BUDGET REFERENCE BOOK Fiscal Year 2010

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FY2010 BUDGET REFERENCE BOOK

The FY2010 Budget Reference Book is intended to be a resource of key budget information. It includes current and historical information in the following budget areas:

• Budget Overview

o Master Plan and Budget Review Calendar ...1 o FY2010 Budget Planning Assumptions & Directives ... 2-3 o FY2010 “Value of One” Reference Guide ...4 o FY2010 Budget Summary ... 5-10

• Tuition & Fees

o Policy G-9 Calculations ...11 o Tuition & Fee Rates since FY2001 ...12 o Tuition comparisons other institutions...13

• State Appropriations & Property Taxes

o History of State & Tax Revenues since FY2000 ...14

• Bonds

o History of Bond Issues ...15 o Future Debt Service Payments ...16

• Compensation & Benefits Overview

o Compensation Overview ...17

Policy F-10 (Overview of Staff/Employee Orgs positions) ... 18-23

History of Compensation Increases: All Employees ...24

Employee Demographics ...25 o Benefits Overview

Benefits for staffing Table Employees ... 26-34

• Adjunct Faculty

o Adjunct Faculty Market Study Results ... 35-39 o Adjunct Faculty Salary Comparisons – Metro Community Colleges ...40 o FY2009 Adjunct Faculty Salary Scale ...41 o Instructional/College Associates ... 42-43 o Benefits for Adjunct Faculty ... 44-46

• Administrators

o Data on Administrators ...47

• Classified & Prof-Tech

o Staff Classifications ...48 o Staff Salary Scale ...49 o Position Analysis Requests (PARs) ...50 o Staff Market Study Overview ... 51-54 o Market Study Results for Classified ... 55-57 o Market Study results for Prof-Tech ... 58-60

• Full-Time Faculty

o FT Faculty Market Study Results ... 61-64 o FY2009 FT Faculty Salary Scales ... 65-66 o Proposed FY2010 FT Faculty Salary Scale ...67

• Hourly/Living Wage

o Universal Living Wage ...68 o Hourly Titles and Rates ... 69-75

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MASTER PLAN AND BUDGET REVIEW CALENDAR

The following chart is the calendar of activities for the FY 2010 Master Plan and Budget Review process.

MASTERPLAN AND BUDGETREVIEWPROCESS/CALENDAR

• Board/President Priorities 08/04/08

• Internal Audit Work Plan 10/06/08

• Discussion of Sustainability Initiative 11/03/08

• Board Community Forum: Area Chambers of Commerce

11/17/08

• Update on Round Rock Campus Planning 12/01/08

• FY10 Planning Directives 02/02/09

• Master Plan FY 2010-12 Overview 02/02/09

• Transportation Planning/Discussion 03/02/09

• Program Priorities 04/13/09

• Service Area Report 05/04/09

• Student Success Report 06/01/09

• Discussion of Master Plan FY 2010-2012: Update of 2009 initiatives

06/15/09

• Master Plan FY 2010-12 Adoption 07/06/09

• FY10 Budget Planning Directives 02/02/09

• Cluster Group Prioritization 03/23/09

• PLT Prioritization 06/01/09

• Board Discussions FY10 Budget 04/13/09-06/15/09

o Revenues

o Expense Overview

o Tuition and Fees

04/13/09 04/13/09 04/13/09 o Compensation Benefits o Technology/Capital Outlay o Compensation Benefits

o FY10 Budget Study Session

05/11/09 06/01/09 06/01/09 06/15/09

• FY10 Budget Adoption 07/06/09

BUDGET APPROVAL CALENDAR 02/02/09 Overview of FY10 Master Plan and

Budget Development Calendar leading to budget adoption

06/01/09 FY10 Budget Study

o Technology/Capital Outlay

o Compensation/Benefits 04/13/09 FY10 Budget Study

o Revenues Overview

o Expenses Overview

o Tuition and Fees Overview

06/15/09 Update of FY09 Master Plan Initiatives FY10 Budget Study

05/11/09 FY10 Budget Study

o Compensation/Benefits

07/06/09 Master Plan 2010-2012 Adoption FY10 Budget Adoption

Master Plan Elements

Budget Elements

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2009-10 (FY10) BUDGET PLANNING ASSUMPTIONS & DIRECTIVES Austin Community College District

(President’s Office) General

• ACC’s budget planning will present a proactive approach to financial uncertainties

which can affect the institution over the next several years.

• The U.S. economy, and the Texas economy, will continue to be in recession and

revenue sources may dramatically fluctuate and decline during the upcoming year(s). Therefore, ACC will develop a conservative budget for FY10, with

consideration of factors likely to also impact subsequent budgets in FY11 and FY12.

• In recognition of expected, continued increases in enrollment (a trend during

recession), the College will have as its highest priority meeting, to the extent resources allow, local needs for ACC programs, courses, and services. This means:

• Honoring the commitments related to the under-construction ACC Round Rock

Campus;

• Maintaining in-district tuition at its current level (no increase) to maximize access

for tax payers who support ACC;

• Out-of-district tuition will be increased in accordance with existing Board Policy

G-9, and to ensure non-subsidization of out-of-district residents’ tuition by in-district tax payers.

• In recent past budget years, ACC benefitted from additional annexation revenues

which allowed the College to finally achieve market-competitive salaries for all employees and to make great progress in technology infrastructure and instructional equipment. In FY10, the new Round Rock annexation revenue will be dedicated to funding of the new ACC Round Rock Campus.

In recognition of the possibilities of declines in tax appraisal values and possible declines in State funding sources, ACC will have a conservative budget in FY10 and implement the following practices:

• Few new positions will be approved other than additional full-time faculty and

essential support staff to address enrollment increases;

• All staffing table position vacancies will be reviewed by the President’s

Leadership Team to determine whether to fill, delay hiring, or place on indefinite hold as an effort to increase as a buffer for potential revenue declines;

• The College will reduce its allocation for technology from prior year levels

• The College will reduce its deferred maintenance from prior year levels

• Delay (half year) or eliminate compensation increases for all employees

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• A mid-year budget evaluation process by the Board will be scheduled in February and could allow budget amendments/additions, including compensation, if

revenue stability and/or recession recovery trends exist. Revenue Assumptions

• Based on existing 2009 property assessments, the FY10 appraised value of taxable

properties revenue is projected to increase very slightly; however, 2010 property assessments are expected to decline significantly (thus affecting FY11 and FY12 budgets, which the College must anticipate).

• The budget will include conservative enrollment increase projections of 5%.

• State Appropriations for community colleges are expected to increase in FY10

somewhat; however, these could be tempered or adjusted if there are significant short falls in State revenue sources (sales tax, etc.).

• The impact of federal stimulus dollars to higher education and to community colleges

specifically is not yet known. Annexation-Related

• The College’s annexation initiatives will continue, though there will be no new

annexation-related revenues in FY10 (other than Round Rock, which is committed to the funding of the new campus).

Curriculum/Technology-Related

• Technology funding for prior commitments will be honored; however, funding for new

items will be reduced by $750,000.

• Technology expenditures will be delayed until mid-year wherever possible without

detrimental effect to individual instructional programs. Facilities-Related

• While ACC was fortunate to double facilities funding the past 3 years, from $3 to $6

million annually in an effort to reduce deferred maintenance needs, the College will reduce facilities funding to $4.5 million.

