MANUFACTURING TECHNOLOGY
T H R I V E
INFORMATION TECHNOLOGY
E X C E L L E N C E
HOSPITALITY MANAGEMENT
O F
PUBLIC SAFETY
C E N T E R S
CREATIVE ARTS
NURSING
W H E R E
CUYAHOGA COMMUNITY COLLEGE Fiscal Year 2017 – Approved Budget Book May 2016
Alex Johnson, Ph.D., President David Kuntz, CPA, Treasurer District Administrative Offices 700 Carnegie Avenue Cleveland, Ohio 44115 www.tri-c.edu
TABLE OF CONTENTS MESSAGE FROM THE PRESIDENT AND TREASURER ....................................................... iii COLLEGE MISSION, VISION AND VALUES ........................................................................... v GFOA DISTINGUISHED BUDGET PRESENTATION AWARD ............................................. vi THE COMMUNITY AND THE COLLEGE ................................................................................. 1 The Community .............................................................................................................. 1 The College ..................................................................................................................... 3 College Financial Policy and Procedure Overview ........................................................ 5 College Degrees and Certifications Overview................................................................ 8 Major Operating Unit Overview ................................................................................... 11 EXECUTIVE OVERVIEW .......................................................................................................... 15 Economic Environment Analysis ................................................................................. 15 FY17 Budget Strategy and Long-Range Planning ....................................................... 19 Administrative Responsibilities .................................................................................... 24 Organizational Chart ..................................................................................................... 24 FY17 Organizational Unit Goals and Measures ........................................................... 24 BUDGET DEVELOPMENT ........................................................................................................ 35 Basis of Accounting ...................................................................................................... 35 Basis of Budgeting ........................................................................................................ 35 Regulatory Environment ............................................................................................... 36 Budget Model ............................................................................................................... 37 Budget Development Process ....................................................................................... 37 Budget Ownership ........................................................................................................ 39 Amending the Budget ................................................................................................... 39 FY17 APPROVED BUDGET ...................................................................................................... 40 FY17 Funds Overview .................................................................................................. 40 FY17 Total College Revenues ...................................................................................... 43 FY17 Unrestricted Operating Revenues ....................................................................... 43 FY17 Other Revenues ................................................................................................... 45 FY17 Total College Expenditure Summary ................................................................. 46 FY17 Capital Expenditures and Sustainability ............................................................. 51 Facilities Development, Capital and Construction Project Summary .......................... 52 FY17 Debt Obligations Overview ................................................................................ 55
TABLE OF CONTENTS Impact of Capital Expenditures on the Operating Budget ............................................ 57 FY17 Financial Dashboards.......................................................................................... 59 FY17 Fund Balances ..................................................................................................... 79 FY17 Personnel Analysis.............................................................................................. 80 GLOSSARY ................................................................................................................................. 85 ACKNOWLEDGEMENTS AND CONTACT INFORMATION ............................................... 94
SELECT KEY FY17 FINANCIAL DASHBOARDS Total College .................................................................................................................................. 63 Workforce Solutions Fund ............................................................................................................. 65 ®
Corporate College Fund ............................................................................................................... 66 General Fund ................................................................................................................................. 69 Eastern Campus ............................................................................................................................. 73 Metropolitan Campus..................................................................................................................... 74 Western Campus ............................................................................................................................ 75 Westshore Campus ........................................................................................................................ 76
MESSAGE FROM THE PRESIDENT AND TREASURER To the Board of Trustees: We are pleased to present Cuyahoga Community College’s Annual Budget for the fiscal year ending June 30, 2017. Key to our continued ability to support quality education is the budget process recognized by the Government Finance Officers Association, which awarded the College its Distinguished Budget Award for eight consecutive years. The College has identified six priority focus areas for FY17: increasing the rate of student success and completion, improving the student experience, closing the equity achievement gap for underrepresented students, establishing Tri-C as a center of excellence and innovation in training and business development, improving communication of the College’s message and achievements to our community and fiscal stewardship. To that end, all three Divisions of the College (Administration and Finance; Access, Learning, and Success; and Workforce, Community and Economic Development), under the leadership of the office of Planning, Budget and Strategic Support, worked collaboratively to create a FY17 budget that directly financially supports mission critical student support programs and services, while reducing costs through increased operational efficiencies and best-in-class fiscal stewardship. The College continues to support students with innovative programs that improve retention and graduation rates. These initiatives are redefining the student experience for our students, and include programs such as One Door, Many Options, which engages students as soon as they come through our doors; the First Year Experience, which orients and provides additional support for new college students; and our 15+ Perks program, which provides students with a financial discount on the next semester’s tuition when they successfully complete 15 credit hours or more in a single semester. The success of all of these programs depends on careful and strategic budgeting. This year’s budget is based upon the following assumptions: A 4 percent increase in State funding; A decrease in property tax revenue due to lower assessed values in the County; Enrollment declining by 4 percent, which coupled with the impact of tuition incentive programs and tuition and fees being frozen, results in a reduction in tuition revenue; The same level of non-salary expenditures as FY16 for FY17, excluding contractual increases; and Increasing staffing expenditures due to collective bargaining contractual increases and a general increase of one percent for all non-bargaining unit employees.
Cuyahoga Community College continues to focus on the success of our students, and we look forward to helping our students succeed in the next fiscal year and beyond. Sincerely,
Alex Johnson, Ph.D. President
David Kuntz, CPA EVP, Administration & Finance/Treasurer
iii
CUYAHOGA COMMUNITY COLLEGE PRESIDENT AND BOARD OF TRUSTEES
Victor A. Ruiz Chairman
Jerry L. Kelsheimer Vice Chair
County Executive Appointment Term ends 02-27-17
County Executive Appointment Term ends 01-16-20
J. David Heller
Andrew E. Randall
Rachel Von Hendrix
Helen Forbes Fields
Vacant Position
County Executive Appointment Term ends 3-26-17
Governor Appointment Term ends 10-12-17
Governor Appointment Term ends 10-12-18
County Executive Appointment Term ends 01-16-20
Governor Appointment
Alex Johnson, Ph.D. President
David W. Whitehead County Executive Appointment Term ends 04-25-16
Dr. Harry Graham County Executive Appointment Term ends 05-30-16
COLLEGE MISSION, VISION AND VALUES MISSION
To provide high quality, accessible and affordable educational opportunities and services; including university transfer, technical and lifelong learning programs, that promote individual development and improve the overall quality of life in a multicultural community.
VISION
Cuyahoga Community College will be recognized as an exemplary teaching and learning community that fosters service and student success. The College will be a valued resource and leader in academic quality, cultural enrichment, and economic development characterized by continuous improvement, innovation, and community responsiveness.
VALUES
To successfully fulfill the mission and vision, Cuyahoga Community College is consciously committed to diversity, integrity, academic excellence, and achievement of individual and institutional goals. We are dedicated to building trust, respect, and confidence among our colleagues, students, and the community. v
GFOA DISTINGUISHED BUDGET PRESENTATION AWARD “The GFOA (Government Finance Officers Association of the United States and Canada) established the Distinguished Budget Presentation Awards Program (Budget Awards Program) in 1984 to encourage and assist state and local governments to prepare budget documents of the very highest quality that reflect both the guidelines established by the National Advisory Council on State and Local Budgeting and the GFOA’s best practices on budgeting and then to recognize individual governments that succeed in achieving that goal.”1 The GFOA presented a Distinguished Budget Presentation Award to Cuyahoga Community College for its annual budget for the fiscal year beginning July 1, 2015. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device. This award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award.
1Source:
www.gfoa.org; Distinguished Budget Presentation Award Program 2015.
vi
THE COMMUNITY AND THE COLLEGE Cuyahoga Community College’s (Tri-C) commitment to high quality, accessible, and affordable education–with an emphasis on student success and completion and a commitment to continuous improvement–is reflected in its mission, vision, and values. The impact of achieving the mission, vision and values is seen all around the community. The following section provides an overview of the community and the College.
The Community Cuyahoga Community College is located in a ten county area known as Northeast Ohio (definedLorain, Cuyahoga, Medina, Summit, Lake, Geauga, Portage, Ashtabula, Trumbull and Mahoning counties) which has a population of 3.3 million (2015 estimate). Northeast Ohio is home to seven of Ohio’s 23 Fortune 500 companies. Northeast Ohio is also a leader in new technology, and is home to some of the finest Corporations Headquartered in Northeast Ohio Among Top Fortune 500 List medical institutions 2015 Revenue in the country, Rank Company (Billions) Product including the world153 Progressive Insurance $19.39 Insurance: Property and Casualty renowned Cleveland 166 Goodyear Tire & Rubber 18.14 Motor Vehicles and Parts Clinic, the University 206 FirstEnergy Corp. 15.05 Utilities: Gas and Electric Hospitals Health 230 Parker-Hannifin 13.22 Industrial Machinery System, and the 266 Sherwin-Williams 11.13 Chemicals Global Center for 365 TravelCenters of America 7.78 Specialty Retailers: Other Health Innovation. 467 J.M Smucker 5.61 Source: fortune.com/fortune500 (April 2016)
Food Consumer Products
Northeast Ohio is also one of the nation’s largest industrial and consumer markets, taking advantage of its central location with access to inland waterways and railroads. In 2014, Ohio was ranked the seventh largest state economy and ranks fourth in manufacturing gross domestic product (GDP). Ohio is within 600 miles of 59% of U.S. and Canadian populations. Manufacturing is the largest of Ohio’s sectors based on GDP. As a regional center for the performing and visual arts, Northeast Ohio is home to some of the most famous and prestigious art and historical institutions in the world including the Cleveland Orchestra, the Cleveland Museum of Art, the Museum of Contemporary Art, the Rock and Roll Hall of Fame and Museum, the Great Lakes Science Museum, and Playhouse Square which is the second largest performing arts complex in the country based on audience capacity.
FY 2017 Budget Book
1
The County has distinctive demographic and economic 10,000 160,000 factors that impact the 9,000 College’s mission and 140,000 8,000 strategies. These include (1) 120,000 7,000 the need to provide 100,000 postsecondary education to 6,000 a wide range of students, 80,000 5,000 from those in need of 4,000 60,000 developmental education to 3,000 40,000 honors students in both 2,000 20,000 suburban and urban 1,000 environments; (2) an urban 0 0 location characterized by high poverty rates and low educational attainment, as over 12% of County Q3 2005 Establishments Q3 2015 Establishments residents lack a high school Source: www.beta.bls.gov; Bureau of Labor Statistics (March Q3 2005 Employees Q3 2015 Employees 2016). diploma and only 72.8% of students in the Cleveland Metropolitan School district graduated from high school in the 2014-2015 school year within five years; (3) a shift from traditional “rust belt” manufacturing jobs to careers in health care, education, leisure and hospitality, and other high growth sectors; and (4) a steady loss of population, with a 9.9% decrease since 2000. Number of Employees
Number of Establishments
Industry Classification of Cuyahoga County Privately Owned Establishments - Sept 2005 and Sept 2015
U.S. Census General Population Trend 11,650 11,600 11,550 11,500 11,450 11,400 11,350 11,300 11,250 11,200
1,450 1,400 1,350 1,300 1,250 1,200 1,150
Source: 2000 Census, 2010 Census and Current Estimate Data http://factfinder.census.gov/faces/tableservices/j sf/pages/productview.x html?pid=PEP_2015_PEPANNRES&prodType=table, retrieved March 24, 2016.
State of Ohio Population
(in thousands)
Cuyahoga County Population
Cuyahoga County is home to large, nationally recognized health care, medical education, medical research and medical technology institutions. The metropolitan area is served by over 50 hospitals, many of which are affiliated with medical schools such as the Case Western Reserve University School of Medicine.
Cuyahoga County Ohio
Health care is a major industry in the area, with the Cleveland Clinic ranking first and University Hospitals ranking seventh in largest employers in the State (April 2016). One of the College’s distinctive features is its wide array of health careers programs to address the needs of this area’s industry. In fact, Community College Weekly ranked Cuyahoga Community College 4th in the nation for the number of associate degrees awarded in health professionals and related career sciences among two year colleges in the 2013-2014 academic year.
FY 2017 Budget Book
2
The College Cuyahoga Community College opened in September 1963 and was Ohio’s first community college. It now serves more than 55,000 credit and non-credit students each year at four traditional campuses (Eastern, Western, Metropolitan (Metro) and Westshore), two Corporate College® locations, the Manufacturing Technology Center (MTC), the District Office, the Hospitality Management Center at Public Square, the Brunswick University Center, the Jerry Sue Thornton Center (JSTC) building, the Advanced Technology Training Center (ATTC) and more than 50 off-campus sites. The College has also become a leader in distance learning, providing over 1,000 courses that are taught online and as hybrid courses (a blend of face-to-face instruction with computer-based learning). College-wide operations include over 3.1 million square feet of building space and over 550 acres of grounds. Over its 53 year history, Cuyahoga Community College has provided high quality, affordable education and programs to more than 900,000 members of our community.
Cuyahoga Community College Locations
The four traditional College campuses were strategically placed throughout the County to be convenient and accessible for our students and the community. The Metro Campus, located in downtown Cleveland, opened in 1969. Some highlighted programs include Creative Arts Center of Excellence and Electronic/Electrical Engineering. The Western Campus opened in 1966 in the former Crile Veterans Hospital in Parma, and was eventually replaced in 1975 with a six-building interconnected complex. Western Campus includes the Advanced Automotive Technology Center, and IT Center of Excellence, among many other educational opportunities. Founded in 1971, the Eastern Campus in Highland Hills houses the Massage Therapy, Interior Design, Plant Science and
FY 2017 Budget Book
3
Landscape Technology, Environmental Health and Safety, as well as many other programs. The Westshore Campus in Westlake opened in 2011 and houses the Nursing and Medical Assisting programs. Cuyahoga Community College, Ohio’s largest community college and one of the largest institutions of higher education in the state, offers associate degrees, certificate programs and the first two years of a baccalaureate degree. Students can choose from 1,000 credit courses in more than 140 careers and technical programs, and science and liberal arts curricula. Tri-C prioritizes its ability to meet students’ needs, which is evidenced by 713 on-line courses and over 370 hybrid courses. Tri-C offers the most online (distance learning) courses in the state of Ohio and is authorized to offer online programs in over 40 states. Tri-C also offers eight programs where 100% of the program is offered online. In addition to online classes, there are over 130 credit courses available to students at various locations throughout the community, close to home and work. More than 600 unique, non-credit workforce and professional development courses are offered each year. In 2014, the College ranked 23rd among the nation’s top 100 Associate Degree producing institutions in all disciplines, with 3,045 degrees awarded, according to Community College Week and its analysis of U.S. Department of Education data. Cuyahoga Community College offers Northeast Ohio residents top quality education and flexible learning options at the lowest tuition in the geographical area, and the second lowest tuition in the state of Ohio. The College also supports the Northeast Ohio economy by generating spending of about $228 million annually and by sustaining more than 20,350 jobs. Cuyahoga Community College was the 32nd largest employer in Cuyahoga County by full-time equivalent local employees in 2015. Tri-C is accredited by the Higher Learning Commission of the North Central Association of Colleges and Schools, which permits the College to award the Associate of Arts, Associate of Science, Associate of Applied Science, Associate of Applied Business and Associate of Technical Study degrees to students who complete the coursework. The College also grants credit and non-credit short-term certificates, certificates of proficiency, and post-degree professional certificates. In 2004, the College was admitted into the Academic Quality Improvement Program (AQIP) which is an alternative accreditation process focused on the principles and benefits of continuous improvement in colleges and universities. In 2011, the College’s accreditation by the North Central Association of Colleges and Schools was reaffirmed and the Westshore Campus was accredited as a full campus. The College is a member of the League for Innovation in the Community College, which is an international nonprofit organization committed to improving community colleges through innovation, experimentation, and institutional transformation. In 2005, the College was selected to be a part of Achieving the Dream (ATD), a national multiyear initiative created to help more community college students succeed in their educational goals. Results of the ATD initiatives have been tracked over the life of the program, and students in the ATD cohorts experience higher levels of student success, as measured by retention rate, credits earned and grade point average. After the ATD program
FY 2017 Budget Book
4
funding concluded, Tri-C continued to be a leader in student success and developmental education through its receipt of ATD Developmental Education Initiative funding from the Bill and Melinda Gates Foundation. This new program, administered through the State and the Ohio Association of Community Colleges, provides assistance for the five ATD Ohio colleges to work with the other 18 community colleges in Ohio to promote student success and completion on a statewide level. In addition to providing quality, accessible and affordable education to the residents of Northeast Ohio, the College engages the community by offering a variety of cultural, community and sports programs each year. The College is home to Tri-C JazzFest Cleveland, the nation’s premier educational jazz festival. 2016 is the 37th year of JazzFest. The College partners with local organizations and groups to host popular cultural arts programs at Playhouse Square, campus theaters, and other sites in the County. The College strives for continuous improvement and innovation as evidenced by the accreditations received, advancement of programs and collaborative engagements formed throughout its history. The culture of Tri-C encourages employees who believe they can make an impact on a person and his or her community. Tri-C employees are committed to improving service, increasing accountability, and delivering high-quality results. Additionally, the County and the State are enriched by the College’s educated professionals who graduate and remain in the area, the access to community cultural and athletic events, and the College’s stable working environment for its employees. The College was awarded the Northcoast 99 award in 2015, which makes the College one of the 99 best places to work in Northeastern Ohio. The College has received this award for the last five years.
College Financial Policy and Procedure Overview Cuyahoga Community College has policies to govern all aspects of the College. Due to the scope and size of the College, there are over eighty-five policies and procedures covering Board Governance, Administration and Finance (A&F), and Access, Learning & Success (AL&S). The policies provide governance for operations, the Board of Trustees, employees, students and public activities to ensure sound practices that meet legal, fiscal and safety standards. The following section provides an overview of the Financial, Investment, Debt, Procurement, Planning and Achievement, and Operations policies. Each policy or procedure is summarized to portray the governance and scope of policies used to govern financial operations and decisions. Financial Policy The financial policy governs the annual budget, long-range plan, fund disbursement, investment of excess cash, resource development, annual fiscal audits and fiscal management. The scope of the policy allows the College’s management team to develop goals and incorporate them into the annual budget and long-range plan; therefore, fulfilling the mission, vision and values of the College.
FY 2017 Budget Book
5
The management team reviews the activities of the College on a monthly basis. The review process includes analysis of revenue and expenditure variances, ensuring available cash balances are adequate to cover operating expenses, review of balance sheet activities, and the preparation of financial statements and associated metrics from accounting system data. The accounts are reconciled on a monthly basis, and the financial statements are audited on an annual basis by the Auditor of the State of Ohio or its designee. The Board of Trustees is required to approve a five-year financial plan, along with the current year revenue and expenditure forecast, and to appropriate expenditures for the upcoming fiscal year. The policy also establishes guidance for the treasurer. The policy states excess cash should be invested based on Ohio Revised Code; however, the specific guidance is governed by the College’s investment policy. The treasurer should receive and disburse all funds, at the direction of the Board of Trustees. Finally, the treasurer is authorized to develop and issue financial systems and processes under the direction of the Board of Trustees and the President. Investment Policy The investment policy governs the investment of excess cash, fund appropriation, long-term pool and other investment activities. The scope of the policy establishes written treasury goals, the investment committee, investment advisors, asset allocation guidelines, investment manager guidelines and approved/prohibited types of investments. The manager’s guidelines provide a framework to invest idle cash in investment options that minimize risk, comply with Ohio Revised Code and maintain liquidity. One of the primary guidelines is that a minimum of 25% of the College’s average prior year investment portfolio is to be invested in a specified minimal risk instrument in order to preserve and stimulate growth of the corpus. Some examples of the aforementioned instruments are securities of the U.S. government or its agencies, the State’s pooled investment program, money market funds and certificates of deposit in any national bank located in Ohio. The balance of the portfolio is then placed into long term equity investment pools which are reviewed regularly by the Board of Trustees to determine the appropriate amount to remain in the fund. The policy also outlines the responsibilities of various committees on reviewing and approving various aspects of the policy on a regular basis. This ensures the College is minimizing risk, adhering to applicable regulations and monitoring the performance of the investable assets. The investment committee is made up of three voting and two non-voting members; whom have backgrounds in banking, accounting, finance and other relevant expertise. The investment committee then reviews and revises the investment policy on at least a quarterly basis, while providing the Board of Trustees with investment recommendations. By providing investment guidelines for asset investment and liquidity and risk controls, the policy fosters effective communication between organizational units and provides a framework for a prudent investment process.
FY 2017 Budget Book
6
Debt Procedure The debt procedure governs the issuance of debt to achieve the mission, vision and values of the College. The scope of the procedure provides the types of debt, use of funds, required analysis and metric thresholds, and the legal authority to issue debt. The procedure defines how management can issue debt to achieve objectives and goals outlined in the strategic or Ten-year College-wide Academic and Facilities Master Plan. Before the College can issue debt, a management team must evaluate the forecasted impact on the College’s operating cash flow, consider the current debt service, the economic environment, and the projected sources of revenues and expenditures. The procedure is intended to enhance managerial discipline over the long term. Procurement Policy The procurement policy governs the purchase, lease or other acquisition or use of ownership rights to goods, services, real estate or works of improvement. The scope of the policy identifies sound business practices, the authority to procure, and the legal requirements for compliance. The College’s policy ensures prompt acquisition, payment and market pricing for many operational and capital activities. In addition to the procurement policy, the College also has a procurement procedure. The procedure establishes the “quotation process”, lists designees authorized to enter into procurement agreements, and specifies the required Board of Trustees approval. Some areas of governance are: Only the treasurer and a list of designees are authorized to enter into specific procurement agreements and Contracts for goods and services in excess of $200,000 with any one vendor (individually or in aggregate) and all contracts for the sale or purchase of real estate require Board of Trustees approval. The combined guidance in the procurement policy and procurement procedure ensure the College’s procurement activities are managed in an efficient, fiduciary and legal manner. Planning and Achievement Policy The planning and achievement policy governs the establishment of goals in accordance to the mission, vision and values of the College. The scope of the policy defines the mission, vision and values, requires a strategic plan, requires policies and procedures to manage activities, and defines annual goal reporting to the Board of Trustees. The policy is intended for the Board of Trustees to create fiduciary responsibilities, establish sound business practices and require adherence to the mission, vision and values in order to serve the community. Additionally, the policy establishes specific requirements for the President of the College. The Board of Trustees holds the authority to operate the College but delegates some of the responsibilities to the President through policies. The President must also report the College’s annual goals to the Board of Trustees. Operations Policy The operations policy governs the use of College facilities and assets. The scope of the policy includes college and non-college activities as well as use and disposal of college assets. The policy is intended to protect the College’s assets, employees and students.
FY 2017 Budget Book
7
The policy governs the part of the College’s revenue derived from auxiliary operations which include rental of College facilities for non-college functions, site/event parking and vendor activities. The policy establishes guidelines to evaluate the costs associated with noncollege activities and requires fees to be priced accordingly as to not adversely impact the College’s operations. Additionally, the policy protects students and employees by establishing codes of conduct for external vendors on campus, posting and distributing materials, and soliciting, canvassing or selling at College locations. Policy and Procedure Updates The College did not make any direct changes to the aforementioned policies and procedures. In the annual review of all policies and procedures the College identified some areas to improve, based on environmental and functional reviews. As additional areas are identified, the College may develop additional policies or procedures to ensure legal compliance, community awareness and student and employee safety. Policy Conclusion Each respective policy provides guidance to the College’s management team in order to fulfill the mission, vision and values of the College. The financial and operations policies guide the management team to meet their fiduciary responsibilities while providing a safe learning environment for students and the community. The AL&S policies provide guidelines for the College to maintain academic standards for students, to develop and retain faculty and to establish the student code of conduct. All of the College’s policies are reviewed on a periodic basis to ensure compliance with academic, financial, operational and community standards; allowing the management team to develop additional policies as necessary.
College Degrees and Certifications Overview Cuyahoga Community College offers five associate degrees: Associate of Arts, Associate of Science, Associate of Applied Business, Associate of Applied Science, and Associate of Technical Studies. The College is fully accredited by the Higher Learning Commission, a Commission of the North Central Association of Colleges and Schools. The College received its most recent reaccreditation in 2010, with
FY 2017 Budget Book
8
the next comprehensive evaluation scheduled for 2017-18. In addition, a number of the College’s career programs are accredited or approved by appropriate specialized associations or agencies. The College offers 82 technical programs leading to an associate degree. Of these programs, 61 lead to an Associate of Applied Science degree and 21 lead to an Associate of Applied Business degree. Shortterm professional certificates are Cuyahoga Community College Degree Requirements offered in 37 program areas and 53 1000 Level programs offer a one-year certificate or Higher Advanced Minimum Minimum Tri-C of proficiency. The College also Degree Semester Coursework GPA Credits offers 9 post-degree professional Credits certificate programs and a variety of AA & AS 60 12 2.00 20 non-credit courses, support services AAB 60 12 2.00 20 and special programs designed to AAS 60 12 2.00 20 meet the needs of a diverse student ATS 60 0 2.00 20 body and the community at large. *Effective Fall 2012 Associate of Arts (AA) and Associate of Science (AS) Degrees The Associate of Arts and Associate of Science degree programs encompass studies that are the traditional starting point for work towards a baccalaureate degree. Studies in the arts and sciences are the classic approach for preparing students for life and its many challenges, using a broad education founded in history, literature, social sciences, and natural and physical science. These curricula include a range of course offerings in liberal arts for all students at the College; students may enroll in a sequence of courses to earn either the AA or AS degree. Associate of Applied Business (AAB) Degree The Associate of Applied Business degree features program concentrations in the general areas of business technologies and public service technologies. Students must complete 60-65 credits, as defined by the selected degree program. In addition, students are expected to demonstrate proficiency in their career fields via a capstone project. Some programs also include practicum or field experience coursework to provide students the opportunity to practice and master skills for their chosen career in a real world setting. Associate of Applied Science (AAS) Degree The Associate of Applied Science degree features program concentrations in the general areas of health careers, engineering and industrial technologies, agricultural and natural resources technologies, and applied industrial technologies. Students must complete 60-65 credits as defined by the selected degree program. In addition, students are expected to demonstrate proficiency in their career fields via a capstone project. Many programs also include clinical experience requiring students to work a set number of hours at a selected site to practice and master skills in their chosen career.
