FY23 Strategic Plan and Budget Report

More documents

Recommendations

Info

APPROVED 08/18/2022 FISCAL YEAR 2023 BUDGET PRESENTATION REVENUE FY 2021 FY 2022 FY 2022 FY 2023 Actual Budget Forecast Budget Note Returned Value Formula Appr. 66,124,351 69,916,159 69,916,159 69,916,159 A Special Items & Other Appr. 23,289,560 24,357,238 24,697,281 24,681,894 A Debt Service Appropriations 3,757,232 3,752,809 3,752,809 2,984,557 A HEAF Appropriations 8,662,500 8,662,500 8,662,500 8,662,500 A Benefits Appropriations 25,220,318 24,719,449 25,218,183 25,190,449 A Tuition 42,188,728 43,966,000 52,750,000 55,387,500 B Student Financial Aid 31,283,520 31,595,000 44,130,426 35,765,009 C Auxiliary Enterprises 7,065,577 9,003,284 8,258,940 8,888,000 D Fees & Educational Sales 3,331,724 3,127,500 3,721,419 3,032,500 D Industry Relations 1,729,608 2,575,400 2,150,107 2,006,800 D Grants 29,591,833 15,431,075 28,537,509 14,138,353 E Contracts & Other 3,677,198 2,408,366 2,826,762 2,835,500 Total Revenue 245,922,149 239,514,780 274,622,095 253,489,221 EXPENSE Total Expense Carryforward / Reserves -5,869,902 976,157 5,561,055 4,909,498 F Instruction 61,721,362 61,223,499 66,512,751 64,819,384 G, H Student Financial Aid 37,052,710 36,860,968 53,221,656 40,655,282 C Statewide Benefits 30,988,988 30,937,761 31,748,452 31,128,358 Finance 9,707,204 10,431,328 11,733,499 11,995,656 G External Relations 14,597,994 14,038,386 14,915,137 15,649,860 G Auxiliary Enterprises 9,376,119 9,333,756 10,308,476 9,238,374 G Enrollment Management 9,589,488 10,319,289 11,008,869 12,085,396 G Facilities & Plant 13,828,825 13,475,359 14,219,078 13,919,519 G Facilities - Transfer to Capital 1,808,924 1,114,958 1,114,958 5,614,958 I Information Technology 10,414,807 9,964,988 11,855,109 10,844,854 G Statewide Administration 5,173,385 5,420,952 5,529,371 5,901,887 Debt Service & Leases 13,915,374 16,441,131 21,028,345 15,171,063 J Grants 19,375,460 12,928,562 25,170,382 10,374,128 E Strategic Pool (to be allocated) - 8,000,000 - 11,000,000 K 237,550,640 240,490,937 278,366,083 258,398,719 Margin (Deficit) 2,501,607 0 1,817,067 0 18 STRATEGIC PLAN & BUDGET REPORT
APPROVED 08/18/2022 A. B. C. D. E. F. G. H. I. J. K. FY23 appropriation revenues were determined in the 87th regular legislative session through the General Appropriations Act, which was finalized in May 2021. Debt Service appropriations decrease in FY23 as twenty-year bonds issued in 2002 were paid in full the prior year. Tuition revenue saw a strong improvement in FY22 as TSTC’s enrollment rebounded from the pandemic dip. The FY23 tuition revenue budget increases approximately 5% over FY22, as the positive momentum in enrollment is expected to continue. Student Financial Aid revenue and expense, both saw big increases in FY22 as a result of CARES Act federal aid going directly to students. That aid is mostly exhausted and slight increases in these categories, compared to prior “normal” years, correlate to expected increases in enrollment and tuition. Supplemental sources of revenue were hit hardest by the pandemic, as many auxiliary operations and industry relations activities went significantly dormant. Revenue projections for these categories in FY23 are mostly conservative, as long-term impacts from the pandemic to these operations are still unknown. Grants revenue, as well as Grants expense, have seen major increases and changes the last few years as a result of CARES Act funding. A majority of this funding was expended in FY21 and FY22, but supply chain issues and other external factors will push the remaining revenue and