FY22 Strategic Plan Update Budget Report

FISCAL YEAR 2022 

STRATEGIC PLAN UPDATE 

+ BUDGET REPORT

CORE VALUES 

EXCELLENCE 

ACCOUNTABILITY 

SERVICE 

INTEGRITY 

The Leadership Team 

Ray 

Rushing 

Jonathan 

Hoekstra 

Gail 

Lawrence 

Mike 

Reeser 

Jeff 

Kilgore 

Rick 

Herrera 

Michael 

Bettersworth 

2 

STRATEGIC PLAN & BUDGET REPORT

APPROVED BY BOARD OF REGENTS 8/19/2021 

a letter from the cfo 

To our Regents, 

Ten years ago, the Board did not receive a single budget 

proposal from TSTC. They heard 5 different budget 

presentations in support of different plans. At that time, 

the $165 million combined budget supported 7 campuses 

and 2,500 employees, which graduated about 2,000 

students per year. That’s when the Board appointed Mike 

Reeser Chancellor. 

Immediately, Chancellor Reeser challenged the College 

to no longer pursue perfection of the irrelevant. To take a 

focused look at our mission, he rallied the firm under the 

mantra “Place More Texans in Great Paying Jobs.” 

Today, as a single TSTC community, it is clear that our 

transformation has been substantial. We are highly 

focused, boldly challenging conventional ideas, and 

bringing the team together and forward on the journey. 

Last year, it would have been understandable to allow the 

extraordinary circumstances of COVID to slow our progress. Instead, we recognized the change-accelerating 

nature of the moment and charged ahead. 

This year, we’ve taken the opportunity during our natural rhythm of planning and budgeting to retrace some 

of our steps. We’re proud of the story and especially the results. This year, we expect to produce over 2,800 

graduates from across 10 different campuses. These students’ employment prospects far exceed the cohorts 

of students before them. 

We now have an enviable culture. It is truly a great place to work for the 1,617 people committed to our cause. 

For a decade, TSTC prepared for disruptive change and found itself ready to respond to the challenges of 

COVID-19. Tomorrow’s market leaders must imagine and continue preparing for a different kind of future. We 

invite you to participate in that process during the next year. 

I trust that our story, our plan update and our budget overview provide clear context surrounding the $240 

million budget proposed for the Board’s consideration. 

With deep appreciation, 

Jonathan Hoekstra, CPA, MBA, Vice Chancellor & Chief Financial Officer 

STRATEGIC PLAN & BUDGET REPORT 

3

CONTENTS 

3 

5 

A LETTER FROM THE CFO 

CONTEXT FOR PLANNING 

PRE-PANDEMIC 

COVID: A ONE-OFF YEAR 

7 

PREPARING FOR WHAT’S NEXT 


WILDLY IMPORTANT GOAL 1 

10 

11 

12 

16 

17 

18 

19 

WILDLY IMPORTANT GOAL 3 

FISCAL YEAR 2022 BUDGET PRESENTATION 

FISCAL YEAR 2022 ANNUAL OPERATING BUDGET 

OPERATING REVENUES 

OPERATING EXPENSES 

COVID-19 RELIEF 

CAPITAL BUDGET 

EXHIBITS 

4 



CONTEXT FOR PLANNING 

Planning and budgeting cycles at TSTC begin 

with an assessment of the environmental 

situation as context for planning. For fiscal 

year 2022, this is dominated by the impact of 

COVID-19. Indeed, as the world emerges from 

the pandemic and the related shutdown, the 

context for TSTC’s planning and budgeting is 

best organized from the perspective of TSTC 

before, during and after the pandemic. 

Pre-Pandemic 

In the years leading up to the pandemic, TSTC 

clarified its purpose with a simple message 

that summed up its mission: Place More 

Texans in Great Paying Jobs. However, before 

setting its course, leadership took note of 

the disruptive environment facing the higher 

education industry. The College recognized 

the Texas Legislature’s increasing appetite 

for accountability from public colleges and 

universities, the broader culture’s growing 

skepticism about the value proposition of 

higher education, and employers’ angst about 

an expanding skills gap (increasing demand 

for skills that is historically flat in supply). In 

addition, the contrast of higher education’s 

old operating model with the exponentially 

changing environment heavily influenced TSTC’s 

messaging and plans. 

Leveraging its differentiation, the College 

reached many historical milestones in the years 

that approached the pandemic including the 

following: 

1. 

2. 

Pioneering the nation’s only placement 

and wage-based funding formula, linking 

the interests of the College to needs of 

employers and students. 

Expanding the College’s footprint into 

fast-growing regions of East Austin, South 

Dallas, and West Houston. 

3. 

4. 

5. 

Streamlining and focusing the functions 

of the College through a merger of college 

accreditations, operations, and curriculum. 

Shaping and sustaining a new, valuescentered 

culture under the recognition that 

healthy organizations are more effective 

organizations. 

Establishing a program vitality framework 

for measurement and assessment 

of program outcomes towards the 

achievement of student and employer 

success. 

These milestones were achieved as the College 

pursued the goals of its first statewide strategic 

plan. In February 2020, after assessing the 

College’s progress to date, leadership and the 

Board established new targets under the same 

strategic plan goal areas. 

A month later, the COVID-19 virus arrived in the 

United States. 

COVID: A One-Off Year 

Years of implementing organizational change in 

preparation for a vastly different future enabled 

TSTC to react with confidence during the global 

pandemic. Much like the rest of the world, TSTC 

operations shifted to a remote format while the 

College prepared for the next version of TSTC 

and higher education. 

TSTC leadership activated the College’s 

Emergency Response Team at the first sign of 

concern in 2020. This foresight and discernment 

was not shared across the industry, but the 

College provided a path for its peers and 

the state by adopting the following guiding 

principles and persevering through the unknown: 

Protect the health and safety of students 

and employees. 

Protect the health and safety of our 

communities. 

Do our job of teaching and placing students. 

Keep TSTC and our employees as fiscally 

sound as we possibly can. 


5

These pillars provided clarity and comfort 

to TSTC’s team as they resumed classes and 

continued innovating. Accelerating new teaching 

modalities and modifying facilities to deliver 

hands-on instruction in a new and sociallydistant 

format kept the College open. These 

procedures would ensure the teammates and 

students were safe and productive. 

TSTC will emerge from the pandemic, one-off 

season as the college that first brought its 

students back to campus. This occurred without 

incident. Though operations were slightly 

disrupted, they resumed in either a remote or 

socially-distant manner. 

Legions of TSTC personnel adapted swiftly to 

the new requirements, resuming service to our 

students and transitioning to new methods of 

working and teaching. 

Preparing for What’s Next 

The competitive advantages in higher education 

have been leveled and new imperatives have 

emerged. No one could have predicted the 

pandemic, but TSTC did anticipate rapid and 

dramatic change to higher education. This 

anticipation and readiness was a true advantage 

through this season. TSTC continues to keep its 

focus on the horizon to maintain its leadership 

position in the changing times ahead. 

TSTC will become the market-relevant and 

laser-focused skills provider in Texas, but 

planning for this next phase includes deepening 

relationships with industry and student-centric 

operations while continuing to build upon 

the values and principles that make TSTC an 

employer of choice. 

TSTC leadership and the Board will explore this 

changing landscape during fiscal year 2022 

as insights from the last decade and this most 

recent one-off pandemic season inform the next 

iteration of the strategic plan. 

6 




Changing Up The Mix 

In reviewing WIG 1, consider this scenario: 

Operational Planning & Assessment 

Plan, budget, execute, then measure. Sustaining 

the College’s operational planning and 

assessment cycle is an ongoing process. The 

outcomes of this process allow leaders to 

make evidence-based decisions for continuous 

improvement. 