FY 2017 Budget Book
9
Associate of Technical Studies Degree (ATS) The Associate of Technical Studies Degree is awarded for successful completion of an individually-planned technical education program designed to respond to a student’s need for specialized technical education not currently available at a particular campus. An ATS degree contains an area of concentration formed by either: (A) an intra-institutional, interdisciplinary, but coherent combination of courses drawn from two or more technical programs offered by the awarding institution, designed to serve an occupational objective or (B) by credits awarded by the institution for courses completed or training received by a student at other postsecondary institutions, vocational centers, and/or other educational enterprises judged by the institution to be of college level and with which the College has entered into an articulation agreement. Based upon the articulation agreement, the student may receive up to 30 transfer credits towards an ATS degree in the specific program identified in the agreement. For both options, students must complete an application for admission to the ATS Program. Short-Term Certificate A Short-Term Certificate Cuyahoga Community College Certificate Requirements prepares students for entrylevel positions in a specific Minimum Minimum Tri-C career/employment situation. Certificate Total Credits GPA Credits A Short-Term Certificate will Short-Term Certificate 9-24 2.00 9 be granted to students who One-Year Proficiency 30-35 2.00 9 satisfactorily complete 9-24 Post-Degree Professional 20-32 2.00 9 credits as defined by the certificate chosen. Some fields of study include Digital Design & Product Innovation, Emergency Medical Technician, Medical Billing, Media Arts in Motion Graphics and Visual Storytelling, Laboratory Phlebotomy, and Welding Technology. One-Year Certificate of Proficiency The One-Year Certificate of Proficiency prepares students for proficiency in an occupation field after the student successfully completes a prescribed education program. Some Certificates include Massage Therapy, Business Management, Automotive Technology, Bricklaying & Allied Crafts, Carpentry, Construction Tending & Hazardous Material Abatement, Drywall Finishing, Electrical Construction, Floor laying, Glazing, Ironworking, Millwrighting, Operating Engineers, Painting, Paramedic, Pipefitting, Plumbing, Sheet Metal Working and Medical Assisting. Post-Degree Professional Certificate The Post-Degree Professional Certificate is a high-quality program of instruction for those students who have already completed an academic degree and are pursuing additional certification in professional and
FY 2017 Budget Book
10
technical fields. Students must complete an associate degree or higher from a regionally accredited postsecondary institution, or an equivalent degree or diploma from a post-secondary program certified and accredited by a state or nationally certified and accredited Board. Some Post-Degree Professional Certificates include Business Management (International Business), Environmental Health and Safety and Physician Assistant. Articulation and Transfer The Ohio Department of Higher Education has developed a statewide articulation and transfer policy to facilitate movement of students and credits from one Ohio public college or university to another. The policy avoids duplication of course requirements and enhances a student’s mobility throughout Ohio’s higher education system. The policy also establishes the “Transfer Module”, a specific subset of an institution’s general education requirement. Students who successfully complete the Transfer Module at one institution will be considered to have met the Transfer Module requirements of the receiving institution. Other transfer options at the College reflect the institution’s commitment to flexibility in responding to diverse student needs and goals. These options include broad-based articulation agreements focused on guaranteed admission and junior year status, bachelor completion dual admission and enrollment agreements, and program-specific transfer guides developed through a course-by-course review by each cooperating institution. Cuyahoga Community College has 71 formal articulation and transfer agreements with both public and private four-year higher education institutions.
Major Operating Unit Overview Cuyahoga Community College manages its operations by structuring the organizational units into four major operating units (MOU). This structure allows the College to centralize similar operations to gain synergies, effectively manage operations and promote the One College brand. The following overview provides the scope and contribution of each MOU to the continued success of the College. Access, Learning and Success (AL&S) AL&S advances the College’s mission by providing high quality, relevant academic programming that meets student and community needs. It strives to provide highly effective support services and a flexible learning environment to enhance the ability of the College’s students to succeed. AL&S is the structural unit ultimately responsible for all functions related to the delivery of credit-based education and related services across the College, including faculty administration. In addition to certain campus based operations, AL&S is also responsible for College-wide, centralized academic operations. Learning and Engagement is responsible for the development and review of curriculum and course and programmatic outcomes. It is also responsible for oversight of program accreditation processes and transfer and articulation agreements. College Pathways Programs is the College’s K-12 outreach area, developing and implementing partnerships with area high schools and administering grant-funded programming for K-12 students. This organizational unit is also responsible for administering Federally funded educational opportunity programs.
FY 2017 Budget Book
11
Access and Completion administers services and processes related to student admissions, registration, student recruitment and career transition services to provide a continuous support process for students from initial enrollment to goal achievement. Health Care Education Initiatives provides leadership for programs in Health Careers and is the unit responsible for reaching out to the College’s stakeholders in the Health Care community to develop partnerships and establish collaborations. Evidence and Inquiry provides data, information and business intelligence to support the College mission through its work in the Academic Quality Improvement Process (AQIP), strategic planning, One Institutional Knowledge, Institutional Research and Knowledge Management. Faculty Affairs and Professional Development provides strategic direction for faculty recruitment, development and retention and has responsibility for fostering a College environment that is supportive of faculty work. Office of e-Learning and Innovation leads the College in the planning, development and implementation of technology innovation in support of teaching and learning. This area is responsible for supporting e-Learning Collegewide including online learning, hybrid learning and other e-Learning modalities, as well as assisting in applying e-Learning to traditional classroom based learning. Developmental Education and Learning Services serves as the umbrella organization for all academic support systems in the College and acts as a nexus, bringing together faculty with support staff to enhance student learning. Television and Video Services provides the College with informational videos for academic and administrative departments, as well as production support services for live events. This area also provides equipment specifications, installation, maintenance of A/V equipment and systems. The department programs five cable channels, including Smart TV, and provides technical operation for Cable College.
FY 2017 Budget Book
12
Administration and Finance (A&F) A&F provides executive leadership and oversight in the implementation of the College’s strategic operating plan, in coordination with the College’s academic mission. A&F works closely with AL&S to provide support services to students, faculty and staff. Campus Police and Security Services are responsible for on-campus law enforcement and creating partnerships with local community organizations and safety forces. Finance and Business Services includes the areas of Accounting & Financial Operations, Student Financial Assistance, Campus Services and Retail Operations and Treasury Management. Capital, Construction, and Supply Management includes Capital and Construction, Asset Management and Supplier Managed Services. Information Technology Services guides the embedded base of information technology infrastructure at the College through supporting the offices of Project Management, Network Services, Data Operations, Enterprise Resource Planning, Safe and Secure Computing and Desktop Support. The Office of the General Counsel represents the College in all legal matters, including development of College policies and procedures, and contract negotiations. This office also includes Business Continuity and Compliance, Audit & Advisory Services and Records Management, which ensures compliance with state and Federal laws relating to document retention and public records requests. The Plant Operations Department operates and maintains the physical assets at all College locations in such a way that they are clean, comfortable, safe, aesthetically pleasing and well preserved for a long functional life. Workforce, Community and Economic Development Division (WCED) WCED includes Workforce Solutions, Corporate College, Encore, and Community and Continuing Education. Workforce Solutions provides non-credit and credit training for both individuals and businesses. It helps individuals enhance their contributions in the workplace through employee training programs, professional development, lifelong learning opportunities, and community service programs. Workforce Solutions programs offer fast track training for individuals needing to enter the workforce quickly. Classes offer flexible schedules with both traditional and online opportunities. Programs include manufacturing, information technology, health care, law enforcement, firefighter training, emergency medical services
FY 2017 Budget Book
13
(EMS) programs, truck driving academy, joint apprenticeship training (construction), the Youth Technology Academy, and other certificate programs. Corporate College® is designed to be the model for providing new solutions and opportunities to individuals, businesses and industries to succeed in today’s knowledge based, high-tech economy. This concept includes a strategic initiative focused on professional development and training programs designed to meet employers’ demands for a talented workforce. Corporate College® also offers non-credit training and skills enhancement courses for individuals. Community and Continuing Education offers non-credit programs and courses for career development, personal enrichment and education. Classes provide education and information to lifelong learners of all ages. Community and Continuing Education meets students “where they are” to help them enjoy their community college experience, as well as to meet their personal and professional goals. Encore promotes successful aging through the development of lifelong learning opportunities for adults 55 and older in diverse community and institutional settings. Based on the concept of providing senior adult education programs within an academic environment, the program holds to an education standard that recognizes the intellectual interests of older students. To provide learning opportunities, Tri-C offers a unique approach to senior adult education with on- and off-campus experiences. The learning possibilities are endless through Encore Campus and the Neighborhood Scholars programs. The Office of the President The Office of the President contains the leadership of the College, the support staff for the President and Board of Trustees, and the internal/external relationship and development areas of the College. The Board Office supports the College’s Board of Trustees. The Cuyahoga Community College District Board of Trustees consists of nine Trustees who, in collaboration with the College President, are charged with fulfilling the goals set forth in the College’s mission statement. The Board Office also organizes all official Board of Trustees and Committee meetings and acts as a liaison between the College, the Board of Trustees and the community. The Office of the President is comprised of the College President and support staff. The President provides College-wide leadership and direction to fulfill the goals outlined in the College mission statement. The Office of Government Relations and Community Outreach provide College-wide leadership and coordination for all local, state and federal legislation in support of the mission of the College. This department also provides coordination of special events in the surrounding community. Resource Development and the Cuyahoga Community College Foundation support the mission of Tri-C as the place Where Futures BeginSM through fundraising activities that support scholarships and the development and enhancement of educational programs. Integrated Communications handles all media relations, print materials, interactive marketing, and creative services College-wide.
FY 2017 Budget Book
14
Human Resources provide services in the area of employee benefits, compensation, diversity/inclusivity, labor relations, workforce planning, health and wellness, and professional learning and development. The College continuously reviews this structure to determine if consolidation or reorganization of individual units might provide additional efficiencies or more successful modes of operation.
EXECUTIVE OVERVIEW College leadership and management must continuously monitor the local and national economic environment, using internal and external sources. FY17 will be significantly impacted by the State of Ohio’s financial condition. Also, as a levy funded school, county and local economic factors will influence the FY17 budget. Careful monitoring of economic conditions and detailed planning in response means the College can construct a budget tailored to its strategic goals and plans. In addition to other planning projects the College’s planning documents include: long range financial plans, the ten-year College-wide academic and facilities master plan, the academic plan and the annual budget.
Economic Environment Analysis Property taxes, State appropriations, and student tuition and fees comprise three of the College’s principal revenue sources and support its operational needs and abilities to expand programs and pursue other initiatives. The viability of these revenue components is highly dependent on variables external to the College such as unemployment trends, local and state economic conditions, legislative actions, County voter sentiment and others. The College’s ability to manage fluctuations within these Cuyahoga Community College Primary Revenue per Annualized Student FTE by Source 25,000
$6,000
Revenue Dollars
20,000 $5,000 15,000
$4,000 $3,000
10,000
$2,000 5,000 $1,000 $0
Annualized Student FTE
$7,000
0
2008
2009
2010
2011
2012 2013 Fiscal Year
2014
2015
2016*
2017*
State Revenue per Annualized FTE Local Revenue per Annualized FTE Student Tuition, Fees and Scholarship Allowance per Annualized FTE
*Forecast as of April 2016
Annualized Student FTE
FY 2017 Budget Book
15
revenue sources, as well as potential cost increases, is vital to its continued success. The College’s management utilizes performance metrics which are indicators of financial strength that enable the College to balance fiduciary responsibility and achieve the mission, vision and values. Of the 23 community and technical colleges in Ohio, Cuyahoga Community College is one of 6 that levy local taxes. Local property tax revenues are projected by evaluating housing market trends and tax collectability rates. Cuyahoga County reappraised property tax values in 2015, with overall assessed values slightly declining by 0.7%. Cuyahoga County is experiencing a slow rebound, including a decline in foreclosure filings over the past few years and increases in new construction. Since most new construction in Cuyahoga County is tax abated for 10 to 15 years, the College does not receive additional property tax revenues immediately from most new growth. Delinquency rates increased in FY16 to 4.83% from 4.03% in FY15. Given these factors, property tax revenue is expected to decrease by approximately $2.5 million in FY17 compared to the FY16 original budget. The Ohio economy has been growing at a modest pace since the Great Recession of 2007 to 2009, with predictions of 2.0 percent to 2.5 percent growth in 2016. Major factors impacting the Ohio economy are strengthening labor markets and benefits from lower energy costs, which has bolstered consumer income and spending. The U.S. Energy Information Administration projects the price of gasoline to remain low throughout 2016, potentially continuing strong consumer spending. The Ohio economy is on track to continue growing during FY17. Ohio employment has grown over the past year, as nonfarm employment has increased by an estimated 82,700 jobs. Ohio employment is projected to grow modestly by 1.0% in FY17. The Ohio unemployment rate has fallen sharply from fourth quarter 2011 to 2015, dropping from 7.3% to 4.8%. Ohio’s unemployment rate is projected to hover around or slightly below the national average of 5.0% for FY17.
16,000
10.0
14,000
9.0 8.0
12,000
7.0
10,000
6.0
8,000
5.0
6,000
4.0 3.0
4,000
2.0
2,000
Unemployment Rate
Number of filings
Cuyahoga County Total New Judicial Foreclosure Filing Trend
1.0 0.0
0
2006
2007
2008
2009
2010
2011
Source: Foreclosure - December 2015 Cuyahoga County Common Pleas Court Statistical Report, pg. 23; http://cp.cuyahogacounty.us, retrieved March 23, 2016. Unemployment rate - Ohio Labor Market Information, http:/ohiolmi.com/asp/laus/vbLaus.htm, retrieved April 19, 2016.
FY 2017 Budget Book
2012
2013
2014
2015
New Foreclosure Cases Filed Non-Seasonally Adjusted Unemployment Rate
16
For FY17, the State of Ohio is increasing State Share of Instruction (SSI) funding by 4%. The SSI funding formula has shifted from one driven completely by enrollment to one defined by student outcomes, including success and completion. The FY17 SSI funding formula is substantially the same as FY16, based on 50% course completion, 25% success points and 25% completion. The College has aligned strategic goals to mirror the State push for completions as well. Changes to the SSI funding model and improvements in the overall Ohio economy have had a positive impact on SSI projections for FY17. SSI funding contributing to the General Fund operating revenues is anticipated at $66.6 million for FY17, up from $62.4 million in the FY16 original budget. The total College SSI funding for FY17 is projected to be $71.3 million. Enrollment trends at the College tend to mirror unemployment trends, when unemployment is high so is enrollment and vice versa. As the economy stalled, more County residents looked to the College to further their education, increase their skill sets or receive training in a new employment field. Students who traditionally may have attended a four year institution are now beginning their education at lower cost community colleges, such as Cuyahoga Community College. Job expansion continues in the County and the College’s enrollment has fallen in response. Enrollment peaked in fall semester 2010 at 31,684 credit students, and Cuyahoga County averaged unemployment around 9.2% in 2010. The average 2015 seasonally adjusted unemployment rate for Cuyahoga County decreased to 5.4% and unemployment is expected to slightly decline in the near future; one of the major contributing factors to the College’s projected 4% enrollment decline for the 2016-2017 academic year. The County has also experienced an exodus of population over the last decade. The population of Cuyahoga County has fallen from 1,356,860 in 2005, to a census estimate of 1,255,921 in 2015, a 7.4% decline. Some of this population decline is attributed to people moving out of the urban areas within Cuyahoga County to neighboring suburban counties. The Cleveland-Elyria Metropolitan Statistical Area had an estimated population of 2,060,810 in 2015, down from 2,077,240 during the 2010 census. This represents less than a 1% decrease, meaning the regional population is holding fairly steady. Reductions in population are another contributing factor to declining enrollment projections at the College. Tuition and fee revenues are affected by enrollment, as well as by legislative actions at the State. The current State biennium budget froze tuition at the College for FY16 and FY17. For FY17, the College in-county tuition will stay at $104.54 per credit hour, which remains the lowest in Northeast Ohio and the second-lowest in the State.
FY 2017 Budget Book
17
10.0
25,000
8.0
20,000 6.0 15,000 4.0
10,000
** 1998 Converted from quarter to semester calendar Sources: Cuyahoga Community College enrollment records and www.bls.gov, US Department of Labor Statistics, April 2016
2015
2013
2011
2009
2007
2005
2003
2001
1999
0.0
1997
0
1995
2.0
1993
5,000
Unemployment Rate
12.0
30,000
1991
Fall Student Enrollment
35,000
Cuyahoga Community College Fiscal Year Student Enrollment Trends (Fall to Fall Comparison)
Fiscal Year Student Headcount
Student FTE
U.S. Annual Average Unemployment Rate
While these economic factors pose significant challenges, the College has responded by reviewing educational models and business processes to ensure efficient and effective institutional operations, while continuing to provide high quality, affordable education to students. Using innovative tools such as strategic collaborations, improved data collection and analysis, and metrics, the College is able to more precisely budget for areas that will promote student success. Keeping an eye on economic factors throughout Ohio helps the College prepare for changes in these major revenue sources. Ohio’s Higher Education Goals – Increasing Degrees and Stimulating Ohio’s Economy Several initiatives are being pursued to increase completion rates of Ohio's college students and to continue to work to close the unemployment gap by filling Ohio's jobs with educated and experienced Ohioans. If Ohio is to succeed economically, more students must complete their degrees. For every one percentage point increase in the percentage of Ohioans who earn a bachelor's degree, Ohio will see economic activity equal to $2.5 billion per year. Citizens who earn an associate's degree earn nearly $5,000 more annually than those with only a high school diploma. Bachelor's degree holders earn almost $20,000 more per year than those with only a high school diploma. Below are some of Ohio’s Higher Education statewide initiatives to increase the number of degrees and stimulate Ohio’s economy: 3-Year Degrees: Ohio's public colleges and universities are assembling plans that will allow students to complete a traditional bachelor's degree in three years. The following programs can be used to allow a student to complete a bachelor’s degree in three years: o College Credit Plus
To help earn college and high school credits at the same time by taking college courses from community colleges, colleges or universities. The purpose is to promote rigorous academic pursuits and to provide a wide variety of options to college-ready students.
FY 2017 Budget Book
18
o Advanced Placement
Advanced courses offered in high school that count towards graduation.
o Career-Technical Credit Transfer
Allows high school and adult career-technical students who successfully complete specified technical programs to enter public colleges and universities with credits inhand, saving students money and time.
o Early College High Schools
Allows students to earn both a high school diploma and an associate degree or up to two years of credit toward a bachelor’s degree.
Complete College Ohio: Identifies an array of policies, practices and programs for improving students’ college readiness, reducing the time it takes for students to attain a certificate or degree, and incentivizing progress and completion. Credit When It’s Due (CWID): Assists eligible students with obtaining an associate degree through collaboration between Ohio’s public institutions. CWID emphasizes degree attainment for students that have some college experience but no degree by offering a pathway to an associate degree. Internships & Co-ops: An investment of state and private dollars to increase the number of internships and co-ops for employers and students in key industries to close the skills gap, increase student completion and give Ohio a competitive advantage in the global human capital talent marketplace. Choose Ohio First: The Choose Ohio First Scholarship Program awards Ohio colleges, universities and their business partners that have developed innovative academic programs to recruit and retain more Ohio students into Science, Technology, Engineering, Mathematics, Medicine (STEMM) fields. The funding they receive is used to offer scholarships for those programs to current and potential students.
FY17 Budget Strategy and Long-Range Planning Internal and external resources, events and people shape the College’s budget strategy. For example, the College conducts an economic environmental analysis as part of its long range planning process. Internal documents such as the College Strategic Plan and the six year Capital Plan also affect the development of the next fiscal year’s budget. Additionally, careful analysis and updating must occur throughout the year to ensure the College remains on budget. The following section summarizes the fundamentals and assumptions utilized in developing the FY17 budget. In order to ensure institutional goals can be achieved resources must be allocated in a manner that aligns with the College’s Strategic Plan. For FY16-FY18, the College initiatives and approaches are aligned around the six Strategic Focus Areas, each with accompanying progress, goals and metrics to sharpen the focus and make the path to success clear.
FY 2017 Budget Book
19
Strategic Focus Areas FY16 – FY18 Strategic Focus Area #1 - Student Completion The urgent need to substantially increase the number of students graduating from community colleges is a national, state and local priority. Cuyahoga Community College will increase the three-year graduation rate for the first-time, full-time students entering the fall semester and increase the number of certificates and degrees granted annually. Strategic Focus Area #2 – Student Experience National and local research demonstrates that decreasing time to completion while engaging students in the learning process is essential. The College will provide structured educational pathways and individualized support to track progress and reduce time to college completion for all students. Strategic Focus Area #3 – Equity in Outcomes Closing the achievement gap in student success outcomes requires an intentional focus on the reallocation of resources to make higher education credentials attainable for all students, regardless of age, race or economic standing. Strategic Focus Area #4 – Workforce Impact A skilled workforce is critical to the economic development and competitive vitality of Northeast Ohio. The College must increase its organizational capability and footprint to provide quality training, products and services for all citizens in the region by ensuring its workforce training programs are closely aligned with high-demand, rapidly changing industry sectors. Strategic Focus Area #5 – Transparency, Accountability & Communication The College must hold itself accountable as an organization and remain transparent when communicating outcomes and achievements both internally and externally. By doing so, the College will promote good stewardship of resources and showcase student success. Strategic Focus Area #6 – Commitment, Continuity & Community Outreach Northeast Ohio has depended on the College for affordable and accessible educational opportunities for more than half a century. The College commits to maintaining its institutional mission, vision, culture and service in the face of social, economic and political change in order to remain accessible and affordable to the students and community.
FY 2017 Budget Book
20
Cuyahoga Community College Strategic Plan FY16-FY18
Equity in Outcomes
Student Experience
Student Completion
Strategic Focus Areas
Progress
Goals
Metrics
Worked closely with K-12 partners to ensure students are prepared for College Utilized innovative approaches to ensure students connect with the College Created intentional support for students to keep them on the most direct path to completion Developed a robust communication plan and integrated case management to support students
Develop a Strategic Enrollment Plan to provide a clear roadmap for recruitment, enrollment, retention and completion efforts Continue to utilize a case management approach to support and manage students to encourage retention and completion Maximize utilization of technology to support academic planning and proactively respond to student needs Continue to enhance and implement a robust array of completion initiatives
Completion rates for gateway math and English courses Fall-to-spring and fall-to-fall retention rates Total degrees and certificates awarded IPEDS three-year graduation rate
Engaged students and sought feedback on their experiences both in and out of the classroom Instituted mandatory sessions for all new students, including New Student Orientation, New Student Convocation and a First Year Success Seminar Launched the One Door – Many Options for Success initiative Shared information on achievement gaps among students of color with the College-wide community Began campus conversations on how to effectively address equity issues Launched the Black American Council to provide mentoring and student support Continue the efforts of the Hispanic Student Council
Create a clear transition into and through the College Maximize attendance and student engagement at outreach events Leverage technology and College resources to create comprehensive student records Create a student experience designed to retain second year/sophomore students
Number of students reaching upperclassman status in two years Number of students with an academic plan in Degree Works Number of students registered for 15 or more credit hours Number of students with a faculty mentor or peer mentor
Increase the number of economically disadvantaged students, students 25 years and older and students of color who complete college-level math and English in two-years, Increase the retention rates and number of economically disadvantaged students, students 25 years and older and students of color receiving higher education credentials
Completion rates for gateway math and English courses Fall-to-spring and fall-to-fall retention rates Total degrees and certificates awarded IPEDS three-year graduation rate
FY 2017 Budget Book
21
Cuyahoga Community College Strategic Plan FY16-FY18
Commitment, Continuity & Community Outreach
Transparency, Accountability & Communication
Workforce Impact
Strategic Focus Areas
Progress
Goals
Metrics
Offering technical training that enables students to acquire jobs Improving the proficiency of companies and individual employees throughout Northeast Ohio Providing start-of-the-art facilities for business and corporate events both large and small
Focus on six key industry sectors; advanced manufacturing, construction, healthcare, information technology, professional services and public safety Increase the number of students who earn degrees and industry credentials Establish Tri-C as a center of excellence and innovation in training and business development Enhance internal and external transparency on progress in key strategic areas Increase employee accountability through enhanced performance measurement and incentives Continue focus on process improvement through participation in the AQIP model for institutional accreditation Expand the publication of national journal articles and presentations by faculty members and administrators Build community engagement Maintain public support through continued stewardship of funding the community provides Continue to promote the Tri-C brand Increase student success rate by increasing the percentage of students completing the FASFA Create new/updated master plans for our campuses
Enrollment in certificate programs, contract training and company-paid courses Demand-driven degrees and certificates awarded Grants secured Workforce programs on TriC campuses
Involving faculty leadership in decision-making processes Expanded and formalized internal communication College-wide Restructured Integrated Communications to strengthen external communication Complying fully with all applicable laws and regulations Created a dashboard of student success outcomes
Passed a 1.2 mill renewal levy that included an increase of 0.9 mills to be applied toward student success Developed one of the most consistent and recognizable brands in Northeast Ohio Implemented the My Tri-C SMART tool for optimizing College-wide reporting Created a new East Campus master plan
FY 2017 Budget Book
Usage of success metric dashboards (i.e. site visits, unique users) In-person town hall meetings by college president at Tri-C locations Students, faculty, staff and community members involved in community engagement efforts Assessments of institutional culture in employee surveys
External perception of Tri-C quality Student textbook savings Student loan default rate by cohort and amount borrowed by students annually Overall bond rating and individual financial ratios
22
The College’s goals and metrics are an integral part of the budgetary process, as funds are aligned to support these important initiatives. These strategic focus areas affect every aspect of the institution, every department and office. Through proper strategic alignment of the budget, we have already made great strides in our work together for the sake of our students and our community. By sharpening our focus, the path to success is clear. Long-Range Plan and Major Budget Assumptions Cuyahoga Community College’s long range plan forecasts revenue and expenditures for a five year period in order to best manage each fiscal year’s expenditures and yield a balanced budget. The long range plan helps model the College’s fiscal performance and is updated monthly with College and community data. As financial and strategic assumptions change throughout the year, the long range plan is adjusted accordingly. For FY17, the budget contains the following major assumptions: A 4 percent increase in State funding; A decrease in property tax revenue due to lower assessed values in the County; Enrollment declining by 4 percent, which coupled with the impact of tuition incentive programs and tuition and fees being frozen, results in a reduction in tuition revenue; The same level of non-salary expenditures as FY16 for FY17, excluding contractual increases; and Increasing staffing expenditures due to collective bargaining contractual increases and a general wage increase of one percent for all non-bargaining unit employees. Long-Range Plan Student and Staffing Assumptions Cuyahoga Community College attracts students from the immediate geographical area with a variety of educational and social backgrounds. After experiencing several years of record enrollment during the recent economic downturn, enrollment has been in steady decline since FY11. As the economy and Northeast Ohio continue to recover, projections indicate enrollment will slightly decline for the 2016-2017 school year. The College continually assesses and adjusts staffing levels to maintain high quality service for its students and the community. For FY17, Tri-C will keep similar staffing levels to FY16. However, the College will focus on strategic class scheduling and continue its strategic hiring process as methods of controlling staffing costs.
