Click here to view a spreadsheet that provides a current snapshot of MCC's budget, updated after the May 12, 2011 board of trustees meeting.
Click here for a less-detailed overview of the current budget for fiscal years 2011 and 2012.
_________________________________________________________________________
Budget Deficit (as of January 2011)
If MCC makes no changes to spending or revenue, the budget deficit is projected to grow to almost $15 million by 2015. (See Figure 1 above.) Since 2008-09, when the economy began to slow, MCC has reduced its operating budget by $12.9 million. (That equates to 10.9% of the original operating budget for 2010-11.) While the college has made these adjustments without affecting employee salaries or benefits, we are now at a point where these conversations need to take place. For additional details on the deficit, refer to MCC’s 2010-2011 budget book, which can always be found on the MCC accounting website located on the InfoExchange. |
Figure 1: MCC's estimated budget deficit as of January 2011 FY 2012 assumes a 7% additional cut from the state and a $5 tuition increase. FY 2013 assumes an additional 3% state reduction and a 2% state increase in 2014. FY 2013–2015 all assume a $2 annual tuition increase. |
Core State Funding (as of January 2011)
The graph on the left illustrates core funding received for FY 2001-FY 2011, with projections through FY 2012. The graph on the right shows the projected decline in core funding that MCC can expect from the State of Missouri through fiscal year 2015. 
This pair of pie charts shows the percentage of MCC's operating budget that was spent on employee salaries, employee benefits and all other operating costs for the years 2002 and 2010.
 |
| Figure 3: MCC's operating budget breakdown 2002 and 2010 |
Budget Approval Process
Each November, MCC leadership proposes a balanced budget to the Board of Trustees who then approve the budget in June. The careful balance of revenue and expenses is especially important in light of requirements set forth by the Higher Learning Commission, MCC's accrediting body, which mandates specific financial ratios.
Budget Response Team
The Budget Response Team (BRT) is a shared governance group that was established by then-chancellor Jackie Snyder to represent employee groups' interests in the budget review process. BRT members are asked to disseminate information to their constituents and provide input on proposed budget solutions. Since August 2010, the BRT has received information on the budget as it relates to the following matters:
- 2010 fiscal year end;
- revenue generating initiatives underway by the officers;
- MCC's budget deficit through 2015;
- status updates on the progress of the healthcare committee work;
- expenses associated with retirement benefits;
- expenses associated with the current compensation package (salary and healthcare); and
- proposals for a new early retirement plan.
Expense Reduction and Revenue Generation
A number of opportunities for cutting costs and growing revenue at MCC are being considered. Click here to see which groups are impacted by which of the four primary changes and the corresponding impact on the overall budget. Costs are being cut across the district; for example, since 2008, the district facilities budget has been reduced by $1.1 million, and another $600,000 in cuts are planned for 2011-12. Click here to see a detailed comparison of the district's compensation-related expenses and non-compensation related expenses. Information on revenue-generating initiatives can be found on the Revenue section of this website.
Early Retirement Proposals
The BRT was given proposals for a new early retirement plan that would affect existing retirees as well as current employees should they choose to retire from MCC in the future. All three proposals presented include a "rule of 80" at MCC with at least 20 years of full-time consecutive service and a use-it-or-lose-it clause for the year the employee hits the rule of 80. All three options also include premium pay going to 200 units for 2011-2012 and no premium pay for 2012-2013 and the elimination of bumping rights.
The following are being considered for a July 1, 2013 implementation date except for the premium pay noted above. Click here to see more detail on the early retirement proposals that were presented to the BRT. For additional information on the early retirement changes, visit the Early Retirement page of this website.
Tuition Increase
At the request of Gov. Nixon, all Missouri community colleges, including MCC, have preliminarily agreed to recommend to the board an increase in tuition of no more than $5 starting in the summer of 2011. This limited increase is a good-faith gesture for the govenor's recommendation to cut community college appropriations by 7% for the 2011/2012 school year. (This is in addition to a 5% cut for 2010/2011.)
Tuition & Fee Revenue as a Percentage of Total Revenue since 2005:
Year Tuition & Fee Revenue Rate % of Total Revenue
05-06 $34,371,615 $76 33.52
06-07 $35,564,051 $78 33.39
07-08 $37,855,915 $80 34.25
08-09 $39,880,047 $82 34.17
09-10 $45,048,565 $82 37.12
10-11 $50,184,855 $82 40.83
Insurance Committee
The insurance committee is a shared governance group that has been working on options to go out for a request for proposals (RFP). The RFP, which will include both current and marketplace options, will go out in February and a contract will be taken to the board in May/June for an implementation date of Jan. 1, 2012.
Below is a presentation from CBIZ on the feasibility of adding an onsite clinic at MCC:
Insurance Committee
The insurance committee is a shared governance group that has been working on options to go out for a request for proposals (RFP). The RFP, which will include both current and marketplace options, will go out in February and a contract will be taken to the board in May/June for an implementation date of Jan. 1, 2012.
Below is a presentation from CBIZ on the feasibility of adding an onsite clinic at MCC:
