FY 2021 Strategic Plan Update and Budget Report

Other Revenues
In addition to the primary revenue sources of
State Appropriations and Tuition, TSTC generates
other revenues from a variety of services and
initiatives. Many of these services are referred
to as Auxiliary Enterprises, which provide
needed services for students, faculty, and staff
and charge a fee related to that service.
TSTC has seen material declines in these
revenue producing activities with the onset
of COVID-19, much like many institutions of
higher education across the nation. Although
TSTC is not nearly as reliant on these activities
to produce significant revenue compared to
traditional four-year universities, the decline
still has an impact on TSTC’s overall budget.
Housing and Retail Operations have been
affected the most due to students moving
home, reduced foot traffic on campus, and
new distancing requirements that reduce the
capacity of available beds to lease. Additionally,
the Waco campus abatement and demolition
project will negatively affect housing revenue
in the upcoming year. Many existing housing
units will be vacated as abatement begins, and
Waco’s new 246 bed residence hall will not
be ready for operation until Fiscal Year 2022,
leaving a one-time gap in revenues during Fiscal
Year 2021.
Training programs like Industry Relations
and Flight Training have also experienced
declines. Employers are engaging in less on-site
workforce training and continuing education
has seen a drop in demand as well. Additionally,
TSTC’s helicopter pilot training program was
canceled in Fiscal Year 2020, which adds to the
overall revenue decline.
Managers of these business units have reduced
expense budgets in Fiscal Year 2021 to
correspond with the revenue declines, but the
material loss of revenues has the potential to
reach further into the College’s budget in the
future. The outlook for these services to return
to pre-COVID-19 levels is very uncertain, and a
“new normal” will likely affect these functions,
and the College overall, for years to come.
11
FY 2019 FY 2020
FY 2021
Actual Budget Forecast Budget
Other Revenues
Retail Operations 5,950,525 5,795,841 4,318,319 5,386,500
Housing 4,922,576 5,240,000 4,133,381 3,420,000
Industry Relations 3,447,812 4,239,823 2,341,443 3,314,000
Flight Training 2,735,682 2,400,000 1,550,000 2,050,000
SkillsEngine 669,874 1,280,000 894,000 1,280,000
Airport 976,800 970,000 1,735,877 1,112,000
Total Other Revenues
18,703,269 19,925,664 14,973,020 16,562,500
20
STRATEGIC PLAN & BUDGET REPORT