FY 2017 Budget Book
23
Administrative Responsibilities The Executive Vice Presidents (EVP) are each responsible for incorporating the College’s mission, vision and values in the management of the division. The divisions align operating units with similar functions as discussed in the Major Operating Unit Overview (page 11). Ultimately, the EVPs are accountable for his or her respective divisions and therefore must develop and execute business plans that demonstrate stewardship of resources, mission fulfillment and compliance with regulatory agencies.
Organizational Chart The administrative direction of Cuyahoga Community College has been delegated by the Board of Trustees to the President and administrative staff. The administrative staff is appointed by the President subject to Board approval.
FY17 Organizational Unit Goals and Measures The Major Operating Units (MOU’s) individually have goals linked to their individual mission, vision and value statements, which also link to the College’s statements. Each organizational unit strives to increase stewardship, improve operations and meet the needs of the community. The aforementioned focuses are used in developing the organizational unit budgets and then measured to ensure quality,
FY 2017 Budget Book
24
consistent and efficient operations. A few of the key MOU’s goals and metrics are reviewed in the following section. Access, Learning and Success MOU AL&S has aligned its student success initiatives with the new College-wide strategic plan. The three areas of AL&S - Access and Completion, Learning and Engagement, and Evidence and Inquiry -- each have an important part to play in the six strategic focus areas of the new strategic plan. The focus areas of student completion; student experience; equity in outcomes; workforce impact; transparency, accountability and communication; and commitment, continuity and community impact are designed to keep the College focused on increasing the number of students who achieve their educational goals. To ensure Tri-C continues to increase the academic success and completion rates of its students, AL&S is focused on a number of student focused initiatives, including implementing a Strategic Enrollment Plan, the One Door, Many Options for Success program, the First Year Experience project, implementing a College-wide Year Long Schedule, creating an Honors Scholars program at the new Mandel Center for the Humanities, the Equity in Outcomes initiative, and the creation of structured educational pathways and meta majors. Access, Learning and Success Performance Metrics FY15 FY16 FY17 Measure Actual Forecast Target Percentage of new students completing developmental English in one year 47% 51% 51% Percentage of new students completing developmental Math in one year 20% 20% 22% Fall to Spring retention rate 69% 69% 73% Fall to Fall retention rate 47% 46% 49% Number of certificate and degrees awarded 4,281 4,021 4,122
Administration and Finance MOU A&F has finalized a strategic planning process, focusing on aligning the units’ internal strategies, action steps and measures of success with the College’s Strategic Focus Areas and the opportunities identified through the Academic Quality Improvement Process (AQIP), as well as the College’s 2020 Vision. The Administration and Finance 2015-2017 Strategic Plan action items will continue to move the unit forward through the continuous improvement process, implementing lasting changes that will fulfill the unit’s mission, vision and values as well as support the College in achieving its mission and improve the overall quality of life for the community. Finance and Business Services’ goal is to contribute directly toward student success and completion by providing high quality services such as financial aid, textbook assistance, campus dining and retail sales while identifying new revenue streams and developing cost
FY 2017 Budget Book
25
containment strategies to reprioritize resources toward enhancing the student experience. They have developed several strategies to support student success through conscientious fiscal management: o Maximize and preserve College resources by improving current budgeting and forecasting capabilities; o Standardize and improve financial operations and reporting by utilizing the new My Tri-C SMART tool to improve the accuracy, clarity and timeliness of financial operations and reporting throughout the College; o Collaborate with Barnes & Noble to provide lower-cost textbook alternatives; o Expand student loan default aversion efforts to support student loan repayment and academic program completion; o Build efficiency and continuous improvement into the College’s operational framework and o Align College-wide projects and initiatives to the new SSI funding model. Finance and Business Services utilizes the following ratios to gauge performance of their goals: Finance and Business Services Performance Metrics FY15 FY16 FY17 Measure Actual YTD Target Bad Debt as a Percentage of Tuition & Fees 0% 99% >99% Service Level Agreements Included in ITS Contracts All Contracts All Contracts All Contracts
The Office of Legal Services will continue to provide sound legal counsel to the College, its trustees, and its employees on work related matters. They do not provide individual counsel to employees or students on personal matters. Additionally, the Records Management department is improving efficiencies for records management and establishing best practices for archive storage, record retention and the historical archive. Overall, the Office of Legal Services provides: o Drafting, reviewing, and negotiating contracts and contract renewals; o Reviewing, revising, drafting and enforcing College-wide policies and procedures; o Managing and/or representing the interests of the College in litigation and administrative proceedings; o Responding to public records requests, subpoenas and non-standard requests for student records; o Overseeing the College's Records Retention Policies and Procedures, as well as the College's Records Retention Schedules; o Providing advice, guidance and oversight on: construction and facilities matters; personnel and labor relations issues; academic and student issues; audits, investigations and other forms of compliance review; copyright, trademark and patent issues; ethics questions or concerns; and enterprise risk management and insurance; o Educating, training and providing related resources to the College community on relevant legal issues and topics and o Free legal clinics for Tri-C students who may need assistance with: The criminal record expungement process; Acquiring a Certificate of Qualification for Employment; Acquiring a Certificate of Achievement and Employability and Basic legal advice - the Office of Legal Services will provide advice on simple legal matters or direct students to organizations which may be able to help.
FY 2017 Budget Book
27
Office of Legal Services Performance Metrics FY15 Measure Actual Number of Visits on Office of Legal Services Website 3,246 Average Cycle Time for Retrieval of Records 3.19 hrs. Number of Items Cataloged and Preserved for College Archive 13,890
FY16 FY17 YTD Target 2,016 3,000 2.46 hrs. 2.9 hrs. 2,323 8,000
Each of these departmental goals are closely linked to the College-wide Strategic Focus Areas and the AQIP categories as identified in the Systems Portfolio. The division’s leaders are constantly monitoring their department’s progress and revising their action steps to ensure the Administration and Finance 2015-2017 Strategic Plan is implemented in a timely fashion. Workforce, Community and Economic Development Division (WCED) MOU The Workforce, Community and Economic Development Division provides 21st century talent solutions for Northeast Ohio. This includes entry-level fast-track worker training programs, incumbent worker training in over 100 companies each year, services to workers who have lost their jobs and require retraining, single courses to upgrade skills, and increasing the management skills of small businesses in Northeast Ohio by operating the 10,000 Small Businesses (Goldman Sachs) Program. New programs planned for FY17 includes: 3-D printing, Integrated Systems training, Siemens Mechatronic Learning System, Fabrication Lab, Manufacturing Skill Standards Council Certified Production Technician, Medical Informatics, Cyber Security, Cloud Computing and virtualization, Analytics/ Big Data, Mobile Development/User Experience Focus, Agile Development, Project Management. Programs for expansion includes industrial automation and maintenance, certificates of proficiency in machine tool operations, pre-apprenticeship, construction training, truck driving, Steelworker for the Future, and the expansion of the “Right Skills” model to other companies in northeast Ohio. WCED is also adding an internship option to the precision machining technology program. Community and Continuing Education and Encore had many successful initiatives in FY16 and plans for continued growth in FY17. They will be launching new programs like culinary, various finance classes, holiday get together, Pinterest, Instagram, Facebook, YouTube, Encore online classes and many more. Corporate College® offers Northeast Ohio businesses and individuals professional training and development, along with state-of-art meeting and conferencing space. Corporate College® delivers training and development solutions for organizations and individuals. Corporate College® understands unique organizational challenges and provides customized solutions that meet strategic business goals. These customized solutions help organizations become more efficient, grow employee skills and retain top talent. Corporate College® strives to improve individual, team and organizational performance. Programming offered includes both open enrollment courses and customized contract training in the following subject matter areas: business operations, customer service and sales, healthcare, leadership, lean and lean six sigma, quality and compliance.
FY 2017 Budget Book
28
FY17 Workforce, Community & Economic Development Select Enrollment Targets FY15 FY16 YTD FY17 Actual (thru 2/29/16) Target Building Construction Certificate 210 255 361 JATC 10,397 8,750 11,849 Machine Trades (MAT) 371 341 256 Precision Machining Technology (PMT) 534 465 499 Ford Credit 473 334 524 Digital Design 214 118 184 Industrial Maintenance Technology (IMT) 825 754 1,036 Industrial Maintenance Technology (IMT) NC 62 23 30 3D Additive Manufacturing 71 271 328 First Energy 0 111 245 Welding NC 23 32 33 Integrated Systems Credit 0 0 60 Integrated Systems NC 0 0 20 Advance Technology Academy 31 40 50 Youth Technology Academy 1,157 1,644 1,800 Truck Driving Academy 148 95 171 Cisco Technical Training Institute 159 126 130 Information Technology 684 313 122 Information Technology On-Line 293 242 432 Quality 296 144 197 Business & Performance 52 27 75 Org Effectiveness 308 85 138 WCED Healthcare 489 232 281 Fire Training Academy 963 930 1,050 Fire Advanced Training 1,588 1,054 1,765 Police and Security Academies 1,378 941 1,528 Police Contracted 968 1,098 675 Police Advanced Training 1,242 903 1,206 Total Students 22,936 19,328 25,045 Office of Aging Initiatives Community, Adult and Education Programs Total Students
7,471 705 8,176
5,183 354 5,537
7,571 525 8,096
FY17 Workforce, Community & Economic Development Select Revenue Targets (in Millions) FY15 FY16 YTD FY17 Actual (thru 2/29/16) Target Contract Training $1.52 $1.19 $2.31 Open Enrollment $5.12 $3.85 $5.58 State Subsidy $4.06 $3.43 $4.68 Facility Rental $2.92 $1.89 $3.02 Misc. Revenue $0.45 $0.24 $0.38 Total Revenue $14.07 $10.60 $15.97
FY 2017 Budget Book
29
Office of the President MOU The Office of the President’s primary goal is to exemplify the mission, vision and values of the College. Additional goals are to align the College’s annual goals, support the Board of Directors and provide College-wide leadership and coordination for all local, state and Federal legislation. The Resource Development department’s goal is to solicit funds and support from external organizations for the benefit of the College’s educational mission and purpose. The underlying foundation for all of the goals is the benefit to the students and to preserve the College for future generations. The Office of Government Relations and Community Outreach provides College-wide leadership and coordination for all local, state and Federal legislation in support of the mission of Cuyahoga Community College. The office also provides coordination of community relations and major special event planning for the College. As a main goal of the College’s Broadening Our Reach, the office has an expanded Speakers Bureau which engages College employees with the community. The office also tracks key community partnerships with organizations such as local Chambers of Commerce. They conduct events that thank members of the community and the College for their contributions to student success through work with Advisory Committees and The College Ambassadors. Human Resources is continually supporting the One-College culture of excellence through a “service” focused approach in the creation and effective implementation of best-in-class practices. The College’s new interconnected learning, performance management and succession planning system, Talent Engagement Center, went live in FY2015. This nextgeneration system allows the evolution of focused training, development and improved data collection. Relative to performance management, annual performance review participation is expected to approach 100% due to the link with performance-based pay – far exceeding the 60% participation rate in prior years. Operationally, identifying cost per hire for full-time employees will enable the College to review the effectiveness of its recruiting methods moving through 2017. By identifying top talent through concentrated recruiting methods, as well as coaching and development, employee turnover can be positively impacted as we work to exceed the national average and deliver on the College’s target of 5%. A continued CollegeWide commitment to Diversity & Inclusivity is supported by Human Resources through professional development, cultural awareness and training. In addition to existing opportunities, new offerings with improved content will be deployed with focused accessibility via web-based learning. The expectation is to increase employee participation beyond the goal of 25% in 2017. The Integrated Communications Department (ICD) undertook numerous initiatives in FY16 to strengthen the student experience. The department contiues to explore unique ways to
FY 2017 Budget Book
30
enhance and improve the user experience with the website, including increased use of infographics. In addition, the department continues to work with the AL&S and WCED divisions to develop landing pages that feature the College's Centers of Excellence and metamajors, integrating both credit and non-credit offerings. ICD worked with Information Technology Services on the development of a new My Tri-C Space portal and with many departments across the College to improve internal communications by creating collaborative spaces on the KWeb intranet. In addition, the department has expanded and strengthened media outreach and grown the College's social media presence. A significantly updated project management system streamlines workflow for the department's Creative Services area. Advertising has benefitted from new design and messaging as well as improved tracking and targeting in broadcast, print and digital media. ICD will continue to focus on its key priorities, which are aligned with the College's Strategic Plan: o Reinforce and refine the Cuyahoga Community College brand; o Drive new enrollment in credit and non-credit programs; o Promote retention, progress and completion as part of the College's integrated student success efforts; o Pursue a proactive and transparent approach to media relations; o Facilitate effective and open internal communications and o Maintain cost-effective departmental operations. Intregrated Communications Performance Metrics FY15 FY16 FY17 Measure Actual YTD Target Tri-C Awareness Rating 91% 91% 91% Tri-C Quality Rating 78% 78% 80% Number of Pages Viewed on College Website (Monthly Average) 908,776 883,482 900,000 Number of Unique Visitors to College Website (Monthly Average) 162,420 121,708 150,000
MOU Goals linked to the College Strategic Goals The MOU’s goals outlined in the previous pages were based on the College’s goals. The College goals are initially outlined in the Ten-year College-wide Academic and Facilities Master Plan, Long-Range Plan and a Six-year Capital Plan. Each fiscal year the annual budget is linked with all three plans and the College goals are evaluated. During the planning process, any additional impacts to operating expenditures, goal adjustments, changes in the economic conditions and sources of revenue are evaluated. Once the College goals have been reevaluated, each of the MOU’s goals is re-linked to the College goals during the budget development process. By maintaining the link between the goals, the College can ensure that it is meeting the mission, vision and values outlined in the strategic plan. The following table summarizes and links the MOU’s goals to the College’s Strategic goals. Each MOU’s is responsible for developing and implementing their respective goals.
FY 2017 Budget Book
31
FY17 Department Goals, Actions and Strategies to Achieve College’s Strategic Goals College Strategic Focus Areas
President . Continue to enhance
and implement a robust array of completion initiatives The College will increase the 3 year graduation rate for the first time, full time entering fall students and increase overall number of certificates and degrees granted annually
Access Learning and Administration and Success Finance Student Completion . Continue integration of . Implementation of new academic and workforce tuition programs, curriculum to provide including 15+ Perks and academic pathways to Tuition Guarantee credentials and degrees Program, to make College more affordable for our students . Implement College-wide . Provide funding for yearly academic schedule student scholarships which includes a including scholarships for guaranteed class schedule student athletes and honors programs . Begin implementation of Meta Majors as a method for students to find pathways to certificates and degrees in specific industries
Student Experience . Create a clear . Implement One Record . Collaborate with Barnes transition into and software as a part of the and Noble to find new Decrease time to One Door, Many lower-cost textbook completion while through the College Options for Success alternatives engaging students Initiatives in the learning . Create a student . Continue work on . Continue to maintain process The experience designed to implementing more ways facilities to promote College will student success retain second for students to earn provide year/sophomore credit for Prior Learning . Transform the Campus educational Assessment Experience for Students students pathways and . Implement hands-on tools individualized to chart student progress support to track progress and reduce time to . Use technology to college completion improve student for all students engagement
WCED . Launch integrated manufacturing learning system programs leading to certifications and credits towards degree
. Obtain manufacturing skills accreditations to provide training, official testing and to embed certifications into programs . Establish clear pathways enabling accelerated completion of IT short-term credentials and embed towards degree completion . Development of Applied Science-Public Safety degree . Expand apprenticeship training experience for students in Software Development Academy . Launch Public Safety Summer Camp to minorities and create pathways for high school students to public safety careers . Enhancement of gaming simulation to increase learning engagement in Six . Integrate the EMSI Career Coach site as a tool for manufacturing students to match resumes to jobs
Equity Outcomes: . Align College-wide . Increase the number . Continue work with . Increase enrollment of Projects and Initiatives to of economically Youth Technologies under-represented the SSI disadvantaged Academy through College students to earn credit Focus on the students, students 25 for Prior Learning Provide the WebEx . Utilize private funding to . reallocation of years and older and Assessment conferencing tool to enhance and expand first resources to make students of color who students at no cost, to responder training higher education complete college-level encourage collaboration recruitment for minorities, credentials math and English in between students and and female candidates and attainable for all two-years their peers and students outreach programs for U.S. students and faculty/staff military veterans . Expand healthcare program locations
FY 2017 Budget Book
32
FY17 Department Goals, Actions and Strategies to Achieve College’s Strategic Goals College Strategic Focus Areas Increase organizational capability and footprint to provide quality training, products and services for all citizens
Access Learning and Administration and WCED Success Finance Workforce Impact . Work closely with Establish Tri-C as a . Facilitate cooperative . Cultivate new industry efforts between WCED to build center of excellence partnerships to deliver Construction Technology, training to key sectors enrollment and success and innovation in Apprenticeship and rates in the Centers of training and business . Expand Right Skills Now College Pathway Programs . Expand non-credit offerings Excellence development for incumbent workers at all levels and offer additional industry recognized certificates Transparency, Accountability & Communication Enhance internal and . Improve accountability . Standardize and improve . Utilize social media to facilitate communication financial operations and and support for the external transparency and updates with advisory reporting student recruitment on progress in key board function strategic areas Increase employee . Use new technology and . Engage students, . Tracking and reporting of accountability through data analytics to inform employees, faculty and the goals, student outcomes; enhanced performance our efforts and improve community to increase success rates, achievements measurement and conversion rates cybersecurity awareness and national certifications incentives . Facilitate “anytime, anywhere,” access to TriC applications Commitment, Continuity & Community Outreach . Expand reach of Youth . Continue to grow . Maintain a working and Maintain public support through enrollment in the Tri-C’s learning environment that Technology Academy and Fire Academy to new is clean, comfortable and continued stewardship College Pathway counties aesthetically pleasing of the funding that the program reaching community members . Attend community events . Define strategies to Create new/updated including K-12 students to expand awareness of achieve environmental, master plans for our and enrollees in the adult social and economic healthcare training and campuses diploma program milestones programs President
.
. Be held accountable and remain transparent when . communicating outcomes and achievements both internally and externally
. Maintaining institutional mission, vision, culture and service in the face of . social, economic and political change in order to remain accessible and affordable
FY 2017 Budget Book
. Lead the College community safety awareness education
33
Service Level Changes The changes in service levels across the College from FY16 to FY17 provided additional benefits to the students, faculty and staff. Some changes are establishing the Centers of Excellence and opening of the Joseph, Jack, and Morton Mandel Humanities Center. The FY17 Summary of Service Level changes table summarizes the planned college-wide changes in service levels from FY16 to FY17.
FY 17 Summary of Service Level Changes MOU Service Level Change President • Reviewed position salaries and compared to market rates • Increase the number of honors scholarships for humanities students • Utilized consultants to help standardize job descriptions • Added individual program marketing campaigns AL&S
• Development of collegewide scheduling with guaranteed courses for the academic year to help streamline course scheduling and help students graduate sooner • Movement of the reporting of tutors to the Campuses to support student success • Opening of the The Jack, Joseph, and Morton Mandel Humanities Center at Eastern Campus • Implementation of nine Meta Majors to provide academic and career pathways for students
A&F
• Change of purchasing card vendor to increase the rebate received • Hiring of additional police officers to enhance the safety of the College • Reorganization of reporting so that Supplier Managed Services Department is now reporting to the Vice President of Capital, Construction, and Supply Management • Audit and Advisory Services, Risk Management, and Business Continuity departments now reporting to the Office of General Counsel • Plant Operations reports to the Executive Vice President of Administration and Finance • Cleveland Codes, the Tri-C Software Developers Academy, is providing an apprenticeship training experience for students to learn the entry-level skills needed to be a software developer to address the severe shortage of software developers in Northeast Ohio • Partnership with Hyland Software to offer OnBase Certified System Administration (OSCA) certification to meet growing demand for OnBase professionals • The Youth Technology Academy (YTA) projects an enrollment of 1,800 high school students in STEM focused college-credit courses • Quality and Continuous Improvement programs to offer additional industry recognized certificates including ISO 9001, ISO 14001, AS 9100, ISO 13485, and American Society for Quality (ASQ) Refresher courses • Expand the Organizational Effectiveness product line in the areas of innovation, team effectiveness and mid-manager development • Creation of Information Technology, Manufacturing, and Public Safety Centers of Excellence offering high-demand expanded course offerings and state-of-the-art equipment and resources for students
WCED
FY 2017 Budget Book
34
BUDGET DEVELOPMENT The College’s budget development process involves staff across the organization including the budget unit leaders, Campus President’s offices, budget office, administration, Treasurer, College President, and the Board of Trustees. The process is organized and coordinated by the budget office in order to manage all of the logistics; therefore, the budget development process is continually evaluated in order to meet the regulatory requirements, Board specifications, management requests, software advances and modeling techniques. The following section outlines the College’s budget development process and budgetary controls.
Basis of Accounting The College’s general ledger is maintained on a cash and accrual basis throughout the year. At monthend, the College follows the “business-type activities” reporting requirements of Government Accounting Standards Board (GASB) Statement No. 35 that provide a comprehensive College-wide look at the College’s financial activities. The statements are prepared on the accrual basis and present the assets and liabilities of the College, both financial and capital, and short and long-term. They also present the revenues and expenditures of the College during the period, regardless of when cash was received or paid. Collectively, the statements provide information regarding the College’s financial condition as of the period defined, and the results of its operations and cash flows for the period then ended. At year-end, the financial statements are prepared according to Generally Accepted Accounting Principles (GAAP), as presented in the College’s audited year-end financial statements.
Basis of Budgeting The College budget is prepared according to Ohio law on a modified cash basis. The modified cash basis approach provides meaningful results when comparing actual results to budget and demonstrates compliance with the State’s statutes. The major variances between a modified cash basis and accrual basis are the timing to record revenue, expenditures and encumbrances. The modified cash basis is the method commonly used by government agencies that combines accrual-basis accounting with cash-basis accounting. Using a modified cash basis method, revenues are recognized in the period they become available and measurable, and expenditures are recognized in the period the associated liability is incurred.
FY 2017 Budget Book
35
Cash vs. GAAP Basis of Accounting Item
Cash Basis
GAAP
Revenues Expenses Encumbrances
Recorded when received Recorded when paid Treated as expenditures
Recorded when susceptible to accrual Recorded when the liability is incurred N/A
Regulatory Environment The College operates in a highly regulated environment and adheres to all legal statutes in the Ohio Revised Code (ORC), Federal law, local regulations and actions from the College’s Board of Trustees who are appointed by the Governor and the Cuyahoga County Executive. Additional standards are promulgated from the following sources: External Financial: Attorney General; Department of Administrative Services; Donor/Grant Agreements; Financial Accounting Standards Board; GAAP; GASB; Office of Budget Management; Ohio Department of Higher Education; and the State of Ohio External Human Resources: Alternative Retirement Plan; American Disabilities Act; Collective Bargaining Agreements; Department of Education; Family Educational Rights and Privacy Act; Health Care and Education Reconciliation Act , Health Insurance Portability and Accountability; Office of Federal Contract Compliance Programs; Ohio Public Employee Retirement System (OPERS); Patient Protection and Affordable Care Act; State Teachers Retirement System (STRS); local health, building and municipality regulations and ordinances External Quality and Management: American Association of Community Colleges; GFOA; Higher Learning Commission; League for Innovation in the Community College for guidance and best practices; and the National Association of College and University Business Officers Internal: Board of Trustees approves the annual budget; and the Tech Forum. External Occupational Environmental Health Safety: Department of Labor (DOL) - DOL includes Equal Employment Opportunity Commission; Family and Medical Leave Act; Pregnancy Discrimination Act; Age Discrimination in Employment Act; Environmental Protection Agency; Food & Drug Administration; Occupational Safety & Health Administration; Ohio Public Employee Risk Reduction Program; Bureau of Underground Storage Tank Regulations; and National Fire Protection Association Each department will take into account all of the regulatory requirements with which the College must remain in compliance. The budget team will validate compliance with all regulations and follow recommended practices from quality and management agencies.
