BUDGET ADVISORY GROUP
MEETING NOTES
NOVEMBER 27, 2000
Tuition Rates Subcommittee Report
The group met last week with Craig Taylor to review the collegeís tuition
rate history.
They will continue to research and review the following:
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Tuition rate comparisons with other community colleges.
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Assessment of resident and non-resident tuition revenue
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Comparisons of per capita income of Lane students with other regions (Oregon
and West Coast)
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College policies on raising tuition and fees.
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Reciprocity issues from other border states
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What the budget picture will look like after the Governorís budget is announced.
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Where the increase from tuition revenue goes.
Update on Budget Development
Marie said that the Governorís budget is anticipated on December 1
with scenarios from the Office of Oregon Community Colleges Work Force.
After 12/1, she and Carol Beckley will be working towards defining the
revenue picture and gathering data to assess mandatory increases, e.g.,
utilities, insurance, etc. Budget development forms will be requested
from departments: Function Information Sheets, Reductions and Elimination
forms, and Requests for New Funds. Departments will be asked o review
the previous yearís forms based on current needs. Budget Leaders will begin
their budget discussions in mid-January. Marie will advise
BAG as soon as she hears definitive information on the Governorís budget.
BAGís Role and Next Steps
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BAG serves as an advisory group to the Budget Leaders and will also work
along with the Budget Leaders and the Budget Committee, if asked.
BAGís reports and recommendations will be reviewed first by the Budget
Leaders. Marie would take their comments and concerns back to BAG.
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BAGís first report is being reviewed by the Budget Leaders. The report
has also been made available to some Budget Committee members.
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Review Financial Strategies, tuition rates and strategies for reducing
costs/maximizing revenues and prepare a report for the Budget Leaders
with recommendations of strategies for focus.
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BAGís budget development information and meeting notes will be posted on
the ìBudget Developmentî website.
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BAG will look at reductions as a plan in the event of deficient revenues.
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Have Vice Presidents reaffirm the role of BAG group to their departments
(vice presidents are scheduled to visit all departments during their staff
meetings in December to discuss budget development).
Maximizing Revenues
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Bill Kyker provided information on indirect cost reimbursement to the college
for the administration of grants. He said the college has not done
very well in the past. The college leaves it up to the individual
VP and grant writer whether or not to include the college for indirect
cost reimbursement. This occurs in less than 50% of the grants written
and renewed. The college's General Fund could receive approximately
$500,000 more per year if grants were required to include a 10% reimbursement
to the college (this would take approximately three years to fully manifest.).
Currently the recover rate is about 2%, with grant expenditures between
$7 and $8 million annually. Grant writers may be under the misconception
that the indirect recovery goes to a specific department rather than in
actuality to the general fund. Currently, there is no requirement
within administration to review how much the college must be reimbursed
before a grant is signed.
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Marie feels that ELT sees Grants as a Financial Strategy and as part of
BAG's assignment to review the process. BAG can make a statement
in their report to the Budget Leaders depicting its vision of minimum indirect
cost recovery in the grant process.
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Bill introduced another possibility of new revenue: A Payroll
tax to those Lane County employers with over 25 employees. Marie
will seek legal counsel advice on this.
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A subcommitte of BAG has been assigned to identify new revenues:
Jane Scheidecker, Nanci LaVelle, Jose Ortal, Carol Beckley and Bill Kyker.
This group will consider the cost of raising and implementing new revenues.
Addition to Proposed Financial Strategies, Page II-3, Item #7
Add: Investigate, evaluate
and pursue new revenue sources.
Technology Issues
BAG needs to review how technology will be considered : cost, future,
efficiency, potential for revenue? Many issues will arise with the new
administrative hardware and software, such as where to invest the time
and costs while maintaining quality.
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Look at how new business processes relate to the administrative software
and applications.
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What is the potential for technology fees that subsidize the program that
are heavily dependent on up-to-date technology?
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Charge a flat technology fee as opposed to hourly computer lab charges?
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Different tuition rates, fees for departments heavily invested in the latest
technology for training.
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Replacement of capital equipment and hardware & software.
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After the new administrative system is in place and some budgeting
models (e.g. Responsibility Centered have evolved from the work of
the Budget Strategies Group, BAG could recommend a process for raising
fees and tuition (at a concept level) to the Budget Leaders.
Assignments
1. BAG ñ E-mail Barb with comments and top 5 strategies to
discuss at next meeting from Pages II-2-II-5)
2. Helen: Tuition subcommittee to meet before the next
BAG meeting (12/11)
3. Jane S: Schedule ìNew Revenuesî subcommittee meeting
(Jane Scheidecker, Nanci LaVelle, Jose Ortal, Carol Beckley and Bill Kyker)
to meet before next BAG meeting (12/11)
4. BAG - Addition to Proposed Financial Strategies, Page II-3,
Item #7
Add: #7. Investigate, evaluate and pursue new
revenue sources
5. Marie - Seek legal counsel advice on : A Payroll tax to those
Lane County employers with over 25 employees
6. Marie - Advise BAG as soon as she hears definitive information
on the Governorís budget.
The next meeting will be 12/13/00, 4-6PM, PE 206 (dinner meeting). |
