Budget :: Page 9 :: Eye on Yavapai College

Yavapai Community College in Northern Arizona

Archive for Budget – Page 9

College administration fights to keep individual campus costs from public view

By R. Oliphant

Tuesday, August 18th, 2015

College says it can’t give financial information as requested because it doesn’t keep books so it can; reluctantly agrees to provide some estimates

For more than 20 years, the Yavapai Community College has functioned almost completely out of the public eye. Its administrators have been able to do whatever they chose to do with taxpayer funds with little or no question. Given this history, the administrators were no doubt shocked by the action of the Verde Valley Advisory Committee to the District Governing Board.

The Verde Valley Advisory Committee to the District Advisory Board has been trying to obtain the specific costs of operating the Sedona Center and the Verde Campus in Clarkdale with little success.

Hiding data When the Committee asked for the information from Vice President Clint Ewell, he refused to provide it. He claimed that the financial records are not kept by the College in such a way as to provide the information the Committee was seeking.

At the District Governing Board meeting on August 5, 3rd District Representative Al Filardo asked the Board if it would join him in asking Ewell for the information. During the discussion, which you can view by clicking here, Ewell again stated that he could not provide the details the Committee sought. However, he reluctantly agreed to provide some financial information based on “estimates” to the Committee.

The detailed financial data is viewed as operational and is kept closely guarded by the Administration. The budget it produces fails to provide any details regarding the costs of operating individual campuses. Ironically, it closed the Camp Verde facility in 2010 and tried to close and sell the Sedona Center in 2013 because of low enrollment and operating costs. Amazing how those costs seem to be at the fingertips of the administrators when they want to close something down in the Verde Valley.

Categories : Advisory Committees, Budget, Sedona Campus, Verde Campus

Building mania puts College into the red at end of fiscal year; general fund has $1.7 million excess

By R. Oliphant

Friday, August 7th, 2015

Construction on Prescott and CTEC Campuses over budget; general fund shows a large surplus

Yavapai Community College has just released the unaudited accounting statement ending the fiscal year, which runs from July 1 to June 30. According to the statement, the capital budget will be in the red by $2.4 million dollars. However, the College claims that it will offset that amount in the coming budget.

The College also reports that the general fund has a net surplus of $1,688,000. If correct, it raises questions about the need for increasing property taxes that was pushed by the Wills’ administration so hard and approved 3-2 in June. The following are the College documents stating the surplus and the deficit.

YEAR END BUDGET SURPLUS 1 2015

YEAR END BUDGET DEFICIT 1

Categories : Budget

President Wills explains number of staff cut on Verde Campus

By R. Oliphant

Saturday, May 30th, 2015

Wills’ reports 13 staff cut; 2 positions created on Verde Campus and Sedona Center

President Penelope Wills reported that there were 13 staff cut at the Verde Campus and the Sedona Center from 2012 to 2015. She also said that 2 new positions (15% of total reduced) had been created.

Fired Total staff cuts since 2012 came to 46. A total of 14 new positions have been created since then. This means that about 12/46 or 26% have been restored on campuses on the West side of the County. Two new positions are slated for the Verde Valley in 2016. She did not say how many new positions are slated for the West side of the County om 2016.

You may view President Wills’ statement to the Governing Board on this issue by clicking here.

Categories : Budget, Sedona Campus, Verde Campus

State funding for College increases

By R. Oliphant

Sunday, May 17th, 2015

Arizona has increased its funding for Yavapai College for the coming year

The next time you hear President Penelope Wills criticize the lack of state funding for Yavapai College, if you actually check the budget for the coming year, you will discover that funding has been increased. Here are the facts from the budget for next year.

State support for operations will increase by $3,000 to $890,300. State support from proposition 301 will be increased an additional $50,000, which will bring the total Prop 301 figure in the coming year to $1,455,700. The Science, Technology, Engineering and Math (STEM) Workforce appropriation from the state will be increased to $805,700 for the coming year. The College claims that the STEM funding was used this past year for capital expansion and Development of the Career and Technical Education Campus and the Southwest Wine Center. It is not clear how the College will use this year’s grant.