FY 2017 Budget Book
36
Budget Model The Planning, Budget and Strategic Support operating unit maintains a model to assist with the College’s budgeting and forecasting. The model utilizes historical revenue and expenditure trends, requested operating unit funds, internal activities data and external market data. The data is cross analyzed and combined with long-range plan objectives to model future revenues and expenditures. Since the College has a diverse revenue stream, the model must capture data from the Ohio Department of Higher Education, Cuyahoga County, the State of Ohio, the student enrollment forecast, various grants, the student financial assistance office, the cash management office and other market sources. The model factors the aforementioned revenues and adjusts for anticipated market influences and restrictions. The expenditures in the model also utilize student enrollment forecast, student financial assistance forecast, utility forecast, organization unit fund request, treasury activity and other external drivers. The model projects the expenditures and then adjusts for market conditions, fund limitations and capital initiatives. Additional internal activities revolve around gathering revenue and expenditure historical and forecasted trends for the auxiliary operating units, quasi auxiliary operating units and various longrange plans. The operating units must provide a detailed forecast since the ultimate goal of the auxiliaries is to be self-sustaining.
Budget Development Process The College’s fiscal year corresponds with the July 1st through June 30th State’s fiscal year. For certain local tax budget purposes, a fiscal year of January 1st to December 31st applies; and local property taxes are levied and collected on a calendar basis. The College maintains operating budgets for its general operating fund, auxiliary funds and current restricted funds. The general operating fund budget includes all expenditures supported by unrestricted funds. The general operating fund expenditure budget includes instruction and research, library, student services, institutional support, plant operation and maintenance, student financial assistance, public service, mandatory and nonmandatory transfers, and reserves. The auxiliary fund budget includes all expenditures supported by revenues generated, including book centers, parking and food service operations. The restricted fund budget includes all expenditures supported by specific grants, contracts, gifts, and donations. The other funds budget, in part, includes the Quasi Auxiliary funds which are not entirely and/or consistently self-supporting. Ideally, the net result of the all fund operating budgets should be zero or positive. Cuyahoga Community College historically maintains a balanced budget. By definition, the operating expenditures for all funds during the current fiscal year are not to exceed the resources available. FY17 is no exception, as presented in the FY17 Financial Dashboards (page 59).
FY 2017 Budget Book
37
The Board of Trustees adopts a budget for each fiscal year based on a five-year, long-range plan and the College goals. The linking of the College goals to measurable objectives is critical in responding effectively to the needs of the community. The President requires major budget units to submit a comprehensive budget package to Planning, Budget and Strategic Support, including a fulltime staffing plan, enrollment plan, operating plan and equipment request. Resource Development coordinates the restricted fund (grants) efforts and submits an overall restricted fund “budget package” and strategy to the EVPs for their review, approval, and submission to the President. Auxiliary/quasi-auxiliary operations must also prepare a budget package. These operations are intended to be self-supporting. The revenue generated, based upon estimated enrollment or service levels, must be evaluated prior to the development of individual budgets. These operations are important since they allow the College to provide service to students and the community the College may not otherwise be able to offer (e.g., book stores, food service, parking, and non-credit training). As part of the budgeting process, allocations for capital projects are also reviewed. Proposed capital projects are assessed against the Academic and Facility Master Plan and Space Utilization Study approved by the Board of Trustees. Annually, the President and relevant staff review and prioritize project requests against resources available through internal funds, state capital appropriations, or financing. Every other year, the College prepares and updates its six-year capital improvement program. This provides the basis for a state capital appropriation request submitted to the Ohio Department of Higher Education (ODHE). The request identifies the projects proposed to be financed with State appropriations and the purpose, priority, amount, and source of funds for these projects. ODHE and the Ohio General Assembly may approve, modify or decline aspects of the College’s requested capital appropriation programs. The Board of Trustees annually reviews operating budgets for the general fund and auxiliary funds, as well as capital expenditures related to its plant renewal and replacement fund. The Board adopts the annual general operating fund and plant renewal and replacement fund budgets, based on the recommendation of the President and Treasurer. The Board may, if appropriate, modify the budgets during the year to reflect revised expenditure or revenue projections for that fiscal year.
FY 2017 Budget Book
38
Budget Ownership The EVP A&F reports to the President of the College. The EVP, appointed by the Board of Trustees, is the College’s chief financial officer and Treasurer of the Board. The chief financial officer provides budget and financial reports to the Board of Trustees’ Management Committee and the President. Fiscal accountability for the College is achieved through measurement of the College’s budget performance against its annual plan and trend analysis. The EVP/Treasurer has primary stewardship responsibility for financial forecasting, reporting and investing activities for the College. The EVP/Treasurer ensures financial integrity and appropriate use of public and private funds in compliance with all stakeholder interests. The annual external independent financial audit includes opinion statements on the financial statements and the College’s system of internal controls in compliance with GASB and other audit standards.
Amending the Budget As a matter of policy, the College’s Enterprise Resource Planning (ERP) system automatically monitors and controls budget compliance and adjustments. The ERP will permit the College’s organizational units to amend expenditure budgets as long as the changes do not exceed their original authority to spend as granted by the Board of Trustees. If the College deems it necessary to exceed the Board of Trustees’ original authority to spend due to ongoing operations or an extraordinary event, the additional spending must be approved by the Board of Trustees. Once approved, the College must submit a revised certificate of estimated resources to the Cuyahoga County Auditor.
FY 2017 Budget Book
39
FY17 APPROVED BUDGET The culmination of the budget development process is the Board of Trustees’ approval of the budget. There are many layers to the College’s approved budget due to the size and scope of the operations. To manage the activities, the College categorizes the budgets by fund type. Then to manage the funds, the College utilizes organization units that are consolidated into four Major Operating Units. The following section provides a comprehensive review of the College’s FY17 approved budget, broken down by fund type, revenue source and expenditure classification.
FY17 Funds Overview Cuyahoga Community College is a taxpayer supported public college. As a public entity, the College’s financial processes are monitored and governed by several regulatory agencies (see Regulatory Environment on page 36). The financial operation of Cuyahoga Community College involves receiving revenues from various sources such as tuition, fees, sales, local taxes, state funds and Federal funds. These revenue sources either come with or without legal restrictions on how the money may be used. The College therefore needs to segregate and account for these resources to meet any and all restrictions and to be generally accountable for the unrestricted resources. Therefore, in order to meet its fiduciary and regulatory responsibility, the College has an accounting system that is based on Fund Accounting. Fund Accounting is a process that classifies, accounts for and reports sources and uses of funds in accordance with their predetermined purpose. These sources and uses of funds are segregated into major fund types of unrestricted, restricted, auxiliary and capital funds. Cuyahoga Community College utilizes these major fund types to accumulate and segregate its resources. Finally, the accumulated resources are consolidated to form the fund budgets on a modified cash budget basis.
Unrestricted Funds The College’s primary unrestricted fund is the general operating fund. The general operating fund, or General Fund, is used for the current operations of the College. The General Fund is the College’s largest fund, controlling the College’s operating revenue and expenditures. General Fund revenue does not have any restrictions and can be used for any purpose as deemed appropriate by the College. The College activities supported by the General Fund include instruction, library, student services, institutional support, administration, safety, marketing, plant operations, maintenance and small equipment purchases.
FY 2017 Budget Book
40
Restricted Funds The College will also receive resources that are restricted in how they can be used. This requires the College to place these resources into restricted funds. Utilizing a restricted fund allows the College to manage the revenues and ensure they are expended for the purpose stipulated by the donor or agency. At the College, the majority of restricted-use funds are for student financial assistance and grants. Recent changes by the Federal government have placed a lifetime cap per student, regardless of institution, for Federal Pell grants. Auxiliary Funds Auxiliary funds identify an entity on campus that operates as a business and serves students, faculty, staff and the community. Auxiliary enterprises are generally expected to be self-supporting from the revenues generated from their operation. Auxiliaries charge fees which are directly related to their cost of goods or services and pay for any central services received from the College. Examples of College auxiliaries are: Book Stores Food and Dining Services Parking Operations
An auxiliary’s operation and revenue generation is dependent on the College. These enterprises rely on the student population and continued strong enrollment to sustain their operation. In return, the auxiliary delivers goods and services to students in an economical and convenient manner. Other Funds / Unrestricted Special Funds Quasi-Auxiliary – At the College, there are several revenue generating endeavors that are not entirely and/or consistently self-supporting. These endeavors provide learning programs for students while also promoting a positive public purpose. These activities are labeled Quasi-Auxiliary Operations and their activities are accounted for in the Quasi-Auxiliary Fund. Although Quasi-Auxiliary Operations do not always show a profit, the College supports these activities and covers any expenditure that may exceed revenues because of the educational and public benefit. Some well-known Quasi-Auxiliary Operations are Tri-C’s JazzFest, Community and Continuing Education, Cultural Arts, Workforce Solutions and Corporate College®. All Other Funds – On occasion, the College needs to account for a College activity separately from the other major funds; including activities such as Student Affairs and Community Music Programs. By assigning a separate fund to these activities, the College can easily track related expenditures. If these activities are completed during the fiscal year, then the fund is closed. Capital Funds In order to meet the College’s long-term building and technology needs, funds are also set aside for future capital and technology spending. Accumulating and utilizing resources for capital projects are generally project-oriented with large dollar commitments over extended periods of time. Resources can be accumulated for these funds by allocating dollars from the General Fund, Federal Grants, the Department of Transportation, and the State of Ohio or by borrowing. Utilizing the resources from capital funds allows the College to build and expand its campuses through strategic capital growth and renewal.
FY 2017 Budget Book
41
Revenue and Expenditure Accounts Common to all funds is the account structure used. Funds classify the purpose of the resources. Within the funds, accounts are used to accumulate transactions in a systematic, easy to understand method. These accumulations by account allow the College to understand the source of revenues and to track how they were spent or expensed. Revenue is reported in the following major categories: student tuition and fees, State appropriations, local appropriations (county levies), grants, sales and investment income. Expenditures are generally classified as wages, benefits, supplies, travel, communication, maintenance, utilities, equipment and student financial assistance. Therefore, within the fund, the accounts describe how the revenue was accumulated and how it was spent.
Summary The College accumulates and uses financial resources in order to deliver affordable higher education to the students while maintaining a sound financial position. The College manages its diverse revenue streams and expenditures by utilizing a system of funds and accounts that segregates the financial resources by major fund types. These fund types include auxiliary, capital, restricted, and unrestricted funds. Within the funds, revenue and expenditure activity is reported using a system of accounts. These accounts track revenues by source and classify expenditures by how they were spent. This system of funds and accounts allows the College to report its financial performance to managers, regulators and the community in an organized, systematic and generally-accepted form.
FY 2017 Budget Book
42
FY17 Total College Revenues Total College revenues consist of all major fund types; including unrestricted, restricted, auxiliary and capital funds. Specific types of revenues include county levies, SSI, student tuition and fees, restricted grants, and other revenue. The $89.0 million in student financial assistance and restricted grants are based on a high level forecast because the students’ requests for assistance are not known until the beginning of the semester. The primary sources of the student financial aid are Federal and State funds; however, some private funds may be available as student financial aid or restricted grants.
FY17 Unrestricted Operating Revenues The College’s mission is funded through a diverse funding base. Unrestricted operating revenues for the College, in broad categorizations, include student tuition and fees (approximately 24%), SSI (approximately 29%), and county levies (approximately 46%). The core expenses of the College, including instructional, academic, public service, institutional support, and student service functions, are funded through operating revenues. Unrestricted operating revenues do not include restricted grants of $89.0 million, fees for services from auxiliary services of $16.7 million, and $16.0 million from WCED.
Student Tuition and Fees Student tuition and fees represent approximately 24% of the College’s FY17 operating revenues. The total estimated FY17 revenue is $56.3 million; which is a decrease of $3.6 million from FY16 original budget. Programs affecting tuition revenue for FY17 include 15+ Perks and College Credit Plus. The 15+ Perks program is an incentive for students to enroll full-time and earn rewards equal to 50 percent of tuition. College Credit Plus allows the College to charge less for tuition to students taking college level courses at their high school.
FY 2017 Budget Book
43
Both of these programs will benefit our students and help with our completion goals. The decrease in FY17 tuition revenues accounts for a projected 4% enrollment decline, the financial impacts of the 15+ Perk and College Credit Plus programs and frozen tuition and general fees. The State has frozen tuition at the College for FY16 and FY17. Previously, tuition was increased each year from FY11 to FY15. The base tuition and fees will stay at $104.54 a credit hour for FY17. Supplemental Fees Supplemental fees are assessed to cover consumable materials and equipment used in classrooms and laboratories and are included in tuition and fees revenue. The College undertook an extensive project which was designed to be a comprehensive review of the supplemental fees currently being charged by academic programs to students. The goal of this project is to determine if the current supplemental fee being charged was adequate to cover expenses directly related to the instruction of students. The new fee schedule is expected to be implemented for fall 2016, pending approval by the College’s Board of Trustees. State Share of Instruction (SSI) All public higher education institutions in Ohio receive state financial assistance for both operations and designated capital improvements through appropriations by the General Assembly. These appropriations contribute substantially to the successful maintenance and operation of the College. In FY14, the State enacted funding changes for colleges and universities, shifting funding calculations based on enrollment figures to completion. For FY17, the funding formula will be substantially the same as FY16, with 50% based on course completion, 25% based on success points and 25% based on completion. At the State level, the FY16-17 biennium budget includes a 4% increase in overall SSI for FY17. SSI funding contributing to FY17 General Fund operating revenues is projected at $66.6 million, mainly due to increases in total SSI funding State-wide. The total College SSI funding for FY17 is projected to be $71.3 million, a 7.8% increase over FY16 original budgeted SSI funding of $66.1 million. County Levies The citizens of Cuyahoga County help to finance the College’s mission through approval of property tax levies. This funding allows the College to provide a wide range of community service programs, keep programs up-to-date, and helps fund a portion of capital and technology investments. The voters of Cuyahoga County have approved two operating levies to support the College. In November 2014, voters approved a 2.1 mill levy, which included a 0.9 mill increase over the prior levy. This new 2.1 mill levy runs from January 2015 to December 2024. The second levy is a 1.9 mill levy passed by voters in November 2009, and runs until December 2020. Although the final voted millages are 2.1 and 1.9 (4.0 mills total), the effective millage is “rolled back” as total property valuations in the County increase. The rollback of the effective millage rate for property tax levies means that as the total valuation in the County increases, the College does not automatically receive additional revenue at the same rate as the increase in property valuation. The current effective millage for the combined levies is 3.9 mills, as property values have increased in the County recently. Factoring
FY 2017 Budget Book
44
in various millage effective rates and property tax classifications, the two levies combined are scheduled to generate $109.1 million in gross revenue in FY17, before accounting for delinquency losses of $4.3 million. Assessed valuations throughout Cuyahoga County decreased from a peak of $33.2 billion in FY07 to a low of $27.7 billion in FY13, due to the housing market crash and subsequent reassessment of home values in 2012. Property values went through a period of recovery until the reappraisal in 2015. Property values decreased by $207.3 million starting in January 2016, mainly due to contested commercial properties being awarded taxexempt statuses. While there continues to be major construction projects within the County, most of these projects are tax-exempt or tax abated. These projects include the Cleveland East Bank Project, Cleveland Public Square Renovations, and a new 600-room hotel next to the Global Center for Health Innovations. The College will not receive additional property tax revenues from these major projects in the short-term. The College also works closely with the County to forecast the actual collection of taxes, since tax revenues are projected to be 46% of College operating revenues in FY17. A temporary increase in delinquency percentages, due to backlogs at the board of revisions and contested commercial values, has started to stabilize. The delinquency rate is projected to improve to 4.05% for FY17 compared with 4.54% in FY16. Due to all these factors, the College has estimated net property tax revenues of $104.7 million in FY17. Interest Income and Other Sources Interest income and other sources are projected to increase by approximately $193,000 from the FY16 budget due to increases in one-time rentals from the Republican National Convention in July 2016. Interest income for FY17 is projected to continue to increase, due to the current investment mix of the College and improving market conditions.
FY17 Other Revenues The Other Revenues classification includes additional non-operating sources of revenue for the College. The following section provides an overview of the three major types of other revenues: restricted grants and contracts, WCED and fees for services. Restricted Grants and Contracts The revenues the College receives from restricted grants and contracts are designated by the grantor for a specific purpose, which requires the College to place the resources into separate restricted funds. Student financial aid makes up the largest portion of restricted funds and is a vital source of funding for many students at the College. The majority of financial aid dollars the College receives are from Federal Pell grants and direct loans. In fact, approximately 37% of students in FY16 received Pell
FY 2017 Budget Book
45
grants. Changes to Federal financial aid regulations, especially to the Pell grant program, over the last couple years have made it more difficult for students to get the financial support they need to help pay for college. Revenues from student financial aid have decreased over the last couple of fiscal years. This is due to declining enrollment and the College’s strategy to reduce loan default rates. For FY17, revenues from restricted grants and contracts are projected to decline to $88.9 million. Workforce, Community and Economic Development Division (WCED) The WCED revenues are generated from credit and non-credit student fees, contract training and facility rentals, and the credit component of SSI. The FY17 WCED revenues are projected at $16.0 million, including $4.7 million from SSI revenues attributed to the WCED credit classes. Sources of these revenues include tuition, fees and SSI from programs such as skilled trades, manufacturing training, information technology, truck driving and public safety academies. Fee for Service Operations The fee for service operating revenues includes the College book centers, food service, parking operations and the quasi-auxiliary operations. The combined revenues are projected to decrease by approximately 9% to $16.7 million in FY17. This decrease in FY17 is primarily related to projected declining enrollment and textbook affordability initiatives.
FY17 Total College Expenditure Summary Cuyahoga Community College’s primary mission is to provide affordable and accessible higher education to the residents of Cuyahoga County. To deliver this service, the College expends funds in the following major categories: Staffing Auxiliary Services Furniture and Equipment Plant Operations and Facilities Maintenance The FY17 total expenditures budget is portrayed by major accounts in the following FY17 Approved Budget Total Expenditures chart. In order to provide an affordable education, the College must continually evaluate its operating cost structure. All of the College’s processes, operations, services and facilities are reviewed to optimize efficiency and economies of scale. During the annual planning process, the College reviews its future expenditures and considers them against both internal and external factors. The College expects to improve the ability to forecast, control and manage expenditures by weighing environmental factors, run rates and industry benchmarks in the aforementioned categories.
FY 2017 Budget Book
46
Staffing Staffing is the College’s major expenditure item, accounting for approximately 70% of the annual total College budget (excluding Restricted Funds). There is a wide range of position classifications such as full-time, part-time, seasonal, instructor, interim, adjunct faculty, and faculty on sabbatical. Therefore, the College must understand the composition of the faculty and staff who deliver our product every day. In addition, the College’s staffing plan consists of both union and non-union personnel. There are three unions currently in place at the College: American Association of University Professors (AAUP) – faculty; American Federation of State, County, and Municipal Employees (AFSCME) – plant operations and public safety personnel; and District 1199 Service Employees International Union (SEIU) – support staff. Wages are negotiated between the College and the Unions and include salaries, step increases and longevity bonuses. The union contracts mandate the wages and increases for the length of the contract (usually three years). Therefore, these wage costs are predetermined during each three-year contract cycle. Non-union staffing includes full-time and part-time staff. These costs are not driven by a three-year labor agreement and therefore can be reviewed and adjusted annually by the College. However, wage increases generally mirror the increases provided to the bargaining units. Fringe benefits are a major component of the College’s staffing expenditure. The two largest factors in fringe benefit costs are retirement contributions and health care. Retirement contribution percentages are developed by state agencies such as OPERS and STRS and average about 14% of an
FY 2017 Budget Book
47
employee’s pay. These retirement costs are incurred for faculty, full-time and part-time staff employed by the College. The second major component, health care, is provided only to faculty and full-time staff. These costs are shared by the College and employee groups in an average 90/10 split, respectively. Services The expenditures associated with providing higher education, professional development, continuing education and community services can be numerous. Understanding and controlling the cost to deliver these services is paramount to the success of the College and the ability to continue enriching the community. Supplying services to the students goes beyond supplying a guidance counselor and a professor. A comfortable, clean and safe environment is essential for the student to complete the learning experience. In order to achieve this, the College must supply the utilities and supporting facilities services for the campuses and learning centers. The College reviews its contractual services to optimize cost and service levels. Equipment In order to meet the changing needs of the community, the College must utilize current technologies in its programs. The College must also assess and allocate equipment resources for new programs. Annually, the College evaluates the equipment required for those programs as well as the technology required by the staff to operate efficiently and effectively. The equipment budget can be challenging in a bad economy when resources are stretched thin. Campus Facilities Finally, the College reviews the overall campus design, capacity and condition. As the campuses continue to age or the number of buildings and sites increases, the College must review the operational reliability and building maintenance program. The operating cost associated with each campus must continuously be evaluated in order to identify process or equipment changes that will help minimize costs. The building layout and design must also be reviewed to accommodate new programs or enrich the existing ones.
FY 2017 Budget Book
48
FY17 Budget Non-Capital Expenditure Highlight
Thousands
There are many internal and external factors that impact the College during the FY17 budget preparation process. The following section examines the primary drivers impacting salaries, fringe benefits, occupancy and utilities for FY17. Base salary costs are primarily driven by staffing levels and general wage increases. The general increase varies by contractual arrangements with union employees and approved general increase rates for non-union employees. In FY17, salaries are approved to increase by an average of less than 1.5%. Total College Staffing Expense Trend The retirement component of $160,000 the fringe benefit costs is tied to $140,000 the wage rates. Therefore, if $120,000 wages go up 1%, the retirement $100,000 contributions also increase 1%. $80,000 Some mitigation to this can $60,000 occur with changes in staffing. $40,000 Health care is an expenditure that continues to grow due to $20,000 rising health care costs $0 FY11 Actual FY13 Actual FY15 Actual FY17 Approved nationwide. The College must Expense Expense Expense Budget continue to evaluate the Part-time Salary Full-time Salary components of fringe benefits Fringe Benefits in order to keep the cost from growing exponentially. The College tracks and trends utility data (Electric Power, Natural Gas and Water/Sewer) for all of its facilities. The trended historical data for these utilities is used to forecast the budget each new fiscal year. The challenge in this is that the annual spend on each given utility for the institution is affected by a wide variety of factors; such as student and staff population, square footage changes, degrading building conditions, energy savings measures deployed, the weather, and the unit cost of the utility itself. Further, the unit cost for each new fiscal year is estimated at budget preparation in the December/January time-frame such that peak season electric rates are 6 months away, and peak season natural gas rates are 12 months away. The College has developed and deployed strategies over the years to manage this constantly moving target. The goal is to manage-down costs as much as possible while maintaining a prudent degree of budget certainty. The exact strategies deployed vary according to the unique nature of each utility and its use as outlined below. Electric Power Electric Power is made up of 3 components called Generation, Transmission and Distribution. Generation is the commodity of the power itself produced at the power plant. Transmission transports the power across long distances at very high voltages (those high towers seen running across the countryside). Distribution is the local networks of transformers and power lines that step the power down in voltage from the high-lines and deliver it to homes and businesses. This Distribution component is regulated by the Public Utilities Commission of Ohio (PUCO) and is not a part of the rate the College can affect. However, Generation and Transmission (always bundled together) is a competitively sold commodity, affording the College an opportunity to shop for the best value.
FY 2017 Budget Book
49
FY17 Budget
FY16 Forecast
FY15 Actual
FY14 Actual
FY13 Actual
FY12 Actual
FY11 Actual
FY10 Actual
FY09 Actual
Thousands
For fiscal years FY15Cuyahoga Community College Total Utility Expenditure Trend FY17 the College $6,500 entered into a 3-year supply contract with $6,000 FirstEnergy Services $5,500 (FES) which will carry the College through a $5,000 period of known $4,500 regulated rate increases due to a portion of the $4,000 Generation charge commonly referred to as “capacity charges”. The timing of the contract in the fall of FY14 took Utility Expenditure advantage of lower rates that were advantageous to the College.
It must be noted here that a change in law this year has enabled FES to alter the fixed rate for the 3rd year (FY17) of the current contract in response to the “Polar Vortex” weather anomaly that occurred 2 years ago. The result will be an increase of approximately $125,000 in expense to the College in FY17. Looking beyond FY17, the electric power futures market is currently very favorable to the College such that a 3-year contract is being explored to lock in FY18-FY20 power at rates that are at historic lows. Natural Gas Natural Gas supply is made up of 3 components called Commodity, Basis and Local Distribution. Commodity is the natural gas itself. Basis is the cost of transportation of the gas plus profit for the supplier. Local Distribution is the process by which local distribution companies (Dominion and Columbia in this region) deliver the natural gas to homes and businesses. This Distribution component is regulated by the PUCO and is not a part of the rate the College can affect. Similarly, all suppliers sell the Commodity (the gas) at the going rate (for both spot and futures market) on the New York Mercantile Exchange (NYMEX). The opportunity for savings is in the Basis, which is a competitive market. The College runs a bid each year to achieve the lowest possible cost for Basis. The winning bidder becomes the commodity supplier, and the College works with them to provide the most cost effective and prudent mix of purchases of the commodity itself from the spot and futures markets. For FY17, steps have already been taken to minimize costs and reduce budget uncertainty by conducting a bid, selecting a supplier and locking in favorable basis rates before the start of the fiscal year. For the commodity, the standard purchase philosophy will be deployed. The strategy is to watch the market daily, pre-purchase up to 50% of the expected annual consumption for a layer of price protection, and buy the rest of the year’s gas supply on the spot market. If a solid increasing trend is observed in the price of natural gas during the fiscal year, more pre-purchasing will be employed to ensure that the budget is protected. Conversely, if the spot market remains low, less will be prepurchased (e.g. FY16 will end as 100% spot market purchases).
