Annual Budget for the Fiscal Year Ended June 30, 2004
Total Page：16
File Type：pdf, Size：1020Kb
OAKTON COMMUNITY COLLEGE Annual Budget for the Fiscal Year Ended June 30, 2004 Board of Trustees Community College District No. 535 County of Cook 1600 East Golf Road Des Plaines, Illinois 60016 www.oakton.edu Ladies and Gentlemen of the Board: I am pleased to present to you and to the residents of District 535 the Annual Budget for the fiscal year ending June 30, 2004. This document presents the College's financial plan for operations during the coming fiscal year. In response to the climate of economic constraint, the College has made every effort to allocate resources wisely. As we continue to improve and expand our educational facilities, we have prepared this budget mindful of the need to equip, support, and enhance the educational programs and services which are at the heart of our mission. We shall continue to do all that we can to analyze and improve both our programs and our services and to maintain our place as one of the country's premier community colleges. These will be exciting, challenging, and rewarding times for Oakton as we move forward in the 21st century. The integration of outreach, recruitment, admissions, and alumni will enable us to support a unified marketing approach and give Oakton an enhanced presence in the district we serve. Technological advances, in particular, have opened up opportunities not even imaginable ten years ago. Our substantial efforts in the area of information technology are evidence of our commitment to capitalize on those opportunities to improve the tools we use to bring services to our students and to the communities of our district. Our continuing emphasis on employee education and training affirms that we have not forgotten that, technology notwithstanding, education is ultimately a people-to-people enterprise. Once again the College and its people have been recognized and honored for excellence in performance in the community, in the state, and in the nation. But more important than all of the institutional recognition and honors are the stories we have heard and have been able to tell of the success of our students. Our students are young and old, traditional and non-traditional, credit and non-credit seeking, pursuing degrees, or just taking a course or two. What they all have in common is that they come to Oakton to learn. The composition of the student body now includes almost 25% enrolled in credit courses who hold a bachelor’s degree or higher. As the community’s college, Oakton is far more than a place where students can and do spend a year or two before moving on to four year institutions both in Illinois and across the country. Oakton is an affordable, accessible, high-quality resource for the learning needs of adults who want or need to upgrade their skills, change careers, maintain certification, or advance in their professions. And we continue to serve as the home base for the American Council on International Intercultural Education. I am grateful to the community which supports us, the students who enroll with us, and the trustees who govern us. And I am proud of and thankful for all those who work with unflagging dedication to make Oakton a learning place where, in so many ways, people who come to learn are empowered to start here and go anywhere. I applaud all those individuals at the College who contributed to the long and thoughtful process of determining and assembling this budget. I encourage everyone to read carefully the transmittal letter, which presents an overview of the College's budget and a thorough discussion of factors which helped to frame the educational and financial decisions which shaped it. Respectfully yours, /s/ Margaret B. Lee Margaret B. Lee President To: President Lee, Members of the Board of Trustees, and Citizens of Oakton Community College, District No. 535: SUMMARY Oakton Community College, Community College District 535, considered the tentative Annual Budget for Fiscal Year 2003- 2004 at the regularly scheduled meeting of the Board of Trustees on June 24, 2003. That budget was passed and allowed the College to continue operations in the new fiscal year while several significant adjustments were made to the final budget, which was presented to and approved by the Board of Trustees on September 16, 2003. This departure from the usual budget approval process was necessitated by consequential changes in state funding. The budget contains a total of $78,958,175 in revenues (up by 5.87%) and $88,467,400 in expenditures (up by 9.83%, compared with a 15.48% increase last year). Projected expenditures exceed revenues by $9,509,225, primarily because of an $8.16 million continuing commitment for architectural planning and construction of the Ray Hartstein Campus Tech Center and