All divisions of the College set goals and 

evaluate performance under the overarching 

Wildly Important Goals (WIGs) set by the Board. 

TSTC’s first strategic plan was adopted 4 years 

ago. Since then the Board and College narrowed 

their plans to two WIGs focusing on Student 

Success and Organizational Health. 

Wildly Important Goal 1: 

Student Success 

In contrast to traditional academic institutions, 

TSTC was established to be an economic 

generator for the State of Texas. Wildly 

Important Goal 1 prioritizes the optimization 

and innovation of the student pipeline that 

produces graduates to go into the Texas 

workforce. From recruiting to job placement, 

the TSTC student experience must meet student 

needs and industry demand. 

TSTC’s pipeline involves a curated mix of 

programs and a modern day learning platform 

with curriculum calibrated specifically to the 

needs of Texas industry. Instructional leadership 

continually tracks program performance using 

core indicators such as enrollment, persistence, 

graduates and first year wage growth. As is true 

of any pipeline, events occurring upstream have 

downstream effects. For the College’s pipeline, 

this means that circumstances defining a single 

cohort of students impacts the entire pipeline 

until that cohort exits the pipeline into the 

workforce. 

Prior to 2019, TSTC offered a program in 

agricultural technology. Through the College’s 

ongoing program assessment process, 

leadership concluded several programs no 

longer delivered student outcomes worthy of 

inclusion in its mix of programs. The College 

would replace the low performing program with 

the higher performing electrical lineworker 

program. 

In this scenario, you can easily assess the impact 

on two hypothetical students. 

One is an agricultural technology graduate. She 

can expect a wage of $39,000 a few years after 

transferring and completing her studies at a 

four-year institution. By that time the electrical 

lineworker student will graduate and earn 

$119,000, a salary that started at $67,000 and 

grew over the next five years. 

It’s obvious which program and which outcome 

is better for the student, and therefore better for 

TSTC and Texas Industry. However, these choices 

create short term challenges for the College. 

Closing programs and replacing that capacity 

stalls TSTC’s production of graduates, which is 

reflected in the goals. 

01 

Time At TSTC 

Time At TSTC 

Time At University 

Time At University 

Starting Salary 

Salary After 3 Years 

Starting Salary 

WIG 1: Student Success 

High-Tech & High-Demand 


High-Tech & High-Demand 

2 years 

2 years 

2 years 

2 $26,000 years 

$39,000 

$26,000 

20 months 

20 months 

none 

$67,000 

$119,000 

none 

$67,000 

Salary After 3 Years 

$39,000 


$119,000 

7

02 

3750 


Performance Trend & Forecast 

Actuals 

2021 Original Forecast 

2022 Revised Forecast 

WIG Goal 

3500 

3,549 

3,382 

3,334 

3250 

3,065 

3,257 

3,145 

3,164 

3,238 

3,035 

3,106 

3000 

3,046 

2,949 

2750 

2,838 2,844 

2016 2017 2018 2019 2020 2021 2022 2023 2024 

In February 2020, when establishing the WIG 

1 goals, leadership and the Board accounted 

for some of these cohort-impacting events. 

Specifically, in 2019, leadership closed 14 

instructional programs which no longer 

delivered student placement and wage 

outcomes worthy of inclusion in TSTC’s program 

mix. The College factored in the phase-out 

of the students historically enrolled in these 

programs in establishing a new trajectory of 

graduate production. The long-term goal would 

return production of graduates to the 2019 high 

water-mark by fiscal year 2022. Ultimately, the 

graduates lost will be replaced with those in 

programs with higher employability outcomes 

under this new, curated program mix. 

The renewed strategic plan anticipated 

6% growth in annual enrollment and a 6% 

increase in our graduate rate production for the 

programs that remained after the 2019 closures. 

Leadership and management accepted a 3 year 

goal of returning the graduate count from 3,257 

in fiscal year 2019 to 3,238 in fiscal year 2022. 

Returning to 2019 levels will be delayed based 

on our latest forecast. The impact of COVID 

reduced the student cohorts of fiscal year 

2020 and 2021, impacting TSTC’s 3 and 5 year 

plans. TSTC produced 10% fewer graduates in 

2020 than hoped for in the original goal, with 

the impact persisting in the following years. 

The downstream effect of COVID’s impact on 

the 2020 and 2021 cohorts is illustrated in 

the revised trajectory (the line graph). Based 

on the most recent count of students, TSTC is 

anticipating 3,035 students will graduate in 

fiscal year 2022 and 3,334 will graduate in 

fiscal year 2024. 

3-YEAR GOAL 

Return the graduate count from 3,257 

in fiscal year 2019 to 3,238 by fiscal 

year 2022. 

5-YEAR GOAL 

Increase the graduate count from 3,257 

in fiscal year 2019 to 3,549 by fiscal 

year 2024. 

8 



Wildly Important Goal 3: 

Organizational Health 

3-YEAR GOAL 

Increase the overall score on the Survey 

of Employee Engagement to 400 by 


5-YEAR GOAL 

Increase and maintain the overall 

score on the Survey of Employee 

Engagement to 400 through 


TSTC’s focus on organizational health provided 

a clear advantage during fiscal year 2020 

and 2021. Like the rest of the world, TSTC’s 

workplace dynamics changed abruptly with 

virtually no warning. The College immediately 

activated the Emergency Response Team at the 

first signs of the disruption before the nation 

had really braced for impact. TSTC assembled 

and deployed a team of contact tracers to 

monitor all cases through resolution and 

throttled up communication protocols ensuring 

the TSTC community received constant and clear 

updates. 

The College continued developing its ranks 

of leaders and managers and launched a 

new Pay for Performance compensation 

strategy. The result is a renewed focus on 

recognizing and rewarding employees for 

performance excellence and outcomes. 

Phase 1 of this initiative saw over 320 

employees receive a “Pay for Performance” 

compensation increases in recognition of 

their sustained work excellence. 

TSTC exceeded its goal with an overall score 

of 404 on the 2021 Survey of Employee 

Engagement. The College exceeded its 

sustainability goal of 400 despite the abrupt 

changes affecting the workforce last year. 

Through TSTC’s dedication to the creation of 

a healthy, productive culture, insights have 

emerged and TSTC is assembling these into a 

declaration of our principles and beliefs. 

03 

WIG 3: Organizational Health 

Performance Trend & Forecast 

410 

400 

407 

404 

400 

400 

400 

Survey of Employee Engagement 

390 

380 

370 

360 

372 

378 

388 

350 

2017 2018 2019 2020 2021 2022 2023 2024 


9


BUDGET PRESENTATION 

Organizational Structure & 

Budget Framework 

TSTC’s organizational and leadership structures 

continuously evolve and this year was no 

exception. Leadership restructured with the 

creation of a new division, External Relations, 

combining all departments that interact with 

external constituents, including potential 

students, graduates, donors, industry, or 

legislative stakeholders. External Relations 

will strengthen and deepen relationships 

with industry and external constituents by 

strategically aligning the outward facing 

departments of the College to unify TSTC’s voice 

and brand. 

The new organizational structure and resulting 

allocation of resources across the College is 

illustrated below. 

04 

Presentation, Assumptions & Estimates 

Various line items in prior year budget and 

actual amounts are reclassified to align 

with the current organizational structure 

and budget framework for consistency in 

comparative analysis. 

Fiscal year 2021 forecast amounts and 

certain fiscal year 2022 budget amounts 

use available data and related estimates 

as of May 31, 2021. 