FY 2017 Budget Book
50
Water/Sewer The College is a captured client of the Water Department and the Regional Sewer District. There are no options for competitively shopping to reduce costs. The opportunity for cost reduction in this area lies in monitoring usage trends to look for waste or leakage, and deploying water conservation measures (noted below in Energy Control Measures). It must be noted that in FY13 the Northeast Ohio Regional Sewer District instituted a new program and associated fees for Storm Water Runoff from impermeable surfaces. In early FY14, the collection of these fees was halted pending the outcome of a court case involving the legality of the fee collection. The court case has been decided in favor of the Sewer District. We anticipated the collection of fees to commence in FY17.
Energy Control Measures Since 2001 the College has implemented six phases of energy savings projects commonly referred to as House Bill 7 projects. Those projects have netted a cumulative $32,578,099 in energy savings and water consumption through FY15. A seventh phase of energy savings projects is in progress and is expected to be completed by the fall of 2016. This project scope is largely improvements to building envelopes (e.g. windows and doors), lighting upgrades, water conservation measures, and an upgrade to the Building Automation System for improved operating efficiency. This project is expected to add approximately $700,000 per year in energy savings.
FY17 Capital Expenditures and Sustainability In December 2011, Governor Kasich called upon the Higher Education Capital Funding Collaborative, made up of university and community college leaders, to work together to review and prioritize the capital funding requests across the state. The FY13 –FY14 capital budget was the first State capital funding received by the College since 2009-2010. The recommendation to the Governor allocated the majority of the state’s investment in this capital biennium toward projects focused on high-tech research, workforce development and maintenance projects. Cuyahoga Community College received funding for two of its submitted projects totaling over $10 million, the Police and Fire Academy Center for Excellence and roofs at the Western Campus. The Police and Fire Academy was opened in August 2014 and the Western Campus roofs were completed in late fall 2015. Cuyahoga Community College continues to implement its Sustainability Plan of 2010 focusing on improvements in energy efficiency, buildings and grounds, recycling and waste reduction, procurement, sustainability in curriculum, and communicating our successes. Regularly reported data from the College’s waste and recycling hauler allows us to adjust service levels to improve efficiency and save money. The Eastern Campus continues to compost kitchen waste from the Culinary Arts program in partnership with the Plant Science and Landscaping Technology program, and several other College locations compost kitchen waste with community partners. TriC’s Plant Operations departments divert significant amounts of waste from the landfill by recycling scrap metal, landscaping waste, and other items that can be reused or recycled.
FY 2017 Budget Book
51
Cuyahoga Community College is tracking paper purchases in an ongoing effort to reduce paper use, and the percentage of documents that are printed or copied double-sided continues to increase, saving over 5 million sheets of paper per year. Numerous Cuyahoga Community College faculty members have integrated sustainability concepts into their curriculum and are sharing their successes and challenges faced in this effort with their colleagues through presentations and professional development events. Events celebrating Earth Day take place at each campus annually, and Cuyahoga Community College is an active participant in community sustainability events and initiatives, especially the City of Cleveland’s Sustainable Cleveland 2019 initiative.
Facilities Development, Capital and Construction Project Summary Cuyahoga Community College continues to implement its capital improvement program on its campuses. The College’s 2008 Ten-year College-wide Academic and Facilities Master Plan is intended to keep the College positioned as one of the top learning environments in the nation. New Master Plans for the Eastern and Western Campuses will serve to further enhance the success, learning and experiences of our students. The following section summarizes the Capital Program projects scheduled to start and/or be completed in FY17. The projects benefit the College and the community and have a collective impact on the campuses, staff and students. Infrastructure Maintenance During the last six years, the College has completed the strategic goal of documenting, categorizing and prioritizing all known infrastructure maintenance (IM) projects. Based on input from Plant Operations, work items from a prioritized list based on greatest need are addressed each year as available funding allows. This detailed list currently totals $79 million in identified projects. In the last two years, $16 million has been made available and has been applied to implementation of projects in late FY15, FY16 and FY17. Priority major infrastructure maintenance projects scheduled for execution in FY17 include: Parking and roadway repairs; Structural concrete renovations at Metro Campus Plaza and Garage and HVAC system component replacements.
FY 2017 Budget Book
52
Campus Center Renovations at Metropolitan Campus FY17 will mark the beginning of construction on this exciting project at Metro Campus. Selective demolition is scheduled to begin in fall of 2016 (essentially leaving only the existing building’s concrete structural frame). Immediately following demolition, construction work will commence to provide new interiors including all new partitions, finishes and building systems. Additionally, a brand new, energy-efficient exterior wall system will be constructed which will provide dramatic views of the Campus and the city and will allow the liberal infusion of daylight into the building. Programs to be accommodated in this project include: enhanced food service and multiple student dining options; a new bookstore; various student life and student organizations, programs, activities; Public Safety and Pathways/Early College. Preceding the start of the Campus Center demolition phase, temporary locations (‘swing space’) for those functions currently housed in the building will have been provided to allow those operations to continue unimpeded for the duration of the demolition and construction. Demolition/construction is scheduled to take a total of approximately 20 months, with the renovated Campus Center slated to be ready for student use in the fall of 2018.
Energy Control Measures and Efficiency The College is deploying a new project scope for energy control measures (ECMs) to enhance the existing ECM program. This new project is an investment of $7.64 million that will save an additional $700,000 per year in energy costs. The scope of this new project encompasses interior and exterior lighting upgrades, building envelope repair and renovation, window replacement, water conservation projects, mechanical system upgrades, and an upgrade of the Collegewide Building Automation System.
FY 2017 Budget Book
53
Workforce, Community and Economic Development (WCED) Renovations at Metro Campus Cuyahoga Community College was awarded $1.7 million by the State of Ohio to renovate the 113,000 square foot the Manufacturing Technology Center (MTC), formerly known as the Unified Technologies Center (UTC). This 30-year-old building is in need of interior cosmetic upgrades, classroom renovations, office renovations and upgrades to manufacturing equipment. This project also creates Cuyahoga Community College’s Fabrication Lab. The renovations also include the creation of a new second welding lab at our Advanced Technology Training Center (ATTC) which will be completed in FY16. The remaining renovations at the MTC will be starting in summer of 2016 and is scheduled to be complete by July of 2017. Structural Concrete Renovations at Metro Campus Built in 1963, the Metropolitan Campus’ concrete parking structure (located below the original Campus buildings) and the Plaza (which provides pedestrian linkage to building entries) has experienced significant deterioration despite attempts to address repairs as they arose. An extensive engineering inspection and analysis identified many necessary structural repairs. The total project costs approximately $28 million for structural and site improvements. These needs require the removal of existing Plaza materials down to the concrete structure, repair and re-waterproofing of the existing structural concrete deck. These required repairs also presented the opportunity to provide new Plaza level hardscape and landscape in an exciting new design. Due to State funding allocations and timing of release, a phased approach (by quadrants) to this project has been developed. Working with Metro Campus leadership, the initial phase was identified as the southwest quadrant; construction of that phase will begin in late FY16 and will continue on through FY17.
FY 2017 Budget Book
54
FY17 Debt Obligations Overview The College currently has three long-term debt obligations outstanding including the Series C General Receipt Bonds, Series D General Receipt Bonds and Series E General Receipt Bonds. Long-term debt was issued for construction and renovation projects. In April 2009, the College issued $121,090,000 of Series C General Receipt Bonds for the purpose of various capital projects and to retire the College’s Tax Anticipation Notes. The bond issue was comprised of $50,290,000 in serial bonds and $70,800,000 in term bonds. The serial bonds were issued for a ten-year period with a final maturity of August 1, 2019, and the term bonds were issued for a ten-year period with a final maturity date of February 1, 2029. Interest rates range between 2.00 and 5.25 percent. In March 2016, the College refunded $65,130,000 of the remaining outstanding Series C General Receipt Bonds by issuing the Series E General Receipt Bonds. The bond issue consisted completely of serial bonds, issued for a thirteen-year period, with a final maturity date of February 1, 2029. Interest rates range between 1.35 and 5.00 percent. This refunding saved the College $478,000 in interest payments in FY17 and is expected to save $6,255,000 over the life of the bonds.
Capital Allocation of Series C Bond Funds (in millions) Westshore Campus
$0.3
Westlake Property
$15.9 $30.4
Emerging Tech & Energy Center, Metropolitan Campus VNA Property Health Careers & Technology Center, Eastern Campus
$21.8 $1.7 $18.0
$0.4 $5.1
$4.8
$2.1
Recreation Wellness Renovations, Metropolitan Campus Student Services Renovation, Western Campus Center for Creative Arts, Metropolitan Campus Crile Building Renovation, Western Campus Natatorium and Wellness Addition, Eastern Campus
In September 2002, the College issued $29,105,000 of Series A General Receipt Bonds for the purpose of constructing Corporate College® facilities. In May 2012, the College refinanced the Series A General Receipt Bonds, to take advantage of declining interest rates, by issuing the Series D General Receipt Bonds. The Series D General Receipts Refunding Bonds were issued for $21,900,000, and interest
FY 2017 Budget Book
55
rates range between 2.0 and 5.0 percent. The bond issue was comprised of $8,605,000 in serial bonds and $13,295,000 in term bonds. The serial bonds were issued for a ten-year period with a final maturity of August 1, 2022, and the term bonds were issued for a ten-year period with a final maturity date of August 1, 2032. The Cuyahoga Community Debt Service Schedule represents the College’s debt service allocated from the General Fund.
Cuyahoga Community College Debt Service Schedule Debt Instrument Insured Tax Exempt General Receipts Bond Series C
Issuance Date
3/9/2016
Insured Tax Exempt General Receipts Bond Series D
5/23/2012
Insured Tax Exempt General Receipts Bond Series E
3/9/2016
Certificates of Participation - Series 2009 7/16/2009
Par Amount of Bonds
Amount FY17 True Outstanding Principle & Interest July 1, 2016 Interest Cost
Term
Maturity
5 years
8/1/2020
$24,925,000
$6,208,988
4.779%
$21,900,000 20 years 6/30/2033
$21,899,126
$1,706,375
3.448%
$65,130,000 13 years
2/1/2029
$64,720,000
$2,791,911
2.170%
$10,575,000 20 years 6/30/2029
$7,597,402
$954,217
3.500%
$24,925,000
In July 2009, the College issued Certificates of Participation, Series 2009 in the amount of $10,575,000 (the “Certificates”). The proceeds of the Certificates were used to finance the acquisition, construction, furnishing and equipping of the Brunswick University Center and to pay the costs of issuing the Certificates. The Certificates evidence proportionate interests in base rent to be paid by the College, under a lease agreement between the College, as lessee and the lessor (the “Lease”). The Lease expired on June 30, 2014 but can be renewed annually through June 30, 2029. The College is required by the Lease to make lease payments (the “Base Rent”) and to pay amounts sufficient to perform its other obligations under the Lease. The Base Rent is an amount equal to the payments due on the Certificates. The payment of Base Rent and other amounts due under the Lease, and the renewal of the Lease, is subject to annual appropriation by each future Board of Trustees and Treasurer of the College. The College presently intends to renew the Lease throughout the term of the agreement. The impact to future operations has been evaluated with the Ten-year College-wide Academic and Facilities Master Plan and falls in line with the estimates in the Impact of Capital Expenditures on the Operating Budget on page 57. Other principal and interest payments for FY17 include $2.57 million due on various leases associated with House Bill 7. Legal Debt Limits The College established a debt procedure that identifies process, metrics and restrictions for issuing debt (page 7). The procedure sets metrics and guidelines that allow the College to issue debt in order to fulfill the mission and vision, while being fiscally responsible. For the College to issue debt, the following legal debt limits apply: General receipt bonds – There is no debt limit per the Ohio Revised Code; however, the current Series C, Series D and Series E bond documents require the total fiscal year general
FY 2017 Budget Book
56
receipts be 1½ times the maximum bond service charges on all outstanding general receipt bonds. The legal debt limits are reviewed during the annual long-range planning process and prior to issuing new debt. Based on the College’s current maximum bond service coverage for general receipts, the College must have more than $16.06 million in general receipts for FY17. The aforementioned amount is based on the current Series C, Series D and Series E payments. The College is in compliance with the bond documents in both scenarios. Debt Issuance Analysis for Ten-year College-wide Academic and Facilities Master Plan The College utilizes a borrowing cost forecast model to project the impact to the College’s financial health, before rendering a decision to proceed with a debt issuance. The College will use this analysis for future phases of the Ten-Year College-wide Academic and Facilities Master Plan. To execute the College’s Ten-Year College-wide Academic and Facilities Master Plan, a tax exempt general receipts bond was issued in the first half of 2009 to refinance previous debt and fund phase 1 of the Ten-Year College-wide Academic and Facilities Master Plan. The College’s Viability Ratio, Debt Burden Ratio, Debt Service and Return on Net Assets Ratio, Primary, Reserve Ratio and Net Income Ratio will be monitored in order to keep the College in good financial health. Over time, the College will have to evaluate the need to borrow funds to complete phases 2 and 3 of the Ten-Year Collegewide Academic and Facilities Master Plan.
Impact of Capital Expenditures on the Operating Budget Construction and building for Cuyahoga Community College occurred primarily in the 1960’s and early 70’s. In FY09, the College recognized many of its campus buildings and equipment will need to be renovated or replaced within the next 10 years. In addition, changes in population and society will require the College to build new facilities to meet the changing demand for higher education. With this in mind, the College formulated a Ten-year College-wide Academic and Facilities Master Plan that attempts to address these long-range needs. To maintain the financial strength and preserve the College for future generations, the non-reoccurring capital projects must be reviewed for the impact on the operating budget. Infrastructure Marginal Analysis The College must review the annual operating impact of non-recurring capital expenditures. The new non-recurring capital expenditures planned to effect the FY17 Budget are discussed above (page 52). The maintenance expenditures are included in the A&F financial dashboard (page 71), the Workforce Solutions dashboard (page 65) and the Auxiliary dashboard (page 67). Operational Analysis Aside from the varying ages of the facilities and the functionality and efficiencies identified in the Tenyear College-wide Academic and Facilities Master Plan, the College also evaluates ways to control operational cost. Years after a capital investment is made, the College will continuously evaluate the operational structure, operating costs and activities of the organizational units in a facility.
FY 2017 Budget Book
57
With any capital project, the impact to the College’s entire financial health is evaluated. The capital projects don’t just impact the organizational unit housed in the building. Most of the projects have a detailed operational analysis to project the financial impact to the academic programming, administration, plant operations, public safety and other units around the College. The bookstores have been under a management contract with Barnes & Noble College Booksellers since FY10. The impact to the students has been favorable pricing, new store layouts with an expanded product selection and improved service levels. The impact on the College is controlled costs, which stabilizes profit margins and provides additional revenues to maintain the auxiliaries. The management contract has a tiered variable management fee component, which shifts many of the operational expenditures to Barnes & Noble College Booksellers. The FY17 gross margin is forecasted to be between 10% and 12%. In FY13, the College implemented My Tri-C Buy in the Supplier Managed Services department. My TriC Buy is a complete procurement system that automates the entire procure to pay processes, has contract authoring which allows for an automated centralized contract repository, redlining templates, and reporting access system that allows for easy viewing, tracking, and monitoring. The system continues to show savings College-wide and is expected to grow in FY17. In FY15 adding on to the existing eProcurement platform, the College implanted e-invoicing approvals in the Supplier Managed Services department. The e-Invoice approvals allow for the incoming invoices to be sent and viewed electronically in a workflow to the requesting department. The requesting department can now approve or reject the invoice before it can move on to the Accounts Payable department for final disposition. The operational analysis historically has also produced other minor changes or processes that provided a positive operational impact, such as the responsible print management initiative, the surplus asset management initiative, procurement system upgrades to My Tri-C Buy and sensor controlled lighting in various College buildings. Overall, the debt ratio analysis, the marginal analysis and the operational analysis provide sound financial statements and metrics to gauge the impact on the College’s financial health. The aforementioned tools are essential due to the capital projects in the Ten-year College-wide Academic and Facilities Master Plan, which require accurate financial impact analysis and sound financial metrics.
FY 2017 Budget Book
58
FY17 Financial Dashboards The following section contains a comprehensive overview of the financial projections for the FY17 budget. A Total College Statement of Revenues and Expenditures and an Operating Expenditures Dashboard have been prepared to provide an overview of the FY17 budget. To provide support to the Total College Financial Statements, an Operating Expenditure Dashboard has also been prepared at the fund, major operating unit (MOU), campus and Capital and Construction levels (see the FY17 Budget Dashboard Hierarchy on page 61). The dashboards provide supporting level expenditure detail, insight into FY16 to FY17 Budget variances, as well as fund and MOU allocations so an assessment of the expenditures can be made from the bottom up. Dashboard Overview The College budget changes to meet the needs of the community, as well as to operate efficiently and effectively. Many of the College divisions have budgetary changes to accommodate the fluctuating needs of the College, community or funding agency, with the most notable in the General Fund, since it is the largest fund. Some of the FY17 budget highlights involve organizational unit restructuring, funding realignment, site expansion, program expansion/re-organizations and cost reductions. In FY17, the General Fund A&F division had several areas of change with minimal impact on the College’s operating expenditures. More scholarship funding for students has been made available. Marketing costs are increasing mainly due to the cost of air time associated with the presidential election. Additional funding for the purchases of equipment increased costs to the College. The division offset increases through refunding a portion of outstanding Series C General Receipt Bonds and reductions in bank fees charged the College. For FY17, the General Fund AL&S division also had increased operating activities, with an overall minimal impact on the College’s operating expenditures. To better serve our students, centers of excellence continue to be created so programs can be streamlined. There are minimal start-up costs associated with the centers of excellence budgeting in FY17. There were reductions in adjunct faculty due to projected decreased enrollment. Increases in travel expenses are due to expanded representation at national conferences. More funding will be provided for student success initiatives, allowing for more student success projects and completion initiatives. The division found ways to offset these increases through strategic reductions, consolidation of departments, improved processes and operational efficiencies. For FY17, the Quasi and Auxiliary funds had reductions in several funds. Bookstore sales are projected to decrease due to lower enrollment and the expansion of textbook rental programs. Additionally, parking revenues are projected to decrease from declining enrollment.
FY 2017 Budget Book
59
The WCED funds also have site and program expansion and planned departmental reorganizing for FY17. The establishment of the IT Center of Excellence will create a seamless entry point for students and provide clear pathways to enable students to accelerate their time to completion. Workforce Solutions have many new programs planned for FY17 including Integrated Systems training, 3-D printing and Cyber Security. Youth Technology Academy, Community and Continuing Education and Encore all have planned growth for FY17. The Corporate College funds have program expansion as well as increases in conference and hospitality services. Lean Six Sigma, Quality and Continuous Improvement, and Organizational Effectiveness programs all have planned growth for FY17. The planned expenditure increases are balanced with increased revenue from the programs. Lastly, the restricted funds are showing a decrease from FY16. The financial aid component makes up the largest portion of restricted funds and is a critical funding component for the students of the College. Changes to both State and Federal financial aid regulations have made it more difficult for students to obtain financial support for College. Pell grant revenue peaked in FY11 at $61.8 million and it is projected to be around $46 million for FY16, representing a 26% decline. Pell grant revenues are estimated to continue to decline by 5% in FY17. Declining enrollment is projected to influence a 5% reduction in direct loans for FY17 as well. Overall, the projected FY17 restricted financial aid is $76.9 million, down from $80.9 million for FY16. The final notable item pertains to the equipment and technology plan expenditure budgets. The equipment requests have been submitted; however, the Capital and Construction unit is in the process of allocating the combined $1,265,230 FY17 furniture and equipment budget. The $350,000 technology plan budget has been established; however, the allocations will not be determined until later into the fiscal year when the needs are finalized. Therefore, the equipment line-items and technology plan budgets have been removed from the dashboards and are reflected in the Total College Statement of Revenue and Expenditures.
FY 2017 Budget Book
60
FY17 Budget Dashboard Hierarchy
The dashboard hierarchy portrays how each dashboard relates to the total College FY17 Budget. Each dashboard consolidates the budgets for the bottom level operating units (descriptions are in Major Operating Unit Overview page 11). Each dashboards contains variance analysis associated with the five largest budgetary dollar changes from FY16 to FY17.
Component Unit Budget The document does not include the Cuyahoga Community College Foundation budget, which is included in the audited College financial statements as a component unit. The Cuyahoga Community College Foundation supports the mission of Cuyahoga Community College as the place “Where Futures Begin” through fundraising activities that support scholarships and educational program development and enhancement. As a tax-exempt 501(c)(3) charitable organization, the Cuyahoga Community College Foundation receives tax deductible donations from foundations, individuals, corporations, and other organizations to support Cuyahoga Community College.
Dashboards The statement of revenue and expenditures and all of the budget financial dashboards are presented in the remainder of this section.
