Farver presents budget balancing plans

The MHCC 2012-2013 budget is already being built and a gap is in sight for next year.

As of last June, there is a projected $5.5 million gap in the school’s budget. Within the next few months that number is expected to change but no exact estimate is set, according to Bill Farver, vice president of administrative services.

Farver delivered a 75-slide powerpoint presentation for Associated Student Government members Oct. 21 detailing the budget constraints for next year. The hour-long speech examined the MHCC general fund budget, which is roughly $66 million, all of which comes from the budget so there is no deficit.
Farver said state funds are slow to come in, including a $1.5 million grant state allocation that was given to the school but then recalled due to state budget shortfalls.

“Declining state funds have forced community colleges to replace state funds by increasing tuition and fees,” Farver said. “MHCC tuition is slightly higher than the statewide average, but not a major difference.”

He said a tuition increase and the new parking fee are ways the college have generated more revenue to avoid a deficit. Oregon law requires public jurisdictions to balance their budgets, so they cannot operate under a deficit like the federal government.

Actual revenue from parking fees is still hard to predict, according to Farver. Revenue collected for this year has gone to pay for parking meters and parking stickers.

More budget preparation will take place before the Budget Review Team can present a budget proposal to the president, then ultimately to the district board board, which they must adopt in June. “There is still work to determine how to appropriately balance everything out,” said Farver.

“Property taxes and other revenues have remained relatively stable but the cost of higher education has shifted from state taxpayers to the burden of students and families,” Farver said.

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