Master Plan New Initiatives

• The budget will include some funding for consideration of new Master Plan initiatives

which support or enhance the district’s ability to respond to community needs. Personnel-Related

• Salary increases for all employees will be delayed or eliminated in 2010 until a

mid-year (February 2010) assessment of economic conditions is determined.

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State Appropriations Projection $ 46,528,408 Percent Increase 1% Value of 1% $ 465,284 Tuition Projected Tuition $ 49,373,140 Percent Increase 1% Value of 1% $ 493,731

Residency Fall Spring Summer Total

In-District $240,000 $230,000 $115,000 $585,000 Out-of-District $60,000 $55,000 $30,000 $145,000 Out-of-State $10,000 $10,000 $5,000 $25,000 Total $310,000 $295,000 $150,000 $755,000

Property Tax

Projected Tax Base $ 107,000,000,000 M&O Tax Rate 0.0009 Projected Taxes $ 96,300,000

Percent Increase 1%

Value of 1% $ 963,000

M&O Tax Rate Increase 0.0001

Value of 1 cent $ 10,700,000

Property Tax Exemptions

Projected # of Senior/Disabled 32,000 Tax Rate 0.000954 $ Increase in exemption 1,000

Value of $1,000 Increase in Exemption $ 30,528

Projected # of Homesteads 160,000 Tax Rate 0.000954 $ Increase in exemption 1,000

Value of $1,000 Increase in Exemption $ 152,640

Compensation

Classification ≈Payroll Cost of Step Cost of 1% Cost of 2% Cost of 3% Cost of 4%

FT Faculty $ 35,000,000 $ 630,000 $ 350,000 $ 700,000 $ 1,400,0001,050,000 $ Adjunct Faculty 30,000,000 N/A 300,000 600,000 900,000 1,200,000 Classified 27,000,000 N/A 270,000 540,000 810,000 1,080,000 Professional Technical 18,000,000 N/A 180,000 360,000 540,000 720,000 Hourly 6,000,000 N/A 60,000 120,000 180,000 240,000 Administrator 4,000,000 N/A 40,000 80,000 120,000 160,000 Total $ 120,000,000 $1,200,000 $2,400,000 $ 4,800,0003,600,000 $ $1 Million in Bonds $ 1,000,000 Interest Rate 5.0% Number of Years 20

Debt Service per $1 Million in Bonds $ 80,243

$1 Million in Revenue $ 1,000,000

Interest Rate 5.0%

Number of Years 20

Bonds per $1 Million in Revenue $ 12,462,210

Bonds

Value of $1 per SCH

ACC FY2010 "VALUE OF ONE" REFERENCE GUIDE

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y FY2009 Tuition Rates FY2010 Proposed Increase/ (Decrease) % Change % Of Budget Comments 39.00 39.00 0.00 0.0% 127.00 137.00 10.00 7.9%

8% increase required by Policy G-9[2], target is $178

285.00 285.00 0.00 0.0%

Per Policy G-9[3], increase allowable but not required

13.00 13.00 0.00 0.0% 2.00 2.00 0.00 0.0% y FY2009 Base Budget FY2010 Projected Increase / (Decrease) % Change % Of Budget Comments 20,276,685 22,582,264 2,305,579 11.4% 10.0%

Adjusted for history and 5% growth

15,670,013 19,448,091 3,778,078 24.1% 8.6%

Adjusted for history, 5% growth, and rate increase

6,061,783 6,717,785 656,002 10.8% 3.0%

600,000 625,000 25,000 4.2% 0.3%

42,608,481 49,373,140 6,764,659 15.9% 21.9% 8,530,957 9,689,364 1,158,407 13.6% 4.3%

1,300,000 1,447,251 147,251 11.3% 0.6%

775,000 825,000 50,000 6.5% 0.4%

4,750,000 5,250,000 500,000 10.5% 2.3%

Adjusted for history

(4,505,787) (4,905,787) (400,000) 8.9% -2.2%

Adjusted for history and 5% growth. Waivers reduce tuition revnues.

41,779,850 46,528,408 4,748,558 11.4% 20.6%

Assumes Conference Committee Bill

7,164,544 8,224,999 1,060,455 14.8% 3.6%

Assumes Conference Committee Bill, No proportionality

500,000 500,000 0.0% 0.2%

Assumes Conference Committee Bill

83,387,828 96,175,072 12,787,244 15.3% 42.6%

Based on current estimates from Appraisal Districts, includes RR

5,086,171 5,065,421 (20,750) -0.4% 2.2%

Adjusted to match FY2010 GO Debt Service payment

400,000 400,000 0.0% 0.2%

Federal Stimulus grants could positively imapct this item.

1,600,000 1,500,000 (100,000) -6.3% 0.7%

Adjusted based on historical and current interest rates

2,850,000 2,950,000 100,000 3.5% 1.3%

Adjusted based on historical

1,650,000 2,000,000 350,000 21.2% 0.9%

Offset by same increase in expenses-Growth of E3, CPPPS, CCPP

825,000 875,000 50,000 6.1% 0.4%

Adjusted based on historical

s 198,702,04 4 $ 225,897,868 $ 27,195,82 4 $ 13.7 % 100.0 % igher E ducation G roup I nsurance V irtual C ollege of T exas

FY2010 TUITION RATES - Approved 5/11/09

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Function

FY2009

Base Budget

FY2010

Adjustments

FY2010 Board Policy/Action

FY2010 Round Rock FY2010 New Items FY2010 Proposed Increase/ (Decrease) % Change % Of Budget Academic Programs 43,734,192 1,500,000 1 900,000 13 233,576 17 46,367,768 2,633,576 6.0% 20.5% Workforce Education 36,788,269 1,500,000 1 900,000 13 215,317 18 39,403,586 2,615,317 7.1% 17.4% Continuing Education 4,750,000 500,000 2 5,250,000 500,000 10.5% 2.3%

Adult Basic Education

1,140,661 1,140,661 0.0% 0.5% Library Services 4,086,391 4,086,391 0.0% 1.8% Learning Labs 3,219,659 3,219,659 0.0% 1.4% Testing Centers 1,100,003 1,100,003 0.0% 0.5%

Retention/Student Success Services

13,787,475 184,660 19 13,972,135 184,660 1.3% 6.2% Admissions/Records 2,473,092 39,169 20 2,512,261 39,169 1.6% 1.1%

Student Assistance/Financial Aid

2,168,697 2,168,697 0.0% 1.0% College Operations 472,808 472,808 0.0% 0.2%

Instructional Resources & Technology

3,932,179 3,932,179 0.0% 1.7% School Relations/Centers 1,899,242 129,725 21 2,028,967 129,725 6.8% 0.9% Campus Operations 2,263,297 2,263,297 0.0% 1.0% Board of Trustees 125,324 125,324 0.0% 0.1% President 590,540 590,540 0.0% 0.3% Foundation 240,800 240,800 0.0% 0.1% Government/Community Relations 481,127 481,127 0.0% 0.2% Marketing/College Relations 2,217,879 2,217,879 0.0% 1.0% Internal Audit 139,077 139,077 0.0% 0.1% Grant Development 297,219 297,219 0.0% 0.1% Institutional Effectiveness & Accountability 754 893 60 115 22 815 008 60 115 80 % 04 %

