NC Community College System: Budget Overview Presentation to the Joint Appropriations Committee on Education Brett Altman Fiscal Research Division March 8, 2017
Presentation Agenda 1. NCCCS Background 2. Enrollment 3. Budget Overview 4. Budget Allocations 5. Recent Legislative Actions 6. Questions 2
NCCCS Background 3
Locations 58 colleges, 3 rd most in the nation. 36 additional campuses 4
Governance State Board of Community Colleges Serves as the governing authority for NCCCS 21 members 18 are appointed by Governor (10), House(4), and Senate (4); 3 serve ex-officio Elects the System President and sets system policies and regulations Local Boards of Trustees Serve as the governing authority for each of the 58 colleges At least 13 members 12 appointed by local Board of Ed, county commissioners, and Governor; 1 ex-officio Elect college presidents 5
Major Program Areas Curriculum Occupational Continuing Education Basic Skills Economic Development Programs Credit courses that lead to certificates, diplomas, or associate degrees. Includes Career &College Promise (high school students earning college credit) Non-credit courses that provide job training opportunities to individuals. Includes Adult Basic Education, GED, Adult High School, English as a Second Language (ESL), and Compensatory Education. Job training programs targeted to specific types of companies or populations. 6
College Faculty and Staff Full-Time College Staff: FY 2016-17 Technical Paraprofessional 2,234 14% Faculty 6,866 43% Support 1,544 10% Total: 15,965 FT Staff Staff 3,929 24% Note: This does not include positions in the NCCCS System Office; Source: NCCCS System Office Senior Administration 322 Service 2% Maintenance 1,100 7% 7
College Faculty Full-Time versus Part-Time Faculty, FY2016-17 Curriculum Part- Time 52% Full- Time 48% Continuing Education Part- Time 92% Full- Time 8% Total Full-Time Faculty: 6,866 Total Part-Time Faculty: 13,488 Source: NC Community College System Office 8
Enrollment 9
Headcount: FY 2007-2016 900,000 850,000 800,000 809,091 859,419 829,146 847,165 844,692 826,471 Headcount = # of students that enroll and take at least 1 course 824,945 780,146 750,000 733,855 700,000 710,013 650,000 600,000 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 Source: NCCCS Statistical Reports for FY 2006-07 to FY 2015-16 10
Curriculum and Non-Curriculum Headcount 700,000 FY 2007-2016 600,000 578,545 584,064 595,051 560,434 552,554 540,669 540,854 500,000 497,732 457,649 442,270 400,000 300,000 200,000 272,244 287,215 310,985 334,879 338,431 329,713 326,171 321,158 309,297 298,873 100,000 0 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 Curriculum Non-Curriculum Source: NCCCS Statistical Reports for FY 2006-07 to FY 2015-16 11
Actual FTE: FY 2008-2017* 265,000 255,000 250,096 253,286 FTE = # of full-time equivalent students 245,000 235,000 244,068 241,513 225,000 221,096 233,459 228,724 215,000 220,312 223,772* 205,000 205,804 195,000 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 Source: NCCCS Statistical Reports for FY 2007-08 to FY 2015-16; *NCCCS System Office for 2016-17 estimate 12
Actual FTE by Program Area FY 2015-16 Total FTE: 220,312 Continuing Education 12% Curriculum 79% Basic Skills 8% Other* 1% * Other includes Customized Training FTE, Small Business Center FTE, self-supporting continuing education FTE, and other non-budget FTE. Source: NCCCS 2015-16 Statistical Report 13
FTE & Budget Allocations Funds are allotted on a full-time equivalent (FTE) basis Based on actual enrollment numbers not projections A college s Budget FTE is determined by the Modified Budget Stability Formula Calculates the higher of the prior year; or the average of the two previous years enrollment. 14
Actual vs Budget FTE: FY 2008-2018* 260,000 250,000 240,000 230,000 220,000 210,000 221,096 250,096 243,854 216,472 Actual FTE 253,286 244,068 251,017 Budget FTE 247,937 241,513 233,459 241,776 228,724 Budget FTE = # of full-time equivalent students counted for budget purposes through budget stability formula 235,163 229,614 224,092 220,312 223,772* 225,933* 200,000 190,000 205,804 201,625 195,375 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 Source: NCCCS Statistical Reports for FY 2007-08 to FY 2015-16; *NCCCS System Office for 2016-17 and 2017-18 estimates 15
