Chapter 7 Institutional Stability 60
Finance For fiscal year 20062007, the college’s management budget, representing the actual amount available to spend in a year, was $168,446,734. It was composed of the operating budget, totaling $126,300,569, and the budgets for all other funds such as capital outlay, auxiliary and restricted funds, totaling $42,146,165. Because the college anticipated an increase in both state aid and assessed valuation in the county, the 20062007 budget reflected a decrease in the mill levy of .1 mill, dropping it to 8.860 mills. This was the lowest the college’s mill levy had been since 2002. The reduction meant the average homeowner in <strong>Johnson</strong> <strong>County</strong> paid about $234 a year to support the college. In 20062007, about 58 percent of JCCC’s operating funding came from county taxes; the rest came from student tuition, motor vehicle taxes, state aid and outofdistrict tuition. 20062007 GENERAL FUND REVENUES 52% | Ad Valorem Taxes 6% | Local Motor Vehicle Taxes 16% | State Aid 8% | Other 18% | Tuition AAA rating According to a report published in October 2006 by Standard & Poor’s titled AAARated Credits in U.S. State & Local Government Finance, JCCC continues to maintain the highest bond ratings, AAA. Only 21 school districts in the nation, including five community college districts and one technical college district, had their government obligation debt rated AAA. According to the report, general characteristics of AAA districts include growing tax bases and proximity to economic centers, very high wealth indices, strong management practices with a focus on multiyear planning, strong financial position, management of debt burden and appropriate ratios and rankings for average overall net debt per capita, average per capita market value and average general fund balance as a percentage of operating expenditures. According to Standard & Poor’s, an organization rated BBB or higher is regarded as having financial security characteristics that outweigh any vulnerabilities and is highly likely to have the ability to meet financial commitments. An organization rated AAA has “extremely strong” financial security characteristics; AAA is the highest rating Standard & Poor’s assigns. 20062007 GENERAL FUND EXPENDITURES 68% | Salaries and Benefits 20% | Current Operating 12% | Capital In 20082009, students will likely see an increase in tuition of $2 per credit hour for instate students and $5 per credit hour for outofstate students. <strong>Johnson</strong> <strong>County</strong> residents will pay $65 a credit hour, Kansas residents outside the county will pay $80 a credit hour and nonKansas residents will pay $149 a credit hour. “These high ratings are testimony to JCCC’s financial responsibility. By funding capital projects now, we can take advantage of low interest rates and save the taxpayers money.” – Lynn Mitchelson, chair, JCCC board of trustees 61