FY2010 BUDGETED EXPENSES - Small Compensation Increase - 6/1/09

Ins tit u ti ona l Eff ec ti veness & A ccoun ta bilit y 754 ,893 60 ,115 22 815 ,008 60 ,115 8 .0% 0 .4% Information Technology 5,302,103 194,951 23 5,497,054 194,951 3.7% 2.4% Human Resources 2,171,267 8,100 24 2,179,367 8,100 0.4% 1.0%

Health & Safety

1,395,394 1,395,394 0.0% 0.6% Business Services 4,365,707 4,365,707 0.0% 1.9% Campus Police 3,153,339 174,291 25 3,327,630 174,291 5.5% 1.5% Facilities 5,706,737 5,706,737 0.0% 2.5% Custodial 2,190,537 200,000 3 2,390,537 200,000 9.1% 1.1% Utilities 3,510,000 200,000 3 3,710,000 200,000 5.7% 1.6%

Sales & Services

1,577,967 350,000 2 1,927,967 350,000 22.2% 0.9% Auxiliary - Other 267,970 (38,030) 2 229,940 (38,030) -14.2% 0.1%

General Institutional - Local Benefits

3,339,367 3,339,367 0.0% 1.5%

General Institutional - State Benefits

7,164,544 1,060,455 4 8,224,999 0.0% 3.6%

General Institutional - Salary Increases

*4,950,000 404,781 5 2,500,000 14 2,904,781 2,904,781 1.3%

General Institutional - Shared Gov/Extra Services

1,163,200 1,163,200 0.0% 0.5%

General Institutional - TPEG, SEOG, Workstudy

2,521,674 150,000 6 2,671,674 150,000 5.9% 1.2%

General Institutional - Rev. Bond Debt Service

4,778,943 (27,202) 7 4,751,741 (27,202) -0.6% 2.1%

General Institutional - G.O. Bond Debt Service

5,086,171 (20,750) 8 5,065,421 (20,750) -0.4% 2.2%

General Institutional - PFC Lease Payments

7,273,963 9 7,273,963 7,273,963 3.2%

General Institutional - Capital Equip./Tech Plan

7,305,440 (750,000) 15 6,555,440 (750,000) -10.3% 2.9%

General Institutional - Facilities Improvements

6,500,000 (2,000,000) 15 4,500,000 (2,000,000) -30.8% 2.0%

General Institutional - Operating

2,277,466 350,000 10 2,627,466 350,000 15.4% 1.2%

General Institutional - Elections

250,000 500,000 11 750,000 500,000 200.0% 0.3% Institutional Advancement 2,011,394 6,502,703 12 4,000,000 16 12,514,097 10,502,703 522.2% 5.5%

Total Budgeted Expenses

198,702,044 $ 20,405,920 $ 1,550,000 $ 4,000,000 $ 1,239,904 $ 225,897,868 $ 26,135,369 $ 13.2% 100.0%

Net Revenue and Expense

-$ 6,789,904 $ 5,239,904 $ 1,239,904 $ -$ -$ As s u m es 1. 8% ac ros s th e boar d, exc ept h ou rl ies . Pl u s s om e m ar k et adj u s tm en ts as i den ti fi e d in t h e m a rke t stu d ie s. 6

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Function

FY2009

Base Budget

FY2010

Adjustments

FY2010 BUDGETED EXPENSES - Delayed Compensation Increase - 6/1/09

Health & Safety

Sales & Services

1,577,967 350,000 2 1,927,967 350,000 22.2% 0.9% Auxiliary - Other 267,970 (38,030) 2 229,940 (38,030) -14.2% 0.1%

3,339,367 3,339,367 0.0% 1.5%

7,164,544 1,060,455 4 8,224,999 0.0% 3.6%

*4,950,000 404,781 5 1,450,000 14 1,854,781 1,854,781 0.8%

1,163,200 1,163,200 0.0% 0.5%

2,521,674 150,000 6 2,671,674 150,000 5.9% 1.2%

4,778,943 (27,202) 7 4,751,741 (27,202) -0.6% 2.1%

5,086,171 (20,750) 8 5,065,421 (20,750) -0.4% 2.2%

7,273,963 9 7,273,963 7,273,963 3.2%

7,305,440 (750,000) 15 6,555,440 (750,000) -10.3% 2.9%

6,500,000 (2,000,000) 15 4,500,000 (2,000,000) -30.8% 2.0%

2,277,466 350,000 10 2,627,466 350,000 15.4% 1.2%

Total Budgeted Expenses

198,702,044 $ 21,455,920 $ 500,000 $ 4,000,000 $ 1,239,904 $ 225,897,868 $ 26,135,369 $ 13.2% 100.0%

-$ 5,739,904 $ 5,239,904 $ 1,239,904 $ -$ -$ As s u m es m ar k et adj u s tm en ts as iden ti fi ed i n t h e m ar k et s tu di es ef fec ti v e 9/ 1, an d c os t-of -l iv in g in c re a s e s w ill b e d e la y e d u n ti l m id-y ear for r eev al uat io n.

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Function

FY2009

Base Budget

FY2010

Adjustments

FY2010 BUDGETED EXPENSES - No Compensation Increase - 6/1/09

Health & Safety

Sales & Services

1,577,967 350,000 2 1,927,967 350,000 22.2% 0.9% Auxiliary - Other 267,970 (38,030) 2 229,940 (38,030) -14.2% 0.1%

3,339,367 3,339,367 0.0% 1.5%

7,164,544 1,060,455 4 8,224,999 0.0% 3.6%

*4,950,000 404,781 5 400,000 14 804,781 804,781 0.4%

1,163,200 1,163,200 0.0% 0.5%

2,521,674 150,000 6 2,671,674 150,000 5.9% 1.2%

4,778,943 (27,202) 7 4,751,741 (27,202) -0.6% 2.1%

5,086,171 (20,750) 8 5,065,421 (20,750) -0.4% 2.2%

7,273,963 9 7,273,963 7,273,963 3.2%

7,305,440 (750,000) 15 6,555,440 (750,000) -10.3% 2.9%

6,500,000 (2,000,000) 15 4,500,000 (2,000,000) -30.8% 2.0%

2,277,466 350,000 10 2,627,466 350,000 15.4% 1.2%

Total Budgeted Expenses

198,702,044 $ 22,505,920 $ (550,000) $ 4,000,000 $ 1,239,904 $ 225,897,868 $ 26,135,369 $ 13.2% 100.0%

-$ 4,689,904 $ 5,239,904 $ 1,239,904 $ -$ -$ As s u m es m ar k et adj u s tm en ts as i den ti fi e d i n t h e m ar k et s tu di es ef fec ti v e 9/ 1, an d n o c o s t-o f-liv in g in c re a s e s . 8

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1

Adjustments to adjunct/overload budgets based on FY09 actuals, plus 5% enrollment growth 2

Adjustments based on FY09 Actuals. Offset by same adjustment to revenues. 3

Adjustment due to expected increases in utilities rates and usage, and custodial costs. 4

New HEGI appropriations, assumes no proportionality 5

Adjustment for market adjustments for College Police approved 12/1/08 6

Increase in TPEG due to higher tuition revenues 7

Adjustment to Revenue Bond payment per debt service schedule. 8

Adjustment to GO Tax Bond payment per debt service schedule. Offset by same adjustment in revenue. 9

Lease payment to PFC to cover cost of PFC Debt Service payment. 10

Inflationary adjustments in items like property insurance, tax appraisal/collections, postage, mileage, etc. 11