Budget Overview 16
Financial Support of Institutions State G.S. 115D-31 Operating costs for instruction, administration, and support services Local G.S. 115D-32 Operation and maintenance of plant Per G.S. 115D-32, capital construction is the legal responsibility of the county. However, G.S. 115D-31 authorizes the State to provide capital funding to local institutions, provided that it is matched on a dollar-for-dollar basis. 17
FY 2016-17 Sources of Operational Funding Total: $1.79 billion Tuition and Fees $341,978,024 19% Local $250,149,733 14% Federal $34,094,930 2% State Appropriation $1,101,604,738 62% Sources: FY 2016-17 Authorized Budget as of Jan. 2017, NCCCS College Budget Summary (2-1) Carryforward from Prior Year 38,052,084 2% Other Receipts and Transfers 21,825,046 1% 18
% Total Operational Budget by Source, FY 2008-17 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Tuition & Fees State Approp Other Local 13% 13% 13% 12% 12% 12% 13% 13% 14% 14% 9% 9% 6% 6% 5% 5% 4% 5% 5% 5% 61% 65% 63% 61% 61% 61% 67% 66% 61% 62% 17% 19% 22% 21% 22% 12% 12% 21% 20% 19% 07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17* Sources: NCAS Final Authorized Budgets FY 2008-2016, *FY 2016-17 Jan. Auth. Budget, NCCCS College Budget Summaries 19
Tuition: FY 2016-17 $300 $250 Curriculum Tuition per Credit Hour Max. $8,576 per year Continuing Education Fees $200 $150 $268 $100 Max. $2,432 per year $180 $50 $76 $70 $125 $0 In-state Out-of-State 0-24 hours 25-50 hours 51+ hours 20
Tuition: Maximum Curriculum Tuition $3,000 $2,500 $2,128 $2,208 $2,288 $2,304 $2,368 $2,432 $2,000 $1,500 $1,344 $1,344 $1,600 $1,808 $1,000 $500 $0 07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16* 16-17 Note: 2015-16 rate was increased from $72 to $76 per credit hour beginning with the Spring Semester. 21
Tuition: SREB States FY 2016-17 $6,000 Resident Tuition & Fees for Public 2-Year Colleges $5,000 $4,000 $3,000 $2,409 $2,432 $2,773 $3,242 $3,597 $3,664 $3,702 $3,788 $3,868 $3,948 $4,093 $4,140 $4,282 $4,388 $4,417 $4,913 $4,938 $4,948 $2,000 $1,000 $0 TX NC MS FL AR DE GA OK SREB WV LA US TN AL MD KY SC VA Median Median Source: The College Board, NC Community College System 22
NCCCS General Fund Appropriations $1,200 Millions $1,150 $1,100 $1,050 $1,000 $950 $900 $850 $991 $1,017 $1,012 $1,051 $1,006 $1,040 $1,029 $1,050 $1,102 $1,069 $1,068 * $800 $750 $700 Sources: NCAS Final Authorized Budgets FY 2008-2016, *FY 2016-17 Jan. Auth. Budget 23
General Fund Appropriations per BFTE $6,000 $5,000 $4,000 $5,070 $5,042 $4,674 $4,310 $4,010 $4,196 $4,256 $4,465 $4,655 $4,916 $3,000 $2,000 $1,000 $0 Sources: NCAS Final Authorized Budgets FY 2008-2016, *FY 2016-17 Jan. Auth. Budget, NCCCS System Office 24
State Aid Allocation 25
State Aid Allocations Formula Budget: Base allocation to provide a standard amount of support regardless of size Enrollment allocation driven by tier classification of a college s Budget FTE Performance-based allocation determined by student success on 6 performance measures and Basic Skills. Categorical Allocations Specific Program Categorical Allocations 26
Formula Allocation of Funds: FY 2016-17 Categorical $86,176,420 6% Base $190,166,195 14% Performance- Based $28,771,824 2% Enrollment Formula $1,096,341,491 78% Total: $1.40 billion Source: FY 2016-17 NCCCS State Aid Allocations and Budget Policies 27
Funding Flexibility The General Assembly has allowed colleges to have flexibility in order to meet individual college needs. Formulas are for allocation purposes only. Colleges can spend the formula allocations however they choose, except: Literacy (Basic Skills) funds and Customized Training funds must be used for those specific purposes. 28
Allocation of Funds: FY 2017-18 $1,000 $900 $800 $700 $600 $500 $400 $300 $200 $100 $0 -$100 Millions $863.5 Instruction Source: FY 2017-18 Base Budget $517.8 Institutional Support $36.4 $53.7 $30.1 Categorical Aid & Other Support to Colleges Equipment & Instructional Resources System Office Total: $1.47 billion $16.5 Student Financial Aid ($53.2) Management Flexibility 29