FY 2017 Budget Book
61
Cuyahoga Community College Total College - Statement of Revenue and Expenditures Line Item Description
FY15 Actual
FY16 Original Budget
FY17 Approved Budget
$ Var. to FY16 Orig. Budget
% Var. to FY16 Orig. Budget
$104,725,083 88,964,609 66,600,541 56,333,246 16,684,415 15,969,412 1,597,680 350,874,986
($1,881,300) (4,682,348) 4,211,719 (3,642,010) (1,711,604) 2,032,370 193,270 (5,479,903)
(1.76%) (5.00%) 6.75% (6.07%) (9.30%) 14.58% 13.76% (1.54%)
REVENUE: 1 County Levies 2 Restricted Grants & Contracts 3 State Share of Instruction (Gen. Fund) 4 Student Fees 5 Fee For Services 6 WCED 7 Interest Revenue & Other Sources 8 Total Revenue
$94,764,784 $106,606,383 98,301,705 93,646,957 59,770,447 62,388,822 61,409,925 59,975,256 17,718,980 18,396,019 14,076,493 13,937,042 1,394,566 1,404,410 347,436,900 356,354,889
OPERATING EXPENDITURES: 9 Salary 10 Fringe Benefits 11 Rent/Occupancy 12 Maintenance & Repairs 13 Utilities 14 Supplies 15 Marketing 16 Travel 17 Telephone 18 Other 19 Base Operating Expenditures
114,527,922 31,425,045 11,406,452 6,409,221 5,463,441 3,197,394 3,689,052 1,800,052 1,095,662 8,517,587 187,531,828
120,531,417 33,516,471 12,206,564 6,613,233 5,886,824 3,584,793 3,832,562 1,865,541 1,202,060 11,857,122 201,096,586
118,561,695 32,577,609 12,269,584 6,677,981 5,789,616 3,769,760 4,370,462 2,113,880 1,191,603 13,249,610 200,571,800
(1,969,722) (938,862) 63,020 64,747 (97,208) 184,967 537,900 248,339 (10,457) 1,392,488 (524,786)
(1.63%) (2.80%) 0.52% 0.98% (1.65%) 5.16% 14.03% 13.31% (0.87%) 11.74% (0.26%)
20 21 22 23
98,301,705 15,495,664 18,063,424 319,392,621
93,646,957 16,599,471 18,000,529 329,343,543
88,964,609 15,385,097 20,335,534 325,257,040
(4,682,348) (1,214,374) 2,335,005 (4,086,503)
(5.00%) (7.32%) 12.97% (1.24%)
CAPITAL ALLOCATIONS & TRANSFERS: 24 Technology Plan 350,000 25 Infrastructure Maint. & Equipment 3,765,230 26 Equipment/Technology Allocations 4,115,230
350,000 2,765,230 3,115,230
350,000 4,535,422 4,885,422
0 1,770,192 1,770,192
0.00% 64.02% 56.82%
1,035,571 1,955,953 956,865 11,194,050 15,142,439
1,131,211 2,570,702 954,465 11,182,725 15,839,103
1,224,221 2,570,702 956,365 10,707,273 15,458,561
93,010 0 1,900 (475,452) (380,542)
8.22% 0.00% 0.20% (4.25%) (2.40%)
8,786,610 28,044,279
1,091,626 20,045,959
245,688 20,589,671
(845,938) 543,712
(77.49%) 2.71%
347,436,900 $0
349,389,502 $6,965,387
345,846,711 $5,028,275
(3,542,791) ($1,937,112)
(1.01%) (27.81%)
27 28 29 30 31
Restricted Grants & Contracts Fee For Services WCED Total Operating Expenditures
Capital & Construction Operations HB 7 Debt Service Brunswick Higher Education Facility Debt Service Capital Plan Allocations
32 Other Allocations & Transfers 33 Total Capital Allocation & Transfers 34 Total Exp., Capital Alloc. & Trans. 35 Surplus / (Deficit)
FY 2017 Budget Book
62
TOTAL COLLEGE OPERATING EXPENDITURES This dashboards highlights the Total Operating Expenditures of the College, which includes Restricted Funds, WCED, Auxiliary Funds, Other Funds and the General Fund. The Capital Allocations and Transfers are budgeted at the Total College level; however, they are not part of the operating expenditures. (See College Financial Statement.) Expenditure Summary
Line Item Description
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
1 2 7 14 15
Salary Fringe Benefits Rent / Occupancy Maintenance & Repairs Utilities Insurance Professional Fees Supplies Marketing Travel Subscriptions, Dues & Printing Telephone Postage & Freight Financial Aid and Grant Match Other Total Operating Expenditures
FY15 Actual
FY16 Original Budget
$ Variance to FY17 Approved FY16 Original Budget Budget
$133,417,719 35,095,057 12,783,072 6,754,517 5,730,066 812,412 18,023,370 5,699,712 3,817,478 3,991,919 2,127,423 1,110,494 375,981 84,723,041 4,930,361 $319,392,622
$139,497,465 37,364,955 13,615,730 7,007,856 6,155,998 813,121 18,238,873 5,593,691 4,019,980 3,971,817 2,063,581 1,243,560 407,394 82,447,280 6,902,244 $329,343,543
$138,381,537 ($1,115,928) 36,594,027 (770,928) 13,761,047 145,317 7,156,637 148,781 6,058,790 (97,208) 827,001 13,880 17,427,179 (811,694) 6,086,841 493,150 4,566,610 546,630 4,454,031 482,214 2,520,844 457,263 1,231,627 (11,933) 371,675 (35,719) 77,861,076 (4,586,204) 7,958,118 1,055,874 $325,257,040 ($4,086,503)
(0.80%) (2.06%) 1.07% 2.12% (1.58%) 1.71% (4.45%) 8.82% 13.60% 12.14% 22.16% (0.96%) (8.77%) (5.56%) 15.30% (1.24%)
Variance Analysis by Line Item for Increase or Decrease The decrease is due to less anticipated adjunct costs from projected enrollment declines. Fringe benefits decreased due to decreases in total salary expenses. Decrease is due to lower projected enrollment and less auxiliary management fees. This decrease is from declining enrollment and strategies to reduce the loan default rate (RF). Other expenses increased due to additional resources set aside for new student success initiatives. Non-Staffing Expenditures (In Thousands)
$100,000 $80,000 $60,000
Operational Support (lines 813) Professional Fees (line 7) Facilities (lines 36)
$40,000
FY17 Staffing to Total Operating Expenditures Non Staffing Expenditures 46%
Salary 43%
Student Financial Ast. (line 14)
$20,000 $0
% Variance to FY16 Original Budget
FY15 Actual
FY16 Original FY17 Approved Budget Budget
FY 2017 Budget Book
Other (line 15)
Fringe Benefits 11%
63
RESTRICTED FUNDS OPERATING EXPENDITURES The primary purpose of the Restricted Funds are for student financial assistance. The sources are primarily from Federal and State level funds; however, additional private funding sources are also possible. This dashboard takes the high level forecast and approximates the detailed expenses based on historical spending. However, the student financial assistance forecast is based on projected levels of student enrollment. Expenditure Summary
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
1 2 8 10 14
Line Item Description
FY15 Actual
$ Variance to FY16 Original FY17 Approved FY16 Original Budget Budget Budget
Salary Fringe Benefits Rent / Occupancy Maintenance & Repairs Utilities Insurance Professional Fees Supplies Marketing Travel Subscriptions, Dues & Printing Telephone Postage & Freight Financial Aid and Grant Match Other
$7,196,507 1,678,909 45,650 5,057 0 0 1,956,640 1,111,114 108,959 635,340 130,300 10,112 10,131 84,078,880 1,334,107 $98,301,705
$7,402,009 1,706,983 282,000 34,000 0 0 1,450,000 692,000 94,000 526,000 62,000 41,000 10,000 80,981,031 365,934 $93,646,957
Total Operating Expenditures
(2.81%) (3.10%) (5.00%) (5.00%) N/A N/A 0.00% (8.91%) (5.00%) (6.13%) (5.79%) (3.60%) 0.00% (5.29%) (5.00%) (5.00%)
Variance Analysis by Line Item for Increase or Decrease Salary expenses decreased due to less anticipated Federal grants. Fringe benefit expenses decreased due to salary decreases. This decrease is due to less anticipated Federal grants. This decrease is due to less anticipated Federal grants. The decrease is from declining enrollment and strategic reduction of the student loan default rate. Non-Staffing Expenditures (In Thousands)
$100,000 $80,000 $60,000
Operational Support (lines 813) Professional Fees (line 7) Facilities (lines 36)
$40,000
Student Financial Ast. (line 14)
$20,000 $0
$7,194,259 ($207,750) 1,654,067 (52,916) 267,900 (14,100) 32,300 (1,700) 0 0 0 0 1,450,000 0 630,319 (61,681) 89,300 (4,700) 493,764 (32,236) 58,410 (3,590) 39,524 (1,476) 10,000 0 76,697,129 (4,283,902) 347,637 (18,297) $88,964,609 ($4,682,348)
% Variance to FY16 Original Budget
FY15 Actual
FY16 Original FY17 Approved Budget Budget
FY 2017 Budget Book
FY17 Staffing to Total Operating Expenditures Non Staffing Expenditures 90%
Salary 8% Fringe Benefits 2%
Other (line 15)
64
WORKFORCE SOLUTIONS FUND OPERATING EXPENDITURES The WCED division includes Workforce Solutions (WS) and the Office of Continuing Community Education (OCCE). Workforce Solutions has credit and non-credit programs that provide training in manufacturing, homeland security, truck driving and supply chain management. Expenditure Summary
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 1 2 4 7 8
FY16 Original Budget
Line Item Description
FY15 Actual
Salary Fringe Benefits Rent / Occupancy Maintenance & Repairs Utilities Insurance Professional Fees Supplies Marketing Travel Subscriptions, Dues & Printing Telephone Postage & Freight Financial Aid and Grant Match Other
$8,237,859 $8,199,933 1,305,635 1,473,386 1,202,896 1,057,321 223,536 217,330 27,950 30,500 0 0 162,970 226,180 866,206 742,865 4,042 12,545 84,454 163,765 53,448 89,988 0 0 6,595 12,655 88,266 43,500 46,174 33,012 $12,310,032 $12,302,980
Total Operating Expenditures
% Variance to FY16 Original Budget
$9,334,913 1,697,337 1,154,218 329,063 30,500 0 399,300 1,066,791 28,225 259,262 104,213 0 9,890 3,000 50,982 $14,467,694
$1,134,980 223,951 96,897 111,733 0 0 173,120 323,926 15,680 95,497 14,225 0 (2,765) (40,500) 17,970 $2,164,714
13.84% 15.20% 9.16% 51.41% 0.00% N/A 76.54% 43.60% 124.99% 58.31% 15.81% N/A (21.85%) (93.10%) 54.43% 17.60%
Variance Analysis by Line Item for Increase or Decrease Salaries increased from the addition of personnel due to expanded programs. Fringes increased due to salary increases. Maintenance increased due to the opening of the new Fabrication Lab. Professional fees increased due program expansions. This increased due to new programs in the Manufacturing Center of Excellence. Non-Staffing Expenditures
$1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0
FY17 Approved Budget
$ Variance to FY16 Original Budget
(In Thousands)
Operational Support (lines 813) Professional Fees (line 7) Facilities (lines 36) Student Financial Ast. (line 14)
FY15 Actual
FY16 Original FY17 Approved Budget Budget
FY 2017 Budget Book
Other (line 15)
FY17 Staffing to Total Operating Expenditures Non Staffing Expenditures 25%
Salary 64%
Fringe Benefits 11%
65
CORPORATE COLLEGE® FUND OPERATING EXPENDITURES Corporate College® is the primary vehicle for delivering Cuyahoga Community College’s non-credit training services to area employers and their workers. There are eastside and westside training locations to meet employers’ needs. Expenditure Summary
FY15 Actual
Line Item Description
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 1 7 8 10 11
Salary Fringe Benefits Rent / Occupancy Maintenance & Repairs Utilities Insurance Professional Fees Supplies Marketing Travel Subscriptions, Dues & Printing Telephone Postage & Freight Financial Aid and Grant Match Other Total Operating Expenditures
$1,887,917 564,748 0 765 0 0 425,282 333,344 2,473 1,365,495 36,451 4,720 2,447 0 1,129,750 $5,753,392
$1,739,306 533,416 9,120 4,500 0 0 622,192 296,100 7,500 1,335,250 20,600 500 3,550 0 1,125,515 $5,697,549
$1,799,813 551,573 9,120 3,500 0 0 405,300 443,700 7,400 1,457,800 53,759 500 3,875 0 1,131,500 $5,867,840
% Variance to FY16 Original Budget
$60,507 18,157 0 (1,000) 0 0 (216,892) 147,600 (100) 122,550 33,159 0 325 0 5,985 $170,291
3.48% 3.40% 0.00% (22.22%) N/A N/A (34.86%) 49.85% (1.33%) 9.18% 160.97% 0.00% 9.15% N/A 0.53% 2.99%
Variance Analysis by Line Item for Increase or Decrease The increase is primarily due to general wage increases. Professional fees decreased due to less new programs needing course development expertise. Supplies increased from projected additional open enrollments. The increase is from additional catering expenses from expanded rentals. The increase is due to additional sponsorships as part of strategic community engagement. Non-Staffing Expenditures (In Thousands)
$2,500 $2,000 $1,500
Operational Support (lines 813) Professional Fees (line 7)
FY17 Staffing to Total Operating Expenditures Non Staffing Expenditures 60%
Salary 31%
Facilities (lines 36)
$1,000
Student Financial Ast. (line 14)
$500 $0
FY16 Original Budget
$ Variance to FY17 Approved FY16 Original Budget Budget
FY15 Actual
FY16 Original FY17 Approved Budget Budget
FY 2017 Budget Book
Other (line 15)
Fringe Benefits 9%
66
AUXILIARY FUNDS OPERATING EXPENDITURES The Auxiliary Funds contain the Parking, Book Centers and Food Service units. The Bookstores are operated under a management contract with Barnes & Noble College Booksellers. The management contract allows the students to receive favorable pricing through Barnes and Noble's economies of scale, and an improved facility and customer experience. Expenditure Summary
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
1 4 5 7 15
Line Item Description
FY15 Actual
FY16 Original Budget
Salary Fringe Benefits Rent / Occupancy Maintenance & Repairs Utilities Insurance Professional Fees Supplies Marketing Travel Subscriptions, Dues & Printing Telephone Postage & Freight Financial Aid and Grant Match Other
$978,487 0 30,968 110,817 238,674 0 11,411,387 9,567 0 0 5,871 0 419 0 1,102,087 $13,888,276
$978,487 0 35,125 95,500 238,674 0 11,570,944 30,363 0 0 5,600 0 2,600 0 1,488,199 $14,445,492
Total Operating Expenditures
$ Variance to FY17 Approved FY16 Original Budget Budget
$978,487 0 35,125 70,500 238,674 0 10,454,566 30,363 0 0 5,600 0 2,600 0 1,808,863 $13,624,778
($0) 0 0 (25,000) 0 0 (1,116,378) 0 0 0 0 0 0 0 320,664 ($820,714)
% Variance to FY16 Original Budget
(0.00%) N/A 0.00% (26.18%) 0.00% N/A (9.65%) 0.00% N/A N/A 0.00% N/A 0.00% N/A 21.55% (5.68%)
Variance Analysis by Line Item for Increase or Decrease The support services provided by the College to auxiliary funds will remain flat for FY17. This decrease is due to more salt inventories from the mild winter in FY16. The same level of utility spending is anticipated in FY17. The decrease is due to lower projected enrollment. Other expenses increased due to contractual increases and additional services during construction. Non-Staffing Expenditures
$14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $0
(In Thousands)
Operational Support (lines 813) Professional Fees (line 7)
FY17 Staffing to Total Operating Expenditures Salary 7% Fringe Benefits 0%
Facilities (lines 36) Student Financial Ast. (line 14) FY15 Actual
FY16 Original FY17 Approved Budget Budget
FY 2017 Budget Book
Other (line 15)
Non Staffing Expenditures 93%
67
OTHER FUNDS OPERATING EXPENDITURES The Other Funds Dashboard summarizes a variety of funds that are utilized to meet specific programs in the College and community. Programs include JazzFest, Nursing and RAD Tech, Community Music Program, Massotherapy Clinic, and Encore. Some of these independent funds are considered quasi-auxiliary funds (see FY17 Fund Overview section). Expenditure Summary
FY15 Actual
Line Item Description
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Salary Fringe Benefits Rent / Occupancy Maintenance & Repairs Utilities Insurance Professional Fees Supplies Marketing Travel Subscriptions, Dues & Printing Telephone Postage & Freight Financial Aid and Grant Match Other Total Operating Expenditures
1 7 8 10 14
$567,943 362,154 102,733 97,107 0 0 137,658 6,480 0 103,971 39,036 0 1,155 102,733 86,420 $1,607,388
$646,312 134,698 25,600 43,293 0 0 394,832 247,570 73,373 81,261 53,987 0 12,575 253,137 187,340 $2,153,979
$512,370 113,441 25,100 43,293 0 0 483,137 145,908 71,223 129,325 50,187 0 11,534 32,000 142,801 $1,760,319
% Variance to FY16 Original Budget
($133,942) (21,257) (500) 0 0 0 88,305 (101,662) (2,150) 48,064 (3,800) 0 (1,041) (221,137) (44,539) ($393,660)
(20.72%) (15.78%) (1.95%) 0.00% N/A N/A 22.37% (41.06%) (2.93%) 59.15% (7.04%) N/A (8.28%) (87.36%) (23.77%) (18.28%)
Variance Analysis by Line Item for Increase or Decrease This decrease is mainly due to less part-time hours in the Encore program services. This increase is related to expanded College and JazzFest events. Supplies decreased due to one-time wellness program purchases in FY16. The increase is from additional catering expenses for College events. Financial aid decreased due to the close out of special programs. Non-Staffing Expenditures (In Thousands)
$600 $500 $400
Operational Support (lines 813) Professional Fees (line 7) Facilities (lines 36)
$300 $200
Student Financial Ast. (line 14)
$100 $0
FY16 Original Budget
$ Variance to FY17 Approved FY16 Original Budget Budget
FY15 Actual
FY16 Original FY17 Approved Budget Budget
FY 2017 Budget Book
Other (line 15)
FY17 Staffing to Total Operating Expenditures Non Staffing Expenditures 65%
Salary 29%
Fringe Benefits 6%
68
GENERAL FUND OPERATING EXPENDITURES The General Fund accounts for the President, A&F, and AL&S MOUs. College level entries, such as bad debt, Cuyahoga County Treasurer's fees and third shift differential salary expenditures and vacancy savings are included in this dashboard but not on an individual dashboard. Expenditure Summary
Line Item Description
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
1 2 9 11 15
Salary Fringe Benefits Rent / Occupancy Maintenance & Repairs Utilities Insurance Professional Fees Supplies Marketing Travel Subscriptions, Dues & Printing Telephone Postage & Freight Financial Aid and Grant Match Other Total Operating Expenditures
FY15 Actual
FY16 Original Budget
$ Variance to FY17 Approved FY16 Original Budget Budget
$114,527,922 31,425,045 11,406,452 6,409,221 5,463,441 812,412 3,826,379 3,197,394 3,689,052 1,800,052 1,852,747 1,095,662 352,461 462,559 1,211,030 $187,531,828
$120,531,417 33,516,471 12,206,564 6,613,233 5,886,824 813,121 3,974,725 3,584,793 3,832,562 1,865,541 1,831,406 1,202,060 366,014 1,169,612 3,702,244 $201,096,586
$118,561,695 32,577,609 12,269,584 6,677,981 5,789,616 827,001 4,234,876 3,769,760 4,370,462 2,113,880 2,248,675 1,191,603 333,776 1,128,947 4,476,335 $200,571,800
% Variance to FY16 Original Budget
($1,969,722) (938,862) 63,020 64,747 (97,208) 13,880 260,152 184,967 537,900 248,339 417,269 (10,457) (32,238) (40,665) 774,091 ($524,786)
(1.63%) (2.80%) 0.52% 0.98% (1.65%) 1.71% 6.55% 5.16% 14.03% 13.31% 22.78% (0.87%) (8.81%) (3.48%) 20.91% (0.26%)
Variance Analysis by Line Item for Increase or Decrease Decreases in salaries are directly related to projected enrollment declines. Fringe benefit decreases are associated with salary decreases. Marketing increases are related to rising market rate costs due to the Presidential Election. Increases are due to strategic additional external scholarship funding. Other expenses increased due to additional resources set aside for new student success initiatives. Non-Staffing Expenditures (In Thousands)
$30,000 $25,000 $20,000
Facilities (lines 36)
$15,000 $10,000
FY17 Staffing to Total Operating Expenditures Non Staffing Expenditures 25%
Salary 59%
Student Financial Ast. (line 14)
$5,000 $0
Operational Support (lines 813) Professional Fees (line 7)
FY15 Actual
FY16 Original FY17 Approved Budget Budget
FY 2017 Budget Book
Other (line 15)
Fringe Benefits 16%
69
PRESIDENT GENERAL FUND OPERATING EXPENDITURES The President's dashboard summarizes the activities for the Office of the President, Office of Resource Development, Governmental Affairs and Community Outreach, Human Resources, Integrated Communications and the Board of Trustees. These areas assist in the overall guidance of the College.
Expenditure Summary
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 1 2 7 9 11
Line Item Description
FY15 Actual
Salary Fringe Benefits Rent / Occupancy Maintenance & Repairs Utilities Insurance Professional Fees Supplies Marketing Travel Subscriptions, Dues & Printing Telephone Postage & Freight Financial Aid and Grant Match Other
$6,090,718 2,233,686 68,584 60,404 0 0 1,175,447 294,522 3,407,691 465,699 1,037,332 3,192 156,829 0 (184,134) $14,809,971
Total Operating Expenditures
$6,600,771 2,443,638 56,898 42,005 0 0 1,290,353 318,184 3,506,187 392,670 869,531 4,800 148,746 0 (9,155) $15,664,628
$6,914,719 2,333,778 71,898 27,005 0 0 1,174,186 368,375 4,054,187 387,366 758,613 5,000 112,524 0 (120,000) $16,087,651
$313,948 (109,860) 15,000 (15,000) 0 0 (116,167) 50,191 548,000 (5,304) (110,918) 200 (36,222) 0 110,845 $423,023
% Variance to FY16 Original Budget
4.76% (4.50%) 26.36% (35.71%) N/A N/A (9.00%) 15.77% 15.63% (1.35%) (12.76%) 4.17% (24.35%) N/A N/M 2.70%
Variance Analysis by Line Item for Increase or Decrease Salaries increased due to the redistribution of lifeguards and general wage increases. Fringe decreases are associated with decreased special fringes programs. Professional fees decreased to support College-wide reduction initiatives. Marketing increases are related to rising market rate costs due to the Presidential Election. Subscription expenses decreased mainly due to reduction in external printing costs. Non-Staffing Expenditures
$6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 ($1,000)
FY16 Original Budget
$ Variance to FY17 Approved FY16 Original Budget Budget
(In Thousands)
Operational Support (lines 813) Professional Fees (line 7) Facilities (lines 36)
FY15 Actual
FY16 Original FY17 Approved Budget Budget
FY 2017 Budget Book
Student Financial Ast. (line 14) Other (line 15)
FY17 Staffing to Total Operating Expenditures Non Staffing Expenditures 43%
Salary 43%
Fringe Benefits 14%
70
ADMINISTRATION AND FINANCE GENERAL FUND OPERATING EXPENDITURES This MOU includes the Finance, Accounting, Plant Operations, Procurement, Business Services, Business Continuity, Information Technology (ITS), Public Safety, Legal, and Financial Aid units. Therefore, a majority of the College's facility and operational costs are budgeted in this MOU. Expenditure Summary
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
1 2 3 5 14
Line Item Description
FY15 Actual
Salary Fringe Benefits Rent / Occupancy Maintenance & Repairs Utilities Insurance Professional Fees Supplies Marketing Travel Subscriptions, Dues & Printing Telephone Postage & Freight Financial Aid and Grant Match Other
$18,466,307 6,132,614 10,531,277 6,057,450 5,201,214 812,412 1,688,608 628,028 61,437 130,901 (423,375) 1,091,025 36,985 431,814 (550,862) $50,295,838
Total Operating Expenditures
(In Thousands)
$25,000 $20,000 $15,000
Operational Support (lines 813) Professional Fees (line 7) Facilities (lines 36)
$10,000 $5,000 ($5,000)
$19,972,069 6,329,838 11,144,147 6,091,578 5,605,704 813,121 1,782,896 837,805 62,344 204,603 (330,115) 1,184,590 38,196 1,150,112 (449,019) $54,437,870
$20,217,012 6,450,132 11,287,927 6,125,622 5,505,496 847,001 1,844,238 910,090 63,744 251,283 (277,700) 1,176,090 47,711 1,047,232 (383,944) $55,111,934
% Variance to FY16 Original Budget
$244,943 120,294 143,780 34,043 (100,208) 33,880 61,342 72,285 1,400 46,680 52,415 (8,500) 9,515 (102,880) 65,075 $674,065
1.23% 1.90% 1.29% 0.56% (1.79%) 4.17% 3.44% 8.63% 2.25% 22.82% 15.88% (0.72%) 24.91% (8.95%) 14.49% 1.24%
Variance Analysis by Line Item for Increase or Decrease Salaries increased due to general wage increases. Fringe increases are associated with salary increases. Rent/Occupancy increased mainly due to computer software increases in the IT department. Utilities decreased mainly due to the HB7 project volume and rate reductions. Financial aid decreased due to scholarships being transferred to another area. Non-Staffing Expenditures
$0
FY16 Original Budget
$ Variance to FY17 Approved FY16 Original Budget Budget
FY15 Actual
FY16 Original FY17 Approved Budget Budget
FY 2017 Budget Book
Student Financial Ast. (line 14) Other (line 15)
FY17 Staffing to Total Operating Expenditures Non Staffing Expenditures 51%
Salary 37%
Fringe Benefits 12%
71
TOTAL ACCESS, LEARNING AND SUCCESS AND CAMPUSES GENERAL FUND OPERATING EXPENDITURES This dashboard consolidates the Eastern Campus, Metropolitan Campus, Western Campus, Westshore Campus & EVP AL&S units. Expenditure Summary
Line Item Description
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
1 2 7 10 15
Salary Fringe Benefits Rent / Occupancy Maintenance & Repairs Utilities Insurance Professional Fees Supplies Marketing Travel Subscriptions, Dues & Printing Telephone Postage & Freight Financial Aid and Grant Match Other Total Operating Expenditures
FY15 Actual
FY16 Original Budget
$ Variance to FY17 Approved FY16 Original Budget Budget
$89,913,172 23,103,509 806,591 291,367 262,228 0 962,323 2,267,843 219,923 1,203,452 1,238,789 1,445 158,647 30,776 330,058 $120,790,124
$97,111,909 25,839,095 1,005,519 479,650 281,120 0 901,475 2,428,804 264,031 1,268,268 1,291,990 12,670 179,072 19,500 1,455,990 $132,539,092
$95,227,804 25,428,707 909,759 525,354 284,120 0 1,216,452 2,491,295 252,531 1,475,231 1,267,762 10,513 173,541 81,715 1,564,439 $130,909,223
($1,884,104) (410,387) (95,760) 45,704 3,000 0 314,977 62,491 (11,500) 206,963 (24,228) (2,157) (5,531) 62,215 108,449 ($1,629,869)
(1.94%) (1.59%) (9.52%) 9.53% 1.07% N/A 34.94% 2.57% (4.36%) 16.32% (1.88%) (17.02%) (3.09%) N/M 7.45% (1.23%)
Variance Analysis by Line Item for Increase or Decrease Salaries decreased due to declining enrollment. Fringe benefits decreased due to reductions in salaries. Professional fees increased as a result of the new Mandel Center and increased clinical fees. Travel increased mainly from the reclassification of the Mandel Leadership Program. Other expenses increased due to a change in accounting procedures for facility rentals. Non-Staffing Expenditures (In Thousands)
$6,000 $5,000 $4,000
Operational Support (lines 813) Professional Fees (line 7) Facilities (lines 36)
$3,000 $2,000
Student Financial Ast. (line 14)
$1,000 $0
% Variance to FY16 Original Budget
FY15 Actual
FY16 Original FY17 Approved Budget Budget
FY 2017 Budget Book
Other (line 15)
FY17 Staffing to Total Operating Expenditures Non Staffing Expenditures 8%
Fringe Benefits 19% Salary 73%
72
EASTERN CAMPUS GENERAL FUND OPERATING EXPENDITURES The Eastern Campus is conveniently located on the east side of Cuyahoga County near Interstate 271 in Highland Hills. The campus allows the College to service the eastern suburbs with a rich curriculum of offerings in Liberal Arts, Technology, Health and Sciences. In FY 16, the Liberal Arts Building became the Jack, Joseph and Morton Mandel building as we opened the Mandel Humanities Center. In FY17, the Center will host the College’s Mandel Leadership program. Expenditure Summary
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Line Item Description
FY15 Actual
FY16 Original Budget
FY17 Approved Budget
Salary Fringe Benefits Rent / Occupancy Maintenance & Repairs Utilities Insurance Professional Fees Supplies Marketing Travel Subscriptions, Dues & Printing Telephone Postage & Freight Financial Aid and Grant Match Other
$15,640,052 3,995,515 5,423 14,155 0 0 44,729 374,694 9,528 165,409 123,206 0 7,489 0 17,698 $20,397,898
$17,801,450 4,707,748 538,322 89,861 281,120 0 35,594 530,335 23,260 213,902 146,123 0 14,222 0 184,055 $24,565,991
$16,977,017 4,467,398 502,687 101,009 284,120 0 111,333 546,385 15,760 290,897 151,968 0 13,971 0 192,725 $23,655,270
Total Operating Expenditures
1 2 3 7 10
($824,433) (240,350) (35,635) 11,148 3,000 0 75,739 16,049 (7,500) 76,995 5,845 0 (251) 0 8,670 ($910,721)
% Variance to FY16 Original Budget
(4.63%) (5.11%) (6.62%) 12.41% 1.07% N/A N/M 3.03% (32.24%) 36.00% 4.00% N/A (1.76%) N/A 4.71% (3.71%)
Variance Analysis by Line Item for Increase or Decrease Decreases in salaries are directly related to projected enrollment declines. Fringes decreased due to staffing decreases. Rent decreased due to right-sizing the Hospitality Management Center lease payments. Professional Fees increased from the addition of the Mandel Leadership program. Travel increase is due to business meeting expense in Mandel Humanities and Student Team Travel. Non-Staffing Expenditures (In Thousands)
$1,200 $1,000 $800 $600
Operational Support (lines 813) Professional Fees (line 7) Facilities (lines 36)
$400 $200 $0
$ Variance to FY16 Original Budget
FY15 Actual
FY16 Original FY17 Approved Budget Budget
FY 2017 Budget Book
Student Financial Ast. (line 14)
FY17 Staffing to Total Operating Expenditures Non Staffing Expenditures 9%
Fringe Benefits 19%
Salary 72%
73
METROPOLITAN CAMPUS GENERAL FUND OPERATING EXPENDITURES The Metropolitan Campus is located in downtown Cleveland. Because of its central location, it is accessible by the neighborhoods of Cleveland. The campus offers curriculum in Science, Business, Math and Creative Arts. In FY17, quadrant one of the campus renovations begin and the new Jazz Wall interactive display will be completed. Expenditure Summary
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Line Item Description
FY15 Actual
FY16 Original Budget
FY17 Approved Budget
Salary Fringe Benefits Rent / Occupancy Maintenance & Repairs Utilities Insurance Professional Fees Supplies Marketing Travel Subscriptions, Dues & Printing Telephone Postage & Freight Financial Aid and Grant Match Other
$29,023,054 7,353,937 427,351 153,078 262,228 0 194,704 618,759 23,732 331,715 226,576 0 18,451 0 150,203 $38,783,788
$25,362,833 6,735,091 8,087 108,624 0 0 316,718 350,680 47,618 236,994 115,585 0 17,910 0 27,889 $33,328,028
$25,470,651 6,813,394 13,087 165,904 0 0 335,179 398,035 33,618 272,674 133,333 0 18,582 0 119,919 $33,774,376
Total Operating Expenditures
$ Variance to FY16 Original Budget
$107,818 78,303 5,000 57,280 0 0 18,461 47,355 (14,000) 35,680 17,748 0 672 0 92,030 $446,348
% Variance to FY16 Original Budget
0.43% 1.16% 61.83% 52.73% N/A N/A 5.83% 13.50% (29.40%) 15.06% 15.35% N/A 3.75% N/A N/M 1.34%
Variance Analysis by Line Item for Increase or Decrease 1 2 4 8 15
Salaries increased due to general and contractual wage increases. Fringes increased due to salary increases. Increase is due to the Jazz Wall maintenance contract and healthcare classroom lab equipment. Supplies increase is due to new computer software and office supplies for Student Success. Other increase is primarily due to accounting of internal facility rentals. Non-Staffing Expenditures
$1,400 $1,200 $1,000 $800 $600 $400 $200 $0
(In Thousands)
Operational Support (lines 813) Professional Fees (line 7) Facilities (lines 36) Student Financial Ast. (line 14)
FY15 Actual
FY16 Original FY17 Approved Budget Budget
FY 2017 Budget Book
Other (line 15)
FY17 Staffing to Total Operating Expenditures Non Staffing Expenditures 4% Fringe Benefits 20% Salary 76%
74
WESTERN CAMPUS GENERAL FUND OPERATING EXPENDITURES The Western Campus is located in the City of Parma, Cleveland’s largest West side suburb. This campus gives residents in the western suburbs convenient access to the College. The campus provides standard courses such as Science, Business and Math as well as career and technical programs such as Automotive Technology and Health Sciences. Western Campus also houses the budget for the Information Technology (IT) Center of Excellence. Expenditure Summary
FY15 Actual
Line Item Description
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 1 2 7 9 10
Salary Fringe Benefits Rent / Occupancy Maintenance & Repairs Utilities Insurance Professional Fees Supplies Marketing Travel Subscriptions, Dues & Printing Telephone Postage & Freight Financial Aid and Grant Match Other Total Operating Expenditures
$29,968,679 7,611,653 9,887 105,875 0 0 176,042 547,309 65,182 296,546 272,788 0 46,709 0 5,386 $39,106,056
$29,467,375 7,666,761 17,755 103,890 0 0 228,789 660,242 80,602 320,585 292,927 650 69,263 0 61,534 $38,970,373
$30,585,804 8,007,241 21,763 104,492 0 0 270,217 651,500 90,102 382,476 295,524 650 63,045 0 64,646 $40,537,460
% Variance to FY16 Original Budget
$1,118,429 340,480 4,008 602 0 0 41,428 (8,742) 9,500 61,891 2,597 0 (6,218) 0 3,112 $1,567,087
3.80% 4.44% 22.57% 0.58% N/A N/A 18.11% (1.32%) 11.79% 19.31% 0.89% 0.00% (8.98%) N/A 5.06% 4.02%
Variance Analysis by Line Item for Increase or Decrease Addition of staff for IT Center of Excellence and general wage increase. General wage increase and staff to support IT Center of Excellence. Raise in clinical fee rates with strategic partners for various Health Careers programs. Increased marketing efforts to support IT Center of Excellence and college initiatives. Travel expenses to support IT Center of Excellence and campus special events. Non-Staffing Expenditures
$1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0
FY16 Original Budget
$ Variance to FY17 Approved FY16 Original Budget Budget
(In Thousands)
Operational Support (lines 813) Professional Fees (line 7) Facilities (lines 36) Student Financial Ast. (line 14)
FY15 Actual
FY16 Original FY17 Approved Budget Budget
FY 2017 Budget Book
FY17 Staffing to Total Operating Expenditures Non Staffing Expenditures 5% Fringe Benefits 20%
Salary 75%
Other (line 15)
75
WESTSHORE CAMPUS GENERAL FUND OPERATING EXPENDITURES The Westshore Campus opened in January 2011. The Campus is positioned in western Cuyahoga County, near the Corporate College® West (Westlake) facility. The campus has general classrooms and distance learning. The Westshore Campus also offers robust Science, Technology, Engineering and Math programming. Expenditure Summary
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 1 2 8 10 11
Line Item Description
FY15 Actual
FY16 Original Budget
Salary Fringe Benefits Rent / Occupancy Maintenance & Repairs Utilities Insurance Professional Fees Supplies Marketing Travel Subscriptions, Dues & Printing Telephone Postage & Freight Financial Aid and Grant Match Other
$5,377,716 1,307,162 4,211 10,072 0 0 1,197 176,669 7,209 46,833 35,571 318 3,887 0 75,192 $7,046,035
$6,384,845 1,674,681 5,500 29,829 0 0 10,446 251,805 10,000 53,238 34,750 0 5,305 0 50,000 $8,510,399
Total Operating Expenditures
$ Variance to FY17 Approved FY16 Original Budget Budget
$6,039,065 1,625,858 5,800 29,829 0 0 8,956 242,932 10,000 73,515 24,850 363 4,942 0 50,000 $8,116,110
($345,780) (48,823) 300 0 0 0 (1,490) (8,873) 0 20,277 (9,900) 363 (363) 0 0 ($394,289)
% Variance to FY16 Original Budget
(5.42%) (2.92%) 5.45% 0.00% N/A N/A (14.26%) (3.52%) 0.00% 38.09% (28.49%) N/A (6.85%) N/A 0.00% (4.63%)
Variance Analysis by Line Item for Increase or Decrease The decrease is due to rightsizing adjunct and part-time non-instructional staff budget. The fringe decrease is due to rightsizing adjunct and part-time non-instructional staff budget. Supplies rightsized based on actual previous year expenses.
