FY23 Strategic Plan and Budget Report

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APPROVED 08/18/2022 5 YEAR PRO FORMAS WITH CCAP DEBT SERVICE The following 5-year pro forma scenarios illustrate the economic viability of the related projects under different conditions. Scenarios vary based on different inputs for tuition revenue, legislative funding and expense management, while assuming identical new capital project debt service expenses across all scenarios. Forward-looking statements are based on management’s current views and assumptions and, as a result, are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. BEST CASE SCENARIO A best-case scenario is presented in Figure 13, showing the results of a 10% year-overyear increase in tuition and consistent payout of TSTC’s returned-value funding formula at the 36% commission rate. Under this scenario, TSTC’s strategic opportunities expand considerably with $106 million additional margin to deploy towards further growth and transformation. WORST CASE SCENARIO The worst case scenario pro forma analysis, Figure 12, imagines average annual tuition revenue losses at rates experienced during the COVID-19 pandemic and appropriations held absolutely flat despite the returned-value performance that supports higher performancebased funding (dropping commission rates in the 21-31% range). While perceived as unlikely, disruptions in TSTC’s performance could create substantial downside financial losses if revenue gains don’t continue at the level of new financial commitments. 26 STRATEGIC PLAN & BUDGET REPORT
APPROVED 08/18/2022 Figure 12: Worst Case Scenario Tuition & Return Value 340M 130M 330M 120M 320M 310M 110M 300M 100M 290M 280M 90M 270M 80M 260M 250M 70M 240M 60M 230M 220M 50M Five Year - Pro Forma w CCAP Debt Service -1.5% Avg Annual Tuition Losses & Appropriations Flat Tuition - 1.5% Average Losses Total Operating Expense Returned Value - Flat Total Operating Revenue $31M Accum. Deficit with Reduced Investment 340M 320M 300M 280M 260M 240M 220M Total Operating Revenue & Expense 210M 40M 200M 2022 2023 2024 2025 2026 2027 200M Figure 13: Best Case Scenario 340M 130M 330M Five Year - Pro Forma w CCAP Debt Service 10% Avg Annual Tuition Growth & Appropriations @ 36% Comm Rate Tuition - 10% Average Growth Total Operating Expense Returned Value - As Modeled Total Operating Revenue 340M Tuition & Return Value 120M 320M 310M 110M 300M 100M 290M 280M 90M 270M 80M 260M 250M 70M 240M 60M 230M 220M 50M $106M Accum. Margin for Strategic Re-Investment 320M 300M 280M 260M 240M 220M Total Operating Revenue & Expense 210M 40M 200M 2022 2023 2024 2025 2026 2027 200M STRATEGIC PLAN & BUDGET REPORT 27
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 and 18: APPROVED 08/18/2022 OPERATING BUDGE
Page 19 and 20: APPROVED 08/18/2022 A. B. C. D. E.
Page 21 and 22: APPROVED 08/18/2022 RETURNED- VALUE
Page 23 and 24: APPROVED 08/18/2022 OPERATING EXPEN
Page 25: APPROVED 08/18/2022 CAPITAL BUDGET
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

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