Budget Update from Marie Matsen
The Budget Leaders plan to hold a meeting with BAG in January to discuss the budget development process and BAGís role. (Scheduled for January 22, 4:30-6, Board Room)

BAG Subcommittee Reports
Tuition Committee
Helen Garrett reported on the second meeting of the tuition subcommittee and provided BAG a copy of their 11/22 meeting notes.  The subcommittee will continue to gather information from other resources and will report on their findings to BAG sometime in January.

Revenue Subcommittee
No report.

Six Top Strategies Discussion
The following is excerpted from a report that BAG prepared for the December 13 Board meeting giving BAG concerns and recommendations for strategies and areas of focus. 

1. Maximize Indirect Costs Charged to Grants

The Budget Advisory Group recognizes the need to increase the administrative recovery rate on grants.  BAG would work with the Budget Leaders to establish a clear policy that sets a target rate to exceed the typical 2%-4% administrative recovery costs.  (Based on the given potential of $8M in grant expenditures, just changing the recovery rate to 10% could provide additional revenues of approximately $500,000 compared to the current $200,000.)  Department heads, grant writers, grant coordinators, and funded project staff would all need to be aware of the administrative recovery cost policy prior to applying and administering the grant.

2.  (Change) Policy for Extending Financial Credit to Students

There needs to be a total redesign of the policy for extending credit to students that balances Laneís need for financial accountability with reasonable access to retain students. It needs to have a clear, expedited appeal process. The redesign needs to change to point of recognition of revenue in the billing process from an accrual to a cash basis so that the unearned ICP is not generated.

3. Maintain Adequate M&S Budgets

Department M&S budgets should be tied to the rate of inflation. Also, as enrollments increase, M&S budgets need to be adjusted accordingly. 

4. Invest in Student Success/Retention

Current pressures to increase FTE at all costs are not necessarily consistent with retention and success.  Some support services allow students to remain in school and allow the college to better serve studentsí needs.  BAG wishes to look more in-depth at the budgeting for student retention versus marketing for increased FTE.

5. Donít Make Across-the-Board Cuts

When cuts are made, often a desire to maintain the comprehensiveness of our offerings is in conflict with a desire to keep our current programs healthy. The collegeís priorities need to be examined to help make decisions about where further cuts can be made without sacrificing the effectiveness of the targeted programs and services. For example, in instructional areas, certain programs continue to be funded even though they have low FTE and high costs.  A team could be established to be act as review board to provide an in-depth examination for such programs.  The review board would, for a determined period of time, examine such areas as budget, FTE, revenues, costs, student retention and satisfaction, employer satisfaction and community needs.  Outcomes could bring methodologies for program improvement, rationale for program cuts, or justification for budgetary needs.

6.   Invest in Instructional Technology to Maximize Access

Investment in technology needs to include making learning available to a broader market, bringing faculty and staff up to speed with the instructional technology we already have, and acquiring the necessary technology to allow instruction to be state-of the art in the various fields in which current technology is vital. These changes will make us more competitive in all of our classrooms, not just through distance education.

Next Steps

The BAG has now concluded our examination of the Proposed Financial Strategies and is moving into an active review of tuition and fee rates and revenue generation opportunities.

NEXT MEETINGS:  
>>January 8, 4-6PM, Room, PE 206.   
>>January 22, 4:30-6, Board Room. (Bag and Budget Leaders) 
     Both are planned to be dinner meetings.