Adding of funding for 2010 Board election. $250,000 remaining for any possible annexation election. 12

Adjustment to funds available for advancement of the district. 13

30 new F-T Faculty per the F-T Faculty Hiring Plan 14

3 different options presented: No Raise, Small Raise, or Delayed Raise. 15

Reductions as part of 2010 Budget Planning Directives. 16

Portion of Round Rock taxes earmarked for campus operations. 17

Expansion of Biology and Chemistry at Fredericksburg Center, plus general increases to support enrollment growth 18

General increases in workforce programs to support enrollment growth. 19

Additional staff to support enrollment growth 20

One Additional staff to support enrollment growth 21

Expansion of San Marcos Goodnight Center, plus general increases due to ECS College Connection growth 22

SACS Coordinator 23

Additional IT staffing 24

Expansion of ACC Leadership Academy 25

Expansion of Police Dispatch, plus new officer for RGC Parking Garage

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Projected Revenues FY2009 Approved FY2010 Projected FY2011 Projected FY2012 Projected FY2013 Projected FY2014 Projected FY2015 Projected FY2016 Projected FY2017 Projected

Tuition and Fees (5% growth, plus tuition increases below)

53,458,651 $ 61,678,968 $ 65,817,789 $ 69,984,505 $ 73,858,787 $ 77,270,413 $ 80,791,899 $ 84,426,276 $ 88,176,650 $

State Appropriation - Formula (Funds growth)

41,779,850 46,528,408 46,528,408 51,181,249 51,181,249 53,248,971 53,248,971 55,400,230 55, 400,230

State Appropriation - HEGI

7,164,544 8,224,999 8,784,299 9,662,729 9,662,729 10,629,002 10,629,002 11,691,902 11,691,902 State Appropriation - VCT 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000

Property Taxes - M&O

83,387,828 96,175,072 86,557,565 90,885,443 95,429,715 100,201,201 105,211,261 110,471,824 115,995,415

Property Taxes - Debt Service

5,086,171 5,065,421 5,402,271 5,428,396 6,055,996 6,506,796 6,436,046 7,074,896 7,065,346

Indirect Cost Recovery

400,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000 Interest Income 1,600,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 Other Revenue 2,850,000 2,950,000 3,097,500 3,159,450 3,222,639 3,287,092 3,352,834 3,419,890 3,488,288

Sales & Services

1,650,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 Auxiliary - Other 825,000 875,000 875,000 875,000 875,000 875,000 875,000 875,000 875,000

Total Projected Revenues

198,702,04 4 $ 225,897,868 $ 221,462,832 $ 235,576,772 $ 244,686,11 5 $ 256,418,47 5 $ 264,945,01 3 $ 277,760,018 $ 287,092,831 $ % Revenue Increase 5.78% 13.69% -1.96% 6.37% 3.87% 4.79% 3.33% 4.84% 3.36%

Projected Expenditures Policy F-10, Employee Compensation (4% per Year)

4,950,000 $ 1,450,000 $ -$ 4,800,000 $ 4,992,000 $ 5,191,680 $ 5,399,347 $ 5,615,321 $ 5,839,934 $

Policy G-1[7], Facilities Improvement

6,500,000 $ 4,500,000 $ 4,500,000 $ 6,700,000 $ 6,900,000 $ 7,100,000 $ 7,300,000 $ 7,500,000 $ 7,700,000 $

Policy G-1[7], Capital Equipment

7,305,440 $ 6,555,440 $ 6,555,440 $ 7,605,440 $ 7,705,440 $ 7,805,440 $ 7,905,440 $ 8,005,440 $ 8,105,440 $

Policy G-1[1], Debt Service Payments

9,865,114 $ 9,817,162 $ 10,173,125 $ 10,133,331 $ 10,778,462 $ 11,211,635 $ 11,158,552 $ 11,792,586 $ 11,782,079 $

Policy G-1[1], PFC Lease Payments

7,273,963 $ 7,275,150 $ 7,638,450 $ 8,019,700 $ 8,416,800 $ 8,667,650 $ 8,928,550 $ 9,197,925 $

Total Board Policies

28,620,554 $ 29,596,565 $ 28,503,715 $ 36,877,221 $ 38,395,602 $ 39,725,555 $ 40,430,989 $ 41,841,897 $ 42,625,378 $

FY2010 - FY2017 PROJECTED REVENUES AND EXPENSES

(10% Decrease in Property Taxes in FY2011)

Balance: Revenue less Board Policies

170,081,490 $ 196,301,303 $ 192,959,117 $ 198,699,551 $ 206,290,513 $ 216,692,920 $ 224,514,024 $ 235,918,121 $ 244,467,453 $

Less: BOT Bi-Annual Election/Annexation Election

250,000 750,000 250,000 500,000 0 500,000 0 500,000 0

Less: HEGI Benefits

7,164,544 8,224,999 8,784,299 9,662,729 9,662,729 10,629,002 10,629,002 11,691,902 11,691,902

Less: Increase in Utilities, Local Benefits, Insurance, etc.

1,175,000 750,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000

Less: Increase in Faculty due to increase in Enrollment

0 500,000 500,000 1,500,000 1,530,000 1,560,600 1,591,812 1,623,648 1,656,121

Less: Additional F-T Faculty (Hiring Plan)

1,800,000 1,800,000 1,800,000 0 0 0 0 0

Less: Increase in Matching Items (TPEG, SEOG, Workstudy)

0 150,000 150,000 100,000 100,000 100,000 100,000 100,000 100,000

Less: Campus Expansion (RRC in FY10-11)

0 4,000,000 0 0 0 0 0 0 0

Less: Master Plan & New Operating Costs

3,050,000 1,239,904 500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000

Less: Current Service Level

138,963,625 154,630,552 169,322,303 180,262,207 183,712,207 192,112,207 200,734,207 209,586,487 218,677,647

Less: Adjustments to Current Service Level

15,666,927 14,691,751 10,939,904 3,450,000 8,400,000 8,622,000 8,852,280 9,091,160 9,338,971 Institutional Advancement 2,011,394 $ 9,564,097 $ 212,611 $ 1,224,615 $ 885,577 $ 1,169,111 $ 606,723 $ 1,324,924 $ 1,002,811 $

Tuition Rate Increases

In-District Tuition Increase per Year

$0 $0 $0 $2 $2 $2 $2 $2 $2

Out-of-District Tuition Increase per Year

$9 $10 $10 $13 $10 $6 $6 $6 $6

Out-of-State Tuition Increase per Year

$9 $0 $0 $0 $0 $0 $0 $0 $0

General Fee Increase per Year

$0 $0 $0 $0 $0 $0 $0 $0 $0

Details of Adjustments to Current Service Level

Previous years raises from policy F-10

4,115,150 4,950,000 2,500,000 0 4,800,000 4,992,000 5,191,680 5,399,347 5,615,321

Adjustments for previous years actuals

1,815,063 3,716,751 0 0 0 0 0 0 0

Previous years Utilities, Benefits and Insurance Adjustments

550,000 1,175,000 750,000 500,000 500,000 500,000 500,000 500,000 500,000

Increase in Faculty due to increase in Enrollment

1,970,972 0 500,000 500,000 1,500,000 1,530,000 1,560,600 1,591,812 1,623,648

Additional F-T Faculty (Hiring Plan)

