Board of Trustees meeting Agenda | July 2019

Expenditures – State and Tuition Fund Within the context of the RCM/ABB paradigm is the goal to minimize the impact of spending on institutional support in order to push resources to teaching and learning, our core functions. While there is no “overhead rate” stated or implied, one can see in the graphic below that institutional support has hovered very close to 35 percent of all spending since FY 2014. Of course, even without any additional new discretionary funding our expenses will continue to grow due to across-the-board wage-and-benefit increases. But there have also been cuts, particularly in the support functions. These cuts effectively slow the rate of increase and allow additional funding to go to the colleges. There was a cut of about 3.0 percent to all divisions in FY16 and then again to all support areas of 2.0 percent in FY18. That’s why funding for institutional support is relatively flat between FY16 and FY18. The budget for FY20 includes the largest across-the-board wage increase in many years (collectively over 3 percent), in addition to many state-mandated salary increases for classified employees.

Another way to measure effectiveness of resource management is to spread expenditures over the fall student headcount, and evaluate the changes over time. The chart below shows the expenditures per

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