SSCC mulls rate hikes for fees, tuition
Lead Summary
By
Brandy Chandler-brandychandler@gmail.com
An increase in tuition, student technology fees, or a combination of both, will be considered by the Southern State Community College Board of Trustees to offset a pending general fund deficit of approximately $900,000.
The board’s finance committee met Feb. 1 in the office of SSCC President Dr. Kevin Boys. SSCC Vice President of Business and Finance Jim Buck said that the deficit would be offset by auxiliary funds.
Buck said that the revised budget for this year “shows a balanced budget.”
In Buck’s January 2012 report to the board, which included the revised budget, “It includes a 6.2-percent reduction in revenue projections and a 4.3-percent reduction in expenditures, along with an increase in the transfer from unrestricted auxiliary funds.”
There was a 10-percent drop in student enrollment during fall quarter, with a total projected drop of 11 percent for the year, as reported to the committee.
Buck said that there was not enough information yet to accurately project enrollment numbers for next year, but that he thinks they will begin to hold steady.
Revenue increased by $1.3 million, he said, but there were additional expenses that included the addition of two new faculty members, union increases, increases in health insurance (although the college would only pay 5 percent of the projected increase), and technology upgrades.
In November, the board voted 6-2 to approve a $3.25 million contract to purchase 63 acres to construct a $14 million Brown County campus, and unanimously accepted an option for a donation agreement for 19 acres of property for an Adams County campus.
During that meeting, Buck said, “This entire project will not require any increase in student tuition.”
The college’s last tuition increase was in May 2010 when the board voted 5-2 to implement a 7-percent tuition increase. Board members Rory Ryan and the late Ben Houser voted against the increase and also voted against accepting the fiscal year 2011 budget as presented.
During the board’s March 2011 meeting, member Paul Hall reported on behalf of the finance committee and said that, “There will be a tuition increase. We know that. It will probably be less than most (other colleges). We will have a recommendation at the April board meeting. We need to get this out there so people know it’s coming.”
When Buck presented the board with an initial budget for 2012 during the May 25 meeting, he said, “It reflects no increase in our tuition. This year it looks like we’re going to finish very strong.”
Buck told the finance committee this week that a combination of increasing tuition to the state cap, as well as an increase in the technology fee, would keep the college in sound financial footing without further tapping into auxiliary funds.
Technology fees are $1 per credit hour, he said, and it was suggested that they be increased to more than $5 per credit hour. There has not been an increase in the technology fee since 1998, he said.
On Jan. 23, board members Vicki Wilson, Larry Anderson, Kay Ayres, Doug Boedeker, Don Moore and Leilani Popp voted on a new contract for Boys. The five-year contract includes an annual salary of $175,000, with 3-percent yearly raises, an annuity of $20,000 per year for five years, plus travel expenses.
“No one likes to increase tuition,” Buck said. “We would yield at the cap, and we would need to go to the cap for both years.”
Buck shared figures from the Ohio Board of Regents with the committee which showed that in approximately the past 10 years, statewide tuition has increased by 42 percent, on average. SSCC’s tuition has increased 24 percent. Since 2008, tuition has increased at an average of 12 percent, and SSCC increased 7 percent, he said.
“If we had changed with the average, we would have a $300,000 surplus,” Buck said.
Because more colleges across the state will likely be increasing tuition, coupled with the tuition cap, Buck said that it was unlikely it would be possible for Southern State to have an “average” tuition.
SSCC currently has the lowest community college tuition in the state of Ohio, not counting institutions who have levies. Potentially, if tuition is raised, Buck said, they would have the second lowest tuition, after Columbus State Community College.
Board chair Vicki Wilson asked how the increase, particularly for spring quarter, would impact student’s financial aid. Buck said, “it doesn’t at all,” because the majority of SSCC students’ financial aid is through Pell grants, at $5,500. With the current full-time tuition at approximately $3,800, Buck said students would simply receive less of a grant refund.
The committee also discussed other issues regarding cost-savings, including the college’s Truck Driving Academy. Buck said that some “very difficult decisions” were made in order to cut 17 percent from its budget, but that it continues to lose money. The committee agreed that it was a good program, but that it might not be financially possible to sustain it.
The finance committee is tentatively scheduled to meet Feb. 8 at 5 p.m., prior to the regularly scheduled meeting of the full board at 6 p.m.[[In-content Ad]]
The board’s finance committee met Feb. 1 in the office of SSCC President Dr. Kevin Boys. SSCC Vice President of Business and Finance Jim Buck said that the deficit would be offset by auxiliary funds.
Buck said that the revised budget for this year “shows a balanced budget.”