1,800,000 1,800,000 1,800,000 1,800,000 0 0 0 0 0

Matching Items (TPEG, SEOG, Workstudy)

200,000 0 150,000 150,000 100,000 100,000 100,000 100,000 100,000

Campus Expansion (CYP,RR)

818,700 0 4,000,000 0 0 0 0 0 0 Master Plan/Re q

uests for Current O

p eration s 4 ,397 ,042 3 ,050 ,000 1 ,239 ,904 500 ,000 1 ,500 ,000 1 ,500 ,000 1 ,500 ,000 1 ,500 ,000 1 ,500 ,000 10

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FY2009 Approved FY2010 Projected FY2011 Projected FY2012 Projected FY2013 Projected FY2014 Projected FY2015 Projected FY2016 Projected FY2017 Projected

In-District Tuition Rate

Proposed Increase -$ -$ -$ 2.00 $ 2.00 $ 2.00 $ 2.00 $ 2.00 $ 2.00 $

Proposed In-District Tuition Rate

39 $ 39 $ 39 $ 41 $ 43 $ 45 $ 47 $ 49 $ 51 $ Out-of-District Differential

Property Tax Revenue

88,473,999 $ 101,240,493 $ 91,959,836 $ 96,313,839 $ 101,485,711 $ 106,707,997 $ 111,647,307 $ 117,546,720 $ 123,060,761 $

In-District Credit Hours

518,000 584,161 613,369 625,636 638,149 650,912 663,930 677,209 690,753 Out-of-District Differential 171 $ 173 $ 150 $ 154 $ 159 $ 164 $ 168 $ 174 $ 178 $ 80% of Differential 137 $ 139 $ 120 $ 123 $ 127 $ 131 $ 135 $ 139 $ 143 $

Out-of-District Tuition Target

176 $ 178 $ 159 $ 164 $ 170 $ 176 $ 182 $ 188 $ 194 $

Previous Year's OOD Tuition Rate

118 $ 127 $ 137 $ 147 $ 160 $ 170 $ 176 $ 182 $ 188 $ Difference 58 $ 51 $ 22 $ 17 $ 10 $ 6 $ 6 $ 6 $ 6 $

Proposed Increase (8% per year)

9 $ 10 $ 10 $ 13 $ 10 $ 6 $ 6 $ 6 $ 6 $

Proposed OOD Tuition Rate

127 $ 137 $ 147 $ 160 $ 170 $ 176 $ 182 $ 188 $ 194 $

Difference in Target and Proposed Rate

49 $ 41 $ 12 $ 4 $ -$ -$ -$ -$ -$ Out-of-State Differential State Appropriations 48,944,394 $ 54,753,407 $ 55,312,707 $ 60,843,978 $ 60,843,978 $ 63,877,973 $ 63,877,973 $ 67,092,132 $ 67,092,132 $

In-State Credit Hours

650,000 729,296 765,761 781,076 796,697 812,631 828,884 845,462 862,371 Out-of-State Differential 75 $ 75 $ 72 $ 77 $ 76 $ 78 $ 77 $ 79 $ 77 $

Policy G-9 Out-of-State Target

284 $ 287 $ 260 $ 271 $ 278 $ 286 $ 292 $ 301 $ 306 $

Previous Year's OOS Tuition Rate

276 $ 285 $ 285 $ 285 $ 285 $ 285 $ 285 $ 285 $ 285 $ Difference 8 $ 2 $ (25) $ (14) $ (7) $ 1 $ 7 $ 16 $ 21 $ Proposed Increase 9 $ -$ -$ -$ -$ -$ -$ -$ -$

Proposed OOD Tuition Rate

285 $ 285 $ 285 $ 285 $ 285 $ 285 $ 285 $ 285 $ 285 $

Difference in Target and Proposed Rate

(1) $ 2 $ (25) $ (14) $ (7) $ 1 $ 7 $ 16 $ 21 $

FY2009 - FY2017 PROJECTED TUITION RATES

(Out-of-District and Out-of-State Diffential Calcualtions per Board Policy G-9)

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Fiscal Year

In-District Rate Out-of- District Rate Out-of- State Rate

General

Fee

Student Activity Fees (a)

In- District % Change Out-of- District % Change Out-of- State % Change 2009 39 $ 127 $ 285 $ 13 $ 2 $ 648 $ 0.0% 1,704 $ 6.8% 3,600 $ 3.1% 2008 39 118 276 13 2 648 0.0% 1,596 6.4% 3,492 9.4% 2007 39 110 251 13 2 648 1.9% 1,500 7.8% 3,192 31.0% 2006 39 102 189 13 1 636 0.0% 1,392 4.5% 2,436 2.5% 2005 39 97 184 13 1 636 19.8% 1,332 15.3% 2,376 8.0% 2004 32 84 171 12 3 531 0.0% 1,155 3.2% 2,199 0.0% 2003 32 81 171 12 3 531 2.3% 1,119 1.1% 2,199 4.0% 2002 32 81 165 11 3 519 -2.3% 1,107 3.4% 2,115 5.4% 2001 33 78 156 11 3 531 1,071 2,007

Notes: (a) Student Activity Fee changed from per semeter fee to per credit hour fee after Fall 2004

Cost for 12 Credit Hours

HISTORY OF TUITION & FEES

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ACC TUITION COMPARED TO OTHER LOCAL INSTIUTIONS Tuition Tution & Fees Tuition & Fees

Local Institutions Per SCH 3 SCH Rank 6 SCH Rank Semester

ACC (In-District) $ 39 $ 162 1 $ 324 1 Fall 2008 Temple College (In-District) $ 70 $ 210 2 $ 420 2 Fall 2008 Temple College (Out-of-District) $ 110 $ 330 3 $ 660 4 Fall 2008 1_{Alamo CC (In-District)} _{$ 51} _$₄₂₅ ₄ _$₄₂₈ ₃ _{Fall 2008} ACC (Out-of-Distrct) $ 127 $ 426 5 $ 852 6 Fall 2008 2

UT Extension $ 500 6 $ 1,000 7 Fall 2008 1_{Alamo CC (Out-of-District)} _{$ 95} _$₆₈₉ ₇ _$₆₉₂ ₅ _{Fall 2008} TSU - RRHEC (Texas Resident) $ 170 $ 998 8 $ 1,634 8 Fall 2008 TSU (Texas Resident) $ 170 $ 998 8 $ 1,634 8 Fall 2008 Huston-Tillotson $ 315 $ 1,037 10 $ 2,043 10 Fall 2008 3_{UT @ Austin (Texas Resident)} _$_1,780 ₁₁ _$_2,629 ₁₁ _{Fall 2008} Concordia $ 620 $ 1,860 12 $ 3,720 12 Fall 2008 St. Edwards $ 738 $ 2,214 13 $ 4,428 13 Fall 2008 Tuition Tution & Fees Tuition & Fees

Urban Community Colleges Per SCH 3 SCH Rank 6 SCH Rank Semester

In-District

Collin (In-District) $ 37 $ 113 1 $ 224 1 Fall 2008 Dallas (In-District) $ 39 $ 117 2 $ 234 2 Fall 2008 Lonestar (In-District) $ 46 $ 150 3 $ 288 3 Fall 2008 Tarrant (In-District) $ 50 $ 150 3 $ 300 4 Fall 2008 ACC (In-District) $ 39 $ 162 5 $ 324 5 Fall 2008 Houston (In-District) $ 56 $ 168 6 $ 336 7 Fall 2008 San Jacinto (In-District) $ 33 $ 229 7 $ 328 6 Fall 2008 El Paso (In-District) $ 37 $ 289 8 $ 430 9 Fall 2008 1 _{Alamo (In-District)} _{$ 51}