The College will realize appropriation 

revenues in accordance with bill patterns 

established by the 87th Legislature. 

TSTC prepares budgets using a cash basis 

of accounting, including budgeting debt 

service payments (principal and interest), 

and excluding depreciation expense from 

the budget. 

The annual budget report is a starting 

point. TSTC anticipates many refinements 

to this budget throughout the year as 

the needs and circumstances of all 

TSTC departments continually change, 

especially given the many financial 

uncertainties related to the COVID-19 

pandemic. 

4% 

Finance 

6% 

External 

Relations 

13% 

Shared 

Resources 

13% 

Statewide 

Benefits 

16% 

Student 

Services 

2% 

Statewide 

Administration 

2022 Budget 

$240,490,937 

25% 

Instruction 

21% 

Student 

Financial Aid 

10 




ANNUAL OPERATING BUDGET 

FY 2020 FY 2021 FY 2021 FY 2022 

REVENUE Actual Budget Forecast Budget 

Appropriations - Returned Value Formula 66,124,351 66,124,351 66,124,351 69,944,409 

Special Items & Other Appropriations 23,000,122 23,169,199 23,169,199 24,328,988 

Appropriations - HEAF 8,662,500 8,662,500 8,662,500 8,662,500 

Appropriations - TRB Retirement 3,758,881 3,757,232 3,757,232 3,752,809 

Appropriations - Group Insurance 14,335,594 14,163,822 14,163,822 13,930,449 

Appropriations - Benefits Match 10,454,389 10,721,329 9,838,467 10,789,000 

Tuition 43,833,112 44,192,647 43,100,000 43,966,000 

Student Financial Aid 31,142,956 33,369,711 31,869,206 31,595,000 

Auxiliary Services 10,448,791 10,118,700 8,160,000 9,003,284 

Fees & Educational Sales 3,745,122 3,738,936 3,708,000 3,127,500 

Industry Relations 1,520,662 3,314,000 1,550,000 2,575,400 

Grants 9,739,178 9,006,112 19,984,515 15,431,075 

Contracts & Other 3,882,858 3,717,700 2,940,030 2,408,366 

230,648,516 234,056,239 237,027,322 239,514,780 

Carryforward / Reserves 1,914,868 976,157 

EXPENSE 

Instruction 62,283,651 66,809,201 61,598,005 61,223,499 

Financial Aid 37,876,030 38,529,711 38,924,120 36,860,968 

Benefits 31,592,691 31,492,672 29,747,393 30,937,761 

Finance 9,506,441 10,756,887 9,243,118 10,027,838 

External Relations 15,110,315 16,429,279 15,324,261 14,038,386 

Auxiliary Services 10,221,668 10,966,612 8,771,586 9,333,756 

Student Services 8,968,579 11,064,571 9,344,799 10,319,289 

Facilities 9,355,980 9,961,314 8,894,104 9,179,100 

Facilities - Transfer to Capital Budget 3,690,836 1,808,924 1,832,924 1,114,958 

Information Technology 8,464,657 9,649,790 9,656,314 9,070,488 

Statewide Administration 4,171,313 4,608,063 4,351,175 4,534,902 

Debt Service 11,927,567 11,964,640 13,115,652 16,078,645 

Utilities and Other 6,706,931 7,808,277 9,570,002 6,842,785 

Grants 5,703,318 4,121,166 15,433,144 12,928,562 

Strategic Pool 0 0 0 8,000,000 

225,579,977 235,971,107 235,806,597 240,490,937 

Operating Budget Margin 5,068,539 0 1,220,725 0 


11

OPERATING REVENUES 

Revenue Mix 

TSTC derives its budget from several sources 

of funds. State appropriations are the most 

significant revenue source, contributing 55 

percent of the College’s total revenues. Student 

tuition is the second largest category of 

revenues, contributing 18 percent of the total 

in fiscal year 2022. Student Financial Assistance 

passes through the College as revenue and 

is eventually applied to students’ accounts 

through an offsetting/equal expense. Other 

supplemental revenues including grants, pilot 

training fees, housing rents, retail sales and 

contract-related income combine to account 

for a smaller but still significant amount of 

revenues. The illustration below demonstrates 

the relative contributions from the different 

sources of funds. 

State Appropriations 

Total General Revenue appropriations for fiscal 

year 2022 increased approximately $5 million 

over amounts received in fiscal year 2021. By 

the conclusion of the 87th Legislative Session 

in May 2021, the Texas Legislature once again 

affirmed TSTC’s Returned-Value Formula by 

funding TSTC for the full amount earned in the 

formula, which was the primary factor for the 

increase in total appropriations. TSTC also saw 

a slight increase in the E&G Space Support 

appropriation, as the Texas Legislature generally 

increased these amounts for all institutions 

across the state. 

Other components of appropriation funding 

are considered “non-formula support”, which 

include the Small Institution Supplement, 

Institutional Enhancement, System Office 

Operations, and Startup Funding strategies. 

Capital improvement funding from the Higher 

Education Assistance Funds (HEAF) appropriation 

and specific appropriations that pay for Tuition 

Revenue Bond retirement (debt service) also 

contribute to total TSTC appropriations. 

05 06 

18% 

Tuition 

55% 

State 

Appropriations 

2022 Revenues 

$239,514,780 

14% 

Other* 

18% 

Tuition 

13% 

Student 

Financial 

Assistance 2022 Revenues 

55% 

State 


$239,514,780 

14% 

Other* 

19% 

Benefits 

13% 

Student 

Financial 

Assistance 

53% 

Returned-Value 

Formula 

2022 Revenues: 


$131,408,1553% 


Formula 

19% 

Special 

Items 19% and 

Benefits 

Other* 

6% 

2022 HEAF Revenues: 


$131,408,155 3% 

Debt 

Service 

19% 

Specia 

Items an 

Other* 

H 

D 

Se 

Other* 

Grants 

7% 

Auxiliary Services 

4% 

Industry Relations Other* 1% 

7% Fees & Educational SalesE&G Space 1% Support 

4% Contracts & Other 1% 

1% 

1% 

1% 

12 

Start Up Funding 

4% 

Small Institution Supplement 

3% 

Institutional Enhancement 

3% 

System Office Operations & Other 2% 

Dual Credit 1% 


Other* 

E&G Space Support 

6% 

Start Up Funding 

4% 

Small Institution Supplement 

3% 

Institutional 6% Enhancement 

3% 

System Office Operations & Other 2% 

Dual Credit 1%


Returned-Value Formula Performance 

TSTC’s unique Returned-Value funding formula 

continues to pioneer a new way of higher 

education funding in Texas with positive results. 

In the most recent formula calculation used 

for the 87th Legislative Session, the number 

of graduates included in the formula remained 

consistent with prior years, while the average 

wages of those graduates over the five-year 

calculation period climbed to higher levels. 

These higher wages resulted in the increase in 

formula funding TSTC is realizing for fiscal year 

2022. 

TSTC increased its capability for estimating 

future returned formula forecasts. With an 

increasing but less than full confidence, TSTC 

anticipates this trend of higher wages to 

continue for at least two more biennia. The 

number of graduates at that time may trail 

off associated with the program closures that 

occurred in fiscal year 2019. 

By solely focusing on training in programs with 

high performance pay outcomes for students, 

TSTC has benefited from the funding drivers 

embedded in the formula, and the State of Texas 

continues to see the related economic growth, 

just as the original formula design intended. 

