Illinois Valley Community College’s is expected to reduce operating costs 3.7 percent next year, members of the board’s audit-finance committee learned Tuesday night.
“We have reduced operating costs and used zero-based budgeting to the point where there are few areas to make reductions other than in personnel,” said Vice President for Business Services and Finance Cheryl Roelfsema.
Since 2012, IVCC has reduced personnel costs by about $1.5 million by not filling 33 vacancies following resignations and retirements, she said.
The last time it passed a budget in 2015, the state appropriated IVCC $2.7 million. The $21.4 million 2018 operating budget anticipates just 50 percent of that appropriation or about $1.3 million.
“We will work with budget officers over the next six months on an expenditure plan should state funding fall below 50 percent,” Roelfsema said.
Zero-based budgeting is a method of accounting in which all expenses must be justified and start from a “zero base,” Roelfsema said, adding, every line item is analyzed for its needs and costs.
The college anticipates the current budget ending June 30 will have a deficit of $305,000, which will be covered by reserves.
“It is a credit to staff, faculty and our board that for two years we have carefully monitored spending and reduced costs while continuing to provide high-quality education and services to our students,” said President Jerry Corcoran.
The full board will review the tentative budget at 6:30 p.m. Thursday, July 13.
Audit-finance also reviewed the Information Technology Services strategic plan for 2017-20 that includes expansion of the virtual desktop initiative, website redesign and enhanced document imaging.
In other business, the committee:
- Heard from Gary Gauger of Midwest Energy regarding potential savings in electricity purchasing. If IVCC contracted with MidAmerican (also known as Homefield Energy) or Constellation Energy, the college could save up to $8,500 per year, Gauger said.
- Learned dual credit enrollment continues to account for about 10 percent of overall enrollment. The Free and Reduced Lunch waiver generated additional credit hours and provided access to college for a greater number of capable students. Students qualifying for the Free and Reduced Lunch in district high schools took 678 credit hours over the two semesters combined.
The full board meets next at 6:30 p.m. Thursday, June 8.
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May 24, 2017 at 03:14AM