TRC budget plans for revenue, state funding losses

Between an expected lower enrollment and state withholding of funds, the Three Rivers College budget in the coming fiscal year works to account for anticipated drops in revenue.

The TRC Board of Trustees approved a $25.6 million budget Wednesday for the 2020-21 fiscal year.

CFO Charlotte Eubank said administration has other alternative plans for the budget and potential amendments to the budget based on how funding flows over the course of the year.

“We have more things that we could eliminate from the budget without doing horrible damage to the institution,” said Dr. Wesley Payne, college president. “There is a range there where if we take this percentage hit by the state we can take it.

“This percentage hit we have things that we can do to minimize the impact, all the way down to, at this point we’re in a catastrophic situation, and we’ll have to do things nobody is going to like. You’re down to only bad choices.”

The budget anticipates a 3% decrease in enrollment. Payne said fall enrollment is 9% down from where it was at this time last year.

The accepted budget includes salary and benefits for “a large number” of positions, which currently are vacant, he said.

“That money will not be spent; those positions will not be filled for the most part until we know more about withholds,” Payne said. “I do not anticipate those positions being filled in the 2020-21 academic year.”

Payne said while the budget does not account for any state withholdings, he expects about a $1 million withholding over the course of the fiscal year.

If that estimate is accurate, he said, the vacant positions would make up most of the difference.

There are other areas, such as building projects, Payne said, which could be cut if revenue is significantly lower than expected.

The budget currently accounts for maintenance projects, including the Westover Building, the Libla Family Sports Complex and the Tinnin Fine Arts Center.

It also includes funding for the college vehicle fleet.

Most of these projects, Eubank said, are carry-over projects from the current year with carry-over funding.

The budget also accounts for changes in tuition and employee salaries, which were pre-planned.

On the student side, there will be a slight increase in tuition and fees. It accounts for a $4 increase to in-district tuition, a $1 increase in out-of-district tuition and a $1 increase to Common Fees.

These increases are effective as of summer semester.

To keep up with state minimum wage, employees will receive a salary increase of 2% or $900 per employee in January.

Payne said it would not be a retroactive increase as similar moves were in the past.

Payne said this scheduled increase is one area he’s reluctant to change. Even though the college is exempt from meeting these minimum wage increases, he said, it’s important for them to do it.

“This is something we spent a lot of time and effort into with our compensation study,” Payne said. “The only compromise we were willing to make is to delay it six months to buy us time.

“We cannot be certain what the governor is going to do next year. I think everyone in the state is on the same page that the governor is going to make a significant withhold to higher ed.”

The board previously approved a 4% increase on health insurance expenses.

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TRC by the numbers

Total Revenue and reserves — $25,660,914

Total Expenses — $25,630,139

Revenues

Tuition and fees — $10,206,601

State appropriations — $5,102,399

Auxiliary Enterprises — $2,774,988

State grants — $2,519,061

Property taxes — $2,098,500

Expenses

Salary and benefit — $13,492,232

Operating — $8,625,640

Interest — $1,769,333

Scholarships — $1,539,578

Capital Equipment — $203,356