07 

TSTC's Returned-Value Formula 

Actual 

Forecast 

TSTC Student 

Wages 

2014-2015 

83rd 

275.47M 

2016-2017 

84th 

264.96M ▼4% 

2018-2019 

85th 

340.22M ▲28% 

2020-2021 

86th 

2022-2023 

87th 

371.87M ▲9% 389.51M ▲5% 

2024-2025 

88th 

458.74M ▲18% 

2026-2027 

89th 

650.78M ▲42% 

Commission Rate 36% 

36% 

36% 

36% 

36% 

36% 

36% 

Funded Rate 33% 36% 

28% 

36% 

36% 

TBD TBD 

234M 


Funding 

98M 

94M 

Earned 

Funded 

121M 

132M 

140M 

165M 

TBD 

TBD 

90M 

94M 

94M 

132M 

140M 


13

Tuition 

Significant demand inconsistencies related to 

the pandemic created substantial uncertainty 

for long-range estimates of tuition revenue. 

Considering this environment, TSTC budgeted 

tuition at a conservative amount for fiscal year 

2022. Fiscal year 2021 actual tuition revenues 

are forecasted to finish at approximately $43 

million, and the fiscal year 2022 budget only 

slightly increases that amount to $44 million. 

Very early enrollment projections for the Fall 

2021 semester appear promising, but unusually 

high levels of uncertainty still dominate all 

aspects of society and business as the pandemic 

lingers into its second year. Accordingly, the 

tuition revenue budget for fiscal year 2022 is 

being held close to prior year (pandemic era) 

levels until more certainty comes into focus. 

08 

Tuition Trends 

2018 2019 2020 2021 - Forecast 2022 - Budget 

44.96M 

45.43M 

47.28M 

44.19M 

43.97M 

42.43M 43.66M 43.83M 43.10M 43.97M 

* Bar Chart Figures represent the Budgeted Tuition Revenue for the specific Fiscal Year. 

* The line chart figures represent the Actual & Forecasted Tuition revenue for the specific Fiscal Year. 

Budgeted Tuition Revenue 

Actuals & Forecasted Tuition Revenue 

14 



Other Revenues 

In addition to the primary revenue sources of 

state appropriations and tuition, TSTC generates 

other revenues from a variety of services, 

initiatives and contracts. Many of these services 

are referred to as Auxiliary Enterprises, which 

provide needed services for students, faculty, 

and staff and charge a fee related to that 

service. In fiscal year 2022, similar to tuition 

revenue, an extremely high level of uncertainty 

exists around future demand and the ability to 

accurately predict these revenue sources. 

TSTC has seen material declines in these 

supplemental revenue producing activities with 

the onset and continuation of the pandemic, 

much like many other institutions of higher 

education across the nation. Although TSTC 

is not nearly as reliant on these activities to 

produce significant revenue compared to 

traditional four-year universities, the decline 

still has an impact on TSTC’s overall budget. 

Retail Operations were affected the most due 

to the transition to online learning, which has 

greatly reduced foot traffic on campus. Training 

programs like Industry Relations and Flight 

Training also experienced material declines. 

Employers engaged in less on-site workforce 

training, and continuing education saw a drop 

in demand as well. Additionally, a phase-out 

of TSTC’s helicopter pilot training program was 

initiated in fiscal year 2020, which added to the 

overall revenue decline compared to prior years. 

As a result of the revenue declines, managers of 

these business units reduced expense budgets 

in fiscal year 2022 to minimize overall losses 

where possible. 

The potential for the volume of these services 

to ever return to pre-pandemic levels is still very 

uncertain, and a “new normal” will likely affect 

these functions for years to come. 

09 

FY 2020 FY 2021 

FY 2022 

Actual Budget Forecast Budget 

Other Revenues 

Retail Operations 4,166,506 5,386,500 3,965,000 4,570,000 

Housing 4,219,032 3,420,000 2,904,000 3,321,284 

Industry Relations 1,520,662 3,314,000 1,550,000 2,575,400 

Flight Training 1,497,859 2,050,000 1,643,000 1,600,000 

SkillsEngine 890,509 1,280,000 949,000 950,000 

Airport 1,991,535 1,112,000 1,291,000 1,112,000 

Total Other Revenues 14,286,103 16,562,500 12,302,000 14,128,684 


15

OPERATING EXPENSES 

10 

FY 2020 FY 2021 FY 2022 

Budget Budget Budget 

Operating Expenditures 

Operating Costs 111,709,898 104,031,984 109,389,827 

Statewide Benefits 29,742,672 31,201,472 30,937,761 

Personnel Costs 93,567,521 100,737,651 92,163,349 

Strategic Pool 5,000,000 - 8,000,000 

Total Operating Expenditures 240,020,091 235,971,107 240,490,937 

Total operating expenditures budgeted for 

fiscal year 2022 are $240 million, compared 

to $236 million budgeted for fiscal year 2021. 

Of note, however, is that budgeted CARES grant 

expenditures are included in the fiscal year 

2022 total. Excluding CARES expenses, the 

total operating expense budget has decreased 

by approximately $4 million from fiscal year 

2021. The decrease in budgeted expenditures 

is the result of a conservative, “base budget” 

approach by management for fiscal year 2022, 

with material room for contingencies. TSTC is 

utilizing a Strategic Pool in the upcoming year 

as a mechanism to allow management to nimbly 

react and allocate resources as needed to 

quickly changing demands and circumstances. 

In addition to utilizing a Strategic Pool for 

managing contingencies, the fiscal year 2022 

budget has been prepared by removing all 

vacant positions that were previously budgeted 

but unfilled. As a result, the personnel budget 

appears significantly decreased, when in 

actuality it has simply been reduced to real-time 

staffing levels. The Strategic Pool will serve as a 

way for the College to more proactively manage 

hiring growth in this uncertain time, while still 

allowing for quickly accelerated growth if and 

when necessary. 

One other noteworthy item in the fiscal year 

2022 budget is an increase in debt service 

expenditures of approximately $3 million. This 

increase reflects the new debt service payments 

due on $30 million of Revenue Financing 

System bonds issued in August 2020. These 

bonds are payable over a ten year period, and 

the proceeds have been allocated to fund 

expansion projects in Instruction and Student 

Recruiting. 

In summary, uncertainty once again dominates 

the budgeting and planning approach at TSTC 

for a second consecutive year. A myriad of 

external factors such as unpredictable revenues, 

supply chain delays, rising construction costs, 

inflation, near zero interest rates and a very tight 

job market all play a role in defining the fiscal 

year 2022 budget. TSTC was fortunate to dodge 

many of the hurdles that have set back other 

colleges. Strong pandemic protocols along 

with tremendous resilience exhibited by TSTC 

faculty, staff and students placed the College 

in a sound, flexible financial position despite 

of all the unusual challenges the pandemic has 

presented. 

16 



COVID-19 RELIEF 

Coronavirus Aid, Relief and Economic 

Security Act 

In response to the economic disruption caused 

by COVID-19, the federal government passed 

the CARES Act in March 2020 to provide 

funding for students and institutions of higher 

education. Multiple awards have been made 

from the Department of Education in the sixteen 

months since the original Act was authorized. In 

total, TSTC was awarded just over $40 million 

for institutional purposes, and approximately 

$28 million for direct aid to students. These 

funds carry time and purpose restrictions, and 

TSTC is currently deploying a Capital Allocation 

Plan to successfully and strategically invest 

these funds to their highest and best use. 

In TSTC’s annual operating budget, CARES funds 

are accounted for in the “Grants” line item, in 

both revenue and expense. TSTC expects to 

expend much of the remaining student portion 

in fiscal year 2021, as relief funds have been 

disbursed quickly to students. A large portion 

of the institutional funds are budgeted in fiscal 

year 2022, with more to be added to the budget 

in the very near future as plans are finalized and 

executed. 

