Grand Rapids Community CollegeBoard of Trustees

2015-16Proposed Budget

June 1, 2015

AGENDA1. General Operating Fund 2. Restricted Fund 3. Designated Fund 4. Auxiliary Fund5. Plant Fund6. Looking Ahead

General Operating FundSummary

Based on the tuition adjustments approved in March, the following budget is presented for your approval (no changes

from the May work session):Revenues $107,431,692Expenditures & Net Transfers 107,175,702Addition to Fund Balance 255,990Fund Balance - 7/1/2015 9,451,515Fund Balance - 6/30/2016 $9,707,505Fund Balance - % of Revenues 9.04%

General Operating FundRevenue Sources

Tuition & Fees

49.3%Property Taxes27.4%

State Aid21.5%

Other1.8%

General Operating FundPrimary Revenue Sources - Historical

2008-092009-10

2010-11

2011-12

2012-13 2013-14

2014-15 (mid year)

2015-16 (budget)0%

10%

20%

30%

40%

50%

60%

45%

50%53%

55% 54%53% 51%

49%

33%31%

28% 27% 27% 27% 27% 27%

18% 17% 16% 16%18% 19% 20%

22%

Tuition & Fees

Property Taxes

State Aid

General Operating FundExpenditures

Salaries54.4

%Fringes29.6

%

Other

15.4%

Transfers0.6%

Restricted Fund

Used to account for funds restricted as to use by external funding sources:

Federal sources $53,900,910 94.8%State sources 1,382,146 2.4%Local sources 379,232 0.7%College match (via transfer) 1,214,314 2.1%Total funds available 56,876,602Expenditures 56,876,602Net Revenue (Exp) $0

Restricted FundSignificant changes from 2014-15 Mid Year

• Federal: $1 million decrease – due primarily to substantial completion of equipment purchases (approx. $830,000) related to the U.S. Dept. of Labor’s M-CAM grant. Various decreases in other programs such as TRIO student support services, ASCET Work First, special populations and the caregiver support grant account for the remainder of the decrease.

• State/Local: comparable to the prior year; includes activity for Michigan New Jobs Training Grant, Kellogg pathways and other smaller state/local grant programs.

• Transfers: $74,000 decrease – due to completion of the Kellogg-funded culture audit and the Ad Hoc committee recommendation to reduce support for the TRIO grant program. These decreases are partially offset by a required increase in funding (now 50%) to support a Data Analyst position related to the Title III program.

Designated FundFunds internally designated for specific purposes and/or receiving

substantial external revenues (e.g. admission fees, contract revenues, etc. )

Significant Changes from 2014-15 mid year:• Training Solutions is projecting decreased revenues due to a change

in the contract for CNA training (more expenses paid directly by the client) and a more conservative estimate of training needs by manufacturers. Related expenses have been adjusted accordingly.

• Transfers from the GF have been reduced by $46,000 due to the Ad Hoc budget committee recommendation related to the Older Learner Center.

• We do not anticipate using funds from Budget Stabilization in 2015-16, thus the transfer to the GF has been eliminated.

Auxiliary FundBookstore Food Service Parking

PrintingService Total

Revenue $640,000 $1,333,500 $2,527,500 $1,079,500 $5,580,500

Expense (247,790) (1,297,500) (1,111,000) (1,079,500) (3,735,790)

Capital (38,750) (12,000) (650,000) -0- (700,750)

Operating Rev (Exp) 353,460 24,000 766,500 -0- 1,143,960

Trans to GF (350,000) (100,000) (1,230,000) -0- (1,680,000)

Net Rev (Exp) $3,460 ($76,000) ($463,500) $-0- ($536,040)

• Overall, revenues decreased approximately 8.5% largely due to lower enrollment levels.• One position has been eliminated in Printing Services to better align costs with expected revenue.• A $30,000 increase in the Transfer to GF represents a recommendation of the Ad Hoc budget

committee to increase public (non-student) parking rates.• Key projects to be funded from Auxiliary revenues in 2015-16 include:

- Technology and equipment upgrades for the Bb Raider Card system - $38,750- Cafeteria equipment replacements - $12,000- Parking ramp maintenance and repairs - $650,000

Plant FundOperating

Expenditures planned in the 2015-16 budget:• IT Capital/Tactical Plan - $1,011,000

– Includes classroom technology upgrades, phone system upgrade, PC “cascading”, etc.

• Capital Allocation and Deferred Maintenance - $1,256,397– Deferred maintenance allocation - $1,000,000– Recurring funding for vehicle replacement, SWD equipment, ADA

compliance and bond amortization - $256,397

• Matching funds for the CCSTEP Grant - $430,000– Will augment donor funds to meet grant match requirements

• Debt service on bond indebtedness - $7,393,618

Looking Ahead

• Second year of VESP departures• Implementation of GASB #68 as of June 30, 2015• Continued implementation/exploration of the longer-term Ad

Hoc budget committee recommendations• Enrollment fluctuations• On-going prioritization of need for reinvestment in academic

programs and capital resources

Questions/Comments