425

$ 9 $ 428 8 Fall 2008

Out-of-District

Collin (Out-of-District) $ 51 $ 155 1 $ 308 1 Fall 2008 Dallas (Out-of-District) $ 72 $ 216 2 $ 432 3 Fall 2008 Tarrant (Out-of-District) $ 73 $ 219 3 $ 438 4 Fall 2008 El Paso (Out-of-District) $ 37 $ 289 4 $ 430 2 Fall 2008 San Jacinto (Out-of-District) $ 58 $ 304 5 $ 478 5 Fall 2008 Lonestar (Out-of-District) $ 106 $ 330 6 $ 648 6 Fall 2008 Houston (Out-of-District) $ 110 $ 330 6 $ 660 7 Fall 2008 ACC (Out-of-Distrct) $ 127 $ 426 8 $ 852 9 Fall 2008 1 _{Alamo (Out-of-District)} _{$ 95} _$₆₈₉ ₉ _$₆₉₂ ₈ _{Fall 2008}

Note: 1 2 3

Alamo CC has a 6 credit hour minimum, and numerous fees in addition to tuition.

UT Extension tuition is not based on a "per credit hour" rate. Instead it is a course rate. Minimum $500.

UT has gone to a "Flat Rate Tuition" for undergraduate students. Under this method tuition and all mandatory fees are combined into one total amount. Therefore, the actual tuition rate is not disclosed. Assumes Liberal Arts.

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(19)

F iscal _Year For mula A ppr opr ia tion Conta c t Hour s $ per CH % o f Budge t T axab le Valu e (in thous a nds ) M& O T ax Rate Rev e nue % o f Budge t F Y 2000 35,819,238 $ 9,818,666 3.65 $ 41.6% 35,078,452 $ 0.0500 $ 17,539,226 $ 20.2% F Y 2001 36,752,930 10,212,520 3.60 39.2% 40,872,458 0.0500 20,436,229 20.9% F Y 2002 38,624,377 11,054,906 3.49 38.9% 46,597,933 0.0500 23,298,967 23.4% F Y 2003 35,921,059 11,314,647 3.17 35.3% 49,628,141 0.0500 24,814,071 24.4% F Y 2004 35,710,958 11,624,566 3.07 32.2% 48,405,492 0.0700 33,883,844 30.3% F Y 2005 35,710,958 11,621,183 3.07 27.4% 49,272,088 0.0800 39,417,670 31.4% F Y 2006 37,075,121 12,027,924 3.08 26.2% 53,869,912 0.0900 48,482,921 34.3% F Y 2007 37,075,121 12,569,181 2.95 22.2% 71,122,216 0.0900 64,009,994 38.1% F Y 2008 41,779,850 12,946,256 3.23 22.2% 83,379,232 0.0900 75,041,309 39.9% F Y 2009 41,779,850 13,981,957 2.99 21.0% 92,978,483 0.0900 83,680,635 42.0% HI S T ORY OF S T A T E & TA X RE V E NUE S St at e Co n tact Ho u r A p p ro p rat io n s Pro p ert y T axes Historical Funding T rends St at e v s T axes 0. 0% 5. 0% 10. 0% 15. 0% 20. 0% 25. 0% 30. 0% 35. 0% 40. 0% 45. 0% FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 Historical Funding T rends St at e v s. T axes % Sta te % T a x e s 14

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Bond

Series Amount Purpose Underwriters

1984 $ 4,800,000 Combined Fee Revenue Bonds None - Public Bids 1986 $ 8,500,000 Combined Fee Revenue Bonds None - Public Bids

Ehrlick Boher & Co., Inc. A.G. Edwards & Sons, Inc.

Masterson Moreland Sauer Whisman, Inc. Dorado Securities, Inc.

Rausher Pierce Refsnes, Inc. Southwestern Capital Markets, Inc. First Southwest Company

Rausher Pierce Refsnes, Inc. Estrada Hinojosa & Company, Inc. First Southwest Company

Estrada Hinojosa & Company, Inc. Estrada Hinojosa & Company, Inc. First Southwest Company

A.G. Edwards & Sons, Inc. Southwest Securities First Southwest Company Ramirez& Co., Inc. RBC Dain Rauscher Inc.

Estrada Hinojosa & Company, Inc. First Southwest Company

JP Morgan Securities, Inc Loop Capital Markets, LLC William R. Hough & Co. JP Morgan Securities, Inc

Estrada Hinojosa & Company, Inc. RBC Dain Rauscher Inc.

First Southwest Company

Estrada Hinojosa & Company, Inc. RBC Dain Rauscher Inc.

RBC Capital Markets

Wachovia Bank, National Association Cabrera Capital Markets

RBC Capital Markets 2004 $ 23,910,000 Limited Tax Bonds

Combined Fee Refunding Bonds

Combined Fee Revenue Building and Refunding Bonds

$ 21,970,000 1995

1998 $ 9,160,000

2000 $ 31,365,000

$ 8,300,000 1990

2002 $ 10,389,516

2003 $ 75,000,000 Limited Tax Bonds

2005 $ 25,255,000 Combined Fee Refunding Bonds

2006 $ 17,573,659 Limited Tax Refunding Bonds

HISTORY OF ACC BOND ISSUES

PFC Lease Revenue Bonds 2008 $ 118,980,000

1992 $ 7,265,000

Combined Fee Revenue Building Bonds

1991 $ 4,500,000

Combined Fee Revenue Refunding Bonds

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Fical Yea r Principal Interest Principal Interest Principal Interest Principal Interest Total 2009 975,000 $ 4,111,171 $ 2,810,000 $ 1,968,943 $ -$ 6,248,962 $ 3,785,000 12,329,076 16,114,076 2010 985,000 4,080,421 2,910,000 1,841,741 1,025,000 6,248,962 4,920,000 12,171,124 17,091,124 2011 1,355,000 4,047,271 3,060,000 1,710,854 1,080,000 6,195,150 5,495,000 11,953,275 17,448,275 2012 1,430,000 3,998,396 3,135,000 1,569,935 1,500,000 6,138,450 6,065,000 11,706,781 17,771,781 2013 2,105,000 3,950,996 3,300,000 1,422,466 1,960,000 6,059,700 7,365,000 11,433,162 18,798,162 2014-2018 12,273,659 18,122,931 17,243,545 6,339,881 16,395,000 28,285,125 45,912,204 52,747,937 98,660,141 2019-2023 20,075,000 15,272,933 14,155,971 7,103,277 24,420,000 22,937,938 58,650,971 45,314,148 103,965,119 2024-2028 24,835,000 10,514,569 31,820,000 15,539,888 56,655,000 26,054,457 82,709,457 2029-2033 30,800,000 4,556,851 40,780,000 6,579,688 71,580,000 11,136,539 82,716,539 2034 1,645,000 74,025 1,645,000 74,025 1,719,025 Subtotal 96,478,659 $ 68,729,564 $ 46,614,516 $ 21,957,097 $ 118,980,000 $ 104,233,863 $ 262,073,175 $ 194,920,524 $ 456,993,699 $

Net premium/ (discount)

1,298,594 1,021,717 3,083,937 Accreted Interest 357,899 1,889,643 Total 98,135,152 $ 68,729,564 $ 49,525,876 $ 21,957,097 $ 122,063,937 $ 104,233,863 $

FUTURE DEBT SERVICE PAYMENTS

Totals

General Obligation Bonds

Revenue Bonds

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Compensation &

(24)

SUMMARY OF ADMINISTRATION RECOMMENDATIONS

I. Board Policy F-10, Employee Compensation, Recommendations

a. The administration recommends continuing to use the TCCTA Salary Survey to determine the rank of Full-Time Faculty salaries among the seven Texas Metropolitan Colleges.

b. The administration recommends deleting comparisons with the MA+24 and MA+48 levels of full-time faculty salaries because most other colleges do not have a MA+48.

