College Update

From: Sanford Shugart
To: All Faculty and Staff
Date: 6/20/2006 1:30:49 PM
Subject: College Update FY 2006-2007 Budget

This morning, the Board of Trustees considered and approved a budget for the upcoming year. Developed with much planning and collaboration, it is at once a plan of action and a sign of the college's priorities and values. Therefore, I want to take a few minutes to share some of the details.

The revenue side of the budget is based on a very good allocation from the state, a 2.5% increase in tuition, and a $2 per credit hour increase in the Capital Improvement Fee. It also is built on a plan to grow enrollment by at least 3% in the coming year.

On the expense side of the budget are a number of large increases in operating costs over which we have little control. Utilities alone will increase more than $500,000 and retirement contributions by $1.2 million. Insurance, travel rates of reimbursement, and other items have also increased significantly, as have software licenses and other current expenses.

In spite of these increases, however, the college is able to meet our most important priorities. Salaries for full time staff will increase by a full 5%, as will temporary faculty salaries (4-month, etc.) Full-time tenured and tenure track faculty will receive adjustments based on the new compensation model that will range between 3% and 12.5%, with the average being about 9%. This increase allows us to plan to complete the compensation implementation next year, assuming resources are available. Part-time staff and adjunct faculty will receive a 3% increase in their rates of compensation, keeping Valencia above the market in these categories. The minimum salary has also been adjusted to assure a living wage.

Other major investments include funds to initiate the teacher education program, support for expanding on-line learning, a new employee wellness program, expansion of marketing, funds for year two of Achieving the Dream activities, and a number of other initiatives.

Also funded is the acquisition of new Banner software that will ultimately replace the Oracle software in finance and human resources.

In addition to the budget, the Board approved the faculty compensation model, reaffirming their support for phase one policies (the baseline compensation) and approving for implementation over the next couple of years the Professional Development and Institutional Effectiveness components of the overall plan.

In short, the college has adopted an aggressive budget, investing in people, technology, and learning improvements. As I mentioned, these investments depend on continuing growth in enrollment and revenue - a necessary means to an end: shaping the most effective environment we can for learning. I know you will all do your part to assure that growth in the coming year.

Please join me in thanking the College Planning Council for their leadership in developing the budget, Keith Houck and the finance team for the enormous effort a good budget requires, and the Board of Trustees for supporting all of our plans.

TOP