Instruction Millions $1,000 $900 $800 $700 $600 $500 $400 $300 $200 $100 $0 $863.5 Instruction What it is: Curriculum Continuing Education Basic Skills $517.8 Institutional Support $36.4 $53.7 Categorical Aid What it pays for: Faculty Salaries 59% of Base Budget Instructional Supplies Equipment & Instructional Resources Source: FY 2017-18 Base Budget 30
Institutional & Academic Support Millions $1,000 $900 $800 $700 $600 $500 $400 $300 $200 $100 $0 $863.5 Instruction $517.8 Institutional Support What it is: Academic & Student Support General College Administration Multi-campus college (MCC) funding Source: FY 2017-18 Base Budget $36.4 $53.7 Categorical Aid 35% of Base Budget Equipment & Instructional Resources What it pays for: President & Senior Administrators Guidance Counselors & Financial Aid Officers Librarians & IT Staff Paraprofessionals & Clerical Staff Salary & Benefit-related items 31
Categorical Aid & Other Support $1,000 $900 $800 $700 $600 $500 $400 $300 $200 $100 $0 Millions What it is: $863.5 Instruction $517.8 Institutional Support Funding provided to colleges outside the regular allotments Source: FY 2017-18 Base Budget $36.4 $53.7 Categorical Aid 2.5% of Base Budget Equipment & Instructional Resources What it pays for: Items outside of Instruction, Institutional Support, Equipment, and other formula driven items Specific campus initiatives Specific programs 32
Categorical Aid & Other Support Examples of Programs in this Category: Customized Training: $12.5 million Small Business Centers: $6.3 million BioNetwork: $4.3 million NC Research Campus: $3.4 million Child Care Grants: $1.8 million NC Military Business Center: $1.1 million NC Works Career Coaches: $1 million Manufacturing Solutions Center: $887,159 Center for Applied Textile Tech: $669,228 Source: FY 2017-18 Base Budget 33
Equipment & Instructional Resources $1,000 $900 $800 $700 $600 $500 $400 $300 $200 $100 $0 Millions $863.5 Instruction What it is: Equipment Instructional Resources $517.8 Institutional Support $36.4 $53.7 Categorical Aid What it pays for: Computers Instructional equipment 3.6% of Base Budget Equipment & Instructional Resources Books and other library resources Source: FY 2017-18 Base Budget 34
Allocation of Funds: FY 2017-18 $100 $80 $60 Millions $40 $20 $0 $30.1 $16.5 -$20 -$40 -$60 System Office Student Financial Aid ($53.2) Management Flexibility Reduction Source: FY 2017-18 Base Budget 35
Community Colleges System Office Budget $20 $15 $16.2 Requirements: $30.5 million 2.1% of NCCCS Base Budget Total Positions: 198.5 FTE General Fund Positions: 168.8 FTE Millions $10 80 FTE $7.1 $5 $4.3 35.5 FTE $3.3 35 FTE 48 FTE $0 Executive Division (1100) Technology Solutions & Distance Learning (1200) Finance & Operations (1300) Academic & Student Services (1400) Source: FY 2017-18 Base Budget 36
Student Financial Aid NC Community College Grant $16.5 million from Escheats budgeted in NCCCS Education Lottery Scholarship Tuition Waivers $93.8 million in waived tuition in 2016 Waivers for particular instruction are authorized in statute 37
Millions $100 $90 $80 $70 $60 $50 $40 $30 $20 $10 $0 Tuition Waived by Category $11.4 $12.7 $14.8 $39.4 $31.2 $27.3 $40.3 $42.4 $43.0 2014 2015 2016 Human Resources Development High School Students (CCP) Fire, EMS, Law Enforcement, Public Safety 38 Source: NC Community College System Office
Management Flexibility Reserve FY 2017-18 Base Management Flexibility Reduction: $53.2 million Management flexibility reduction is a budget cut that is not specifically prescribed. Colleges have the flexibility to determine which budget line items to cut, within certain parameters. Allocated on a pro-rata basis based on each colleges estimated General Fund appropriation. 39
Recent Legislative Actions Weighted FTE Tier System Instituted 2011, additional tier added 2014 FTE rolling average reduced From 3 years to 2 years in 2013 Summer curriculum instruction counted for Budget FTE purposes Partial 2014, extended to all curr. courses in 2015 40
Questions Brett Altman: brett.altman@ncleg.net 919-733-4910 41