MONEY BAG State support accounts for 2% of the total College budget. County property taxes and student tuition and fees account for the bulk of revenue coming to the College each year.

Categories : Budget

State budget cuts do not apply to Yavapai College

By R. Oliphant

Friday, April 17th, 2015

State contribution to College will not be reduced; some additional money coming to the College

The cuts in Community College state aid in Arizona’s recently approved budget did not affect Yavapai Community College. In fact, it apparently will receive more funding from the state this year than last year, although the Administration has not provide details of how much additional funding may be received.

budget Sources who the Blog believes are reliable tell it that the College will receive an additional $300,000 from the State of Arizona this coming year. That should be good news for Yavapai County taxpayers.

However, the Wills’ administration is twisting arms and politicing throughout the County for at least a 2% tax increase. That increase, if approved, comes on the heels of a 4% tuition hike that will already go into effect next year.

Categories : Budget, Yavapai Community College

College reveals dozens of positions eliminated during last three years

By R. Oliphant

Friday, April 17th, 2015

Forty-seven positions eliminated since 2012; didn’t know how many of those were on the Verde Campus

The Community College reported to the District Governing Board at the April 14 meeting that since 2012 it had eliminated 47 full-time positions. Since that time, it has reallocated 18 of those to fill new positions in the District. It said that the savings from eliminating all these positions was used “for things like offsetting decreases in State Appropriations and self-funding raises.”

layoffs When asked to provide information regarding the number of lay-offs on the Verde Campus, the Administration said it did not have that information available at the meeting.

Categories : Budget, Verde Campus

Campus Master Plan to spend $111 million dollars; less than 10% to the Verde Valley

By R. Oliphant

Monday, February 16th, 2015

Campus Master Plan moves ahead; College already identified $67 million dollars to finance it

The Community College Master Plan, approved in 2013 by the old Governing Board, is moving right along. College administrators laid out a request that the Governing Board approve the final expenditures for phase I at the February 3 meeting. (By clicking here, you can go to the Board Agenda and examine in detail the request.)

The Plan currently calls for 44 projects in three phases, spread over 10 years. They include 11 renovation projects, seven new construction, seven open space, six purchases/sales of property, six sign projects, three expansions and two parking projects.

The Plan’s total cost has jumped from $103.5 million dollars to $111 million dollars. (At one point in 2014 it appeared to be at $119 million.) Less than ten percent of the Plan is aimed at development in the Verde Valley; about 100 million dollars plus is ear-marked for further capital development on the West side of the County.

The College says it has already found $67 million dollars in taxpayer money and student tuition to finance the Plan. However, there remains a $46 million dollar shortfall. According to the College, there are three options to produce revenue to cover the $46 million shortfall. They include slowing down, reducing the scope or the Plan or increasing revenues through partnerships, grants, private gifts, property taxes and bonds.

Vice President Clint Ewell will present a proposal for raising revenue for the 2016-7 budget at the Governing Board’s March 3 meeting. He will present a draft of the full budget on April 14. The Governing Board will review and vote on the final 2016-17 budget May 19. An additional story discussing the Master Plan can be found in the Verde Independent written by Arlene Hittle and dated February 7 by clicking here.

A chart, created by the College, shows the original anticipated expenditures for the first phase of the Plan. It follows immediately below.

MASTER PLAN PHASE I GOOD COPY

Categories : Budget, Ten year plan

Enrollment continues to slip

By R. Oliphant

Tuesday, February 10th, 2015

Enrollment at Yavapai Community College continues to slip; administrators say decline since 2011 due to “cuts in scholarships, athletic programs, nursing, and adjustments to other programs”

The YCC administrators said at the January, 2015 Governing Board meeting that “cuts in scholarships, athletic programs, nursing, and adjustments to other programs” are the reasons for the decline in enrollment since 2011. (Approved minutes of January, 2015 Governing Board meeting.) However, if reported headcount of students is used as a measure, enrollment has been declining since 2008 when it was at 15,582. For the 2013-14 academic year, the headcount announced by the College was 11,518.

