SSCC considers another tuition hike
By
Brandy Chandler-brandychandler@gmail.com
The numbers for the biennial budget have not yet been released by the state of Ohio, but Southern State Community College is seriously considering tuition increase, with the board voting on the matter as early as April, in order to deal with projected state budget cuts.
Board member Paul Hall reported on behalf of the finance committee to the college board of trustees during their meeting Wednesday, March 9 at SSCC’s Fayette Campus that, “There will be a tuition increase. We know that. It will probably be less than most (other colleges). We will have a recommendation at the April board meeting. We need to get this out there so people know it’s coming.”
The board’s finance committee met March 2 to discuss the college’s options in the likely event there will be a signifiant cut in state funding. At that meeting SSCC President Dr. Kevin Boys and Vice President of Business and Finance Jim Buck said that the college was in a sound financial position to sustain the cuts through some small cuts in the budget, increasing tuition and tapping reserve funds.
Board member and finance committee member Michelle Cimis said, “The college does expect us to vote on something next month?”
Hall said, “Consider.”
Board member Ben Houser said the college will not know what financial shape it will be in until they receive finalized state numbers, which won’t be until the end of June.
Buck said, “Our state subsidy is not finalized until January. If we ever see numbers, we can make pretty accurate projects.”
Historically, Buck said, SSCC implements tuition increases for the summer quarter, so that it is also in place before the start of fall quarter. In order to do that, the board would have to vote on a proposed tuition increase in April.
The board voted to implement a 7-percent tuition increase in May 2010. Board members Rory Ryan and Ben Houser both voted against that increase. Ryan and Houser also voted against accepting the fiscal year 2011 budget. Board members Kay Ayres and Paul Hall and former trustees Patty Griffiths, Ralph Shell and Jim Ward each voted for the increase and to accept the budget.
The finance committee is scheduled to meet again April 6 at noon at Alley 21 in Hillsboro.
Hall said Wednesday that “The college has reserves built in. State funding is only a percentage of our funding. I left the (finance committee) meeting feeling pretty confident the increase would be in single digits. And we’ll still be one of the lowest (tuitions) in the state, if not the lowest. We’re the bottom of the barrel now.”
Buck had said during the finance meeting that the highest increase in SSCC’s history was 8.5 percent, and the college didn’t want a tuition increase higher than that.
In addition to being the community college with the lowest tuition in the state without a levy, Hall said Southern State had two other major attributes on which they needed to capitalize.
“You can take a full year of college credit for less than $4,000, and we are doing a better job of teaching with professionals. My daughters are attending another school and they are being taught by TAs (teacher’s assistants). We’re teaching with adjuncts and faculty,” Hall said. “Frankly, we are secure, and we’ve got to sell ourselves.”
Buck said that depending on what percentage the state cuts – which he had projected would be no more than 20 percent – SSCC will take a smaller hit than some colleges due to the funding formula.
“If the funding formula is allowed to work, we should be in better shape – because of our enrollment gains – than most institutions,” Buck said. “If you’re hearing cuts of 20 percent, we will do better than that.”
In recent years, SSCC had enrollment increases of 38 percent. For fall quarter 2011, Buck said that no increase in enrollment is projected.
• During the president’s report, Boys said that during the finance committee meeting it was determined the college should continue to monitor the SSCC Truck Driving Academy, but that no tuition increase would be considered for the time being.
The possibility of a 12-percent increase in TDA tuition was brought up during the board’s February meeting.
Board member Vickie Wilson said that it was agreed that all programming should be monitored for its financial merits, as well as what it brings to the institution.
“Even if it’s hemorrhaging, we need to look at the value it brings to the college,” she said.
Boys and Buck had said during the finance committee meeting that the medical assisting program at the college was among the most successful, but at the time it did not bring in many funds.
Currently, they said, the fine arts programs bring in the least funds, but that SSCC did not want to cut arts programming.
In order for the Truck Driving Academy to break even by the end of the fiscal year in June, 40 people would have to be enrolled each month. Currently, there are 23 people enrolled for March, but that number is anticipated to increase to 36-38 people.
Enrollment in February was 19 students. In December, there were four students, which led some board members to question if the program should be cut.
Boys said that the program’s loss of Workforce Investment Act (WIA) funds was a reason for the more than $60,000 shortfall in the budget.
Buck said that this year, “there is a little additional costs in administration” which had previously been covered by grant dollars.
Referring to a spreadsheet which had a breakdown of the TDA finances, Boys said, “If it’s a question of efficiency, the differences are minimal. There were additional expenses of equipment repairs and funds we pay to other entities.”
Boys said that he felt the TDA still had value for the college and for the students who attend it.
“We will continue to monitor the program,” Boys said. “But over a two-year period, half a million dollars went back to the general fund (from TDA surplus funds).”