The increase is to support student success initiatives including valued-added training and travel. The decrease is due to a subscription moving to another area. Non-Staffing Expenditures $400 $350 $300 $250 $200 $150 $100 $50 $0
(In Thousands)
Operational Support (lines 8-13) Professional Fees (line 7) Facilities (lines 3-6) Student Financial Ast. (line 14)
FY15 Actual
FY16 Original FY17 Approved Budget Budget
FY 2017 Budget Book
FY17 Staffing to Total Operating Expenditures Non Staffing Expenditures 6% Fringe Benefits 20%
Salary 74%
Other (line 15)
76
EVP ACCESS, LEARNING AND SUCCESS GENERAL FUND OPERATING EXPENDITURES This MOU includes the Office of the EVP (Provost), Learning and Engagement, Evidence and Inquiry, College Pathways Programs, Access and Completion, Health Care Education Initiatives, Faculty Affairs and Professional Development, and Television Services. Expenditure Summary
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Line Item Description
FY15 Actual
FY16 Original Budget
FY17 Approved Budget
Salary Fringe Benefits Rent / Occupancy Maintenance & Repairs Utilities Insurance Professional Fees Supplies Marketing Travel Subscriptions, Dues & Printing Telephone Postage & Freight Financial Aid and Grant Match Other
$9,903,670 2,835,241 359,720 8,187 0 0 545,652 550,411 114,272 362,949 580,648 1,127 82,112 30,776 81,581 $15,456,346
$18,095,406 5,054,813 435,855 147,446 0 0 309,928 635,742 102,551 443,549 702,605 12,020 72,373 19,500 1,132,512 $27,164,300
$16,155,267 4,514,816 366,422 124,120 0 0 490,767 652,443 103,051 455,669 662,087 9,500 73,001 81,715 1,137,149 $24,826,007
Total Operating Expenditures
$ Variance to FY16 Original Budget
% Variance to FY16 Original Budget
($1,940,139) (539,997) (69,433) (23,326) 0 0 180,839 16,701 500 12,120 (40,518) (2,520) 628 62,215 4,637 ($2,338,293)
(10.72%) (10.68%) (15.93%) (15.82%) N/A N/A 58.35% 2.63% 0.49% 2.73% (5.77%) (20.97%) 0.87% N/M 0.41% (8.61%)
Variance Analysis by Line Item for Increase or Decrease 1 2 3 7 14
The decrease is primarily due to tutors transferring from the Provost Office to the Campuses. Fringes decreased due to salary decreases. Occupancy decreased due to reducing the computer lease budget to actual expenses. Professional fees increased due to the need for additional consultants. Financial aid increased due to the new Summer Internship Program offered in FY17. Non-Staffing Expenditures (In Thousands)
$2,500 $2,000 $1,500
FY17 Staffing to Total Operating Expenditures Non Staffing Expenditures 17%
Facilities (lines 36)
$1,000
Student Financial Ast. (line 14)
$500 $0
Operational Support (lines 813) Professional Fees (line 7)
FY15 Actual
FY16 Original FY17 Approved Budget Budget
FY 2017 Budget Book
Other (line 15)
Salary 65% Fringe Benefits 18%
77
CAPITAL EXPENDITURES The total Capital FY17 Approved Expenditure Budget for FY17 includes the full Budget Line Item Description operating budget for the 1 General receipt bond - Series C debt service $ 6,208,987 Capital and Construction 2 Energy Conservation Bond debt service (HB7) 2,570,702 department, administrative 3 General receipt bond - Series D debt service 1,706,375 management fees and 4 General receipt bond - Series E debt service 2,791,911 planned construction or 5 Capital Program administration 1,224,221 renovation projects. The 6 Brunswick Higher Education Facility 956,365 sources of capital project 7 Infrastructure maintenance & equipment 4,535,422 funding are from State and Local funding sources. The 8 Total Local Funds 19,993,983 State of Ohio allocated the 9 Structural Concrete Repairs 5,000,000 College over $15.5 million capital renovation 10 Public Safety Training Center 287,500 for 11 Metropolitan Campus Center Renovations 1,250,000 projects for the FY17 12 Infrastructure maintenance & equipment 1,250,000 FY18 biennium. $10 million for Metro Campus 13 State Funds (1/2 of FY17 & FY18 allocation) 7,787,500 structural concrete 14 Total FY17 Funds for Capital Expenditures $ 27,781,483 renovations, $2.5 million for Metro Campus Center renovations, $2.5 million for to be determined infrastructure maintenance projects and $575,000 for phase 2 of the Public Safety Training Center. The local funds are allocated from the General Fund at the beginning of the fiscal year. The allocation will fund the bond payments for the projects, the capital administrative costs and infrastructure maintenance and equipment.
Expenditure Summary
FY17 State and Local Fund Allocation Brunswick Higher Education Facility 3.4% General Receipt Bonds Debt Service 38.5% Total State Funds 28.1%
Total Local Funds 71.9%
Campus and General Furniture & Equipment 16.3%
FY 2017 Budget Book
Energy Conservation Bond Debt Service 9.3%
Capital Program Administration 4.4%
78
FY17 Fund Balances For defining fund balance, financial planning and budgeting, the College uses a modified cash basis (see definition in Basis of Budgeting on page 35). As a result, the depreciation expenditures normally associated with fund balance are not included in the budget. However, Capital / Plant fund balances are defined on an equity basis; therefore, the depreciation expense must be projected for the College’s expected capital projects and current depreciation schedules. The following table portrays the FY17 projected fund balance by major fund type. FY17 PROJECTED FUND BALANCES BY MAJOR FUND TYPE Projected Beginning FY17 Fund Fund General Fund Other Unrestricted Funds
Restricted Funds
2
Auxiliary Funds
Increase (Decrease) in Fund Balance $ 5,028,275 559,404
Balance1 $ 7,094,670 127,025,250
FY17 Revenues $ 229,256,550 1,518,744
FY17 Expenditures $ 200,571,800 1,760,318
0 0
5,252,345 10,717,067
5,867,840 14,467,693
(615,495) (3,750,626)
(0) 0
(0) 0
134,119,920
246,744,706
222,667,651
18,489,376
139,707,599
5,587,679
4,135,987
88,964,609
88,964,609
0
4,135,987
0
Corporate College® Fund Workforce Solutions Funds Unrestricted Funds
FY17 Interfund Projected Transfers FY17 Ending From/(To) Fund Balance $ 23,656,475 $ 12,122,945 (800,978) 127,584,654
3,039,296
15,129,385
13,624,778
1,504,607
3,039,296
(0)
Other Funds Total Non-Capital Funds
598,612 141,893,815
0 356,354,889
0 325,257,039
0 19,993,983
598,612 147,481,493
0 5,587,678
Capital / Plant Funds3
225,319,270
14,909,770
42,403,872
(19,993,983)
217,819,151
(7,500,119)
$ 367,213,085
$ 371,264,659
$ 367,660,911
$ 365,300,645
$ (1,912,440)
Total College
$
-
FOOTNOTES: 1
Unaudited year end financial information as of April 2016. Information is considered preliminary and subject to change. Restricted funds can be awarded for multiple fiscal years and leave a residual value. The amounts and duration of the funds are not known at the time of budgeting. High level historical models are used to project the FY17 revenue and expenditure budgets. 3 Includes proceeds from General Receipts Bond - Series C, allocated for phase 1 of the Ten-year College-wide Academic and Facilities Master Plan. Net equity and depreciation expense were added to project fund balance. 2
The College uses all of these fund types each fiscal year, with variations on the number of restricted and other funds based on current grants and College activities. The increase in the General Fund balance can be attributed to increased funding from the State and a focus on expenditure control. The net change from the Other Unrestricted Fund was from normal fund activity, with contribution and spending from the fund balance. The primary decrease in the Capital / Plant Funds is the net depreciation expense of $23.6 million, the principal debt and capital lease payment of $9.2 million and capitalized State projects of $6.8 million.
FY 2017 Budget Book
79
FY17 Personnel Analysis As an educational institution, staffing is the largest expenditure of the College. Therefore, it is important to understand the changes in staffing each year. Movement of full-time staff from year to year can stem from organizational unit transfers, program changes and/or position changes. The information below provides detailed analysis of the year-over-year changes in General Fund employees from FY15 through FY17 (measured in full-time equivalent (FTE)). FY17 Full-time Staffing Positions College operations FY17 APPROVED BUDGET FULL-TIME GENERAL FUND STAFFING COMPARISON require positions with diverse skill sets in order FY15 FY16 FY17 to provide academic Actual Original Approved instruction on the Budget Budget Variance campuses, facility FTE FTE to FY16 Major Operating Unit FTE operations, position 1 Western Campus 270 270 282 12 43 55 57 2 management, financial 2 Westshore Campus 265 248 249 1 management and overall 3 Metropolitan Campus 137 166 159 -7 direction and guidance 4 Eastern Campus 5 EVP Access, Learning & Success 173 189 174 -15 to the College. The 6 Sub-total AL&S & Campuses 888 928 920 -8 College balances a mix of full-time and part- 7 EVP Administration & Finance 277 303 308 5 time employees in order 8 Office of the President 75 89 85 -4 to align the variability in 9 WCED 1 1 1 0 course offerings, 10 Total 1,241 1,321 1,314 -7 enrollment size and 11 Year Over Year Variances 80 -7 operational needs on an 12 Percentage Variance 6.4% -0.5% annual basis. As * FY15 FTE based on staffing at 6/30/15 and does not include vacant positions, FY16 FTE based on expected, a majority of original budget at 7/01/15 and FY17 FTE based on 5/1/16 request. the staffing is housed in the General Fund. The Full-Time General Fund table to the right summarizes the College’s three year staffing trend by MOU and campus. The FY15 actual FTE does not include the vacant positions, where the budgeted columns do. The table on the next page presents the FY17 projected full-time staffing figures (FTE) by major operating unit and position category as requested by the major budget units during the FY17 budget preparation process. The combined tables portray the full-time position requirements of the College and the stewardship of budgeted dollars and position management. FY17 MOU Personnel Variances The primary variances from the FY16 Original Budget to the FY17 Approved Budget are a result of normal employee movement, organizational hierarchy realignment and minor changes in the scope of operations. A majority of the staffing changes were in AL&S; however, College-wide changes resulted from select program staffing realignment, campus optimization and service expansion. The primary change in AL&S resulted from the budget location of employees within the College’s Assessment Centers moving from EVP AL&S to the Metropolitan, Western and Eastern Campuses. For FY17, Information Technology program positions previously budgeted at the Metro, East and Westshore Campuses are now budgeted at the Western Campus IT Center of Excellence.
FY 2017 Budget Book
80
FY17 Approved Budget Full-Time Staffing By Major Operating Unit and Employee Category
Major Operating Unit
Bldg NonBldg Non- Ground Exempt Exempt Ground FullService NonNonTime Exempt Exempt Service Full Time Union Supervisor Positions Union Union Union Administrators Faculty Professional Union
ALL FUNDS: 1 2 3 4 5 6
Access, Learning & Success: Western Campus Westshore Campus Metropolitan Campus EVP Access, Learning & Success Eastern Campus Total Access, Learning & Success
17.00 7.00 19.00 30.00 15.00 88.00
153.14 25.50 116.79 35.00 78.57 409.00
28.76 3.75 30.00 32.34 10.00 104.85
0.00 0.00 0.00 0.00 0.00 0.00
51.00 11.00 51.00 33.00 28.00 174.00
0.00 0.00 0.00 0.00 0.00 0.00
22.70 3.00 24.00 26.00 16.20 91.90
9.00 7.00 9.15 18.30 10.80 54.25
0.00 0.00 0.00 0.00 0.00 0.00
281.60 57.25 249.94 174.64 158.57 922.00 315.64
7
EVP Administration & Finance
47.84
0.00
42.00
1.00
52.00
102.00
29.80
25.00
16.00
8
WCED
13.16
0.00
23.25
0.00
0.00
0.00
9.50
27.00
0.00
72.91
9
Office of the President
34.00
0.00
24.75
0.00
0.00
0.00
13.00
13.00
0.00
84.75
10 Total FT Staffing (FTE)
183.00
409.00
194.85
1.00
226.00
102.00
144.20
119.25
16.00
1,395.30
Access, Learning & Success: 11 Western Campus 12 Westshore Campus 13 Metropolitan Campus 14 EVP Access, Learning & Success 15 Eastern Campus 16 Total Access, Learning & Success
17.00 7.00 19.00 30.00 15.00 88.00
153.14 25.50 116.79 35.00 78.57 409.00
28.76 3.75 30.00 31.34 10.00 103.85
0.00 0.00 0.00 0.00 0.00 0.00
51.00 11.00 51.00 33.00 28.00 174.00
0.00 0.00 0.00 0.00 0.00 0.00
22.70 3.00 24.00 26.00 16.20 91.90
9.00 7.00 8.15 18.30 10.80 53.25
0.00 0.00 0.00 0.00 0.00 0.00
281.60 57.25 248.94 173.64 158.57 920.00
17 EVP Administration & Finance
43.84
0.00
41.00
1.00
52.00
102.00
28.30
24.00
16.00
308.14
0.00
0.00
0.00
0.00
0.00
0.00
0.00
1.00
0.00
1.00
34.00
0.00
24.75
0.00
0.00
0.00
13.00
13.00
0.00
84.75
165.84
409.00
169.60
1.00
226.00
102.00
133.20
91.25
16.00
1,313.89
0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 1.00 0.00 1.00
0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 1.00 0.00 0.00 1.00
0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 1.00 1.00 0.00 2.00
4.00
0.00
1.00
0.00
0.00
0.00
1.50
1.00
0.00
7.50
13.16
0.00
23.25
0.00
0.00
0.00
9.50
26.00
0.00
71.91
GENERAL FUND:
18 WCED 19 Office of the President 20 Total FT Staffing (FTE) NON-GENERAL FUND: Access, Learning & Success: 21 Western Campus 22 Westshore Campus 23 Metropolitan Campus 24 EVP Access, Learning & Success 25 Eastern Campus 26 Total Access, Learning & Success 27 EVP Administration & Finance 28 WCED 29 Office of the President 30 Total FT Staffing (FTE)
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
17.16
0.00
25.25
0.00
0.00
0.00
11.00
28.00
0.00
81.41
The FY17 FTEs for the A&F increased compared to the FY16 original budget due to the reorganization of information technology positions from the campus Learning Commons to the Information Technology Services division. There were also staff added to support campus safety and risk management. Overall, there were minor changes in staffing across the College for unrestricted funds. All areas experienced some minor position movement to meet new organizational structures, program requirements, employee retirements and replacement of contract workers with full-time positions (a cost savings). The staffing positions presented will meet the needs of the College to operate effectively in FY17.
FY 2017 Budget Book
81
Staffing Classifications General Fund staffing can be grouped into four major categories: Credit Instruction, Institutional Support, Plant Operations and Public Services. As expected in an educational institution, the Credit Instruction drives the majority of the College’s staffing with 68% of the General Fund’s FTE. The other staffing categories for the General Fund represent support and service staff (i.e. finance, human resources, and marketing), plant operations and administration. Collectively, the noninstructional categories represent a smaller portion of the College’s staff; however, they provide essential support, services and administration of the College. The unrestricted non-general funds are listed collectively in the tables on the next two pages to create a larger representative sample and provide a more meaningful trend analysis. The non-general funds include the auxiliaries, quasi-auxiliaries and other unrestricted funds.
Full-Time Staffing Expenditure Trends The full-time salary and benefit expenditures have been increasing in the General Fund. The primary drivers of the increase are the general wage increase, negotiated contractual increases and the required additional staffing for new programs, accreditation requirements and realigned organizational structure. All full-time / non-faculty positions are reviewed by the Strategic Position Review Executive Committee prior to creating a position budget. The number of positions decreased from FY16 Original Budget to FY17 Approved Budget and the College was able to close various long-term vacant positions through strategic position review, which allowed for staffing decreases that directly support the College’s mission and goals.
FY 2017 Budget Book
82
Unrestricted Full-Time Salary and Benefits Expenditure by Employee Category
Position Category
FY15 Actual
FY16
FY17
Original Budget
Approved Budget
GENERAL FUND: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
Administrators Full-Time Faculty Full-Time Lecturer Sabbatical Leave Professional Exempt Union Personnel Non-Exempt Union Personel Bldg Ground Service Union Exempt Non-Union Personel Non-Exempt Non-Union Prsl Bldg Ground Serv Supervsr Full-Time Salary Recoupment Overtime Payments Full-Time Fringe Benefits Fringe Benefits-Special Fringe Recoupment Intrl Sales-Janitorial Intrl Purch-Repair Bldgs Intrl Sales-Repair Bldgs Intrl Sales-Care Grounds Intrl Sales-Security Total Full-Time General Fund
23 24 25 26 27 28 29 30 31 32 33 34 35 36
Administrators Professional Non-Exempt Union Personel Exempt Non-Union Personel Non-Exempt Non-Union Prsl Overtime Payments Full-Time Fringe Benefits Fringe Benefits-Special Intrl Purch-Janitorial Intrl Purch-Repair Bldgs Intrl Purch-Care Grounds Intrl Purch-Security Total Full-Time Non-General Funds Total Full-Time College
$15,653,348 28,957,948 1,042,545 462,868 10,169,489 69,944 10,951,626 4,769,022 6,477,133 3,282,927 784,169 0 606,001 25,819,242 704,855 0 (33,669) 79,847 (231,790) (160,149) (635,125) 108,770,231
$16,908,869 31,636,748 416,000 0 12,060,897 70,807 11,984,659 5,175,447 7,554,561 4,026,824 825,429 (4,736,840) 559,139 27,208,592 770,687 (1,563,160) (33,669) 79,847 (229,390) (160,150) (635,125) 111,920,173
$16,846,678 32,234,150 416,000 0 11,837,385 74,346 12,378,751 5,304,578 7,195,835 4,315,908 996,512 (4,736,840) 506,116 27,505,955 656,636 (1,563,160) (33,669) 79,847 (229,390) (160,149) (635,125) 112,990,364
NON-GENERAL FUNDS: 3,090,066 2,534,210 51,770 1,698,092 1,988,984 19,976 3,022,560 90,546 33,669 149,543 160,149 635,125 13,474,691 $122,244,922
2,713,397 2,054,671 0 1,648,758 1,516,950 11,000 2,572,709 86,211 33,669 149,543 160,150 635,125 11,582,183 $123,502,356
2,626,424 2,310,333 0 1,354,956 1,726,776 11,600 2,589,733 80,161 33,669 149,543 160,149 635,125 11,678,470 $124,668,834
In addition to the staffing position increases, decreases, and transfers for the General Fund and nongeneral funds, the base expenditures have increased 0-3% over the past 3 years from the general wage increase, step increases and longevity bonuses. The previously mentioned salary adjustments can be based on merit, contractual obligations or years of service and are reviewed prior to the budgeting process or during contract negotiations.
FY 2017 Budget Book
83
Part-time Position Staffing and Expenditure Trends The part-time staffing, instructional and noninstructional dollars will vary between years depending on anticipated program offerings and program demand. If the demand for a particular program is not as high as anticipated, the dollars will not be spent. Over the past four years, the General Fund has adjusted parttime expenditures to accommodate summer lecturers, adjunct faculty and building and grounds staff. During that time, adjunct faculty has decreased due to enrollment declines. For FY17, the College anticipates a slight increase in overall part-time staffing, which can be seen on the part-time salary and benefits table. The General Fund part-time staffing budget decreased approximately 9.4% due to better aligning the College’s resources in accordance with three-year historical spending trends.
