FSCC holds line; In a special meeting Wednesday, trustees approve keeping mill levy steady

Thursday, August 16, 2012

By Angelique McNaughton

Fort Scott Community College’s Board of Trustees decided to keep the local mill levy flat during a special budget hearing on campus Wednesday night.

The Fort Scott Community College Board of Trustees dissected the college’s projected 2012-2013 budget during a special budget hearing on Wednesday night. About 20 community members attended the meeting and applauded the board after they voted to keep the local mill levy flat at 25.357 mills.
(Angelique McNaughton/Tribune)

About 20 community members, including Fort Scott Mayor Jim Adams, attended last night’s hearing to determine the amount of local taxes to be levied for the 2012-2013 school year. The board and college administrators spent about an hour breaking down FSCC’s projected budget for audience members.

FSCC officials initially recommended a .637 mill increase for the 2012-2013 budget, but reduced that figure to about half a mill prior to Monday night’s budget hearing. A recent $1.5 million county miscalculation in assessed property valuation for 2012 left the county’s five taxing entities scrambling to re-work their budgets.

Administrators laid out two options for board members on Wednesday — both of which included an increase to the levied amount — explaining to trustees and those attending — that the increases were necessary for the college to continue to operate successfully and efficiently.

College administrators said they are faced with operating increases in every area, including a 12 percent bump in health insurance and a 33 percent hike in worker’s compensation premiums.

In response, community members stressed the rising cost of living and the number of county residents living on a fixed income.

Local businessman Jim Smith said he attended the hearing, not only as a concerned citizen but as a resident concerned about those who are financially less fortunate than him, like his father-in-law.

“I’m not here for me,” Smith said. “I’m 63 and I never thought I would be alive to see times like they are now.”

He said it would be a disservice to raise taxes on people now and suggested placing some of the burden on the college’s other revenue sources — tuition and the federal government.

“Something has to be done; it’s going to be worse in the future,” Smith said. “You have to take a look at personal responsibility. You (students) want an education; it’s something that’s important, but it doesn’t have to be put on the backs of the people out here.”

The college’s local mill levy remained flat from 2004-2011, something that both trustees and administrators say has led to the current situation.

“Expenses go up; revenues go flat,” FSCC President Clayton Tatro said. “At some point something is going to bend.”

Tatro said the community needs to look at its contribution to the college as an investment, not a penalty.

“If there is value in education we have to fund it,” Tatro said. “How do we expect to grow our economy if we don’t educate our workforce?

“The reality is, if we are going to invest in the future, we need to invest in education,” he said.

After considering public comments and statements from administrators, the panel chose to keep the local mill levy flat at 25.357 mills, with $2,321,179.78 in taxes levied for the 2012-2013 school year. The college raised the local mill levy last year more than 2 mills.

The college’s administrators sat quietly, looking almost defeated, following the panel’s decision and the audience reaction.

Dean of Finance and Operations Karla Farmer said the college already runs on a very narrow margin.

“Unfortunately, certain services will be cut,” Farmer said. “Those of us who answer everyday to requests that can’t be met because of the current budget, it will compound that.”

The ones who will face most of the burden, Famer said, will be the students but officials will do their best to make it as “painless as possible.

“I respect the decision of the board and we will operate within the prescribed budget,” she said. “But everything has a cost.”

From both Monday and Wednesday night’s budget hearing, the six-member board cut nearly $80,000 from the college’s total projected budget of about $12 million in total revenue and expenses.

Trustee Jim Fewins said he understands what the administration is tasked with.

“They work pretty hard to get this down and they’ve kept it stagnant,” he said after the hearing. “I want the crowd to understand that we are really looking at this; (we) have looked over this and we are giving up certain things.”

While the audience only represented a small percentage of Bourbon County residents, Fewins said trustees don’t “bow down” to those citizens but consider their opinions.

Fewins said he felt pressure to not raise the mill levy after the Fort Scott City Commissioners voted to keep the city’s mill levy flat at a special meeting Wednesday afternoon. Commissioners voted to cut $75,000 from the general fund instead.

“If we can get through another year … but it’s going to be tough,” Fewins said.

Audience members cheered and applauded the board following its decision.

Gerald Kerr, of Bourbon County, said what the college board did is a “very good thing” because it listened to the people.

“And we’re grateful,” Kerr said. “I want to thank you all. We’re in hard times and the city, the community, the college and the people that work in the city with businesses need to work together. We have to be prudent.”

© Copyright 2012 Fort Scott Tribune. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

FSCC could raise mill levy

Wednesday, August 1, 2012

By Angelique McNaughton
Fort Scott Community College trustees got a glimpse of the school’s proposed 2012-2013 budget Monday night, which included a recommendation to raise the local mill levy for the second year in a row.
The board spent almost an hour going through the proposed finances during a work session at FSCC held prior to the college’s regularly scheduled meeting.
FSCC President Clayton Tatro said the session provided an opportunity to “lay out and hash out the budget” with board members. Officials have been working on the budget since February. 

 

Those at the meeting were given documents and graphs outlining revenues and expenditures, including the recommendation for a .637 mill levy increase.

“We’re not making any decisions tonight … (We’re) just hoping to reach some consensus,” Tatro said. “(I) feel good with what we are presenting and why.”

The projected budget shows about $12.3 million in total revenue and expenses. Of that, about $8.4 million is in the college’s general fund; about $3.1 million for technical or vocational education; and a little more than $763,000 for the FSCC truck driving program.

