Facilities Improvement$144,725$142,500 Facilities Equipment70,50055,800 Learning Equipment1,136,1191,013,624 Furniture and Fixtures49,80024,935 Information Technology Equipment188,500222,150 TOTAL $25,000 and under$1,589,644$1,459,009 10

11. Sources of Funding for Capital Budget Debt Proceeds$7,950,000 Grant Funding165,360 Bookstore20,000 Capital Contingency133,037 Interest Earnings30,231 Equipment Sales30,000 Total Funding$8,328,628 11

12. Contingency Balance January 2009 Equipment$167,001 Building Remodeling & Improvements333,847 Land Improvements26,946 Total Contingency527,794 Less amount used for FY10 Capital(133,037) Current Remaining Balance$394,757 College’s goal is to maintain a 5% contingency in the Capital Budget based on FY10 capital requests. 5% would be $416,431 12

13. IIT Capital Equipment Computers and Infrastructure FY10 BudgetCurrent NewRefresh Laptops0134534 Desktop PCs266912,686 Apple Macs18105315 Servers174150 Network Switches64163 13

14. IIT Capital Equipment Peripherals FY10 BudgetCurrent NewRefresh LCD (flat panels)002,049 CRT (monitors)00585 Laser Printers015271 Copiers8282 Note: Monitors are only refreshed as they fail; now being replaced as needed with LCD flat panel monitors. Laser printers are being replaced with centrally located multi-function copiers. 14

15. IIT Capital Equipment Multimedia FY10 BudgetCurrent NewRefresh Smart Classrooms332196 PolyComm Video5831 LCD Projectors a 4 b 6 c 70 Smart Carts105 a Independent of smart classrooms b Divisional request to be used off-campus c Use for instructor checkout District-wide 15

16. Timing of Future Debt Issues June 2009$1,100,000FY09 Capital Budget Sept 2009$6,950,000FY10 Capital Budget May 2010$1,000,000FY10 Capital Budget 16

17. General Obligation Debt Summary Outstanding Principal Balance as of 6/30/08$53,895,000 FY09 Debt Issues Actual FY08 & FY09 Capital Budget7,360,000 Actual FY09 Capital Budget1,100,000 Total Issues8,460,000 FY09 Principal Payments(13,610,000) Outstanding Principal Balance as of 6/30/09$48,745,000 FY10 Debt Issues Projected FY10 Capital Budget6,950,000 Projected FY10 Capital Budget1,000,000 Total Issues7,950,000 FY10 Principal Payments(13,540,000) Outstanding Principal Balance as of 6/30/10$43,155,000 17

18. Debt Financing Plan 18 Assumptions: Capital Expenditures expected to grow at 5% annually. Equalized valuation expected to grow at 1% annually. All future borrowings assume 7-year repayment @ 4.5 % interest rate. The $666,855 other funding sources consist of $476,855 from General Fund and $190,000 from Debt Service Fund Balances. Calendar Year Debt Service Payments Other Funding Source Budgeted Debt Levy % Increase Projected Mill Rate 2009 15,991,445 (100,000) 15,891,445 0.42757 2010 16,809,927 (666,855) 16,143,072 1.58% 0.43004 2011 16,143,072 - 0.00% 0.42578 2012 14,792,369 - -8.37% 0.38629 2013 13,555,404 - -8.36% 0.35048 2014 12,421,242 - -8.37% 0.31798 2015 11,383,457 - -8.35% 0.28853 2016 10,434,001 - -8.34% 0.26184 2017 9,564,788 - -8.33% 0.23765 2018 8,767,262 - -8.34% 0.21568

19. Long Term Debt Debt Levy 19

20. Debt Service Mill Rate 20

21. Operational Budget 21

22. Tax Levy Increases by 2.75% The operational portion of the tax levy increases by 3.27% or $1.28M. The projected Operating Mill Rate is 1.093 vs. 1.053 this year, assuming a modest 1.0% increase in equalized property values. Debt portion of the tax levy increases by 1.58% or $251,000. Projected Debt Mill Rate is 0.430 vs. 0.428 this year. Total Mill Rate is projected to be 1.52287 or $152.29 per $100,000 of equalized value. Almost 1% of the tax levy is being used to fund the veterans remission. $610,000 tuition remission budgeted $125,000 expected state reimbursement 22

