Three Rivers Community College board passes balanced budget

POPLAR BLUFF, Mo. -- Three Rivers Community College officials made good on their promise to balance the budget, which meant carrying out 45 layoffs, a salary freeze and the elimination of child care services.

The Daily American Republic newspaper reported the board of trustees unanimously approved the $18.8 million budget for fiscal year 2011 in the absence of trustee Darren Garrison during just a 20-minute deliberation Wednesday, after administrators spent weeks implementing a zero-based budgeting process.

"The bottom line here is that we didn't cut anything that's [designed] to make students successful," said Wilbur Thornton, board secretary. "The college is solid, and we're going to pay our bills."

Thornton reported he was able to participate in each of the many budget hearings. The department managers presented operational expenses as well as a "wish list" for spending, if the required item applied to one of the underlying themes of the long-term strategic plan, he explained.

Administration rolled out the framework of the budget, initially $3.5 million in the red, during the annual board vision retreat June 9, and spent the remainder of the month determining sacrifices, with the presumption the additional data will provide direction when seeking external dollars.

"They took it line by line, asking: 'Can we do without this?'" Thornton said. "They agonized over it."

The financial plan includes $500,000 to be added to a contingency fund that already includes a previous state windfall in the amount of $2 million, Three Rivers president Dr. Devin Stephenson pointed out. His primary goal is to reach $4.5 million in three years to maintain a safety net equivalent to three months worth of the budget, which is the national average, Stephenson said.

Board member Phil Davis commented that he is "tickled" to see that the community college is preparing for the unforeseen, but he questioned what takes precedence if revenues should exceed expenses -- increasing the reserves or restoring budget cuts.

"Getting us to that rainy day fund is critical," Stephenson said, adding that no money has been set aside as far back as 2006, according to college records. The board will have an opportunity to revisit the budget in six months, the president noted.

Total revenue was estimated at $18,821,939: revenue from state appropriation was estimated at $4,442,324; tuition $6,825,000; student fees $2,084,436; property taxes $1,720,000; federal grant revenues $1,396,337; state grant revenues $125,000; private grant revenues $70,000; investment earnings $25,000; auxiliary revenue $2,085,382; and other revenue $48,460.

"Adding people to the payroll doesn't automatically solve your problems, you're just throwing money at the symptom, rather than determining the root cause," Stephenson said. "The beautiful part of this type of budget process is it allows everyone to take ownership in the outcome."

To improve retention, graduation and transfer rates, an advising center is being created as the "go-to" place for students in need of services on campus, with cross-trained specialists, according to the budget synopsis.

All credential-seeking students are going to be mandated to take a placement assessment before enrolling in classes to ensure they are at the appropriate skill level. New students must also attend a one-credit orientation class to get better acquainted with the community college culture.

The overall student success budget was reduced by more than $900,000. Reductions came from combining two departments, admissions and registration; decreasing the athletic budget by $104,000; and slashing all other departments by an average of 5 percent.

Board chair Marion Tibbs said he was in a state of disbelief that the budget appeared to work out so smoothly, so he contacted the financial office to bring up several issues, but each inquiry had a sound explanation.

"It's realistic and doable," Tibbs said. "Even though the economic times are bad, I have never felt more confident in the future of TRCC."