Restrictions regarding the purpose and timing of 

these funds increase the complexity for efficient 

deployment of these funds. TSTC leadership 

is closely monitoring execution velocity of the 

related projects and will redeploy the related 

capital as necessary. The College will report 

to the Board of Regents on the deployment of 

these funds throughout the life of the COVID-19 

relief grants. 

BUDGET 

PLAN 

11 

MEASURE 

COVID-19 Relief 

EXECUTE 

CARES Grant (March 2020) Institutional Student 

Higher Education Emergency Relief Funds (HEERF) 4,982,000 4,982,000 

HEERF - Minority Serving Institution Funds 1,139,000 

CARES Grant - Amendment / Addition (December 2020) 

Higher Education Emergency Relief Funds (HEERF) 16,309,000 4,982,000 

HEERF - Minority Serving Institution Funds 627,000 

American Rescue Plan (April 2021) 18,500,000 18,500,000 

TOTAL Federal Pandemic Relief Funding 41,557,000 28,464,000 


17

CAPITAL BUDGET 

TSTC’s capital budget consists of inflows and 

outflows of funds specifically identified for the 

acquisition, construction, and renovation of 

facilities and other long-term improvements. 

The most common source of funding for capital 

projects is debt and TSTC issued $30 million of 

new debt (Series 2020 RFS bonds) in August 

2020 to fund much needed expansion and 

renovation projects. The expenditure of the 

proceeds of this bond spans multiple fiscal 

years and $15.9 million is planned to be spent 

in fiscal year 2022 on the projects outlined in 

the table below. 

Similar to the operating budget of the College, 

the capital budget has changed significantly in 

the last year as the pandemic upended almost 

every aspect of how TSTC functions. Initial, prepandemic 

capital plans included a $15 million 

renovation of the Industrial Technology Center 

in Waco for administrative offices to be utilized 

by those departments that were displaced by 

the abatement and demolition project. But, as all 

TSTC employees transitioned to remote work in 

March 2020, this project was put on hold and is 

postponed indefinitely as remote work at TSTC 

has proven to be efficient and effective. In place 

of the administrative office project are new 

projects that more directly impact Instruction, 

External Relations, and Student Life. 

In 2019, TSTC received a one-time, 

supplemental appropriation of $29.6 million 

from the Texas Legislature to fund a large-scale 

abatement and demolition project at the Waco 

campus. Although many individual projects 

related to this appropriation are still ongoing or 

have yet to begin, all funds were obligated in 

fiscal year 2021, and as a result, the expenditure 

of the supplemental appropriation is complete, 

and does not appear in the fiscal year 2022 

capital budget. 