23. FY09 Total Tax Levy Percent Increase Over FY08 23

24. FY09 Operating Mill Rates 24 Includes operating, capital, and non-operating levy

25. FY09 Levy Subject to 1.5 Limit Percent Increase Over FY08 25 Includes operating, capital, and non-operating levy

26. FY08 Operational Cost/FTE District Comparison 26 State Median, $13.5 $14.3M

27. FY09 Productivity Six operational productivity projects have been completed through February, and four additional projects are scheduled to be completed by the end of FY09. To this point, 127 employees have participated in Operational Productivity projects (FY08 – Feb 09) Six learning productivity projects are scheduled to be completed in FY09. 27

28. FTE Per Employee Increases as Productivity Improves 28 88 employees 156 employees

29. FTE Per Employee Productivity 29 NWTC ranks highest in faculty productivity and 2 nd highest in non- faculty productivity.

30. FY 2010 Budget Proposal Expenditures 30 Major FY 2008FY 2009FY 2010Differences% ActualModifiedBudget($000,000)Change Budget FY10 vs FY09 Expenditures: General Fund Personnel 53,855,489 56,408,885 59,492,671 3.15.5% Supplies/Teaching Aids 2,284,271 2,527,441 2,416,054 (0.1)-4.4% Purchased Services 3,590,887 3,756,121 3,874,244 0.13.1% Rental & Repair 1,566,980 1,634,145 1,675,899 0.02.6% Utilities 1,763,658 1,805,348 1,575,561 (0.2)-12.7% Travel/Professional Development 734,666 834,570 787,534 (0.0)-5.6% Institutional/Operational 1,285,210 1,669,855 1,590,611 (0.1)-4.7% General Fund Expense 65,081,161 68,636,365 71,412,574 2.84.0% Other Funds Restricted Rev-State/Fed Project 3,513,130 4,464,163 4,244,229-0.2-4.9% Restricted Rev-Corp. Training & Econ. Devel. 4,354,758 5,079,704 4,722,600-0.4-7.0% Restricted Rev-Alternative High School 522,215 472,483 265,947-0.2-43.7% Capital Projects/Equipment/New Dev Cap 7,415,694 9,417,429 8,328,628-1.1-11.6% Debt Service 14,746,457 15,925,764 15,575,800-0.3-2.2% Enterprise Expense 4,481,634 5,012,036 5,243,8040.24.6% Self Insurance Fund Exp 9,944,845 10,407,345 10,728,4450.33.1% Student Government 806,764 1,019,000 1,094,0000.17.4% Student Financial Aid 7,578,930 8,129,384 8,960,1030.810.2% Total Other Fund Expenditures 53,364,427 59,927,308 59,163,556-0.8-1.3% Total All Fund Expenditures 118,445,588 128,563,673 130,576,1302.01.6%

31. Personnel Costs – All Funds 31

32. General Fund Personnel Up 5.5%, $3.1M Additional staff and faculty$764 General Fund$516 Previously Grant/Contract Funded248 Limited Term (Welding & Machine Tool Instructors)184 Position reallocations(155) Wage increase1,896 Vacancies expected (1.375%)(164) Actual salaries as percent of original budget Health and dental137 Wisconsin Retirement System(115) Extra contractual/adjunct faculty wages/benefits729 FY09 additional sections cost primarily General Studies and Trades (Machine Tool)$350 Wage increase for extra contractual faculty210 FY10 additional requests169 Part-time FICA Alternative(220) 32 (In $1,000s) FY06 1.4% FY08 1.5% FY07 1.9% FY09 Proj 1.5%

