FSCC proposes budget with slight mill levy increase

Fort Scott Community College is moving into the future with its proposed budget for the Fiscal Year 2017, according to a report handed to the board of trustees July 28.

The report was a collaboration of FSCC President Alysia Johnston and Director of Finance and Operations Julie Eichenberger.

The good news is there is a minimal increase in the mill levy. The proposed FY17 mill levy is 29.328 mills as compared to the 2016 mill levy of 29.326, according to the report.

In recent years the rate has fluctuated.

In 2011 the mill levy increased 2.361, then in 2012 it increased .005, in 2013 it increased 4.147, in 2014 it went down .113, and in 2015 it decreased .080.

Improved cash carryover

Eichenberger told the board that "through cooperation and diligence to expenditures by all faculty and staff of FSCC" there has been an increase in the cash reserve."

The actual expenditures and transfers for FY16 in the general fund was $7,480,399; in the proposed FY17 budget it is $8,294,575. Truck driver training expenses were $283,530 in FY16 and will reduce FY17 to $150,000.

Total indebtedness as of July 1, was $6,748,566 compared to July 1, 2015, at $7,067,101.

Revenue

* Tuition is proposed to be reduced $3 per credit hour for FY17 and $2 is being used for student scholarships with $1 per credit hour for capital improvements. This will result in a $50,000 reduction in overall revenue for tuition and fees.

* FSCC has received notice from the state of a 4-5 percent reduction in state funds, in the amount of $78,000.

* The Migrant Education Program funding is different this year, according to the report. Rather than funding for grant administration, MEP is giving a reduction in information technology expenses.

* Two other grants: U.S. Department of Education High School Equivilency Program and U.S. Department of Education College Assistance Migrant Program are in the grant-funding approval stage.

Expenses

* Annual salary increases of $750 for each full time employee and $400 for each part-time employee have been budgeted, with a total increase in the general fund of $70,000.

* Notification was received that the employer paid portion of the college's health insurance is increasing Jan. 1, with a total of $47,000.

* The budget for faculty professional development is $18,000.

* Athletic student expenses were reviewed with an adjustment to a per-student cost of $1,100 to $1,400. This will result in an overall increase of $19,000 to the athletic departments.

* An increase in discretionary funds is proposed to $30,000 to allow for developing legislature changes this year.

* The college is discussing whether to purchase vans or lease a shuttle, because most of the vehicles in the school's fleet are high mileage and need to be updated.

* FY 2016 there was an opportunity to reduce business expenses by moving $58,000 to grant expenditures. That opportunity isn't available in FY 2017, therefore expenses are budgeted at full cost, primarily in fiscal operations and human resources.

* Greenbush has been engaged to help with an assessment structure, with an increase of $18,000 to the budget.

* Capital improvements and repairs will increase above the actual amount budgeted of $77,000.

Enrollment growth expenses are proposed for $300,000.