related expenditures into FY23. TSTC routinely utilizes accumulated reserves for various purposes. In FY21, $5.9 million of CARES Act lost revenue funds were deposited into reserves to be used in future years. In FY22, $5.5 million of reserves were utilized for early debt retirements, as well as to fund scholarships from accumulated balances in restricted funds. In FY23, TSTC plans to use reserves of approximately $5 million to balance the operating budget. Expense budgets for the primary operating divisions of the College are generally elevated compared to prior years. As competitive salaries are increasing nationwide and inflation has begun to materially impact operating costs, budgets must increase for TSTC to continue to deliver high quality technical training while also improving employee pay where possible. The expense budget for the Instructional division of the College continues to increase year over year, although FY22 forecasted actual expenses are higher than the FY23 budget. This variance is the result of an early retirement of debt related to equipment purchases for the Fort Bend and North Texas campuses. The entire balance of the debt of $4.2 million was paid off in FY22, which frees up approximately $2 million annually in future budgets for other instructional initiatives. Also, FY22 forecasted expenses and the FY23 budget each include a $1.8 million payment as a part of a three-year aircraft fleet replacement program. In an effort to improve facilities and maintain a higher standard of quality for the look and feel of its campuses, TSTC is investing an additional $4.5 million per year (beginning in FY23) to address deferred maintenance and allow for scheduled equipment upgrades. As mentioned in Note F, TSTC retired various outstanding debts in FY22, including lease purchases at Fort Bend and Marshall. Also, in March 2022, certain bonds were refunded to take advantage of lower interest rates. As a result, the total debt service budget in FY23 is $1.3 million lower than FY22. TSTC utilizes a strategic pool each year to respond to rapid changes in operations and allocate budget increases throughout the year. For FY23, the $11 million pool includes $3.0 million for anticipated cost increases due to inflation, $3.5 million for pay-for-performance salary increases, and $4.5 million to fund new positions as enrollment is expected to continue to grow. STRATEGIC PLAN & BUDGET REPORT 19
Page 1 and 2: STRATEGIC PLAN & BUDGET REPORT FISC
Page 3 and 4: APPROVED 08/18/2022 A LETTER FROM T
Page 5 and 6: APPROVED 08/18/2022 SUSTAINING OUR
Page 7 and 8: APPROVED 08/18/2022 WIG 2: Quality
Page 9 and 10: APPROVED 08/18/2022 NECESSARY TRANS
Page 11 and 12: APPROVED 08/18/2022 RETOOL THE PROD
Page 13 and 14: APPROVED 08/18/2022 RE-ENGINEER PRO
Page 15 and 16: APPROVED 08/18/2022 FORTIFY APPROPR
Page 17: APPROVED 08/18/2022 OPERATING BUDGE
Page 21 and 22: APPROVED 08/18/2022 RETURNED- VALUE
Page 23 and 24: APPROVED 08/18/2022 OPERATING EXPEN
Page 25 and 26: APPROVED 08/18/2022 CAPITAL BUDGET
Page 27 and 28: APPROVED 08/18/2022 Figure 12: Wors
Page 29 and 30: APPROVED 08/18/2022 INTEGRITY Being
Page 31 and 32: APPROVED 08/18/2022 The Big 3 1. Be
Page 33 and 34: APPROVED 08/18/2022 EXHIBIT III: Co
Page 35 and 36: APPROVED 08/18/2022 FY22 WIG 3 : 3
Page 37 and 38: Total 181,944 140,524 0 Transportat
Page 39 and 40: Enrollment Management Enrollment Ma
Page 41 and 42: APPROVED 08/18/2022 EXHIBIT VI: TST
Page 43: APPROVED 08/18/2022 © Copyright Te

FY23 Strategic Plan and Budget Report

Create successful ePaper yourself

Delete template?

Save as template?