12 

Capital Project Uses 

Capital 

Reserves 

EDA Grant 

Capital Funding Sources 

2020 RFS 

Bond 

Operating 

Transfers In 

Deferred Maintenance - - - 1,114,958 1,114,958 

Harlingen Multi-Function Center - - 2,100,000 - 2,100,000 

Waco EEC/TSC Renovation 2,583,594 3,400,000 - - 5,983,594 

Waco JBC 1st and 2nd Floor Renovation - - 5,200,000 - 5,200,000 

Waco Kultgen Automotive Renovation - - 1,900,000 - 1,900,000 

Plumbing Licensure Testing Sites - - 2,400,000 - 2,400,000 

Waco North Interceptor (Sewer) - - 1,500,000 - 1,500,000 

Other Projects - - 1,399,512 - 1,399,512 

Reserves for Future Use 2,416,406 - 1,378,780 - 3,795,186 

Total FY22 Expenses 5,000,000 3,400,000 15,878,292 1,114,958 25,393,250 

Total 

18 



EXHIBITS 


19

EXHIBIT I: Detailed Operating Expense Budget 

2020 2021 2022 

Expense Type Original Budget Original Budget Original Budget 

Instruction 

Academics Personnel Costs 9,991,875 9,149,308 7,873,583 

Operating Costs 926,177 755,084 685,718 

Total Academics 10,918,052 9,904,392 8,559,301 

Aerospace Personnel Costs 3,360,963 3,746,679 2,739,787 


Total Aerospace 5,574,510 5,226,669 3,982,494 

Allied Health Personnel Costs 4,275,915 4,129,305 3,886,986 


Total Allied Health 4,798,908 4,746,839 4,426,916 

C4EO Personnel Costs 1,396,641 1,530,140 1,667,388 


Total C4EO 1,815,105 1,873,914 2,011,162 

Construction & Safety Personnel Costs 1,394,117 1,433,741 1,455,865 


Total Construction & Safety 1,609,266 1,645,907 1,668,031 

Digital Transformation Personnel Costs 5,539,987 5,213,300 4,686,006 


Total Digital Transformation 5,948,242 5,529,651 5,002,357 

Electrical Instrumentation Personnel Costs 5,278,988 6,062,626 5,984,687 


Total Electrical Instrumentation 5,830,496 6,555,364 6,537,519 

Industrial Manufacturing Personnel Costs 5,684,414 7,334,024 6,587,549 


Total Industrial Manufacturing 7,429,310 8,601,234 7,884,759 

Instructional Pool Personnel Costs 2,623,000 3,307,044 3,554,000 


Total Instructional Pool 9,286,897 9,826,874 7,811,298 

Instructional Sales Personnel Costs 730,373 701,812 476,328 


Total Instructional Sales 806,086 762,574 537,090 

Provosts & Admin Personnel Costs 4,005,080 5,216,464 6,097,403 

Operating Costs 1,161,613 702,076 871,086 

Total Provosts & Admin 5,166,693 5,918,540 6,968,489 

Strategic Partnerships Personnel Costs 459,232 125,744 84,324 


Total Strategic Partnerships 2,146,078 181,944 140,524 

Transportation Personnel Costs 3,516,725 3,772,873 3,665,374 


Total Transportation 4,008,583 4,187,806 4,080,307 

Vision & Alignment Personnel Costs 1,268,675 1,398,534 1,164,293 


Total Vision & Alignment 1,744,514 1,847,493 1,613,252 

Total Instruction 67,082,740 66,809,201 61,223,499 

Financial Aid 

College Work Study Personnel Costs 0 637,308 441,468 


Total College Work Study 500,000 1,319,711 921,468 

Equal Opportunity Grants Operating Costs 3,295,256 2,800,000 2,520,000 

Total Equal Opportunity Grants 3,295,256 2,800,000 2,520,000 

Institutional Scholarship Operating Costs 500,000 1,092,000 1,102,500 

Total Institutional Scholarship 500,000 1,092,000 1,102,500 

Loans Operating Costs 650,000 650,000 650,000 

Total Loans 650,000 650,000 650,000 

Pell Grants Operating Costs 28,650,000 28,000,000 27,000,000 

Total Pell Grants 28,650,000 28,000,000 27,000,000 

Tuition Set Asides Operating Costs 6,092,234 4,668,000 4,667,000 

Total Tuition Set Asides 6,092,234 4,668,000 4,667,000 

Total Financial Aid 39,687,490 38,529,711 36,860,968 

Statewide Benefits 29,742,672 31,492,672 30,937,761 

20 

Finance 


Budget, Accounting & Reporting Personnel Costs 2,311,793 2,289,092 2,016,340 

Operating Costs 232,414 245,356 184,756

College Work Study Personnel Costs 0 637,308 441,468 


Total College Work Study 500,000 1,319,711 921,468 

Equal Opportunity Grants Operating Costs 3,295,256 2,800,000 2,520,000 

Total Equal Opportunity Grants 3,295,256 2,800,000 2,520,000 

Institutional Scholarship Operating Costs 500,000 1,092,000 1,102,500 

Total Institutional Scholarship 500,000 1,092,000 1,102,500 

Loans Operating Costs 650,000 650,000 650,000 

Total Loans 650,000 650,000 650,000 

Pell Grants Operating Costs 28,650,000 28,000,000 27,000,000 

Total Pell Grants 28,650,000 28,000,000 27,000,000 

Tuition Set Asides Operating Costs 6,092,234 4,668,000 4,667,000 

Total Tuition Set Asides 6,092,234 4,668,000 4,667,000 

Total Financial Aid 2020 39,687,490 2021 38,529,711 2022 36,860,968 




Instruction 

Statewide Benefits 

Academics Personnel Costs 

29,742,672 

9,991,875 

31,492,672 

9,149,308 

30,937,761 

7,873,583 



Finance Aerospace Personnel Costs 3,360,963 3,746,679 2,739,787 

Budget, Accounting & Reporting Operating Personnel Costs 2,213,547 2,311,793 1,479,990 2,289,092 1,242,707 2,016,340 

Total Operating Aerospace Costs 5,574,510 232,414 5,226,669 245,356 3,982,494 184,756 

Allied Health Personnel Total Budget, Costs Accounting & Reporting 2,544,207 4,275,915 2,534,448 4,129,305 2,201,096 3,886,986 

Business Intelligence Operating Personnel Costs 1,075,772 522,993 1,091,732 617,534 1,336,772 539,930 

Total Operating Allied Costs Health 4,798,908 245,347 4,746,839 175,812 4,426,916 175,812 

C4EO Personnel Total Business CostsIntelligence 1,321,119 1,396,641 1,267,544 1,530,140 1,512,584 1,667,388 

Finance - Admin Operating Personnel Costs 418,464 425,820 343,774 468,044 343,774 402,540 

Total Operating C4EOCosts 1,815,105 210,770 1,873,914 189,693 2,011,162 264,693 

Construction & Safety Personnel Total Finance Costs- Admin 1,394,117 636,590 1,433,741 657,737 1,455,865 667,233 

Human Resources Operating Personnel Costs 2,281,755 215,149 2,535,800 212,166 2,306,703 212,166 

Total Operating Construction Human Costs Resources & Safety 1,609,266 2,956,415 674,660 1,645,907 3,097,500 561,700 1,668,031 

2,890,187 583,484 

Digital Institutional Transformation Effectiveness Personnel Costs 5,539,987 628,719 5,213,300 743,795 4,686,006 619,767 

Operating Costs 408,255 187,866 316,351 180,805 316,351 119,305 

Total Digital Institutional Transformation Effectiveness 5,948,242 816,585 5,529,651 924,600 5,002,357 739,072 

Electrical Procurement Instrumentation Personnel Costs 5,278,988 1,951,744 6,062,626 2,035,920 5,984,687 1,770,272 

Operating Costs 551,508 312,209 492,738 239,138 552,832 247,394 

Total Procurement Electrical Instrumentation 5,830,496 2,263,953 6,555,364 2,275,058 6,537,519 

2,017,666 

Total Industrial Finance Manufacturing Personnel Costs 10,538,869 5,684,414 10,756,887 7,334,024 10,027,838 6,587,549 



External Instructional Relations Pool Personnel Costs 2,623,000 3,307,044 3,554,000 

External Relations Admin Operating Personnel Costs 6,663,897 394,588 6,519,830 264,164 4,257,298 344,748 

Total Operating Instructional Costs Pool 9,286,897 17,050 9,826,874 14,865 7,811,298 230,000 

Instructional Sales Personnel Total External Costs Relations Admin 411,638 730,373 279,029 701,812 574,748 476,328 

Advancement & Communications Operating Personnel Costs 3,607,568 75,713 3,923,938 60,762 3,891,026 60,762 

Total Operating Instructional Costs Sales 3,478,313 806,086 2,398,155 762,574 2,409,816 537,090 

Provosts & Admin Personnel Total Advancement Costs & Communications 7,085,881 4,005,080 6,322,093 5,216,464 6,300,842 6,097,403 

College Readiness Operating Personnel Costs 1,161,613 1,069,092 1,129,688 702,076 871,086 595,861 

Total Operating Provosts Costs & Admin 5,166,693 456,361 5,918,540 370,137 6,968,489 583,092 

Strategic Partnerships Personnel Total College Costs Readiness 1,525,453 459,232 1,499,825 125,744 1,178,953 84,324 

Government Affairs Operating Personnel Costs 1,686,846 856,781 773,125 56,200 597,856 56,200 

Total Operating Strategic CostsPartnerships 2,146,078 208,429 181,944 187,586 140,524 187,586 

Transportation Personnel Total Government Costs Affairs 1,065,210 3,516,725 3,772,873 960,711 3,665,374 785,442 

