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

2. 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!

3. 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
( )
$1,840,000 R
( )
Salary Increases for Faculty & Staff
Same as State Employees

4. 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
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
( )
$4 million R in
( )
$2.5 million NR in
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

5. 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

6. 2017 Legislative Highlights: Other Items
Apprenticeship
Transfer Apprenticeship Program from Dept. of Commerce to NC Community College System
$3,200,000 NR in 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

7. 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

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

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

10. Budget

11. 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

12. FTE and Budget FTE (BFTE)
Curriculum FTE
= 512 Student Hours in Membership as defined in 1G SBCCC
Non-Curriculum FTE
= 688 Student Hours in Membership as defined in 1G SBCCC
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

13. 2017-18 College Allotments $ 836.5 m 58% $496.7 m 34% $30.5 m $51.5 m2%
$51.5 m 4%
Source: FY 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.

14. Base Funding

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

16. 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

17. Strategic Planning Themes

18. Strategic Planning Milestones
July – early October: Strategic planning teams meet to develop recommendations on goals, objectives, and strategies
Oct : State Board Planning Meeting
Oct : 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

19. 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.

20. 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.

21. 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