The community college budgets are appropriated by the legislature to the community college system. In allocating budgets to the campuses for FY2012 the following represent the decisions made, and the rationale for those decisions are as follows:
Reallocation of $1,077,724 in general funds among the community colleges. The State Legislature, in approving the 2010 State general fund budget, did not provide any funds for the faculty salary snap-back. By contract, the faculty salaries return to their 2009 levels, which are 6.67% higher than the salaries last year. This salary shortfall will be met from new tuition revenues based on the increased tuition rate this year. However, since not all campuses generate sufficient new tuition to cover the salary shortfalls, adjustments were made to the general fund allocations to ensure that all campuses can meet their salary obligations. The allocations to the campuses can be found here .
Colleges will continue to retain tuition income generated by the college except for the tuition dedicated to need based financial aid.
Need-based financial aid will be distributed to colleges based on the comparative need of students, that is, the aid will flow to the neediest students regardless of where the tuition is generated.
Of the total tuition revenue generated in the prior year, 8.8% is reserved to address need-based financial aid throughout the community colleges. For FY2012, this shared need-based financial aid is $4,836,195. The tuition dollars to fund this shared need-based financial aid are reallocated between the campuses each year. The reallocation methodology considers the number of federal Pell Grant recipients supported by each campus in the prior year. Pell Grants are awarded to lower income students to promote greater access to post secondary education, therefore, campuses with larger proportions of Pell Grant recipients receive tuition dollars from campuses with lower proportions of Pell recipients.
In addition to this shared need-based financial aid, campuses must expend at minimum an additional 2.2% of their prior year tuition revenue for student assistance, either additional need-based aid, merit-based aid, or student employment.
The State Legislature provided $6,762,719 in general funds to replace the American Recovery and Reinvestment Act funds (federal stimulus money) that ended this year. These funds were allocated as follows:
$1,500,000 for enrollment growth funding
$500,000 for equipment replacement
$1,300,000 for innovation funding
$3,462,719 for campus operations.
In allocating the new general funds for campus operations, the decision was to use the outcomes funding formulas adopted by the Board or Regents to determine how much of the general funds would flow to the campuses. Only if a campus met all of its outcomes did it receive 100% of the new general funds. The $167,560 in outcome funds that were not allocated to the campuses will be used to fund improvements in financial aid processing for all campuses. The outcome funding methodology and the resulting allocation decisions can be found here .
$3,273,625 for enrollment growth is provided through an original appropriation from the legislature and the reallocated funds from the ARRA replacement money. This enrollment growth funding allows campuses to offer additional classes to meet enrollment demand through a partial subsidy of that class. The calculation for the enrollment growth allocations and FY 2012 allocation results can be
found here .
The reserve policy has been modified to reflect a minimum reserve of 5% and targeted reserve of 10% of the operating funds. The new reserve policy is available for review here. All campuses currently meet the 5% reserve levels.
Further reductions in general funds have resulted from the Governor's distribution of budget reductions made by the Legislature. The Community Colleges' share of this reduction was $541,169 and was distributed to the campuses based on the level of special fund reserves maintained by the campuses at the end of FY 2011. The distribution of the reductions to the campuses can be found here .