Industry Relations Personnel Costs 2,291,138 2,791,346 1,690,773 

Operating Costs 1,508,932 1,336,527 852,437 

Total Industry Relations 3,800,070 4,127,873 2,543,210 

Recruitment Personnel Costs 1,709,692 1,935,776 1,454,972 


Total Recruitment 2,092,192 2,220,903 1,744,099 

Talent Management Personnel Costs 747,056 824,442 716,689 


Total Talent Management 973,502 1,018,845 911,092 

Total External Relations 16,953,946 16,429,279 14,038,386 


Airport & Farm Personnel Costs 337,559 322,411 148,728 


Total Airport & Farm 765,901 750,753 578,570 

Bookstore Personnel Costs 836,238 832,587 587,228 


21

Government Affairs Personnel Costs 856,781 773,125 597,856 


Total Government Affairs 1,065,210 960,711 785,442 

Industry Relations Personnel Costs 2,291,138 2,791,346 1,690,773 

Operating Costs 1,508,932 1,336,527 852,437 

Total Industry Relations 3,800,070 4,127,873 2,543,210 

Recruitment Personnel Costs 1,709,692 1,935,776 1,454,972 


Total Recruitment 2,092,192 2,220,903 1,744,099 


Talent Management Personnel Costs 747,056 824,442 716,689 


Total Talent Management 973,502 1,018,845 911,092 

Total External Relations 16,953,946 16,429,279 14,038,386 

2020 2021 2022 



Instruction 



Total Airport & Farm 765,901 750,753 578,570 


Bookstore Personnel Costs 836,238 832,587 587,228 


Airport & Farm 

Academics 

Personnel Costs 


337,559 

9,991,875 

322,411 

9,149,308 

148,728 

7,873,583 

Operating 

Operating 

Costs 

Costs 

2,649,895 

2,213,547 

2,495,456 

1,479,990 

1,608,850 

1,242,707 

Total 

Total Aerospace 

Bookstore 3,486,133 

5,574,510 

3,328,043 

5,226,669 

2,196,078 

3,982,494 

Food 

Allied 

Service 

Health 

Personnel 

Personnel 

Costs 

Costs 4,275,915 

932,812 

4,129,305 

968,100 

3,886,986 

718,092 

Operating 

Operating 

Costs 

Costs 

1,041,880 

522,993 

837,300 

617,534 

801,400 

539,930 

Total 

Total Allied 

Food Service 

Health 

1,974,692 

4,798,908 

1,805,400 

4,746,839 

1,519,492 

4,426,916 

Housing 

C4EO 

Personnel 

Personnel 

Costs 

Costs 

1,712,793 

1,396,641 

1,531,226 

1,530,140 

1,416,007 

1,667,388 

Operating 

Operating 

Costs 

Costs 

2,500,377 

418,464 

3,033,975 

343,774 

3,261,866 

343,774 

Total 

Total C4EO 

Housing 4,213,170 

1,815,105 

4,565,201 

1,873,914 

4,677,873 

2,011,162 

Printing 

Construction 

Production 

& Safety 

Div Personnel 

Personnel 

Costs 

Costs 1,394,117 

281,928 

1,433,741 

302,424 

1,455,865 

150,552 

Operating 

Operating 

Costs 

Costs 

232,695 

215,149 

214,791 

212,166 

211,191 

212,166 

Total 

Total Construction 

Printing Production 

& Safety 1,609,266 

514,623 

1,645,907 

517,215 

1,668,031 

361,743 

Total 

Digital 

Auxiliary 

Transformation 

Services 


10,954,519 

5,539,987 

10,966,612 

5,213,300 

9,333,756 

4,686,006 


Total Digital Transformation 5,948,242 5,529,651 5,002,357 

Enrollment Electrical Instrumentation Management 

Personnel Costs 5,278,988 6,062,626 5,984,687 


Enrollment Management Personnel Costs 7,771,645 8,328,465 7,459,614 

Total Electrical Instrumentation 5,830,496 6,555,364 6,537,519 


Industrial Manufacturing Personnel Costs 5,684,414 7,334,024 6,587,549 

Total Enrollment Management 10,547,575 10,576,641 9,739,991 


Student Services - Admin Personnel Costs 416,274 308,840 334,208 



Instructional Pool Personnel Costs 2,623,000 3,307,044 3,554,000 

Total Student Services Admin 600,373 487,930 579,298 


Total Enrollment Management 11,147,948 11,064,571 10,319,289 

Total Instructional Pool 9,286,897 9,826,874 7,811,298 


Facilities 



Fleet Provosts & Admin Personnel Costs 4,005,080 73,276 5,216,464 135,456 6,097,403 138,820 

Operating Costs 1,304,314 1,161,613 1,171,445 702,076 1,171,645 871,086 

Total Fleet Provosts & Admin 1,377,590 5,166,693 1,306,901 5,918,540 1,310,465 

6,968,489 

Maintenance Strategic Partnerships & Physical Plant Personnel Costs 4,072,910 459,232 4,669,718 125,744 3,935,291 84,324 

Operating Costs 3,174,837 1,686,846 2,666,884 56,200 2,754,826 56,200 

Total Maintenance Strategic Partnerships & Physical Plant 7,247,747 2,146,078 7,336,602 181,944 6,690,117 140,524 

Planning, Transportation Construction & Admin Personnel Costs 3,516,725 831,724 1,182,247 3,772,873 3,665,374 924,988 


Total Planning, Construction & Admin 1,954,400 1,317,811 1,178,518 

Total Facilities 10,579,737 9,961,314 9,179,100 

Facilities - Transfer to Capital Budget 3,690,836 1,808,924 1,114,958 

Information Technology 

Infrastructure & Equipment Personnel Costs 511,276 529,440 266,844 


Total Infrastructure & Equipment 1,404,837 776,161 460,764 

Management Support & Operations Personnel Costs 3,178,390 3,263,702 2,784,697 


Total Management Support & Operations 3,672,250 3,712,778 3,338,773 

Shared Expenses Operating Costs 5,063,078 5,160,851 5,270,951 

Total Shared Expenses 5,063,078 5,160,851 5,270,951 

Total Information Technology 10,140,165 9,649,790 9,070,488 

Statewide Administration 

General Counsel Personnel Costs 2,391,586 2,412,404 2,194,866 


Total General Counsel 3,095,440 3,034,821 2,908,830 

Internal Audit Personnel Costs 362,592 382,772 406,236 



Total Internal Audit 382,121 403,072 426,036 

Office of the CEO Personnel Costs 662,194 844,470 874,336 


Total Office of the CEO 1,027,989 1,170,170 1,200,036 

22

Information Technology 

Infrastructure & Equipment Personnel Costs 511,276 529,440 266,844 


Total Infrastructure & Equipment 1,404,837 776,161 460,764 

Management Support & Operations Personnel Costs 3,178,390 3,263,702 2,784,697 


Total Management Support & Operations 3,672,250 3,712,778 3,338,773 

Shared Expenses Operating Costs 5,063,078 5,160,851 5,270,951 

Total Shared Expenses 5,063,078 5,160,851 5,270,951 

Total Information Technology 

2020 

10,140,165 

2021 

9,649,790 

2022 

9,070,488 




Instruction 

Statewide Administration 

Academics Personnel Costs 9,991,875 9,149,308 7,873,583 

General Counsel Personnel Costs 2,391,586 2,412,404 2,194,866 




Total General Counsel 3,095,440 3,034,821 2,908,830 


Internal Audit Personnel Costs 362,592 382,772 406,236 



Total Aerospace 5,574,510 5,226,669 3,982,494 

Total Internal Audit 382,121 403,072 426,036 

Allied Health Personnel Costs 4,275,915 4,129,305 3,886,986 

Office of the CEO Personnel Costs 662,194 844,470 874,336 



Total Allied Health 4,798,908 4,746,839 4,426,916 

Total Office of the CEO 1,027,989 1,170,170 1,200,036 

C4EO Personnel Costs 1,396,641 1,530,140 1,667,388 

Total Statewide Administration 4,505,550 4,608,063 4,534,902 


Total C4EO 1,815,105 1,873,914 2,011,162 

Construction & Safety Personnel Costs 1,394,117 1,433,741 1,455,865 

Shared Resources 


Grants Total Personnel Construction Costs & Safety 1,609,266 200,721 1,645,907 38,633 1,668,031 1,968,562 

Digital Transformation Personnel Operating Costs 5,539,987 327,802 5,213,300 4,082,533 10,960,000 

4,686,006 

Operating Total Grants Costs 408,255 528,523 4,121,166 316,351 12,928,562 316,351 

Strategic Pool Total Personnel Digital Costs Transformation 5,948,242 5,000,000 5,529,6510 5,002,357 4,584,280 

Electrical Instrumentation Personnel Operating Costs 5,278,9880 6,062,6260 5,984,687 3,415,720 

Operating Total Strategic Costs Pool 5,000,000 551,508 492,7380 8,000,000 552,832 

Utilities & Other Total Personnel Electrical CostsInstrumentation 5,830,496 102,624 6,555,364 118,992 6,537,519 36,120 

Industrial Manufacturing Personnel Operating Costs 5,684,414 7,794,425 7,334,024 7,689,285 6,587,549 6,806,665 

Operating Total Utilities Costs & Other 1,744,896 7,897,049 1,267,210 7,808,277 1,297,210 

6,842,785 

Debt Services & Leases Total Personnel Industrial CostsManufacturing 7,429,310 13,476 8,601,2340 7,884,7590 

Instructional Pool Personnel Operating Costs 11,556,571 2,623,000 11,940,640 3,307,044 16,078,645 

3,554,000 

Operating Total Debt Costs Service & Leases 11,570,047 6,663,897 11,940,640 6,519,830 16,078,645 

4,257,298 

Total Shared Resources Total Instructional Pool 24,995,619 9,286,897 23,870,083 9,826,874 43,849,992 

7,811,298 


Total Operating Expenses Operating Costs 240,020,091 75,713 235,947,107 60,762 240,490,937 60,762 


Provosts & Admin Personnel Costs 4,005,080 5,216,464 6,097,403 


Total Provosts & Admin 5,166,693 5,918,540 6,968,489 

Strategic Partnerships Personnel Costs 459,232 125,744 84,324 


Total Strategic Partnerships 2,146,078 181,944 140,524 

Transportation Personnel Costs 3,516,725 3,772,873 3,665,374 


23

EXHIBIT II: TSTC Definitions 

EXHIBIT III: TSTC Fund Accounting 

CARES - Coronavirus Aid, Relief, and Economic 

Summary 

Security Act 

Core Ops – A group of Vice Chancellors that 

have oversight of the College’s core operations: 

Student Learning, Student Service, Advancement & 

Communications, and Finance. 

