This is the second in a series of budget updates, and this message will focus on the state of the FY15 budget year planning.
Fiscal Integrity: Faced with budgetary challenges due to reduced enrollment, we have demonstrated fiscal restraint and prioritized our spending efforts with a relentless focus on achieving strategic goals. Primarily driven by salary savings from unfilled positions – as in previous fiscal years – we achieved an approximate “carry-forward” balance of $1.2M. From the carry-forward balance, $552K was transferred to the College Capital account for the express purpose of funding capital needs for the three to five years known as “life after the bond.” These funds are critical to the college and will help with significant expenditures such as major maintenance and technology until the next bond referendum is passed. The remaining funds serve as the College’s contingency.
Budget Adjustments: For FY15, PVCC will fully align our budget with actual expenditures with a baseline of faculty and staff lines filled. We will no longer be using “vacancy savings” to fund operational expenses. This summer Gary Smith, Faculty Senate President, Mike Mitchell, immediate past Faculty Senate President, and Mary Lou Mosley brought forward recommendations to fill the remaining “never filled faculty lines.” Given our projected budget reductions, I’ve approved the filling of two of the five positions with the remaining three to be reallocated to either meet unfunded annual operating expenses or to apply to the anticipated budget reduction.
For the second year in a row, we will need to reduce our base budget due to low enrollment projections. For FY13 we are projecting an additional base reduction of $234,300 to correct an under estimated enrollment decline, and $287,550 or 3.5% for FY14. In total we are projecting a reduction of $521,850 to our base budget by March 2014. This year it is my goal to address this budget shortfall without any organizational realignment or elimination of filled staff positions.
I am pleased that PVCC has a robust financial planning process in place with the Financial Planning Advisory Team, Budget Development Steering Team – both aligned with the directions set forth by the Strategic Planning Steering Team. Through this process we are able to accommodate the new realities of higher education in an ever changing environment. We will continue to be a superb learning-centered college with a highly-personalized focus on individual students. We will continue offering an extraordinary education informed by the richness of our programs and the power of professional education.
Later this week, I will kick off the FY15 planning process by sharing the newly revised strategic planning priorities that will guide our planning moving forward.