MCC Daily Tribune

A Word about the MCC Budget Development Process

Even though fiscal year 2019 has just gotten underway, it is already time to begin planning the College's fiscal year 2020 budget. The vice presidents and President Kress begin budget discussions later this month with early conversations on enrollment projections*, which significantly impact our revenue projections. From there, divisional input is gathered and discussions continue through the spring, when we begin having conversations with Monroe County officials, who will be asked to approve the budget in July and August.

Yes, that overview of the budget process sounds much simplified. Let me spend a few moments fleshing out just some of the details.

In early 2019, the vice presidents and President will work within their divisions to develop department and divisional budgets. At that time, department heads propose budgets and include funding requests for any special projects. Special projects (not the routine day-to-day) are best served prior to budgeting planning as part of a conversation on strategy and strategic planning. Like all organizations, resources are limited and not all ideas can be funded. The state requires that our budget be balanced. We require that all budget proposals link to "Charting the Course: Strategic Plan 2017-2021."

The largest piece of college and university budgets is personnel; our field of work is labor-intensive. At any given time, due to retirements, resignations, and leaves of absence, MCC has budgeted positions that are funded but not currently filled. We regularly assess these positions, removing and defunding those positions no longer needed, and keeping those we are likely to fill. The budgeted salaries of unfilled positions more often than not are added to our fund balance.

My last word, for now, is on the fund balance, which may be easiest to think of as a savings account or cushion to weather fiscal challenges. Some years we add to our fund balance and some years we take from it. Since 2009, we have used portions of our fund balance four times and added to it six times, for a net of -$500,000. SUNY recommends that its colleges and universities maintain a fund balance in the range of 5-15% of expenses; at the end of fiscal year 2018, MCC's fund balance was 12.4% of expenses ($14.8 million).

*I've asked Institutional Research and Enrollment Management to share information with you regarding how enrollment projections are set. The projections are data driven and influenced by our Strategic Enrollment Management Plan. Watch the MCC Daily Tribune for more information. Stay tuned, also, for insights on how tuition is set.

Hezekiah Simmons
CFO and Vice President, Administrative Services
11/15/2018