ERP – Enterprise Resource Planning software 

used to transform business processes, people and 

technology. 

Pipeline – The progression of a student through 

TSTC from time of application to measuring wages 

in a placed job in the Texas workforce. 

Program Vitality – The analysis of enrollment, 

graduation, job placement, persistence, student 

wage reports and other metrics to inform program 

mix. 

Definitions 

Budget – An expenditure plan. 

Scorecard – A periodic report of key student 

success and performance indicators and outcomes 

designed to support the strategic direction of the 

College’s Student Learning division. 

SEE – Survey of Employee Engagement, an annual 

survey that TSTC participates in to gather data on 

the teammates perception of the College. 

WIG – Wildly Important Goal, a Franklin Covey 

term from the book 4 Disciplines of Execution. 

24 STRATEGIC PLAN & BUDGET REPORT 

TSTC budgets are essentially expenditure plans. 

TSTC expenditure plans must be balanced against 

revenues for each fund, including use of prior 

revenues within a fund balance. 

TSTC establishes budgets at the unit level. Once 

budgets are established, TSTC maintains fiscal 

control by monitoring expenditures against the 

budget. 

The Board adopts an original budget for each fiscal 

year. During the year, the budget is adjusted to 

account for any necessary changes, including new 

gifts, grants and other revenue sources as they 

occur. Only budget changes over $500,000 require 

Board approval. 

Contribution Margin – Revenue minus direct cost. 

Describes the unit’s ability to cover variable or 

direct costs with revenue. 

Fund – A sum of money saved or made available 

for a particular purpose. 

Fund Accounting – The accounting for funds that 

serve different or separate purposes. In effect, 

accounting for various funds can be compared to 

accounting for different companies or different 

divisions of a company. All transactions are 

separately accounted for to keep the fund 

balances separate even though actual cash from 

some of the funds may be co- mingled in local 

bank accounts. 

Fund Accounting Equation – Beginning Balance + 

Revenues – Expenditures = Ending Balance. 

Unit – An account code that is associated with a 

department or unique purpose. Any number of 

units make up a TSTC fund.


TSTC Funds 

Fund Numbers 

1. Education & General (E&G) – Appropriated by 

the state of Texas, kept in and expended from 

state treasury. Includes state tuition collected 

by TSTC (Fund 237) and general revenue of the 

state (Fund 001) for the purpose of instruction, 

student development, administration, operating 

and maintenance of plant, employee benefits 

and other authorized uses. 

8. Plant Funds – Funds set aside for construction, 

renovation, repairs and debt service. Plant funds 

are unique in that they generally originate in 

the other funds and are then moved into plant 

funds through the budgeting process. Includes 

both funds held in the state treasury as well as 

funds in TSTC local bank accounts. 

9. Balance Sheet Accounts – This fund is a 

repository for all TSTC balance sheet accounts 

including assets, liabilities and net assets. 

2. Loan Funds – Gifts and tuition set-asides for 

student loans. Not budgeted. These funds are 

kept in TSTC local bank accounts. 

3. Designated Funds – Funds for instruction, 

administration, operating and maintenance of 

plant, capital improvements, student services 

and other College uses. These funds are kept in 

TSTC local bank accounts. 

4. Auxiliary Funds – Includes funds related to TSTC 

operations that charge for services provided 

such as bookstores, food service, housing, 

airport and lease of property. These funds are 

kept in TSTC local bank accounts. 

5. Endowment Funds – Includes gifts or funds 

raised for providing long-term revenue 

for the College, from which only earnings 

are expendable. These funds are generally 

transferred to another fund prior to expenditure, 

not budgeted in Fund 5. These funds are kept in 

TSTC local bank accounts. 

6. Restricted Funds – Gifts and grants to be used 

for specific purposes defined by the external 

originating source: federal, state and local 

governments or private sources. These funds 

are kept in TSTC local bank accounts, but most 

operate on a reimbursement basis. 

7. Agency Funds – Funds which are other 

peoples’ money; administered by TSTC acting as 

custodian, such as for student organizations, The 

TSTC Foundation, etc. These funds are kept in 

TSTC local bank accounts. Budgets are set by the 

organization served. 


25

EXHIBIT IV: Acknowledgements 

This presentation, accompanied by the video 

series, is the collaborative effort of many 

teammates across the College. Represented in the 

creation of these presentations are TSTC’s values 

of Excellence, Accountability, Service, and Integrity. 

The following teams and individuals contributed to 

this report and/or video representation of the past 

and future meaningful work done to Place More 

Texans in Great Paying Jobs while also making 

TSTC a Great(er) Place to Work. 

Thank you to these exceptional teammates: 

Budget, Accounting and Reporting Team 

Business Intelligence Team 

Communication and Creative Services Team 

Finance Administration Team 

Institutional Effectiveness Team 

Printshop Team 

Key Contributors: 

Ben Ranzinger, Rabenwolf Entertainment, LLC, Video Production 

Caitlin Simmonds, Publication Specialist II, Creative Services 

Chad Wooten, Associate Vice Chancellor for Finance 

Dawn Parker, Executive Assistant to the Vice Chancellor and Chief Financial Officer 

Jonathan Hoekstra, Vice Chancellor and Chief Financial Officer 

Jonathan Lasley, Executive Vice President for Business Intelligence 

Madelynne Johnston, Finance Chief of Staff 

Additional Contributors: 

Celina Garza, Vice President for Institutional Effectiveness 

Dave Huynh, Data Scientist I 

David Kofnovec, Senior Financial Analyst 

Fernando Guerrero, Senior Data Analyst 

Jay Gerik, Senior Manager, Business Intelligence 

Jennifer Verworn, Business Data Analyst III 

Jessica Montalvo, Senior Financial Analyst 

Melissa Moreno, Staff Assistant 

Nathan Ehlert, Senior Executive Director of Budget 

Shannon Wiggins, Senior Budget Analyst 

Stephanie Vestal, Senior Data Analyst 

Tina Skidmore, Senior Executive Director for Business, Analytics, and Reporting 

26 



© Copyright Texas State Technical College, All rights reserved. Published July 

2021. 

Texas State Technical College (TSTC) is accredited by the Southern Association 

of Colleges and Schools Commission on Colleges (SACSCOC) to award Associate 

Degrees and Certificates of Completion. Contact the Southern Association of 

Colleges and Schools Commission on Colleges at 1866 Southern Lane, Decatur, 

Georgia 30033-4097 or call 404-679-4500 for questions about the accreditation 

of Texas State Technical College. 

Equal opportunity shall be afforded within TSTC to all employees and applicants 

for admission or employment regardless of race, color, gender, religion, national 

origin, age, genetic information, disability or veteran status. TSTC will make 

reasonable accommodations for persons with disabilities. TSTC’s policy is that, in 

all aspects of its operations, each person with a disability shall be considered for 

admission or access to or treatment or employment in its programs and activities 

in accordance with Part 84 of Title 45, the regulation implementing Section 504 

of the Rehabilitation Act of 1973. 


27

FY22 Strategic Plan Update Budget Report

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