In Buck’s January 2012 report to the board, which included the revised budget, “It includes a 6.2-percent reduction in revenue projections and a 4.3-percent reduction in expenditures, along with an increase in the transfer from unrestricted auxiliary funds.”
There was a 10-percent drop in student enrollment during fall quarter, with a total projected drop of 11 percent for the year, as reported to the committee.
Buck said that there was not enough information yet to accurately project enrollment numbers for next year, but that he thinks they will begin to hold steady.
Revenue increased by $1.3 million, he said, but there were additional expenses that included the addition of two new faculty members, union increases, increases in health insurance (although the college would only pay 5 percent of the projected increase), and technology upgrades.
In November, the board voted 6-2 to approve a $3.25 million contract to purchase 63 acres to construct a $14 million Brown County campus, and unanimously accepted an option for a donation agreement for 19 acres of property for an Adams County campus.
During that meeting, Buck said, “This entire project will not require any increase in student tuition.”
The college’s last tuition increase was in May 2010 when the board voted 5-2 to implement a 7-percent tuition increase. Board members Rory Ryan and the late Ben Houser voted against the increase and also voted against accepting the fiscal year 2011 budget as presented.
During the board’s March 2011 meeting, member Paul Hall reported on behalf of the finance committee and said that, “There will be a tuition increase. We know that. It will probably be less than most (other colleges). We will have a recommendation at the April board meeting. We need to get this out there so people know it’s coming.”
When Buck presented the board with an initial budget for 2012 during the May 25 meeting, he said, “It reflects no increase in our tuition. This year it looks like we’re going to finish very strong.”
Buck told the finance committee this week that a combination of increasing tuition to the state cap, as well as an increase in the technology fee, would keep the college in sound financial footing without further tapping into auxiliary funds.
Technology fees are $1 per credit hour, he said, and it was suggested that they be increased to more than $5 per credit hour. There has not been an increase in the technology fee since 1998, he said.
Buck said that the current cost per credit hour is $80.73 for full-time students (15 hours. If the increase is approved, for spring quarter it will be $85.17.
On Jan. 23, board members Vicki Wilson, Larry Anderson, Kay Ayres, Doug Boedeker, Don Moore and Leilani Popp voted on a new contract for Boys. The five-year contract includes an annual salary of $175,000, with 3-percent yearly raises, an annuity of $20,000 per year for five years, plus travel expenses.
“No one likes to increase tuition,” Buck said. “We would yield at the cap, and we would need to go to the cap for both years.”
Buck shared figures from the Ohio Board of Regents with the committee which showed that in approximately the past 10 years, statewide tuition has increased by 42 percent, on average. SSCC’s tuition has increased 24 percent. Since 2008, tuition has increased at an average of 12 percent, and SSCC increased 7 percent, he said.
“If we had changed with the average, we would have a $300,000 surplus,” Buck said.
Because more colleges across the state will likely be increasing tuition, coupled with the tuition cap, Buck said that it was unlikely it would be possible for Southern State to have an “average” tuition.
SSCC currently has the lowest community college tuition in the state of Ohio, not counting institutions who have levies. Potentially, if tuition is raised, Buck said, they would have the second lowest tuition, after Columbus State Community College.
Board chair Vicki Wilson asked how the increase, particularly for spring quarter, would impact student’s financial aid. Buck said, “it doesn’t at all,” because the majority of SSCC students’ financial aid is through Pell grants, at $5,500. With the current full-time tuition at approximately $3,800, Buck said students would simply receive less of a grant refund.
Buck told The Highland County Press Wednesday that, "Community Colleges will convert to semesters in the Fall of 2012. Accordingly there will be no Fall quarter 2012. If approved, the annual increase from FY 2011 to FY 2012 would be 1.8 percent and FY 2012 to FY 2013 increase would be 54 percent, for an average for the two years of 3.6 percent. Over the past 10 years Southern State Community College has had the lowest percentage increase in the State averaging 2.67 percent, with the exception of one institution that averaged 2.44 percent. Both rates are below inflation. There are 60 universities, branches campuses and community colleges in Ohio."
Buck said that the amount of revenue that will be brought in by the increase will be based on enrollment.
"Our current operating budget contains total Student Fee Revenue of $10.8 million dollars. Keep in mind the semester conversion in Fall 2012," he said.
The committee also discussed other issues regarding cost-savings, including the college’s Truck Driving Academy. Buck said that some “very difficult decisions” were made in order to cut 17 percent from its budget, but that it continues to lose money. The committee agreed that it was a good program, but that it might not be financially possible to sustain it.
The finance committee is tentatively scheduled to meet Feb. 8 at 5 p.m., prior to the regularly scheduled meeting of the full board at 6 p.m.[[In-content Ad]]