Operating Budget, 2005-2006

Background

This year, for the first time, Windward Community College is publishing its operating budget and making it available to the entire college community. Windward Community College is committed to an open and inclusive budget development process that utilizes the College Mission and the Windward 2002-2010 Strategic Plan as the primary document for prioritization of all discretionary expenditures. The Strategic Plan will be reviewed for revision annually in response to program reviews and critical changes in the college environment.

In spring of each year, Deans and Directors will work with their units to develop budget requests. Justifications and priorities will be prepared based on demonstrated need (program review and assessment data), college priorities (Strategic Plan), or emergency circumstances. These requests and justifications will be submitted to the Budget Committee in April.

In April and May, the Budget Committee will review the requests and recommend expenditures based on justifications. When requests exceed, or fail to be met by, available funds, the Budget Committee will recommend prioritization and adjustments using the strategic plan priorities. In June, the administration will determine the final operating budget for the year considering Budget Committee recommendations, other sources of funds, etc.

For 2005-2006, the first year to follow this process, there was a late start, so the Budget Committee and the administration agreed to work together in June to create the budget. In October, and again in January, the actual expenditures for the first two quarters will replace the estimates used for budgeting. At that time cuts or additional allocations will be recommended to the administration by the Budget Committee. In April, final adjustments for the year will be made if necessary. The Budget Committee will be consulted on any interim adjustments. The budget and its back-up documents will be posted on the college web page.

The following pages provide and explain the beginning Annual Operating Budget for 2005-2006.

Windward Community College

2005-2006 Annual Operating Budget

Annual Operating Budget Summary Page

Part 1.

Part 2.

Part 3.

Part IV.

Part V.

Additional Deferred Requests

Details of   Part 1.

Per legislative worksheet, collective bargaining not included.
President released all to colleges. Positive Adjustments:

Details of Part 2.

The regular payroll for faculty and staff in existing budgeted positions was considered to be a fixed cost. Salaries were based on FY'06, collective bargaining was included. Each position expense was examined and adjustments were made for vacancies, and partial year filling.

Definition of Other Fixed Costs :

Expenses incurred to support the physical plant, equipment and operating capacity of the college. Charges set and subject to change primarily by external agencies, such as insurance premiums, utility charges, memberships, and other similar service costs. Fixed costs remain relatively constant.   Examples of fixed costs: Telephone, Electricity, Gas, Water, Sewer

Only Institutional Support was considered to have "other fixed costs".   These were based on FY'05 estimated actual costs.

Details of Part 3.

Definition of Essential Costs

Those costs which are considered necessary to operation of the programs, and which recur on an annual basis. While they are subject to adjustment, they remain fairly constant. Therefore, they do not have to be justified each year. Increase in the essentials will need to be justified and treated as a budget request. Examples of essentials: vehicle gasoline &oil, phone book advertising, R&M Equipment, software licenses, service fees, maintenance contracts, postage, instructional supplies, duplicating supplies

* The college was mandated to spend 5% of the new appropriation on additional security over FY'06

Details of   Part 4.

Internal Allocations

The budget development procedure states that the budget committee will review requests and recommend discretionary expenditures based on justifications in April and May. The administration would then finalize the process in June. For FY'06, since the procedure is new and the timeline had passed, the administration and the budget committee agreed to work together in June to review requests and recommend discretionary expenditures based on the strategic plan and justifications.  

The following allocations were requested, justified and funded as top priorities for the units.

In the past three years, the college has opened each year with a projected deficit of $200,000 or higher, but has been able to close the year in balance. The balances have been achieved through turnover savings and frugal spending on the part of all departments and units. For 2005-2006 the decision was made to begin the year with a balanced budget, with the provision that adjustments will be made quarterly based on actual revenues and expenditures.

Details of Part V.

Additional program requests.

The balanced budget takes care of critical needs, but leaves many expenditures that are necessary to optimum programming still unfunded. Funding of additional requests has been deferred until January when an update will be made based on actual fall semester revenues and expenditures. If there are additional funds, or cuts need to be made, then the changes will be prioritized based on the strategic plan, and available reports and data.