II. Living Wage

The administration recommends maintaining the current minimum ACC salary at $12.92 per hour ($26,874 per year), even though the Universal Living Wage has been reduced and calculated at $12.65 per hour ($26,312 per year).

Additional detail is included in the Hourly/Living Wage section.

Budget Impact: None III. Position Analysis Adjustments

Implement the Position Analysis Requests approved by the Presidential Leadership Team. Details are included in the Classified/Prof-Tech section.

Budget Impact: $28,019 IV. Non-Faculty Market Adjustments

The compensation survey for non-faculty positions has been completed. The survey data is included in Classified/Prof-Tech section for the Board’s review.

Budget Impact: $287,017 for 108 Classified Employees $212,615 for 81 Prof-Tech Employees Total: $499,632

V. Full-Time Faculty

The compensation survey for FT Faculty has been completed. Adjustments at the lower steps are recommended to achieve “top 3” ranking in all quartiles. The survey data is included in Full-Time Faculty section for the Board’s review.

Budget Impact: $45,000 IV. Adjunct Faculty

The compensation survey for Adjunct Faculty has been completed. Thereare no recommended market adjustments. The survey data is included in Adjunct Faculty section for the Board’s review.

Budget Impact: NONE

The budget cost of these recommendations are subject to change since final decisions on employee placement may change.

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POLICY F-10, EMPLOYEE COMPENSATION

The administration has not made any recommended changes to Policy F-10 regarding, exempt, non-exempt or adjunct faculty.

The administration has made two recommendations regarding Full-Time Faculty as follows:

1. The administration recommends continuing to use the TCCTA Salary Survey to determine the rank of Full-Time Faculty salaries among the seven Texas Metropolitan Colleges.

2. The Administration recommends deleting comparisons with the MA+24 and MA+48 levels of full-time faculty salaries.

For full-time faculty salaries the President is committed to maintaining compensation, on the average, among the top three Texas metropolitan colleges. According to the TCCTA Salary Survey, ACC is number one. The administration’s goal is to provide a simple means of obtaining valid data on the average compensation of faculty at the seven metropolitan community colleges. The TCCTA data provides a mechanism to meet this objective.

The administration has recommended deleting comparisons with the MA+ 24 and MA+ 48 levels for the full-time faculty salary scale. The Texas Community College Teachers Association (TCCTA) Full-Time Faculty Survey does not include these categories and the colleges do not report these levels of compensation.

The administration has also recommended eliminating the need to obtain actual faculty salaries from the Texas metropolitan community colleges. To validate this survey data, the administration recommends obtaining data from other professional associations. All of the compensation levels will be at market comparable salaries and therefore, the College can continue to use the TCCTA Salary Survey which has actual faculty salaries. Obtaining actual salaries from the colleges are not necessary for the following reasons:

• The TCCTA data has an analysis of the actual salaries at the Seven (7) Metro Community Colleges.

• The TCCTA survey provides a consistent methodology for all colleges.

• It is a duplication of time and effort to submit data to TCCTA and then, obtain the same data from the colleges.

• It is anticipated that now that salaries are at market competitive levels, annual increases will be across the Board-the TCCTA data can help us gage over ranking among the other community colleges.

The following charts denote the staff recommendations, employee organizations’ position, and staff response.

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POLICY F-10, FULL-TIME FACULTY SENATE RECOMMENDATIONS

Administration's Recommendation

Full-Time Faculty Senate

Recommendation Administration's Response

• Continue analysis of MA+24 and MA+48 using actual salary data from the colleges.

• Other college pay scales do not have the same levels. While all have MA+24; only two Colleges have MA+48; five colleges have MA+36 but ACC does not have this level.

• It is no longer necessary to try to compare these levels since they are at market competitive salaries.

• ACC is currently in the top 3 for all categories, except for beginning salaries. Thus, awarding across-the-board increases ensures that ACC will maintain its relative position in the market. The TCCTA survey can be used to gage our position in the market.

• There are supplemental resources listed in the policy to validate the TCCTA data.

• These salary points have been brought up to the market average. Therefore, with across-the-board increases those points will maintain their relevant market position and do not need to be surveyed. 1. Continue to use TCCTA

Salary Data to determine rank of compensation; eliminate the need to obtain actual faculty salaries from the Texas metropolitan community colleges.

• Continue to obtain actual faculty salaries directly from the Texas metropolitan community colleges

• All of the metro colleges participate in the TCCTA Salary Survey and provide actual salary data. To obtain actual salaries from the Colleges is a duplication of time, effort and data.

• TCCTA has a concistent methodology with data collected at the same point in time. When you obtain data from the colleges, it may change from time-to-time.

2. Eliminate the analysis of MA+24 and MA+48 levels from the survey data.

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POLICY F-10, CLASSIFIED EMPLOYEE ASSOCIATION RECOMMENDATIONS Administration's

Recommendation

Classified Employee Association

Recommendation Administration's Response

• Employee can receive a stipend as follows: Associates--$500

Bachelor's--$1000 Masters--$1500 Doctorate--$2000

• Employees move up in the range based upon the across-the-board increase approved by the Board. • Current rate is $12.92 significantly above most employers in Austin and surrounding areas.

• Including an amount in the basic salary would impact the market based compensation system.

• F-10 allows the whole policy to be disregarded at any time.

• While the President recommends a proposed budget, the Board ultimately approves the College's compensation intiative and the budget • Develop a system similar to the

faculty that increases compensation based upon the acquisition of

additional degrees and/or credit hours.

4. Continue the current compensation program for exempt and non-exempt employees.

• Delegation of this authority to the President removes the Board from the compensation decision making process.

• The range system depends upon a complicated and uncertain method of determining the non-exempt

employee's ability to progress within that range.

• Employees should be able to reach the midpoint with five years of experience.

4. F-10 provides that the President may propose a budget which falls short of meeting the goals of the policy. No changes recommened.

1. Maintain current minimum ACC wage (which is higher than the Living Wage)

• While ACCCEA is pleased with the policy that no employee earn less than a minimum of the Living Wage, this causes compression in salaries where entry level employees are paid at the same rate of employees with more experience and in many cases, at the same level as their supervisor.

• The Board adopted the living wage as the minimum salary an employee should earn for working at ACC.

• While there is a conflict with the living wage and market compensation based system, F-10 sets a reasonable minimum wage.

• ACC is one of the few employers with a policy based on the living wage thus, the College is competitive using the rate of an efficiency apartment.

