1. GRCC Board of Trustees 2015-16 Mid-Year Budget
February 15, 2016

2. Agenda 2015-16 Mid-Year Budget – Revenue Adjustments
Mid-Year Budget – Expense Adjustments
Mid-Year Summary
Issues for Budget Development
Questions & Request for Adoption

3. 2015-16 Mid-Year Budget – Revenue Adjustments
Tuition & Fees
Enrollment has been adjusted downward based on fall and winter results
Reduction of 6,802 billing units will generate approx. $670,000 less gross revenue
Estimates for differential tuition, as well as Course, Records and Technology fee revenue have also been adjusted based on enrollment
Positive notes:
Swing toward out-district enrollment offset some of the above loss
Billing units for H.S student enrollment (dual enrollment) have increased approx. 30% over
Job Training/Const. Trade enrollment is trending in line with the original budget

4. 2015-16 Mid-Year Budget – Revenue Adjustments
Property Taxes
Change due to a 3.1% increase in final 2015 property values, vs. 2% in the original budget (a very positive trend!)
State Aid
MPSERS UAAL Rate Stabilization increased $1,457,224 over the prior year (entire amount is returned to MPSERS, and thus is also included in retirement expense)

5. 2015-16 Mid-Year Budget – Expense Adjustments
Salaries & Fringes
Salary changes reflect funded positions, final contracts and salary adjustments for , employee turnover and transfers since July 1, estimated sub pay, etc.
AD & OL hours are adjusted for lower enrollment and current average salary per contact hour
Third-shift custodial positions at College Park and Tassell, open through attrition, have been eliminated as this work has been outsourced
No new positions
Health care reflects updated enrollment (January 2016)
FICA and retirement reflect changes in the salary total, as well as the aforementioned increase in MPSERS UAAL

6. 2015-16 Mid-Year Budget – Expense Adjustments
Other Expenses & Transfers
Line items reflect numerous BCO reallocations
This provides flexibility and accountability as BCO’s manage cost center budgets under their purview
Only two new/off-cycle allocations totaling $21,350 were approved. Both were funded with existing Contingency dollars (i.e. no increase to budget)
At this point non-controllable budgets (rent, utilities, bad debts, etc.) appear adequate based on activity to date and projections for the remainder of the year. We continue to monitor these monthly.

7. Mid-Year Summary
Ending Net Assets represent 10.25% of total revenues. This is within the BOT guideline of 10% to 15%
As in prior years, we anticipate total savings (due to transiently open positions and controllable under-spending) in excess of the $1M budgeted, resulting in additional funds available for transfer at year end
Total revenues
$108,506,240
Total expenditures & transfers
$108,434,042
Subtotal
$72,198
Beginning Net Assets
$11,121,515
Ending Net Assets
$11,193,713

8. Issues for 2016-17 Budget Development
Current Revenue Assumptions*
Enrollment decline currently projected at 6%
Tuition increase included at less than 2%
Property tax increase projected at 3%
State funding increase projected at 2%
*We will continue to refine our assumptions as more information becomes available

9. Issues for 2016-17 Budget Development
Current Expense Assumptions*
Planning for position reductions connected with VESP
Salary increase incorporated based on current settled contracts and/or flat total percentage of 2%
Health insurance cost increase at 2.5% (medical CPI)
We are prioritizing funding to enable us to maintain and/or expand our College Success Center and Fast Track “On Track” initiatives once grant funding ends in September 2016, as well as incorporate costs associated with mandatory orientation.
*We will continue to refine our assumptions as more information becomes available

10. Questions and Request for Adoption
Questions/Comments?
We request approval of the mid-year budget for all funds, as presented.
Thank You!