33. FY2010 Requests for Additional Staff and Faculty 33 Total FTE Total Amount Expense Reduction Other Funding Source Tax Levy Impact General Fund Positions: Learning Division 1Service Learning Coordinator1.00 75,000 2ESS Level IV Support Staff - Northwest Region0.50 32,477 5Micro-Business Instructor1.00 88,266 - 6ESS Level V Support Staff - Learning Support Services0.80 55,022 8,852 46,170 8EMS Instructor1.00 88,266 41,000 47,266 9Criminal Justice Instructor1.00 88,266 41,000 47,266 10ElectroMechanical/Electronics Instructor1.00 88,266 41,000 47,266 Subtotal - New Positions6.30 $ 515,563 $ 131,852 $ 88,266 $ 295,445 Previously Grant/Contract Funded 11Digital Media Technology Instructor - 12,588 12Manufacturing Engineering Technician Instructor - 64,572 Landscape Horticulture Instructor - - 64,572 (64,572) 13Entrepreneur Development Specialist - 85,539 40,000 45,539 14Gerontology Instructor - 85,317 - Total Requests for Staff and Faculty Dollars in the General Fund6.30 $ 763,579 $ 196,424 $ 213,583 $ 353,572 Enterprise Fund Positions: Learning Division 3Office Coordinator, Dental Clinic1.00 70,950 - 4ESS Level III Support Staff - Dental Clinic Scheduler/Biller0.80 48,414 - 7ESS Level V Support Staff - Public Safety1.00 68,778 - Total Requests for Staff Dollars in the Enterprise Fund2.80 $ 188,142 $ - $ 188,142 $ - Total All Funds9.10 $ 951,721 $ 196,424 $ 401,725 $ 353,572 Link to Additional Staff & Faculty Requests

34. Program Updates Strong Demand, Modest Increase in Graduates: Administrative Assistant (from 132 to 193 job openings; from 22 to 30 graduates) Computer Support Specialist (from 57 to 59 job openings; from 19 to 21 graduates) Hotel & Restaurant Management (from 31 to 56 job openings; from 7 to 10 graduates) Print Technology (from 30 to 54 job openings; from 5 to 7 graduates) Welding (from 78 to 127 job openings; from 32 to 54 graduates) Strong Demand, Flat or Modest Decreases in Graduates: Criminal Justice, Corrections (from 33 to 56 job openings; from 23 to 18 graduates) Marketing (from 244 to 301 job openings; from 48 to 36 graduates) Physical Therapy Assistant (from 36 to 72 job openings; from 24 to 16 graduates) Other: Apprenticeships continue slow rebound; a more proactive outreach strategy will be developed and implemented in 2009. Retail Management Program will be suspended; courses will be folded as a retail management track into the Business Management Program. 34

35. Position Retirements, Reductions, Eliminations Positions not to be filled as a result of Retirements: 50% of a full-time Math Instructor (Retirement) 50% of a full-time General Studies Lab Coordinator (Retirement) Position Reductions/Redefinition: Respiratory Care Practitioner Instructor 100% to 75% (managing program more efficiently) 50% of a full-time Alternative High School Instructor position (declining enrollment in Alternative High School option) Apprenticeship Coordinator redefined as an Non-Unit Professional position reducing cost by $15,460 (currently filled by an instructor) Retail management position reconfigured to support entrepreneurship and business management instruction Position Eliminations: ESS Level IV position providing cross division support Diesel Lab Aide (hourly) Entrepreneurship Manager position 35

36. Additional Health Care Savings Anticipated in FY10 Deeper discounts with United Options PPO Average discount now 32% vs. 20% Non-Unit Professionals moved to High Deductible Health Savings Account in January 2009 plus an increase in employee share of health premium Unions increased health premiums, deductibles, and drug and emergency room co-pays in current collective bargaining agreement Numerous wellness initiatives underway Yields a modest increase in health premiums 2.5% increase for Unions No plan cost increase for Non-Unit Professionals High Deductible Plan 36

37. FICA Alternative Retirement Program All part-time, seasonal, and temporary employees who do not qualify for the Wisconsin Retirement System with the College are enrolled in FICA Alternative Retirement Program Under IRC 3121. Instead of reducing salary on an “after-tax” basis by the mandatory FICA tax contribution of 6.2% and sending it to the Federal government, the College would establish an account in which the employee contributes 7.5% on a “pre- tax” basis. Since the 6.2% after tax contribution has the approximate same impact as a 7.5% pre-tax contribution, take home pay is not changed. Unlike Social Security, contributions and interest earnings are available upon termination of employment, death/disability, or normal retirement age. Participant contributions are invested in a group annuity contract providing guaranteed interest and principal. This plan is implemented and administrated at no cost to the employee by a Wisconsin-based third-party administrator. 37 Additional Operating Budget Item Requests

