College Update 2-7-05

I've heard some strange speculations lately on the college's enrollment and finances. Please allow me to share the facts:

The college exceeded both its enrollment and revenue goals for the fall semester. We budgeted somewhat conservatively for a 2% increase, although we built the class schedule for a 4% increase. Enrollment was up more than 4% and revenue even more than that.

Spring enrollment is down 3% from last year. One third of this is in dual enrollment, where no tuition is collected, so there is no effect on the budget. Further, it was a reduction caused by our own more rigorous expectations of dual enrollment students as well as a growing AP program in the local schools. In-district enrollment actually grew by 2%, as planned. The overall decline appears to be largely an effect of reduction in out-of-district, out-of-state and international students. All of the colleges in the path of Hurricane Charley have experienced even more pronounced declines (5% at Seminole, e.g.) This isn't surprising, as the financial impact of repairs, lost work, etc.. wouldn't have been much felt until this term. But we are certain these students will return shortly and have assured the Governor and legislature of this. They seem ready to sustain our funding.

Even with a slight dip in enrollement this term, the college is right on plan for revenue, since we estimated it conservatively for the budget to begin with.

There are, however, some modest current year budget challenges caused by two unforeseen expenses. The first is a 39% increase in property and casualty insurance premiums (storm related) with the next premium due in March. The other is an unanticipated increase in utility costs. Together, these comprise new expenditures in the neighborhood of $850,000. As a result, we will need to curtail spending enough to cover this amount. This can be done without any disruption of the college's normal work, but should be done thoughtfully and collaboratively and with our principles clearly in mind. Before anyone asks, let me assure you that we are not eliminating anyone's job or reducing anyone's salary or anything else you might worry about in the wee hours. We're just slowing down some discretionary spending such as supplies, travel, printing, hiring in non-essential vacant positions, etc.

We will be meeting with the College Planning Council on Thursday to discuss this process. Shortly thereafter, I will call a meeting of the extended Executive Council to complete the plans for managing our spending to the end of the year. Further, we will plan a more aggressive growth pattern for the coming year - something more in the 6% range- with the expectation that the state is now funding enrollment growth again. This should position us to be able to afford continuing investments in our mission and our people.

All of this is to say that no one should be troubled. These are ordinary management challenges and will be handled in ordinary ways. You really shouldn't listen to the "chicken littles." As always, I will share fully with you what is going on and why. And I will seek the collaboration and counsel of many before any important change in direction.

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