Midyear Budget Recall at Hickory State College

By:Creighton, Eric, Katie, Melissa,

Logan

Introduction• Summary of the situation• Key Issues• Institutional Culture• Organizational Frame• Recommendations• Conclusion

Summary• Hickory State College is a small,

regional college located in a pleasant Midwestern town.

• One of six public colleges/universities within the state.

• State wide budget crisis• State has mandated an immediate

6% reduction of operating costs of all state run institutions.

Institutional Culture• “Regional college” founded in 1950 to

serve needs of local population• Rural, agricultural community• “Sound”, “reliable”, and also “inexpensive”• 5600 undergraduates, 85% from within 60

miles of campus• 75% of students receive financial aid• Students and faculty are happy, collegial,

and involved on campus and in community

Key Issues• Faculty and staff salaries have

historically been major budget issue• Student tuition accounts for 20% of

annual income• All state agencies are required to

return 6% of their annual approved state budget

• Returning these funds inevitably means the layoffs of full-time employees

Key Issues cont.• The VP for student affairs oversees 7

offices• No money can be taken from auxiliary

departments– Residence Halls– Student Union– Student Health Center

• Student Affairs must return $89,400• Federal Work-Study Program

– Possible student workers

Key Issues cont.• Student Life Office

– Oversees• Orientation• Conduct• Student government• Disabilities• Student leadership programs

– Student workers via Federal Work-Study Program• Counseling Center

– Long wait list due to small staff• Career Services

– Variety of programs– Student workers via Federal Work-Study Program

Key Issues cont.• Financial Aid

– Most student intensive office year round– Provides aid to 75% of the student body

• Office Supplies– $50,000 total budget for the fiscal year– 60% of budget has already been spent

Organizational Frame• Human Resources vs. Political

Recommendations• Department wide hiring freeze• Review of staffing for the five non- auxiliary

departments.• Positions changes could include (but are

not limited to):– Maintain current status (compensation

and contract)– Contract reduced to 10 month (from 12)– Salary reeducation– Elimination of position

Vice President’s Office• Before

– Total Budget• $150,000

– 2 Professional Staff• Vice President - $90,000 a year• Assistant to the Vice President - $35,000 a

year– 1 Support Staff

• Secretary - $25,000 a year

VP Office cont.• After

– Total Budget• $145,000

– 2 Professional Staff• Vice President - $85,000 a year

– $5,000 Reeducation in salary• Assistant to the VP - $35,000 a year

– Support Staff• Secretary - $25,000 a year

Student Life Office• Before

– Total Budget• $310,000

– 5 Professional Staff• 1 Director - $60,000 (12 month contract)• 4 Professional Staff - $37,500 (12 mth contract)

– 4 Support Staff• Support staff - $25,000 (12 month contract)

Student Life Office cont.• After

– Total Budget• $285,002

– 5 Professional Staff• 1 Director - $60,000 a year (12 month contract)• 2 Professional Staff - $37,500 (12 month contract) • 2 Professional Staff- $31,250 (10 month contract)

– 4 Support Staff• 1 Support Staff - $25,000 (12 month contract)• 3 Support Staff - $20,834 (10 month contract)

Counseling Center• Before

– Total Budget• $220,000

– 4 Professional Staff• 1 Director - $65,000 a year• 3 Counselors - $36,5000 a year

– 2 Support Staff• Support Staff - $25,000 a year

Counseling Center cont.• After

– Total Budget• $197,578

– 5 Professional Staff• 1 Director - $60,500 (12 month contract)• 3 Counselors - $30,416 (10 month contract)

– 2 Support Staff• 1 Support Staff - $25,000 (12 month contract)• 1 Support Staff - $20,830 (10 month contract)

Career Service • After

– Total Budget• $160,000

– 3 Professional Staff• 1 Director - $50,000 a year• 2 Certified Counselors - $32,000 a year

– 2 Support Staff• 2 Support Staff - $23,000 a year

Career Services cont.• After

– Total Budget• $126,334

– 3 Professional Staff• 1 Director - $50,000 (12 month contract)• 2 Counselors - $26,667 (10 month contract)

– 1 Support Staff• 1 Support Staff - $23,000 (12 mth contract)

Financial Aid• Before

– Total Budget• $600,000

– 12 Professional Staff– 15 Support Staff

• After– No change to total budget– No change to staffing

Office Supplies, Equipment, Part-Time

Employment• Before

– $50,000 annually• $30,000 has already been spent

• After– $40,000 for this fiscal year

Appropriation of Funds• Departmental Financial Reductions

– VP Office - $5000– Student Life - $24,998– Counseling Center - $22,422– Career Services - $33,666– Office Supplies, Equipment, PT Staffing - $10,000

• Total Reduction– $96,086 ($6,686)

• New Operating Budget– $1,393,908 for the remainder of this fiscal year

Conclusion• Meet required 6% reeducation in

operations cost• Mitigated loss of employees

– 1 employee out of 50 laid off– 10 out of 50 moved to 10 month contracts– 39 out of 50 remain on 12 month contracts

• Maintained full staffing in each department year round

• $6,682 surplus to had for possible future cuts