If the board approves the budget, this would mark the second year that FSCC has raised the local mill levy. Last year, it was raised a little more than 2 mills, but from 2004-2011 it stayed flat.

Bourbon County property valuations went up by approximately $1 million this year and FSCC is expecting to generate about $48,000 in revenue because of the increase. If the trustees also approve the mill levy increase, it would generate another $59,000 for the college.

Based on preliminary numbers, about $2.6 million will be generated from Bourbon County taxpayers in 2012-2013. FSCC’s three primary sources of revenue are state, county and student sources, such as tuition.

It was a year without a high number of budget cuts, Tatro said, so it was a “fairly straight forward” year and work session. Tatro said he expects about $307,000 in state funding through the new technical education formula.

“(The year’s) going to be huge in terms of new revenue coming in,” Tatro said in a July 24 interview. “But it’s getting more expensive to do business.”

A $180,000 expense increase to account for the faculty and staff raises agreed upon this year and a 7.5 percent, or about $84,000, increase for the health insurance benefit premium, are among the almost $600,000 in increased expenses officials projected for the coming year.

“(We’ve) got more money coming in and more money going out,” Tatro said.

Trustee Jim Fewins said Tuesday the budget is “pretty well in line” because of work during the past few years to put certain “things into place” that wouldn’t create any financial surprises.

“(We) try and be good stewards of what we put in there,” he said. “From a local standpoint, we want to keep things in balance. We don’t want to make a real burden … I’m a taxpayer myself.”

A former CPA, Fewins said his experience conducting audits gives him a better understanding of the workings of the budget. He said college officials have done “excellent” the last two years in preparing it.

In addition to Tatro, all the school’s deans and an 11-member administration council work on the budget.

“What is best for students without a doubt, that’s a big driver,” Tatro said. “But at the end of the day, our revenue has to match our expenses. You have to set up a budget (and) treat it as if it was your home or business budget and it has to balance.”

College officials work very hard to be effective and efficient, Tatro said. “Students first; community always,” he added. “Kind of a nice driver with the budget as well.”

A budget hearing is scheduled for 5:30 p.m. Aug. 13 in the Heritage Room in the Administration Building at FSCC, 2801 S. Horton. It is an open meeting. State law requires the budget to be approved by Aug. 15.

“We made some tough decisions … and spent a lot of time on the budget,” he said last week. “And we are exceptionally cognizant of the community in which we live.”

In other business, following the work session, the board approved:

* Officers for the 2012-2013 school year: Myrtle Anne Colum as chairman; Bernita Hill, vice chairman; Karla Jo Farmer, information officer; Kathleen Hinrichs, clerk of the board; Mindy Russell, treasurer; Juley McDaniel, Kansas Public Retirement System (KPERS) representative; Robert Nelson, Kansas Association of Community College Trustees (KACCT) and Council of Presidents representative; and Jim Sather, Greenbush representative.

* The consent agenda which included the following additions: Tommy Hoyt, webmaster; Janet Burke, PEC cosmetology instructor; Michael Brown, wastewater instructor; Trey Pike, assistant football coach; Richard Johnson, assistant football coach; Morgan Beck, IT director.

And the following separations: Cordell Upshaw, assistant football coach; and Megan Myers, HEP administrative assistant.

* Employment and approval of pay benefits for staff and faculty for the upcoming school year.

* An update to the allowable expenses policy. Officials said the purpose of the policy is to “merely comply” with the current Internal Revenue Service regulations.

The next regularly scheduled board meeting is Aug. 13, following the college’s budget hearing at 5:30 p.m.

© Copyright 2012 Fort Scott Tribune. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

FSCC board approves tuition and fee increases

Students attending Fort Scott Community College in the fall might notice an increase in their cost of attendance from last year.

The FSCC Board of Trustees approved a 6 percent increase in the tuition and fees at their monthly meeting on Monday night.

“I hate to see the increase borne by students,” FSCC President Clayton Tatro said. “But know we are still a major value for the community and students.”

The increase includes a $3 tuition hike and a $2 increase in fees per credit hour. Additionally, most programs will also see a fee increase, including the trucking program and fuel charge fee which have remained constant since 2006.

And while some fees will increase, others will be eliminated or reallocated.

Previously, FSCC charged a $40 graduation fee at the time of commencement. Now that fee will be funded by adding 25 cents per credit to the general fees, so students will essentially pay the graduation fee throughout their time in school.

“I hope it will encourage more people to walk because they don’t have to pay an outright fee,” Tatro said.

FSCC tuition and fee increases have remained constant at about 5 or 6 percent for the past 10 years, board members said.

Board member Mark McCoy, who joined the board this past summer, said he had heard years ago that FSCC was No. 2 or 3 in terms of being least expensive.

“(As a) businessman, I know you can’t survive like that,” McCoy said. “It’s about quality education.”

With the increases, FSCC will remain around the middle of the pack in cost compared to other community colleges and universities, board members said.

“I think we tend to be on the low end when it comes to making those types of adjustments,” board member Robert Nelson said. “The whole idea for us is to try and make your education process as affordable as you can. Nobody likes tuition increases; I don’t either, but we have to do what we have to do for the college.”

The necessary increase, Nelson said, made more sense and makes the processes easier for staff and students.

A board member since 1999, Nelson has witnessed his share of tuition and fee increases. While he hopes they won’t rise again, based on experience, he knows they probably will.

“We hope it doesn’t,” Nelson said. “But we have to do what we can to keep the college going.”