FVCC budget increases by 13 percent

Flathead Valley Community College trustees adopted the fiscal year 2008 budget Monday reflecting a 13 percent increase in expenditures compared to the previous budget.

The document projects an 11 percent increase in student enrollment in courses with full-time equivalents growing from 1,265 to 1,405. This would reverse a downward trend from the peak enrollment year of 2004.

According to Linda Sadler, vice president of administration and finance, the summer enrollment showed an upward trend which normally continues into the regular school year.

At the Monday meeting, Susie Burch, head of the marketing committee, introduced a detailed marketing work plan aimed at boosting student recruitment and retention.

With state revenues appropriated at levels lower than expected, the trustees earlier raised student tuition by 24 percent to help meet increased expenses for utilities like natural gas, health benefits and liability insurance.

In spite of the increase, Flathead Valley Community College tuition remains among the bottom third of least expensive institutions in Montana.

College officials cut expenses where possible; for example, cutting down lighting to save up to $10,000. The college has also turned up the temperature for air conditioning in the summer and expects to heat buildings less in the winter.

Karas has also asked all employees to turn off computers at night to save on energy costs.

Along with more tuition dollars, the college also gained on the revenue side of the budget from a projected 7 percent increase in the value of the mill. For the college, this means more property tax dollars due to additional homes and businesses on county tax rolls and increased values of existing homes and businesses.

College president Jane Karas told trustees the budget preserved the quality of education, while not including many requests received from college faculty. It does cover new programs previously approved by trustees.

According to the budget document, the 13 percent increase in expenses derives from a 10 percent jump in salaries and benefits and a 12 percent increase in operating expenses. The college also included 25 percent more in the budget for scholarships and tuition waivers for students.

Benefit costs were up 24 percent due to the cost of health insurance and a sizable increase in unemployment insurance. Salary expense rose 6 percent.

Along with the cost of natural gas, operating expenses were inflated by greater postage costs as well as increase in transportation caused by the jump in gasoline prices.

Trustees unanimously passed the budget.

Reporter Candace Chase may be reached at 758-4436 or by e-mail at cchase@dailyinterlake.com