RVCC 2019 NECHE Self-Study

CCSNH began a five-year budget model implemented in the Spring 2018 to see how
various increases and decreases will ultimately affect our financial position. The five-year
budget model allows individual colleges and the CCSNH System to make system wide and
college specific assumptions, then make adjustments to revenue and expense projections,
and analyze the outcomes. This financial modeling tool will provide the Board of Trustees
a way to determining when tuition increases are needed or if program consolidation should
be evaluated. Although in the early stages of utilization and development, this new fiveyear
modeling tool assisted the Board of Trustees in deciding on a $5 per credit tuition
increase for the FY19 based of the projected enrollment trends, cost of living increase, and
changes in benefits cost.
RVCC’s estimated FY2019 revenue is $9.926 million, and our estimated operating
expenses are $9.324 million. We estimate our revenues to be flat, unless enrollment
trends dictate otherwise. We estimate our expenses for salaries to increase based on
percentages that are negotiated during the collective bargaining process and benefits
changes based on industry trends and our estimated loss ratios. General operating
expenses are projected to stay flat unless there are projected needs as a direct result of
enrollment trends or if major equipment purchases for a program are needed. For
example, RVCC purchased a non-energized X-ray machine for the Radiography program in
FY18 to improve outcomes for students and to meet industry standard trainings for the
accredited program.
Once the RVCC budget is created, it is merged with other CCSHN institution budgets and
with the budget of the System Office before being presented to the Board of Trustees
finance committee. Upon approval, it is presented to the entire Board of Trustees. Then,
each fall and spring, the BAO must present to the BoT and identify where RVCC stands
compared to the year’s predicted budget. For 2019, RVCC budgeted a loss, presenting as
general fund revenues of $9.483 million, salaries and benefits of $7.289, and operating
expenses of $2.251 million, with an estimated loss of $57,307. The fall forecast for 2019
is $9.642 million for revenue, and a $9.034 million forecast for expenses, with an
estimated surplus of $607,902. This surplus is due to positions being vacant, enrollment
numbers being higher than expected, and faculty and staff being conservative with
spending. This forecast will be modified again in the spring once more accurate tally
numbers for spring enrollment can be obtained, and salary and benefit data is accurately
updated to reflect new hires. Lastly, throughout the year, financial updates are provided to
the BoT on a monthly and quarterly basis.
Reserve Fund
Due to the high reliance on tuition revenue, the College is vulnerable to changes in
enrollment and is currently in the process of developing a plan to create a reserve fund
with the support of CCSNH and the Board of Trustees. The goal for each college in the
CCSNH is to create a reserve of 5% within the next 5 years to ensure that each college can
handle downward trends in enrollment. The strategic plan of the CCSNH accounts for the
development of this reserve by reducing costs to individual colleges through the utilization
of shared services (for example cutting Marketing, Institutional Research, and Banner
Coordinator costs for smaller rural colleges by utilizing a shared staff member).
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