Amarillo College is planning for another year of enrollment growth despite receiving nearly $2.3 million less in state performance funding under a proposed budget reviewed Tuesday by the college's Board of Trustees.
The proposed budget reflects a reduction in performance-based state funding from $19.6 million last year to $17.3 million this year, a decrease of nearly 12%.
College President Dr. Jamelle Conner said the reduction stems from the state's performance funding formula established under House Bill 8, which rewards community colleges for student outcomes and workforce success.
"So House Bill 8 was fantastic when it started a few years back, which is before I came on, because it really, all the things that Amarillo College and community colleges in general do to serve the community and help students succeed, that's part of the performance funding that we can get," Conner said. "So at the end of the day for Amarillo College, it was close to a 12% decrease in funding that we received from last year to this year."
Even with less state funding, college leaders are projecting enrollment will increase by 4.7% next year. That growth is expected to generate about $1.1 million in additional revenue, not including an anticipated $751,000 in tuition revenue from the Badger Bound program.
To meet that demand, the proposed budget includes funding for three new full-time faculty positions in biology, computer information systems and economics. It also maintains funding for student programs while investing in campus maintenance projects, technology upgrades and additional support for adjunct instructors.
Conner said administrators took a closer look at spending across every department after learning the extent of the funding reduction.
"When we became aware of the actual decrease that we received, that just meant we just had to kind of get a little deeper into the budget to really get very intentional about what do we fund and how do we fund the budget to be able to meet all those goals with that less funding that we received," she said.
Rather than making broad cuts, the college asked departments to keep most spending at current levels unless increases were necessary. The proposed budget also continues the practice of delaying the hiring of some vacant positions and reduces travel spending while rebuilding financial reserves.
College leaders have set aside $5 million for the fund balance as part of a long-term effort to rebuild reserves to approximately $20 million, or about three months of operating expenses.
Conner said Amarillo College could receive supplemental funding if lawmakers approve additional support for community colleges during the next legislative session. Because that funding has not been approved, however, it was not included in the proposed budget.
The college is also forecasting steady revenue from several other sources. Amarillo College expects to receive approximately $35 million in tax revenue, along with $1.1 million in private gifts based on donor pledges and about $200,000 in investment income.
The proposal includes several personnel investments despite the tighter budget.
A 2% employee pay raise is scheduled to take effect in January if budget performance allows. In addition to hiring three new faculty members, the college is also working to fill an internal auditor position.
Personnel costs continue to rise in other areas as well. Adjunct faculty wages are budgeted to increase by $287,000, while overload faculty wages will increase by another $448,000. Insurance costs are also projected to rise by $447,000.
Outside of personnel, supply costs are expected to increase by 2.6%. At the same time, travel expenses are budgeted to decrease by 5.7%, or roughly $49,000, as the college looks for additional ways to manage costs.
The proposed budget includes $1.6 million for capital projects and another $1.2 million for capital equipment to support campus operations and facility improvements.
Conner said Amarillo College is also exploring the possibility of auctioning surplus vehicles and equipment to generate additional revenue as the college works to strengthen its financial position.
While the reduction in state funding required administrators to make difficult budgeting decisions, Conner said the college remained focused on protecting the programs and services that directly benefit students while preparing for continued enrollment growth.
