MHCCD committee approves a 06-07 budget

By Rachel Kramer

The Mt. Hood Community College District Budget Committee Wednesday approved a proposed budget for the 2006-2007 fiscal year of $178,006,495.
This includes a general fund budget of $50,504,314.

The committee also approved a property tax rate of .4917 per $1,000 of assessed value.

“We have been working with all the groups to create a budget that works,” Robert Silverman, Mt. Hood Community College president, said. “This budget includes no layoffs and no programs will be eliminated due to budget constraints.”

According to Silverman, revenue for the 06-07 fiscal year will be less than expenditures. Although revenue is expected to rise by 1 percent, expenditures are expected to rise by 3 percent.

“Revenue projections are up 1 percent, but there is a $500,000 budget hole,” Silverman said. “Property tax revenues are up but state support will go down about 2 percent [from the current year].”

The 1 percent revenue increase is due to an increase in property taxes. According to Silverman, tuition is expected to hold and state support is expected to decrease approximately 2 percent.

According to Silverman, a large part of the expenditure increases are due to contractual issues such as salaries and fringe benfits..

For the 06-07 fiscal year, a $3 per credit tuition increase will be implemented, moving tuition to $66 per credit; the technology fee will be increased $.50 to $3.50 per credit for up to 15 credits; and the student activity fee will be increased $1 to $2.50 per credit for up to 15 credits. For a full time student taking 12 credits, the total cost will now be $864.

There has also been a two-day pay reduction proposed for staff and faculty.

Athletics has been moved from the general fund and are now supported by the student activity fees in the Associated Student Government Fund.
Some other changes in expenditures include:

• The need-based student financial aid fund will be increased by $30,000 to help offset the increase in tuition, bringing the total to $275,000.

• The MHCCD board is considering a November ballot measure for a voter-approved bonded indebtedness for capital improvements.

• Allocations for purchase and replacement of equipment ($200,000) have been eliminated. According to Gary Murph, chief operating officer, this was one of several items decreased to balance the budget. “Some needs will not be addressed,” Murph said about the loss of funding.

• There will be increase in public relations funding, to get a clear message about the state of MHCC to the voting public. “One of our challenges is that we have been telling people how great we are but, looking at the bond campaign, that we are also a very needy place,” Silverman said. “That’s a delicate thing to do.”

The next budget related meeting date is June 14 at 6:30 p.m. The Tax Supervising and Conservation Committee will view and approve the budget, with the MHCCD board meeting to adopt the budget following the TSCC hearing. The 06-07 fiscal year begins July 1.