3. Continue to provide an educational stipend for exempt and non-exempt employees.

• The ASC recommended the current policy and stipends. It was then approved by the President. 2. Continue to use analysis for

an efficiency apartment.

• Recommends using one bedroom analysis.

• Philosophy is to set lowest ACC pay rate at the minimum a person needs to have housing in Austin.

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Attachment B Agenda Item 8574 June 18, 2007 with Recommended Changes F-10. EMPLOYEE COMPENSATION

1

Value Statements:

2

• Market competitive compensation for all employees is critical in attracting and retaining a

3

quality workforce.

4

• Compensation market surveys will be used by the College to ensure competitive salaries

5

and internal equity.

6

Principles:

7

ACC intends to (1) attract and retain a workforce with sustained high effectiveness in meeting

8

student needs, (2) act as an ethical and responsible employer, (3) [develop and maintain a fair

9

and competitive salary] structure and (4) make efficient use of student and public funds for

10

compensation administration.

11

A compensation administration plan will be developed as a means of managing payroll costs and

12

salary expenditures and shall be included in the annual proposed operating budget developed by

13

the College administration. The President shall accordingly, consistent with fiscal constraints and

14

meeting the College's multiple needs, develop plans and proposals to meet the following goals:

15

[1] Ensure an adequate staffing level to meet the mission and goals of the College by employing

16

regular staff and minimizing reliance on part-time, temporary or hourly employees.

17

[2] Maintain a compensation program of competitive salaries and benefits that ensures fair pay for

18

the employees’ contributions to the College mission, with no employee paid less than the

19

community-accepted level of a "living wage".

20

[3] All compensation survey data will be shared with the appropriate employee group. The

21

administration will seek to reach consensus with the employee group on the compensation plan

22

that is included in the proposed operating budget.

23

[4] For employee categories, compensation shall, on the average, be market competitive:

24

• For non-faculty employees (classified, professional-technical and administrators), the

25

relevant competitive market shall be the non-faculty classifications of Texas metropolitan

26

community colleges and similar positions in the local area.

27

Each year the pay ranges will be compared to current market rates. The administration will

28

establish priorities for salary range and/or salary adjustments as needed for salary alignment

29

within the pay grades. Any proposed range or salary adjustments will be included in the proposed

30

budget submitted to the Board.

31

The administration will obtain non-faculty survey information from the College and University

32

Personnel Association (CUPA), the Austin Area Pay and Benefits Survey and other relevant

33

surveys to be included in the market survey results.

34

The non-faculty employees’ compensation survey shall be conducted every two years. In the

35

alternate years, non-faculty employees’ pay scale shall be adjusted to reflect at least the

cost-of-36

living adjustment as approved by the Board. The adjustments shall be included in the proposed

37

operating budget.

38

• For full-time faculty positions, the relevant market shall be full-time faculty with

39

equivalent experience and education at the Texas metropolitan community colleges.

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Attachment B Agenda Item 8574 June 18, 2007 with Recommended Changes

The Texas Community College Teachers Association Full-Time Faculty Survey shall be used to

41

determine market salaries. The methodology to determine market competitive salaries shall be

42

the comparison of each college’s average salaries of actual salaries paid to full-time faculty

43

assuming a nine-month contract. The lowest and highest actual salaries for bachelor’s, master’s,

44

MA+24, MA+48 and Ph.D. levels shall be compared for each level. Based upon analysis of the

45

survey data, the compensation of full-time faculty shall be established in the top three of the

46

Texas metropolitan community colleges.

47

The administration will obtain actual faculty salaries from the Texas metropolitan community

48

colleges. The administration will also obtain the faculty surveys of the American Association of

49

University Professors (AAUP) and the College and University Personnel Association (CUPA) to

50

validate the Texas Community College Teachers Association Full-Time Faculty Survey data.

51

• For adjunct faculty the relevant comparison markets shall be the part-time faculty at the

52

Austin metropolitan area institutions of higher education.

53

The methodology shall be to compare the college’s average salary of actual salaries paid to

part-54

time faculty teaching the lower-division classroom sections. The average ACC compensation

55

shall be the average of the middle half of the distribution. The administration may make

56

reasonable estimates where needed to supplement the published data.

57

The adjunct faculty compensation survey shall be conducted every two years. In the alternative

58

years, the adjunct faculty pay scale shall be adjusted to reflect at least the cost-of-living

59

adjustment or adjustment as approved by the Board. The adjustments shall be included in the

60

proposed operating budget.

61

[5] Adjust pay scales annually to reflect living changes (including inflation), with

cost-of-62

living adjustments usually applied on the same basis to all pay scales.

63

[6] As part of the annual operating budget process, the proposed budget shall reflect the pay

64

scales that reflect the above principles and include projections for cost-of-living adjustments,

65

market adjustments, changes in staffing levels and identify any major changes in compensation

66

administration that impact the budget. Board approval of pay scales and rules shall be based

67

primarily on the extent to which the President's recommendation is consistent with the provisions

68

of Board policy and planning directives.

69

[7] Compensation rates and proposed changes in them are to be publicly announced and shall

70

normally be implemented as part of the budget process. Compensation changes at other times

71

shall be made only in cases of documented urgent need approved by the President, after

72

informing the employee associations and considering their comments. Changes require specific

73

Board approval if the action increases a person's compensation rate by 10% or more or if the

74

cumulative unapproved changes to the budget during the year would exceed $10,000/month.

75

[8] When a budget falls short of meeting the goals of this policy, the budget shall allocate between

76

4% and 6% of projected annual revenues for market level adjustments, cost of living increases,

77

experience adjustments, stipends, and awards.

78

[9] An appropriate relationship shall be maintained between the compensation packages of

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executives and senior administrators and the compensation for other classes of employees. Any

80

compensation increase in excess of the average percentage increase for other employees for an

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employee serving as a College administrative officer requires specific Board approval.

82

[10] Under extraordinary circumstances, the President may propose a budget which falls short of

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meeting the goals of this policy. While revenues and expenditures may fluctuate annually, the

84

(30)

Attachment B Agenda Item 8574 June 18, 2007 with Recommended Changes

President shall strive to allocate sufficient funds for market-level adjustments and cost-of-living

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increases.

86 87

(31)

FY2000 FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009

CPI - Dallas Region

2.86% 4.24% 3.46% 1.35% 2.03% 1.42% 3.36% 2.92% 1.65% 4.42% Approved COLA 4.00% 3.50% 4.00% 2.40% 3.50% 3.50% 3.50% 4.00% 4.00% 4.00%

Average Market Adjustment Full-Time Faculty

0.27% 3.51% 2.16% 0.00% 2.56% 2.67% 0.53% 1.36% 0.00% 0.00% Adjunct Faculty 1.06% 5.66% 15.71% 0.00% 3.14% 4.62% 6.84% 0.00% 0.00% 0.00% Staff 1.32% 1.82% 1.42% 0.00% 0.56% 0.00% 0.59% 6.39% 0.03% 1.60% Administrators 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 5.73%

Average Total Raise Full-Time Faculty

4.27% 7.01% 6.16% 2.40% 6.06% 6.17% 4.03% 5.36% 4.00% 4.00% Adjunct Faculty 5.06% 9.16% 19.71% 2.40% 6.64% 8.12% 10.34% 4.00% 4.00% 4.00% Staff 5.32% 5.32% 5.42% 2.40% 4.06% 3.50% 4.09% 10.39% 4.04% 5.60% Administrators