One alternative Boys suggested regarding the funding situation with the TDA was raising tuition for students who are outside SSCC’s five-county service area. That is a practice that many colleges have for their regular tuition, he said.
Houser said that he wanted to be sure the TDA wasn’t past its usefulness to the college and likened the college to being the “best horse buggy manufacturer” following the invention of the car.
“At a time there was no question there was a need,” Houser said. “My question is, has that time passed?”
Boys said that was a good question, and that in the college’s research into the matter they discovered that two public Ohio truck driving academies had decided to close.
“There was probably a reason why they decided to do that,” Houser said.
“Probably over a period of time they came to that conclusion,” Boys said.
Regarding data for the need for truck drivers, Boys said there is conflicting data. The college had one report that stated 400,000 truck drivers will be needed within the next two years.
Cimis said she read a report from the U.S. Department of Labor that 200,000 truck drivers are currently unemployed.
Houser said that if the college was facing a potential 20-percent cut in funds, the college might need to take a hard look at programs and other expenses.
“I’m not picking on the Truck Driving Academy,” Houser said. “But if we don’t have funding ... I mean folks, you can cut my salary all you want [board members are not paid]. We might not be hit at all. But we may have to look at each and every program. Not just the trucks.”
Hall, who is an insurance agent in Brown County, said he recently had a private sector client try to deal with a 26-percent increase in health insurance, which translates to $4,000 a month for the company.
“And they can’t raise tuition,” Hall said. “They can raise cost, but only so much. They’re in competition. It’s a tough world out there. The private sector is facing this, too.”
“So I’ve heard,” Houser said.
In other business:
• The board heard a presentation from Tom Payton from the college’s department of career services regarding assistance provided to students on locating job openings, and preparing for the interview process.
• Boys reported that the college is working on a grant through the Department of Labor to help with training for new jobs that will be coming to the area through Total Baking Solutions, LLC, which is opening in Wilmington. The company is creating an estimated 60 jobs in the area. The company manufactures industrial ovens for companies like Kraft and Keebler, he said.
Boys said that there is potential for other baking manufacturing-related jobs to relocate to Wilmington as well and, “The college will be providing training to prospective and current employees and for other businesses involved in the food production industry.”
As part of the TBS collaborative agreement with the college, they will provide the following to SSCC: Use of equipment for laboratory activities; assistance with design of curriculum and laboratory activities; office space for a project director; classroom space on an as-needed basis and in cooperation with TBS industry production schedules.
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Board member Paul Hall reported on behalf of the finance committee to the college board of trustees during their meeting Wednesday, March 9 at SSCC’s Fayette Campus that, “There will be a tuition increase. We know that. It will probably be less than most (other colleges). We will have a recommendation at the April board meeting. We need to get this out there so people know it’s coming.”
The board’s finance committee met March 2 to discuss the college’s options in the likely event there will be a signifiant cut in state funding. At that meeting SSCC President Dr. Kevin Boys and Vice President of Business and Finance Jim Buck said that the college was in a sound financial position to sustain the cuts through some small cuts in the budget, increasing tuition and tapping reserve funds.
Board member and finance committee member Michelle Cimis said, “The college does expect us to vote on something next month?”
Hall said, “Consider.”
Board member Ben Houser said the college will not know what financial shape it will be in until they receive finalized state numbers, which won’t be until the end of June.
Buck said, “Our state subsidy is not finalized until January. If we ever see numbers, we can make pretty accurate projects.”
Historically, Buck said, SSCC implements tuition increases for the summer quarter, so that it is also in place before the start of fall quarter. In order to do that, the board would have to vote on a proposed tuition increase in April.
The board voted to implement a 7-percent tuition increase in May 2010. Board members Rory Ryan and Ben Houser both voted against that increase. Ryan and Houser also voted against accepting the fiscal year 2011 budget. Board members Kay Ayres and Paul Hall and former trustees Patty Griffiths, Ralph Shell and Jim Ward each voted for the increase and to accept the budget.
The finance committee is scheduled to meet again April 6 at noon at Alley 21 in Hillsboro.
Hall said Wednesday that “The college has reserves built in. State funding is only a percentage of our funding. I left the (finance committee) meeting feeling pretty confident the increase would be in single digits. And we’ll still be one of the lowest (tuitions) in the state, if not the lowest. We’re the bottom of the barrel now.”
Buck had said during the finance meeting that the highest increase in SSCC’s history was 8.5 percent, and the college didn’t want a tuition increase higher than that.
In addition to being the community college with the lowest tuition in the state without a levy, Hall said Southern State had two other major attributes on which they needed to capitalize.
