The fiscal year 2015 budget was approved by the Board of Trustees at their regular meeting on June 23, 2014. I thank everyone for their work during the budgeting process and appreciate those who attended Employee Conversation meetings last spring. Because of your hard work and input, the approved FY15 budget was balanced using a combination of expenditure reductions, modest tuition increases, and additional sources of revenue. The budget does not rely on reserves and will assist us in achieving a long-term sustainable business model.
The final FY15 budget included tuition rate changes of 5.3% for all in-state tuition and 7.2% change for out-of-state tuition. The Dental Assistant program will now be included in Tier I differential tuition rates and an International rate for fiscal year 2016 was approved by the Board of Trustees. Additional revenue from the Foundation of $68,000 and from Marine Technology portfolio B projects of $135,000 is included.
Changes in expenses included reductions in the capital outlay (COAT) allocation of $50,000, professional development of $40,000, general E&G of $187,000, and personnel of $420,000. These adjustments came as a result of the Planning and Budget Council asking for additional reductions based on the analysis of personnel and other expenses. Also included in the budget is a placeholder for changes in employee compensation. As you are aware, the recommendation from Planning and Budget Council was to align the date of compensation changes to January 1 in conjunction with employee health benefits. This alignment will provide a more complete picture of fall tuition revenue and allow time for the Compensation Study and its implementation to be reviewed by the Board of Trustees at their September meeting. We acknowledge that there are still questions regarding the implementation of any compensation changes and we will keep you informed as recommendations are finalized. I expect implementation will be a multi-year activity. Please refer to my memo of June 11, 2014 for more on this issue.
As always, I will keep you informed of any changes to the situation. I ask everyone to continue the good work you are doing in recruiting students and helping them on their completion pathway.
Thank you.
Timothy J. Nelson, President