General Fund Revenues

State Appropriation

State funding is set at $550 million for the 2015-17 biennium. Income tax revenues are being received in line with the state’s revenue forecasts so no reduction in state funding is expected in FY2016-17. The discussion about migrating to an outcomes based formula has stalled. State funding continues to be distributed on an FTE-based formula. No changes in state funding are expected in FY2016-17 due to a change in the distribution formula either.

Tuition and Fees

The tuition and universal fee rates were approved to remain the same at $80 and $14/credit hour. Total tuition and fee revenue is expected to increase by approximately $30,000 due to a combination of anticipated cyclical enrollment loss, 5.5 faculty positions moving into the General Fund from Self-Support,
and an uncertain increase due to the Oregon Promise. The distribution of the universal fee was approved to remain the same as the current year.

Property Taxes

Taxes imposed grew by just over 4.9% in FY2015-2016. It is anticipated that the rate of growth will continue at or above the 3% growth rate cap for at least a few more years. For the FY2016-17 budget, a 3% rate of growth was assumed. The rate of default has also returned to normal levels with about ninety five percent of imposed property taxes being collected in the current year.

Miscellaneous Revenue

There is a significant change to miscellaneous revenue for FY2016-17. Two resources that were previously grouped into miscellaneous revenue are now shown as separate resources. One resource is indirect recovery, or administrative charges, on Self-Supporting activities and the other is interest earnings credited to the General Fund. The category of miscellaneous revenue will continue but will be much smaller without these two resources being combined with it.

Transfer in from Self-Supporting Services

The transfer in from the Self-Supporting Services Fund was maintained at $500,000, the same as fiscal year 2015-16. Self-Supporting activities typically generate funds that allow for a modest supplement to the General Fund.

Fund Balance

The college’s target for the ending fund balance is ten to fifteen percent of expenditures. This level of fund balance has been maintained for the past several years. It is expected that the college will attempt to increase the fund balance in both FY2015-16 and FY2016-17 to help address upcoming cost pressures that are expected to increase significantly beginning in FY2017-18.