Unrestricted Part-Time Salary and Benefits Expenditure by Employee Category
Position Category
FY16 Original FY15 Actual Budget
FY17 Approved Budget
GENERAL FUND: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
Summer Faculty FT Rate Summer Faculty PT Rate Summer Adjunct Full-Time Faculty Adjunct Asgnmnt. Adjunct for Faculty-Reassign Time PT Instructor Assignment Adjunct Faculty Faculty Substitutions Faculty Evaluations Faculty - Credit By Exam Part-Time Temp Union Tutor - Non-Academic Part-Time Seasonal Part-Time Temp Agency Temp Agency PT Replace Part-Time Temp Non-Union PT Temp Bldg Grnds Serv Supplmental PT Non-Faculty Asgnmnt. PT Non-Instructional Faculty Student Assist-Regular Part-Time Fringe Benefits Total Part-Time General Fund
24 25 26 27 28 29 30 32 33 34 35 37 38 39
Summer Adjunct Full-Time Faculty Adjunct Asgnmnt. PT Instructor Assignment Adjunct Faculty Part-Time Temp Union Part-Time Seasonal Part-Time Temp Agency Part-Time Temp Non-Union Supplmental PT Non-Faculty Asgnmnt PT Non-Instructional Faculty Student Assist-Regular Part-Time Fringe Benefits Total Part-Time Non-General Funds Total Part-Time College
$5,355,157 663,166 2,100,300 1,745,015 0 10,368 13,288,119 46,798 12,800 60 3,414,758 842,024 86,603 182,837 207,761 2,133,661 1,507,663 137,976 198,516 348,207 4,900,947 37,182,735
$5,661,462 728,426 2,280,063 1,706,971 627,708 13,122 13,689,346 68,236 22,712 2,735 4,124,558 882,867 83,235 128,427 0 2,751,382 1,516,564 142,334 67,324 529,890 7,100,352 42,127,715
$5,464,808 611,851 1,978,497 1,536,319 808,482 3,838 12,213,595 71,634 32,530 2,910 3,643,550 813,554 22,929 390,172 0 2,310,202 1,423,299 113,448 197,775 531,369 5,978,179 38,148,941
73,449 1,057 2,111,448 3,502,614 16,150 33,341 242,173 2,316,656 49,325 76,786 69,263 822,893 10,103,899 $47,286,634
41,731 0 1,546,728 3,290,805 0 3,909 106,586 686,034 17,553 1,500 0 536,137 6,230,983 $48,358,698
54,182 42,568 2,256,969 3,596,404 0 0 131,605 2,853,919 189,399 73,680 0 1,163,499 10,362,223 $48,511,164
NON-GENERAL FUNDS:
The need for part-time Non-General Fund staffing is expected to increase for FY17 primarily as a result of program expansion within the EVP AL&S areas including GED, Women in Transition Funds, Tech Prep, and Career Center. Overall, the staffing changes that occurred for FY17 were within expectations. The trend of utilizing adjunct faculty to meet the demands of enrollment and to utilize part-time staff to temporarily fill vacant full-time positions will continue. The College has many diverse employee categories that involve union, non-union, faculty, non-faculty and management, which adds complexity to the staffing process.
FY 2017 Budget Book
84
GLOSSARY 15+ Perks Program – is an incentive for students to enroll full-time and earn rewards equal to 50 percent of tuition charged for a certain amount of credits. Academic Year (AY) – refers to the annual period during which a student attends the College. Typically the academic year runs from August through July, crossing calendar and fiscal years. Academic Quality Improvement Program (AQIP) – is a continuous quality improvement model and is an alternative to the traditional ten-year self-study for institutional reaccreditation through the Higher Learning Commission of the North Central Association of Colleges and Schools (NCA). In January of 2004, Cuyahoga Community College made a commitment to using AQIP for reaccreditation. Accrual – is an accounting method that measures the performance and position of a company by recognizing economic events regardless of when cash transactions occur. Age Discrimination in Employment Act – prohibits employment discrimination against persons 40 years of age or older in the United States. The law also sets standards for employerprovided pensions and benefits and requires companies to provide information about older workers’ needs to the general public. Alternative Retirement Plan (ARP) – employees of the College must contribute to the OPERS. STRS or an ARP. An Alternative plan is similar to the OPERS plan providing tax deferred annuity or cash value type investments. An ARP is provided by a third party investment company and managed by the employee. Americans with Disabilities Act – is a wide-ranging civil rights law that prohibits, under certain circumstances, discrimination based on disability. It affords similar protections against discrimination to Americans with disabilities as the Civil Rights Act of 1964, which made discrimination based on race, religion, sex, national origin, and other characteristics illegal. Disability is defined as "a physical or mental impairment that substantially limits a major life activity." American Federation of State, County, and Municipal Employees (AFSCME) – a union of public employees that works for justice in the workplace, advocates prosperity and opportunity for all of America’s working families, stand for fairness at the bargaining table and fights for fairness at the ballot box and in the halls of government. American Association of Community Colleges (AACC) – is the primary advocacy organization for community colleges at the national level and works closely with directors of state offices to inform and affect state policy. In addition, AACC is a member of "The Six" large, presidentially based associations and collaborates with a wide range of entities within the higher education community to monitor and influence Federal policy and to collaborate on issues of common interest. The association has ongoing interaction with key Federal departments and agencies including the U.S. departments of Labor, Education, Energy, Homeland Security, and Commerce and the National Science Foundation.
FY 2017 Budget Book
85
American Association of University Professors (AAUP) – a union that is the voice of higher education faculty - the principal shaper of academic traditions and policies concerning academic freedom and tenure, faculty governance, and due process rights. Appropriation – is the act of setting aside money for a specific purpose. Articulation Agreement – is a formal agreement between two or more colleges and universities documenting the transfer policies for a specific academic program or degree in general. Balanced Budget – a budget whereby operating expenditures do not exceed resources. Board of Trustees – the Cuyahoga Community College District Board of Trustees consists of nine (9) trustees who, in collaboration with the College President, are charged with fulfilling the goals set forth in the College Mission Statement. The College President also serves as the Secretary to the Board. The Board has the authority to act as the governing body in all policy matters of the College requiring attention or action. Only the nine (9) Trustees have voting power. Appointments to the Board are made by the Governor (3 Trustees) and by the Cuyahoga County Board of Commissioners (6 Trustees) for five-year terms or the remainder of vacated terms. Bonds – are debt instruments in which an investor loans money to an entity which borrows the funds for a defined period of time at a variable or fixed interest rate. Budget – is an estimation of the revenue and expenses over a specified future period of time. Business Intelligence – refers to computer-based techniques used in identifying, extracting, and analyzing business data, such as sales revenue by programs, operating cost by department or associated costs and incomes. Calendar Year (CY) – a calendar year is an annual time frame of January 1st through December 31st in any given year. The College does not operate on a calendar year, but rather on a fiscal year from July 1st to June 30th. Capital Expenditure – are expenditures that create future benefits. A capital expenditure is incurred when a business spends money either to buy fixed assets or to add to the value of an existing fixed asset with a useful life that extends beyond the taxable year. Capital expenditures are used by a company to acquire or upgrade physical assets such as equipment, property, or industrial buildings. In accounting, a capital expenditure is added to an asset account ("capitalized"), thus increasing the asset's basis (the cost or value of an asset as adjusted for tax purposes). Capital Program Projects – are Cuyahoga Community College’s working capital projects. The projects are based on current needs, funding priority and place in the College’s Ten-year College-wide Academic and Facilities Master Plan. Additional projects can develop out functional necessity or emergency situations. Capstone Coursework – provides students with opportunities to apply technical, oral, and written skills to prepare resumes and/or portfolios and develop interview skills. The
FY 2017 Budget Book
86
coursework also allows students to study history and trends in the profession and/or to discuss ethical and global issues within the profession. Centers of Excellence – to better serve our students, the College has organized programs under centers of excellence to keep communications and programs similar across the College. These centers include Nursing, Creative Arts, Public Safety, Hospitality Management, Information Technology, Manufacturing and others. Chancellor’s Strategic Plan for Higher Education 2008:2017 – former Chancellor Fingerhut established a 10-year strategic plan for higher education that details strategies to meet the governor’s goal of enrolling 230,000 more students while keeping more graduates in Ohio and attracting more talent to the state. The plan promises to raise the overall educational attainment of the state of Ohio. Collective Bargaining Agreement – a collective agreement is a labor contract between an employer and one or more unions. Collective bargaining consists of the process of negotiation between representatives of a union and employers (represented by management, in some countries by employers' organization) in respect of the terms and conditions of employment of employees, such as wages, hours of work, working conditions and grievance-procedures, and about the rights and responsibilities of trade unions. The parties often refer to the result of the negotiation as a Collective Bargaining Agreement. College Credit Plus – this replaces the Post-Secondary Enrollment Options program or PSEOP. College Credit Plus allows eligible students in grades 7 through 12 to earn high school and college credit that will appear on both their high school and college transcripts. Some benefits to students include earning college credit for free, a large selection of courses and completing college and high school degree requirements simultaneously. Community and Continuing Education – a department in Cuyahoga Community College that offers programs encompassing a wide range of topics, from career development to personal enrichment and education. The department is included in the WCED division. Corporate College® – a division at Cuyahoga Community College that offers high-end technology courses and a wide spectrum of leadership and professional development programs designed for individuals, as well as businesses that are seeking to improve skills and boost knowledge to compete in today's business world. Corporate College® has state-of-theart conference amenities available for rental. Debt Burden Ratio – the ratio measures the affordability of debt, and therefore is a key financial indicator for institutions issuing debt. The ratio calculates the current debt service in relation to the total expenditures. It is a Primary Moody’s Investors Service ratio. Debt Service Coverage Ratio – the ratio indicates the net revenue stream available to meet an institution’s debt burden, should economic conditions change. This is one of Moody’s Investors service primary ratios. Department of Labor (DOL) – is a Cabinet department of the United States government responsible for occupational safety, wage and hour standards, unemployment insurance benefits, re-employment services, and some economic statistics.
FY 2017 Budget Book
87
Employers Recourse Council (ERC) – is the leading human resources organization serving Cleveland, Akron and Northeast Ohio with over 1,000 members. The organization provides salary and compensation data, human resource answers through the help desk, employee and job training, consulting services and more. The ERC also issues the Northcoast 99 award program, which identifies and develops top organizations to work for in northeast Ohio. Enterprise Resource Planning (ERP) – is the planning of how business resources (materials, employees, customers etc.) are acquired and moved from one state to another. An ERP system is a business support system that maintains in a single database the data needed for a variety of business functions such as Manufacturing, Supply Chain Management, Financials, Projects, Human Resources and Customer Relationship Management. Environmental Protection Agency – is an agency of the Federal government of the United States charged with protecting human health and with safeguarding the natural environment: air, water, and land. Equal Employment Opportunity Commission – is a United States Federal agency charged with ending employment discrimination in the United States. The commission can bring suit on behalf of alleged victims of discrimination against private employers. It also serves as an adjudicatory for claims of discrimination brought against Federal agencies. Family and Medical Leave Act – is a United States labor law allowing an employee to take unpaid leave due to a serious health condition that makes the employee unable to perform his job or to care for a sick family member or to care for a new son or daughter (including by birth, adoption or foster care). Family Educational Rights and Privacy Act (FERPA) – the U.S. regulations cover violations such as parent volunteers grading another child's work, school employees divulging information to someone other than the child's parents about a child's home life, grades or behaviors, and school work posted on a bulletin board with a grade. This privacy policy also governs how state agencies transmit testing data to Federal agencies. The law allows students who apply to an educational institution, such as graduate school, permission to view recommendations submitted by others as part of the application. FERPA specifically excludes the treatment records of students in higher education from its definition of educational records. It also excludes employees of an educational institution if they are not students. Fiscal Year (FY) – a fiscal year is an annual time frame used for tax/auditing purposes that does not conform to the calendar year of January 1st through December 31st. The College operates on a fiscal year from July 1st to June 30th. Full-Time Equivalent (FTE) – is a measure of an employee’s involvement or a student's enrollment with the College. An FTE of 1.0 means that the person is equivalent to a full-time worker/student; while an FTE of 0.5 signals that the worker/student is only half-time. Typically, different scales are used to calibrate this number for employees and students. Employees are based on position class, with one FTE defined as a 40 hour work week and others as a 37.5 hour work week. One student FTE is defined as 30 credit hours per academic year.
FY 2017 Budget Book
88
Generally Accepted Accounting Principles (GAAP) – are accounting rules used to prepare, present, and report financial statements for a wide variety of entities, including publicly-traded and privately-held companies, non-profit organizations, and governments. Generally GAAP includes local applicable Accounting Framework, related accounting law, rules and Accounting Standard. General Fund – the primary operating fund of the college, that includes activities directly related to the College’s basic educational objectives. Government Accounting Standards Board (GASB) – is currently the source of GAAP used by State and Local governments. The mission of the GASB is to establish and improve standards of state and local governmental accounting and financial reporting that will result in useful information for users of financial reports and guide and educate the public, including issuers, auditors, and users of those financial reports. Government Finance Officers Association (GFOA) – is a professional association of state, provincial, and local government finance officers in the United States and Canada. The GFOA sponsors award programs designed to encourage good financial reporting, for financial documents including the Comprehensive annual financial report, or CAFR, and the annual budget. Health Care and Education Reconciliation Act of 2010 – is a law that was enacted by the 111th United States Congress, by means of the reconciliation process, in order to amend the Patient Protection and Affordable Care Act (Pub.L. 111–148). It was signed into law by President Barack Obama on March 30, 2010. The law also includes the Student Aid and Fiscal Responsibility Act, which was attached as a rider. However, small technical parts of the bill relating to Pell Grants were removed during the reconciliation process. The Health Care and Education Reconciliation Act is divided into two titles, one addressing health care reform and the other addressing student loan reform. Health Insurance Portability and Accountability Act (HIPAA) – was enacted by the U.S. Congress in 1996. According to the Centers for Medicare and Medicaid Services (CMS) website, Title I of HIPAA protects health insurance coverage for workers and their families when they change or lose their jobs. Title II of HIPAA, known as the Administrative Simplification (AS) provisions, requires the establishment of national standards for electronic health care transactions and national identifiers for providers, health insurance plans, and employers. Higher Learning Commission (HLC) – is an independent corporation and one of two Commission members of the North Central Association of Colleges and Schools (NCA), which was founded in 1895 as one of six regional institutional accreditors in the United States. The Higher Learning Commission accredits, and thereby grants membership in the Commission and in the North Central Association, to degree-granting educational institutions in the North Central region: Arkansas, Arizona, Colorado, Iowa, Illinois, Indiana, Kansas, Michigan, Minnesota, Missouri, North Dakota, Nebraska, Ohio, Oklahoma, New Mexico, South Dakota, Wisconsin, West Virginia, and Wyoming. Infrastructure Marginal Analysis – the series of analytical metrics reviewed by the College when adding additional infrastructure or improvements. The analysis includes, but is not
FY 2017 Budget Book
89
limited to, direct capital cost, the net operational expenditure impact as well as personnel requirements. Joint Apprenticeship and Training Committee – construction trades, where the College and trade unions partner to provide training and college credits. League for Innovation in the Community College – a 19-member international organization committed to improving community colleges through innovation, experimentation, and institutional transformation. Leadership in Energy and Environmental Design (LEED) – certified Silver, Gold, and Platinum building levels used in the construction trade. LEED is a rating system for buildings. It is a green building certification system which provides third-party verification that a building was designed and built using strategies at increasing performance, reducing waste, and improving quality of life. Major Fund – funds as that meeting the following criteria: (1) Total assets, liabilities, revenues, or expenditures/expenses of the individual governmental or enterprise fund are at least 10 percent of the corresponding total (assets, liabilities, and so forth) for all funds of that category (governmental funds) or type (enterprise funds) and (2) Total assets, liabilities, revenues, or expenditures/expenses of the individual governmental fund or enterprise fund are at least 5 percent of the corresponding total for all governmental and enterprise funds combined. Major Operating Unit (MOU) – there are 4 major operating units that College consolidates and manages the operations. Those units are AL&S, A&F, President, and WCED. Minimize Volatile Pricing (MVP) – a risk management tool that the College utilizes to procure its natural gas supply. Utilizing a pre-planned and multiple-points-in-time-approach, this innovative program provides budget certainty while at the same time mitigating the potential negative effects of pricing spikes and market volatility. Moody’s Investors Service Ratios – Moody's Investors Service is a widely utilized source for credit ratings, research and risk analysis. In addition to their core ratings business, Moody’s provides research data and analytic tools for assessing credit risk, publishes market-leading credit opinions, deal research and commentary across the globe. The College has selected certain performance ratios to monitor financial health and viability. National Association of College and University Business Officers (NACUBO) – serves a membership of more than 2,500 colleges, universities, and higher education service providers across the country. NACUBO represents chief administrative and financial officers through a collaboration of knowledge and professional development, advocacy, and community. Vision: Define excellence in higher education business and financial management. National Fire Protection Association – is an organization charged with creating and maintaining minimum standards and requirements for fire prevention and suppression activities, training, and equipment, as well as other life-safety codes and standards. Net Income Ratio – the ratio measures the surplus revenue from operating activities in relation to total operating and non-operating revenue. The ratio is a leading indicator of how changes in operating activities will impact the Senate Bill 6 ratios.
FY 2017 Budget Book
90
Northcoast 99 Award – is an award issued by the Employers Recourse Council (ERC) to organizations in northeast Ohio to organizations that meet their criteria to be one of the “best places to work”. For over ninety years, ERC has been assisting Northeast Ohio organizations with creating great workplaces. Through the award, the ERC works with area organizations to design and implement practical, cost effective programs that support the attraction, retention and motivation of great employees. Some key focus areas are Training & Development Initiatives, Employee Engagement Surveys, Coaching & Assessments, HR Resources, Research and Surveys, Performance Management Systems, Compensation System Design, Employee Reward & Recognition Programs, Workplace Policy Development and Employee Retention Programs. North Central Association of Colleges and Schools (NCA) – NCA is one of six regional accreditation organizations recognized by the United States Department of Education and Council for Higher Education Accreditation. Northeast Ohio – defined as the Consolidated Metropolitan Statistical Area, comprising Cuyahoga, Lorain, Medina, Lake, Geauga, Summit, and Portage counties. Occupational Safety and Health Administration (OSHA) – a United States Department of Labor agency that’s mission is to prevent work-related injuries, illnesses, and deaths by issuing and enforcing rules (called standards) for workplace safety and health. Office of Federal Contract Compliance Programs – is part of the U.S. Department of Labor's Employment Standards Administration and is responsible for ensuring that employers doing business with the Federal government comply with the laws and regulations requiring nondiscrimination. This mission is based on the underlying principle that employment opportunities generated by Federal dollars should be available to all Americans on an equitable and fair basis. Ohio Department of Higher Education – is a Cabinet-level agency for the Governor of the State of Ohio that oversees higher education for the State. Ohio Public Employee Retirement System (OPERS) – a state managed public employee retirement system that provides quality retirement, disability, survivor and health care benefits and services. Operating Unit – is any organizational unit for which planning should take place and for which a budget is prepared. One College Culture – the College will continue to evolve a One College culture that focuses on providing students with a consistent, quality educational experience. To produce quality performance, the College will embrace individual accountability, data-driven decision making and change. Patient Protection and Affordable Care Act (PPACA) – PPACA is a Federal statute that was signed into United States law on March 23, 2010. This Act and the Health Care and Education Reconciliation Act of 2010 (signed into law on March 30, 2010) made up the health care reform of 2010. The laws focus on reform of the private health insurance market, provide better coverage for those with pre-existing conditions, improve prescription drug coverage in Medicare and extend the life of the Medicare Trust fund by at least 12 years. The law has
FY 2017 Budget Book
91
received legal challenges regarding its constitutionality. Three cases in Federal courts upheld the constitutionality of the bill while two deemed it unconstitutional. Six other challenges were dismissed on grounds such as plaintiffs being unable to demonstrate sufficient standing. The Supreme Court could review this law as early as the end of 2011 or the beginning of 2012. Playhouse Square – a not-for-profit performing arts center in Cleveland, Ohio that presents and produces a wide variety of performing arts, advances arts education and creates a superior destination for entertainment business and housing. It is the second largest performing arts center in the United States. Post-Secondary Enrollment Options Program (PSEOP) – PSEOP allows Ohio high school students to earn college credit and/or high school graduation credit through the successful completion of college courses. The PSEOP is open to 9th through 12th graders enrolled in the State's public, community, and nonpublic schools. The purpose of the program is to promote rigorous academic pursuits and expose students to options beyond the high school classroom. This program was replaced by College Credit Plus for FY17. Primary Reserve Ratio – the ratio portrays the financial strength and flexibility of the institution by indicating how long it could function using its expendable reserves without relying on additional net assets generated by operations. It is one of the Senate Bill 6 ratios. Quasi Auxiliary Operating Units/Funds – these operations are intended to be selfsupporting. The revenue generated, based upon estimated enrollment or service levels, must be evaluated prior to the development of individual budgets. These operations are important since they allow the College to provide service to students and the community that the College may not otherwise be able to offer (e.g., book stores, food service, parking, and non-credit training). Return on Net Assets Ratio – the ratio measures the total economic return for an institution. The ratio is subject to short term and long term volatility resulting from a large change in assets or inflationary factors. This ratio is a primary Moody’s Investors Service ratio. Restricted Grants and Contracts – revenues from specific gifts and grants must be used for specific purposes. The main component is Student Financial Assistance. Senate Bill 6 Composite Score – the score is one of four standard ratios used by the ODHE to measure financial health amongst colleges and universities in an effort to increase financial accountability (required by the Senate Bill 6). The score weights and factors the three other ratios, the Primary Reserve, Viability and Net Income ratios, allowing ODHE to compare the institution’s financial health to state standards. Senate Bill 6 Ratios – the Senate Bill 6 was designed to increase financial accountability of state colleges and universities by using a standard set of measures with which to monitor the fiscal health of campuses. The Ohio Department of Higher Education established four ratios to meet the requirements of Senate Bill 6. The four ratios are the Primary Reserve Ratio, the Viability Ratio, the Net Income Ratio and the Composite score. Service Employees International Union (SEIU) – a union for full and part-time public employees that represent various support employees at the College. This generally includes clerical, administrative, technical and supervisory staff.
FY 2017 Budget Book
92
State Share of Instruction (SSI) – allocated State funding from the ODHE based on 26 models and 3 distinct taxonomy groupings: o Arts and Humanities o Business, Education and the Social Sciences o Science, Technology, Engineering, Mathematics and Medicine State Teachers Retirement System (STRS) – a state managed agency that provides retirement-related benefits and services to teachers in public schools from kindergarten through community college. STEM Program – a program to prepare students to reach proficiency in the areas of science, technology, engineering and mathematics. Strategic Hiring Process – the College evaluates positions as they become vacant and whether to fill them. This process also involves delaying postings to help achieve cost savings. Student Financial Assistance – expenditure function for student loans, grants and stipends. Systems Portfolio – the Systems Portfolio is part of the AQIP process, which calls upon institutions to undergo a Systems Appraisal every four years. The Systems Portfolio presents an overview of the institution, and answers explicitly all of the questions under each of the nine AQIP Categories. In combination with the Strategy Forum and Action Projects, which drive concrete improvement activities within the institution, the Systems Portfolio and Systems Appraisal are a means of taking stock of the continuous improvement. Tax Budget – a legal document prescribed by ORC 5705.28. This document is used by the County Budget Commission to certify property tax rates and issue a certificate of estimated resources. Tech Forum – establish the strategic direction for technology at Cuyahoga Community College through the oversight, funding, and prioritization of relevant technology projects. The committee approves the allocation of funds for technology capital projects, and by reviewing and recommending the development of policies and procedures in areas related to technology. Ten-year College-wide Academic and Facilities Master Plan – the College’s capital improvement program. The Ten-year College-wide Academic and Facilities Master Plan is a tool to guide Cuyahoga Community College’s decision making geared to enhance the success, learning and experiences of our students over a 10 year planning period. Tri-C – another name/acronym Cuyahoga Community College is known as throughout the community. Tuition Guarantee Program – an incentive for eligible new students to enrollment full time for three years and pay the same tuition as the first term of enrollment. U-Pass Program – allows students to ride free of charge on all Greater Cleveland Regional Transit Authority buses and rapid trains during specific academic semesters. Students must be enrolled in one or more academic credit hours and they must have paid their tuition in full, signed up for a tuition payment plan, or have authorized aid to cover their tuition.
FY 2017 Budget Book
93
Viability Ratio – the ratio measures the availability of expendable net assets to cover debt should the institution need to settle its obligations as of the balance sheet date. The ratio is one of the Senate Bill 6 ratios. Workforce, Community and Economic Development (WCED) division – WCED refers to the joint efforts of the Workforce Solutions, Corporate College® and Community and Continuing Education operations. Workforce Solutions – a division at Cuyahoga Community College that provides non-credit and credit training for both individuals and businesses. Through employee training programs, professional development, lifelong learning opportunities, and community service programs, Workforce Solutions helps individuals enhance their workplace contributions.
ACKNOWLEDGEMENTS AND CONTACT INFORMATION Cuyahoga Community College's budget for FY17 required a significant planning process which included input from staff and faculty of the entire College. Special thanks and appreciation are given to all who participated in the development of this document, particularly members of the Administration and Finance budget team. For questions or concerns regarding the Cuyahoga Community College’s FY17 budget please contact: Mr. David Kuntz, CPA EVP Administration & Finance, Treasurer Phone: 216-987-4790 Fax: 216-987-4848 E-mail:
[email protected]
FY 2017 Budget Book
94