38. Supplies & Teaching Aids Down 4.4%, $111,400 Decreases Non-instructional consumable supplies$56,000 Minor equipment46,300 38

39. Purchased Services Up 3.1%, $118,100 Increases SunGard IIT Services contractual increases based on CPI$133,500 Network bandwidth capacity increase to support online instruction at remote campuses and Regional Learning Centers30,000 Line charges for additional video conferencing classrooms at Regional Learning Centers15,000 Decreases College-wide reduction of purchased services$53,000 39

40. Rental & Repair Up 2.6%, $41,800 Maintenance Agreements Annual increases or new contracts$55,800 Instructional software Imaging/workflow software purchased in FY09 Web server security Blackboard price increase 40

41. Utilities Down 12.7%, $229,800 Decreases Heat-26.1%$125,400 Electricity-12.5%119,800 41

42. Energy Improvement Initiatives - Implemented Reduced MMBTU/SqFt/DD from 13.01 in FY 07 to 11.6 in FY 08 Improved Measurement of Energy Consumption Energy Management Team established/goals set (2007/2008) Energy Management implementation plan & schedule developed (2008) Completed Energy Management Administrative Policy (2008) Adopted Facilities Energy Management Operating Procedure (2008) Implemented Temperature Settings in Accord with Revised State Energy Management Guidelines (2008) Operational Productivity event for Energy Management (2008) Purchase commitments for Natural Gas through November 2009 $57,000 locked in savings for FY09 $22,000 locked in FY 10 savings; monitoring market pricing for more opportunity 42

43. Energy Improvement Initiatives - Upcoming Develop Electrical Demand Monitoring Incorporate Energy into Building Design (capital budget item on Sustainability) Create Programs to Increase Staff & Student Awareness Implement (re-lamp to) National Lighting Standards Continue Conversion to 25-watt Lamps Retro-commissioning of Building Controls Implement PC Shutdown Pilot Virtual Desktop Initiative Potential for Bio Mass Boiler Performance Contract w/$40K Savings Electricity is largest component of Carbon Footprint 43

44. NWTC Energy Usage (Gas & Electrical) 5-Year Comparison 44

45. NWTC Total Energy Usage 5-Year Comparison 45

46. WTCS FY08 Energy Usage 46 State Average 11.4

47. Travel/Professional Development Down 5.6%, $47,000 Increases Higher Learning Commission accreditation visit preparation$50,000 For a total of $100,000 in FY10 Budget Decreases College-wide, non-instructional travel90,300 FY10 budget will be at FY06 actual spending level 47

48. Institutional/Operational Down 4.7%, $79,200 Decreases Uncollectable student fees$70,000 Fewer student accounts receivable write-offs resulting from NWTC’s recent participation in the Wisconsin Dept. of Revenue Tax Refund Intercept Program (TRIP) 48

49. Operating Contingency Funds Comprise 0.3% of Operational Budget Contingency remains at $250,000 $150,000-President $70,000-Learning $30,000-Student Services FY09 Contingency Uses Increased snow removal costs Marketing dollars for advertising new programs Innovative Sustainability Consulting Global Corporate College Certification for CTED 49

50. Changes to Other Funds Decrease in state/federal projects: Funding ends FY09 – International, WMEP State budget reductions Corporate Training and Economic Development Slowed growth due to economic environment Alternative High School - declining enrollment Self Insurance Fund – modest increase in health care costs projected Increase in Pell grants 50 Fiscal YearRevenue 2005-06$2,740,767 2006-073,399,465 2007-083,477,289 2008-09 Estimate4,287,774 2009-10 Budget4,324,800

