League Reaffirmation - Johnson County Community College

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 Johnson County 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. Johnson County 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
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