“You can take a full year of college credit for less than $4,000, and we are doing a better job of teaching with professionals. My daughters are attending another school and they are being taught by TAs (teacher’s assistants). We’re teaching with adjuncts and faculty,” Hall said. “Frankly, we are secure, and we’ve got to sell ourselves.”
Buck said that depending on what percentage the state cuts – which he had projected would be no more than 20 percent – SSCC will take a smaller hit than some colleges due to the funding formula.
“If the funding formula is allowed to work, we should be in better shape – because of our enrollment gains – than most institutions,” Buck said. “If you’re hearing cuts of 20 percent, we will do better than that.”
In recent years, SSCC had enrollment increases of 38 percent. For fall quarter 2011, Buck said that no increase in enrollment is projected.
• During the president’s report, Boys said that during the finance committee meeting it was determined the college should continue to monitor the SSCC Truck Driving Academy, but that no tuition increase would be considered for the time being.
The possibility of a 12-percent increase in TDA tuition was brought up during the board’s February meeting.
Board member Vickie Wilson said that it was agreed that all programming should be monitored for its financial merits, as well as what it brings to the institution.
“Even if it’s hemorrhaging, we need to look at the value it brings to the college,” she said.
Boys and Buck had said during the finance committee meeting that the medical assisting program at the college was among the most successful, but at the time it did not bring in many funds.
Currently, they said, the fine arts programs bring in the least funds, but that SSCC did not want to cut arts programming.
In order for the Truck Driving Academy to break even by the end of the fiscal year in June, 40 people would have to be enrolled each month. Currently, there are 23 people enrolled for March, but that number is anticipated to increase to 36-38 people.
Enrollment in February was 19 students. In December, there were four students, which led some board members to question if the program should be cut.
Boys said that the program’s loss of Workforce Investment Act (WIA) funds was a reason for the more than $60,000 shortfall in the budget.
Buck said that this year, “there is a little additional costs in administration” which had previously been covered by grant dollars.
Referring to a spreadsheet which had a breakdown of the TDA finances, Boys said, “If it’s a question of efficiency, the differences are minimal. There were additional expenses of equipment repairs and funds we pay to other entities.”
Boys said that he felt the TDA still had value for the college and for the students who attend it.
“We will continue to monitor the program,” Boys said. “But over a two-year period, half a million dollars went back to the general fund (from TDA surplus funds).”
One alternative Boys suggested regarding the funding situation with the TDA was raising tuition for students who are outside SSCC’s five-county service area. That is a practice that many colleges have for their regular tuition, he said.
Houser said that he wanted to be sure the TDA wasn’t past its usefulness to the college and likened the college to being the “best horse buggy manufacturer” following the invention of the car.
“At a time there was no question there was a need,” Houser said. “My question is, has that time passed?”
Boys said that was a good question, and that in the college’s research into the matter they discovered that two public Ohio truck driving academies had decided to close.
“There was probably a reason why they decided to do that,” Houser said.
“Probably over a period of time they came to that conclusion,” Boys said.
Regarding data for the need for truck drivers, Boys said there is conflicting data. The college had one report that stated 400,000 truck drivers will be needed within the next two years.
Cimis said she read a report from the U.S. Department of Labor that 200,000 truck drivers are currently unemployed.
Houser said that if the college was facing a potential 20-percent cut in funds, the college might need to take a hard look at programs and other expenses.
“I’m not picking on the Truck Driving Academy,” Houser said. “But if we don’t have funding ... I mean folks, you can cut my salary all you want [board members are not paid]. We might not be hit at all. But we may have to look at each and every program. Not just the trucks.”
Hall, who is an insurance agent in Brown County, said he recently had a private sector client try to deal with a 26-percent increase in health insurance, which translates to $4,000 a month for the company.
“And they can’t raise tuition,” Hall said. “They can raise cost, but only so much. They’re in competition. It’s a tough world out there. The private sector is facing this, too.”
“So I’ve heard,” Houser said.
In other business:
• The board heard a presentation from Tom Payton from the college’s department of career services regarding assistance provided to students on locating job openings, and preparing for the interview process.
• Boys reported that the college is working on a grant through the Department of Labor to help with training for new jobs that will be coming to the area through Total Baking Solutions, LLC, which is opening in Wilmington. The company is creating an estimated 60 jobs in the area. The company manufactures industrial ovens for companies like Kraft and Keebler, he said.
Boys said that there is potential for other baking manufacturing-related jobs to relocate to Wilmington as well and, “The college will be providing training to prospective and current employees and for other businesses involved in the food production industry.”
As part of the TBS collaborative agreement with the college, they will provide the following to SSCC: Use of equipment for laboratory activities; assistance with design of curriculum and laboratory activities; office space for a project director; classroom space on an as-needed basis and in cooperation with TBS industry production schedules.
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