51. Revenues 51

52. FY 2010 Budget Proposal Revenues 52 Major FY 2008FY 2009FY 2010Differences% ActualModifiedBudget($000,000)Change Budget FY10 vs FY09 Revenues: General Fund Local Taxes/Local Government Payments 52,700,327 55,122,548 57,267,542 2.13.9% Tax to Other Funds (16,248,904) (17,318,963) (17,689,770) (0.4)2.1% State Aid in Lieu of Taxes 243,974 250,000 -0.0% State Aid 11,305,025 11,453,977 11,219,600 (0.2)-2.0% Federal - - - - - Tuition & Fees 16,524,920 18,145,624 19,155,811 1.05.6% Institutional Sales/Other 1,070,437 672,640 654,800 (0.0)-2.7% General Fund Revenues 65,595,779 68,325,826 70,857,983 2.53.7% Other Funds Local Taxes-Other Funds 1,394,845 1,427,518 1,546,698 0.18.3% Local Tax - Debt Service 14,854,059 15,891,445 16,143,072 0.31.6% Restricted Rev-State/Fed Projects 2,483,945 3,425,116 3,191,000 (0.2)-6.8% Restricted Rev-Corp. Training & Econ. Devel. 3,477,290 4,842,336 4,324,800 (0.5)-10.7% Restricted Rev-Alternative High School 375,221 381,483 230,381 (0.2)-39.6% Capital Projects/Equipment 462,924 328,603 234,300 (0.1)-28.7% Debt Service 69,813 50,000 30,000 (0.0)0.0% Enterprise Revenue 4,805,148 5,184,420 5,658,578 0.59.1% Self Insurance Fund 10,324,768 10,607,345 10,728,445 0.11.1% Student Government 984,411 1,050,000 1,125,000 0.17.1% Student Financial Aid 7,509,640 8,069,281 8,900,000 0.810.3% Total Other Fund Revenues 46,742,064 51,257,547 52,112,274 0.91.7% Total All Revenues 112,337,843 119,583,373 122,970,257 3.42.8% Loan Proceeds 5,315,000 8,460,000 7,950,000 (0.5)-6.0% Total All Fund Resources 117,652,843 128,043,373 130,920,257 2.92.2%

53. Revenue to Increase 2.8% Overall 53 (In $1,000s)

54. General State Aid Trend GPR Appropriation reflects the Governor’s 1.4% budget reduction Fiscal YearRevenue 2005-06 $10,504,100 2006-07 11,001,009 2007-0811,208,225 2008-09 Budget11,430,000 2009-10 Budget11,219,600 54

55. Taxpayer Support per FTE 55

56. Tuition and Fee Revenue Up 5.6%, $1,010,200 Reflects tuition and enrollment increases Forecasted tuition increase of 5.1% Projected FY09 FTE is 6,575 In FY10 expect an additional 2% FTE to 6,707 Pass on collection agency fee to students$80,000 56

57. Institutional Sales/Other Down 2.7%, $17,800 Decreases Declining investment interest rates$85,000 Increases Requested contribution to offset costs of Entrepreneur Development Specialist position40,000 Rental income12,400 57

58. Previous Investments in Program Development and Growth from Fund Balances 58 CommitmentUses Budget YearAmount Actual Amount through FY08 FY09 Estimate Amount Remaining Balance 6/30/09 Expanded Workplace Learning effortFY06$1,000,000$872,098 $127,902- Manufacturing Training CenterFY06142,000104,866 37,134- International Student RecruitmentFY0690,000 -- Grant DevelopmentFY08145,40051,060 94,340- Renewable Energy Technologies Coordinator/InstructorFY08131,72156,897 74,824- $1,509,121$1,174,921$334,200-

59. Funding New Investments in Program Development and Growth Program Development Fund Funding Sources Enterprise Fund Available Balance 6/30/08$978,828 Estimate FY09 addition153,847 Estimate Balance 6/30/09$1,133,675 Ashwaubenon TIF closure payment275,000 Total estimated available funds at 6/30/09$1,408,675 59 FY10 through FY12 BudgetCommitmentFY10FY11FY12 Gerontology Instructor$171,487$85,317$57,162$29,008 Energy/Renewable wages and supplies184,58545,97583,50055,110 Microbusiness Instructor177,41488,26659,13830,010 Global Community College Coordinator200,000100,00067,00033,000 Higher Learning Commission reaccreditation costs 100,000 0 0 $833,486$419,558$266,800$147,128

