FY23 Strategic Plan and Budget Report

APPROVED 08/18/2022
5 YEAR PRO FORMAS
WITH CCAP DEBT
SERVICE
The following 5-year pro forma scenarios
illustrate the economic viability of the related
projects under different conditions. Scenarios
vary based on different inputs for tuition
revenue, legislative funding and expense
management, while assuming identical new
capital project debt service expenses across
all scenarios. Forward-looking statements are
based on management’s current views and
assumptions and, as a result, are subject to
certain risks and uncertainties that could cause
actual results to differ materially from those
projected.
BEST CASE
SCENARIO
A best-case scenario is presented in Figure
13, showing the results of a 10% year-overyear
increase in tuition and consistent payout
of TSTC’s returned-value funding formula
at the 36% commission rate. Under this
scenario, TSTC’s strategic opportunities expand
considerably with $106 million additional
margin to deploy towards further growth and
transformation.
WORST CASE
SCENARIO
The worst case scenario pro forma analysis,
Figure 12, imagines average annual tuition
revenue losses at rates experienced during
the COVID-19 pandemic and appropriations
held absolutely flat despite the returned-value
performance that supports higher performancebased
funding (dropping commission rates in
the 21-31% range). While perceived as unlikely,
disruptions in TSTC’s performance could create
substantial downside financial losses if revenue
gains don’t continue at the level of new financial
commitments.
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STRATEGIC PLAN & BUDGET REPORT