1. 2003-04 Michigan State Aid Information An informational meeting for ACC faculty and staff March 13, 2003

2. 2003-04 MI State Aid Information Most States Face Revenue Challenges Average 4-year public institution tuition increase across the U.S. last year was 9.6%. Texas public schools have been asked to cut their budgets by 12.5% to help trim a projected $10 billion budget shortfall. New Jersey proposes to cut $100 million from college operating budgets for 2003-04. 46 states are facing significant budget shortfall for FY04. California is facing a $35 billion shortfall. Wisconsin’s governor has proposed $250 million in cuts for higher education. Virginia has initiated freezes on pay increases and hiring. Missouri’s governor has ordered every third light bulb unscrewed in state offices.

3. 2003-04 MI State Aid Information Michigan Also Faces Challenges State tax revenue is highly dependent on auto sales, which have declined over recent years. Projected MI budget shortfall of $1.8-2.0 BILLION for FY04. State aid will be cut along with most other state government operations.

4. 2003-04 MI State Aid Information Proposed Michigan Budget Cuts FY03 state appropriation cut by executive orders of 3.5% (about $190,000). Governor Granholm’s FY04 budget proposal calls for an additional 6.5% cut over the reduced FY03 amount (about $340,000). Michigan’s financial future continues to be unclear and precarious.

5. 2003-04 MI State Aid Information This is not a catastrophe! But yes, these are challenging times. There are ways to intelligently deal with reduced state aid and still be the same strong community college. This is going to be a multi-year challenge. All ACC faculty and staff need to participate in the process.

6. 2003-04 MI State Aid Information ACC Financial History

7. 2003-04 MI State Aid Information ACC Financial History

8. 2003-04 MI State Aid Information ACC Financial History

9. 2003-04 MI State Aid Information ACC Financial History

10. 2003-04 MI State Aid Information ACC Financial History

11. 2003-04 MI State Aid Information ACC Financial History

12. 2003-04 MI State Aid Information ACC Planning Assumptions for FY04 Board of Trustees expects College to maintain at least a 5% reserve in general fund balance. Steady enrollment figures – same number of credit hours as FY03. Millage passage in FY04. Slow growth in property tax revenue. Continued double-digit increases in health care costs. Continued energy cost increases. Multi-year budget planning process. Non-personnel costs remain level. No tuition caps are mandated by the state or federal government.

13. 2003-04 MI State Aid Information

14. ACC FY04 Budget Options Keep the FY03 parameters? Decrease expenses and increase revenue.

17. 2003-04 MI State Aid Information

19. $1,664,000 $2,339,000 $3,062,000

20. 2003-04 MI State Aid Information What Does This All Mean? We’re a great institution and that’s not going to change. Quality teaching and learning must and will continue. We have a good mix of programs and services. Enrollment targets must be met. Costs will go up. Layoffs are not in the interest of the institution. Bankruptcy is not an option! Tuition and fees will go up. Facilities improvements and equipment purchases will slow but not stop. We must come together in spring 2004 to pass a property tax renewal. Remember, we’re a great institution and that’s not going to change!

21. 2003-04 MI State Aid Information We’re All Part of the Budgeting Solution! Each of us has valuable knowledge of their operations and can offer important suggestions on how to reduce expenses and increase revenue. We all have a vested interest in continuing to make ACC as strong an institution as possible! Individuals and department groups can make suggestions via the website (http://www.alpenacc.edu/internal/suggest/savefundsform.htm), printed forms, etc.http://www.alpenacc.edu/internal/suggest/savefundsform.htm