Despite the reduced headcount, total student tuition revenue has not dropped. The reason for this is that over the past several years there have been annual increases imposed by the Governing Board. Also, students who do appear take more classes for credit than previous students.

The Blog believes that if the $1.3 million dollars in student scholarships taken out of the budget in 2012 were restored and used strategically, student enrollment would increase. No such plan was discussed at the February 2015 Governing Board meeting.

The following chart was created by the Blog based on Annual Financial Records filed by the Community College in June of each year.

Total revenue and headcount chart

Categories : Budget, Enrollment data, Scholarships

Different methods of raising bond money explained

By R. Oliphant

Wednesday, February 4th, 2015

Community College uses variety of bonds to finance capital projects; student tuition helps with payment of Pleadged Revenue Obligation bonds and Revenue Bonds

Many Verde Valley residents are confused over how the Community College raises money for projects by selling bonds. At the February Governing Board meeting, Vice President Clint Ewell outlined the different bonds the College now uses. He said there are three types of bonds. They are: General Obligation bonds, Pledged Revenue Obligation bonds, and Revenue bonds.

Bonds The General Obligation bonds are approved by voters and used for capital projects. The last time voters in Yavapai County approved General Obligation bonds was in the year 2000 when they approved issuance of $69.5 million dollars in bonds for the Community College.

Rather than seek voter approval for bonds to support a capital project, College administrators with Governing Board approval can issue “Pledged Revenue Obligation bonds. In the annual financial report issued in June, 2014 the College explained that it used this process in April 2011 when the Community College District issued $14,000,000 of pledged revenue obligations. The $14,000,000 was used to prepay a capital lease and $9,435,487 was used to construct the Prescott Chiller Water Plant and Clarkdale Central Plant. According to the June, 2014 Community College Financial Report, “Pledged revenue obligations and revenue bonds are repaid from tuition, fees, rentals, and other charges to students, faculty, and others.”

When it came to financing most of the $7 million dollars to renovate two of the student residence halls on the Prescott campus, the Administration with agreement of the Governing Board issued $5 million dollars in Revenue bonds to pay for construction. This process also avoided asking for voter approval of the project. According to the June, 2014 Community College Financial Report, “revenue bonds are repaid from tuition, fees, rentals, and other charges to students, faculty, and others.”

The Chair of the Governing Board theorized that this process seemed like a fair one when it came to the student residence halls. Under this theory, the user pays for the construction. The problem is that the user don’t pay enough in annual annual rental fees to cover the principal and interest. Therefore, the facilities must be subsidized at least in part by student tuition. The result is that thousands of students who pay tuition never use the residence halls but nevertheless pay for their construction.

In a statement in the June, 2014 Financial Report, the Community College stated the following: “Annual principal and interest payments on the pledged revenue obligations and bonds are expected to require less than 17.2% of tuition, fees, dormitory rentals, and bookstore income. In the current year, total revenues of $10,751,131 were pledged to cover the principal and interest paid of $1,846,981.” [Video to follow when available.]

Categories : Bonds, Budget, Tuition

College reports over half million dollar increase in revenue in 2014

By R. Oliphant

Friday, January 30th, 2015

Overall revenues increased by $604,626 in 2014; property taxes and tuition account for 75% of revenue; state puts in 2%

The Community College reported in its annual Financial Report that revenues increased in 2014 over 2013 by $604,626. Tuition and fee revenues increased by 2.2% due to a 2.9% base tuition rate increase being offset by lower aviation program revenue. Aviation program tuition decreased as a result of the revenue distribution formula being modified between the District and its aviation partners.

Property taxes increased slightly due to new construction. Lastly, capital revenues increased by $720,234 due to $471,634 of donations and $248,600 of capital outlay monies received from the state. County property taxes and student tuition account for 75% of the revenue coming into the Community College. The State of Arizona supplies about 2% of the annual revenue coming to the Community College.

REVENUE SOURCES IN 2014

Categories : Budget