1. Midyear Budget Recall at Hickory State College By: Creighton, Eric, Katie, Melissa, Logan

2. Introduction Summary of the situation Key Issues Institutional Culture Organizational Frame Recommendations Conclusion

3. Summary Hickory State College is a small, regional college located in a pleasant Midwestern town. One of six public colleges/universities within the state. State wide budget crisis State has mandated an immediate 6% reduction of operating costs of all state run institutions.

4. Institutional Culture “Regional college” founded in 1950 to serve needs of local population Rural, agricultural community “Sound”, “reliable”, and also “inexpensive” 5600 undergraduates, 85% from within 60 miles of campus 75% of students receive financial aid Students and faculty are happy, collegial, and involved on campus and in community

5. Key Issues Faculty and staff salaries have historically been major budget issue Student tuition accounts for 20% of annual income All state agencies are required to return 6% of their annual approved state budget Returning these funds inevitably means the layoffs of full-time employees

6. Key Issues cont. The VP for student affairs oversees 7 offices No money can be taken from auxiliary departments –Residence Halls –Student Union –Student Health Center Student Affairs must return $89,400 Federal Work-Study Program –Possible student workers

7. Key Issues cont. Student Life Office –Oversees Orientation Conduct Student government Disabilities Student leadership programs –Student workers via Federal Work-Study Program Counseling Center –Long wait list due to small staff Career Services –Variety of programs –Student workers via Federal Work-Study Program

8. Key Issues cont. Financial Aid –Most student intensive office year round –Provides aid to 75% of the student body Office Supplies –$50,000 total budget for the fiscal year –60% of budget has already been spent

9. Organizational Frame Human Resources vs. Political

10. Recommendations Department wide hiring freeze Review of staffing for the five non- auxiliary departments. Positions changes could include (but are not limited to): –Maintain current status (compensation and contract) –Contract reduced to 10 month (from 12) –Salary reeducation –Elimination of position

11. Vice President’s Office Before –Total Budget $150,000 –2 Professional Staff Vice President - $90,000 a year Assistant to the Vice President - $35,000 a year –1 Support Staff Secretary - $25,000 a year

12. VP Office cont. After –Total Budget $145,000 –2 Professional Staff Vice President - $85,000 a year –$5,000 Reeducation in salary Assistant to the VP - $35,000 a year –Support Staff Secretary - $25,000 a year

13. Student Life Office Before –Total Budget $310,000 –5 Professional Staff 1 Director - $60,000 (12 month contract) 4 Professional Staff - $37,500 (12 mth contract) –4 Support Staff Support staff - $25,000 (12 month contract)

14. Student Life Office cont. After –Total Budget $285,002 –5 Professional Staff 1 Director - $60,000 a year (12 month contract) 2 Professional Staff - $37,500 (12 month contract) 2 Professional Staff- $31,250 (10 month contract) –4 Support Staff 1 Support Staff - $25,000 (12 month contract) 3 Support Staff - $20,834 (10 month contract)

15. Counseling Center Before –Total Budget $220,000 –4 Professional Staff 1 Director - $65,000 a year 3 Counselors - $36,5000 a year –2 Support Staff Support Staff - $25,000 a year

16. Counseling Center cont. After –Total Budget $197,578 –5 Professional Staff 1 Director - $60,500 (12 month contract) 3 Counselors - $30,416 (10 month contract) –2 Support Staff 1 Support Staff - $25,000 (12 month contract) 1 Support Staff - $20,830 (10 month contract)

17. Career Service After –Total Budget $160,000 –3 Professional Staff 1 Director - $50,000 a year 2 Certified Counselors - $32,000 a year –2 Support Staff 2 Support Staff - $23,000 a year

18. Career Services cont. After –Total Budget $126,334 –3 Professional Staff 1 Director - $50,000 (12 month contract) 2 Counselors - $26,667 (10 month contract) –1 Support Staff 1 Support Staff - $23,000 (12 mth contract)

19. Financial Aid Before –Total Budget $600,000 –12 Professional Staff –15 Support Staff After –No change to total budget –No change to staffing

20. Office Supplies, Equipment, Part-Time Employment Before –$50,000 annually $30,000 has already been spent After –$40,000 for this fiscal year

21. Appropriation of Funds Departmental Financial Reductions –VP Office - $5000 –Student Life - $24,998 –Counseling Center - $22,422 –Career Services - $33,666 –Office Supplies, Equipment, PT Staffing - $10,000 Total Reduction –$96,086 ($6,686) New Operating Budget –$1,393,908 for the remainder of this fiscal year

22. Conclusion Meet required 6% reeducation in operations cost Mitigated loss of employees –1 employee out of 50 laid off –10 out of 50 moved to 10 month contracts –39 out of 50 remain on 12 month contracts Maintained full staffing in each department year round $6,682 surplus to had for possible future cuts