FVCC budget reflects enrollment rise

The Flathead Valley Community College Board of Trustees approved the first reading of its fiscal year 2011 budget Monday, reflecting an increase in operating expenses of 5.9 percent.

Salaries and benefits accounted for the largest jump at over 7 percent more than last year. College President Jane Karas said that reflected more adjunct faculty and temporary employees hired to cope with the increase in enrollment.

A chart distributed with the budget summary illustrated an upward trend in enrollment numbers since FY2004, including a drop in 2006 and 2007 then trending upward in 2008 and skyrocketing in 2009 and 2010.

On the revenue side, the budget reflects a slight increase in tuition and more state education dollars based on estimated full-time equivalent or FTE (units of 15 credits per semester).

Local appropriations also should grow with a predicted 3 percent jump in the value of the mill (value of taxable properties).

“We felt that was fairly conservative,” Karas said.

A chart of funding per FTE clearly showed that these increases in state and local education appropriations have not kept pace with the surge in enrollment, with tuition the only revenue source trending up per FTE.

However, Karas said the college has remained competitive with other institutions with tuition and fees in the middle range statewide.

 Karas explained that the state dollars fell short because the appropriations are based on projected FTE.

The college must pay back dollars if enrollment falls short, but receives no payment when enrollment exceeds projections as in the last year without legislative intervention.

Trustee Bob Nystuen said it was unfortunate that the college is put in that predicament. He said a business could not operate under those parameters.

“State funding has declined for all education,” Karas said.

The upcoming budget shows additional revenues from levies provided in Montana for employee medical and retirement benefits.

Taxpayers save $15,000 in the coming year in debt-service payments, reflecting a series of bonds paid off.

 A few budget areas such as building fees, grounds maintenance, bookstore and the coffee cart showed revenue surpluses while the Early Childhood Center has a projected deficit of $40,000. Karas said the slight deficit was anticipated.

“It’s a difficult business to run at break-even,” she said.

In other business, the trustees heard a report from Brad Eldridge, director of institutional research, assessments and planning.

He said summer-session enrollment in courses grew more than 5 percent compared to the summer session of 2009, while the head count of students stayed about the same. Some late-starting courses may increase those figures.

Trustees got a preview of work on a new logo for the college.

The options presented feature prominent FVCC letters incorporated with an eagle, the college symbol, and graphic elements in blue and some with blue and gold.

Colleen Unterreiner, director of institutional advancement, said the staff was shooting to have an updated logo along with a website facelift scheduled for December.

The new logo options followed suggestions from focus groups of students, faculty and staff that favored retaining the eagle and the blue color of the existing logo of graphic mountains and an eagle.

Some trustees asked why the college was looking to replace the old logo. Tara Roth, associate director of marketing and communications, said the college aims to stay fresh and have a logo that ties into its rebranding.

“We want to portray that we are a college of choice,” she said.

During the president’s report, Karas said she has completed another round of community conversations in which she meets with citizens in many surrounding communities to receive input and answer questions.

She said that the board of regents had approved the small tuition increase passed by the trustees and included in the FY2011 budget.

Karas said the college has entered a partnership with Kalispell Regional Medical Center to remodel two units of student housing in a building on the southeast corner across from The Summit.

“We’ll have student housing available by fall,” she said. 

Renovations have begun in the lobby and bookstore area of Blake Hall where the information desk has been removed.

Karas said the goal is to make the lobby more student-friendly and the bookstore more open and accessible.

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