60. Budget Strategy Draws on Fund Balances to Reduce Taxes Needed from Property Tax Payers A total of $896,400 is drawn from the General Fund and Enterprise Fund balances. This reduces the fund balances to the bare minimum needed to meet cash flow needs without doing short-term borrowing. To avoid drawing down the General Fund Balance, we would have to increase the total levy by.86 percentage points. To avoid drawing down the Enterprise Fund Balance, we would have to increase the total levy by.74 percentage points. The total levy, if neither fund balance is used, would be increased to 4.35% compared to the 2.75% represented in this plan. Funds for the General Fund balance are used to make a one-time debt service payment. This reduces the amount of debt the College will have to levy in FY10. FY11 debt levy is expected to be the same as FY10, allowing any increase in the total levy in FY11 to be applied to the operating levy. The use of the Enterprise Fund balance to create the Program Development and Growth Fund allows for strategic investments in programs consistent with the strategic directions in Future 2013: We Deliver the Future without using taxpayer supported funds. These funds have been generated by enterprise accounts such as the bookstore. They have been supplemented by a one time payment of $275,000 from the closing of the Ashwaubenon TIF. With the exception of paying for two-thirds of the cost of reaccreditation ($100,000), these funds are used to seed programs over a three-year period with the goal of generating sufficient revenue to pay for on-going expenses after year three. 60

61. Anxious Moments Moving to the FICA alternative is subject to a decision by the Wisconsin Retirement System. The agency’s decision is final and is expected within the next four weeks. A negative decision will create a $220,000 hole in this budget. This would increase the tax levy by approximately 4/10 of a percentage point. The State Board will not set tuition until late March. The planned 5.1% in this budget is consistent with an anticipated 5.5% increase in the University System. A 4% increase in tuition would create a $170,000 hole in the budget. This would increase the tax levy by approximately 3/10 of a percentage point. While we are confident in our ability to reduce energy consumption, the price of energy and the impact of weather is always uncertain. This budget presumes that the decrease in State funding will be held to the 1.4% reduction called for in the Governor’s budget. More rapid increases in enrollments in our sister colleges could cause some funding to be redistributed away from NWTC to other technical colleges. There is a designated stabilization fund in the general fund balance. The $1,270,000 in this fund should be sufficient to adjust for any redistribution. This will, however, put further pressure on maintaining a sufficient fund balance to handle cash flow needs at the end of December. 61

62. Program Growth and Development Fund Investments Allow College to Grow Needed Programs A new series of courses, certificates, and degrees will be developed by the Gerontology Instructor. The focus will be on health care, independent living, community, and business services. The first set of comprehensive offerings will be provided in fall 2010. This is consistent with Future 2013: We Deliver the Future. The development and implementation of sustainable energy development, energy management, and energy distribution courses, certificates, and degrees will continue to grow. Five certificates are offered in fall 2009. Utilities Engineering Technician program is operational in fall 2009. Energy Management degree is in place and offered in fall 2010. It is anticipated that in FY11 a full-time instructor will be hired in support of this programming. 62

63. Program Growth and Development Fund Investments Allow College to Grow Needed Programs A Micro-Business Development program will be created for implementation in fall 2010. This is an economic development initiative in rural areas. The Farm Management program model will be used in the design of this program. The focus will be on providing courses leading to an Associate Degree in developing, owning, and operating a micro-business. It is expected that micro-businesses will fall into three categories (not exclusively): professional artisans, food services, and business services. A sales person will be assigned exclusively to developing corporate training contracts in partnership with Global Corporate College (GCC). It is expected that this position will generate $300,000 of business the first year. This position will be responsible for coordinating and supporting NWTC’s 12 Wisconsin Technical College GCC partners. The individual who will be assigned this position has been identified and trained by GCC as one of its hot top ten sales agents. Needed funding support for Higher Learning Commission reaccreditation is provided. The anticipated visit from reaccrediting team is October 2010. The final report to the team is due mid-summer of 2010. Reaccreditation is necessary in order to maintain eligibility for receipt of federal financial aid for our students. 63

64. Thank You Questions and Comments 64