1. 2012-13 KCTCS ANNUAL BUDGET KCTCS Board of Regents Meetings June 14-15, 2012 Presented by: Michael B. McCall, KCTCS President

2. 2012-13 KCTCS ANNUAL BUDGET Paid Credit Hours: Three-Year Average Year Actual Paid Credit Hours 20081,421,564 20091,587,051 20101,824,541 20111,842,159 * Three-Year Average used in 2011-12 KCTCS Annual Budget. Year Actual Paid Credit Hours 2011-12 Budget 3-Year Average 20081,421,564 20091,587,0511,611,052* 20101,824,541 20111,842,159 * Three-Year Average used in 2011-12 KCTCS Annual Budget. ** Three-Year Average used in 2012-13 KCTCS Annual Budget. Year Actual Paid Credit Hours 2011-12 Budget 3-Year Average 2012-13 Budget 3-Year Average 20081,421,564 20091,587,0511,611,052* 20101,824,5411,751,250** 20111,842,159

3. State Appropriation Reduction and Additional Expenses Dollars (Millions) Reduction or Expense 9.1State Appropriation Reduction 4.0 Fixed Cost Expenses Employee Benefits 0.9 Fixed Cost Expenses Utilities, Insurance, Contracts 1.1Faculty Promotions 6.5Salary Increase 21.6Total 2012-13 KCTCS ANNUAL BUDGET * Each Budget Unit was required to implement a recurring internal reallocation of approximately 1% of its public funds base to accommodate the additional expenses— primarily the salary increase. The Fire Commission and KBEMS implemented additional 5.4% reallocations to fully implement the 6.4% State Appropriation reduction. Additional Revenue Dollars (Millions) Source of Revenue 6.8Tuition Rate Growth 3.2Tuition 3-Year Average Growth 4.4Recurring Budget Reserve 2.0Merit Bonus Pool 16.4Subtotal 5.2Other Internal Reallocation (Gap) 21.6Total