because of continuing upgrading of institutional computer systems. Much of the increase is related to slower than anticipated construction progress; expenditures not committed in FY 03 were re-budgeted in FY 04. State government revenues will increase by 19.45% as the College recognizes the state contribution to the funding of the RHC Tech Center Total Budgeted Expenditures construction. Total personnel costs (salaries (000,000) and benefits) for the institution, which 85 represent 55.95% of budgeted expenditures, increased by 7.98% (compared with a 4.72% 75 increase budgeted for FY 2003 and 5.25% for FY 2002). Salaries are expected to rise by 65 5.95%, which is consistent with existing contractual obligations and staffing levels. 55 Budget increases occurred in total benefits FY FY FY FY FY FY FY FY FY FY costs at 18.15% (compared with a 6.52% 95 96 97 98 99 00 01 02 03 04 increase budgeted for FY 2003). The health insurance component of benefits, after iii several years of minor increases, is expected to rise substantially. Anticipated retirements among full-time faculty added $484,300 to benefits expenses and faculty retraining added another $83,300 (an impact of 7.44%). Recognition of the state’s portion of the State University Retirement System’s (SURS) contribution, which the College is obligated to record as a revenue and an expenditure, even though there are no actual transfers of funds between the College and the state, is expected to rise by 3.70%, or $100,000. Materials and supplies costs are up by 33.59% for FY 2004 after increasing last year by 10.91%. Of the $10.4 million in this category, $2.0 million is budgeted for computers, furniture, and other one-time purchase of supply items (under the $2,500 equipment threshold) necessary for readying the addition to the RHC for occupancy and instruction. The increase is also due in part to increased numbers of computers being replaced this year as well as additional costs for growing enrollment and inflation. Operations and Maintenance Fund (Restricted) expenditures will increase by over $3.1 million as the college continues the planning for and construction of a significant addition to the Ray Hartstein Campus (RHC), which will be supported by total state contributions of $7.97 million over the construction life of the project. The transfers of $3.3 million during the budget year and $1.5 million during the previous year from the Operations and Maintenance Fund to the Operations and Maintenance Fund (Restricted) (03 Fund) reflect these activities. Depending on the progress of construction, the transfers to the 03 Fund may be delayed until the next fiscal year in order to conserve capital in the operating funds. A $2.25 million in transfers from the Education Fund to the Auxiliary Enterprises Fund reflects the College's need to acquire a new student information system. The Operating Funds, which are those funds used for the primary instruction and general support functions of the College, show revenues of $48,652,700 and expenditures of $45,782,469 for the fiscal year, plus fund transfers of $2,422,000 to the Auxiliary Enterprises Fund and $3,308,000 to the Operations and Maintenance Fund (Restricted). This leaves a projected total Operating Funds net of ($2,859,769), expenditures plus transfers over revenues, for this fiscal year, compared with ($261,884) budgeted for FY 2003. Increased enrollment revenues and reduced expenditures plus a reduction in transfers to the 03 Fund have contributed to a favorable FY 2003 operating net of $2,736,783, almost $3.0 million better than budgeted expectations, but a repetition of that record is unlikely for FY 2004 given the substantial transfers which have been budgeted and the tighter parameters with which this budget has been prepared. Ignoring the fund transfers to the Operations and Maintenance Fund (Restricted) in the past years, funding its own construction programs to accommodate new, replacement and renewal facilities, the College would have had a balanced budget in Operating Funds every fiscal year since its first budget in Fiscal Year 1970. The financial plan predicts that total Operating Funds Operating Funds revenues will increase by 2.23%, down from 2.66% in Student Tuition Other the last budget. A $4.00 per credit hour increase in State and Fees 24.87% Sources tuition will offset decreased grants from the state (down Government 3.10% by 10.40% compared with a 4.46% increase last year 12.20% and with a 13.39% increase the prior year) and will supplement the decrease in investment revenue which results from substantially lower rates and declining fund Local Government 59.83% balances. Local government revenues (property taxes Revenues and chargebacks) account for 59.82% of all Operating Fund revenues in this budget, which is virtually the same as last year.