Board of Trustees Meeting

Tuesday, June 23, 20203:45 pm

Welcome! You will hear silence until the moderator opens the

public meeting.

AgendaCall To Order

Sunshine Law Compliance AnnouncementRoll Call

20.44 Approval of the Proceedings of the Regular Board Meeting of May 26, 202020.45 Consideration of Items for Possible Addition to the Agenda20.46 Recognition of Accomplishments Reflective of the College Mission20.47 Consent Agenda for Recurring Items

A. Personnel ReportsB. Facilities ReportsC. Public Safety Monthly Incident Report

Action Items20.48 Finance Report20.49 FY21 Budget Resolution20.50 Vendor Contract Approvals20.51 Academic Quality & Student Learning Updates

Status of the College Community20.52 Student Engagement & Education / Student Activities Report20.53 Shared Governance / Faculty Senate Report20.54 President’s Report20.55 Trustee Chairperson’s Report

Old BusinessNew Business

Adjourn to Executive SessionAdjournment

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June 23, 2020 Financial Presentation to the Board of Trustees

Finance Committee and Disclosures

Finance Committee: June 22, 2020 Meeting• May 2020 Financial Report• FY21 Budget• Miscellaneous TopicsNext Finance Committee meeting: July 27, 2020

DisclosuresInterim financial presentations do not include GASB 68 and GASB 75 adjustments. FY20 results are considered interim

pending certification of the College’s independent year-end financial audit.

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Fiscal Metrics (As of May 31, 2020)

• Cincinnati State maintained strong year-to-date Cash Flow, Net Surplus and Senate Bill 6 Score through its May 31, 2020 Financial Report.

• The impact of the health crisis on year-to-date financials includes loss of funds due to $1.1 million in reduced state operating appropriations, and reduced instructional fees (compared to budget) due to summer enrollment declines.

• Negative impact of loss of funds due to state appropriations and enrollment mitigated by lower expenses in the months of April and May compared to budget.

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+$3,527,427Year-over-Year Change in Cash

3.70Senate Bill 6

Composite Score

$9,173,124Year-to-Date

Surplus

Fiscal Impact of Health Crisis

• Every source of funding is in doubt. Nationally, schools face tuition shortfalls because of unpredictable enrollment.

• Nationally and in Ohio, public institutions are digesting steep budget cuts.• Ohio has cut $110 million in higher education spending in FY20, with

additional funding cuts planned in FY21.

• Economic conditions have been fundamentally altered in a matter of weeks, and institutions of higher education across the country are having to reassess every aspect of their operations. Cincinnati State is no exception.

• We will have to make some hard choices in the weeks and months ahead due to the actual and expected State of Ohio funding cuts to subsidy and other appropriations.

• Declaration of fiscal exigency due to loss of funds via Board Resolution on May 10, 2020

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COVID Crisis Loss of Funds

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Category Estimated/Actual Loss of Funds Notes

State Subsidy for Instruction (FY20 Actual) $1,088,089 15.2% of 4th Quarter Allocation

State Subsidy for Instruction (FY21 Estimated)1 $5,692,537 20% of FY21 Allocation

State Capital Component (FY20 Actual) $23,551 5% of 4th Quarter Allocation

State Capital Component (FY21 Actual) 1 $94,205 20% of FY21 Allocation

Summer 2020 Semester (FY20 – FY21 Actual)1 $1,189,266 24.4% of SU19 Actual

Fall 2020 Semester1 $2,456,370 20% of FA19 Actual

Spring 2021 Semester1 $2,161,477 20% of SP20 Actual

Summer 2021 Semester1 $2,024,235 20% of SU19 Actual

Spring 2020 Parking Refunds $108,092 Pro Rata from Campus Close

Spring 2020 Meal Plan Refunds $52,567 Remaining Balance

Summer 2020 Parking Passes (Estimated) $88,223 100% of SU19 Pass Revenue

Other Losses of Funds: Lab & Course Fees, WDC Sales, Fall Parking, Spring Parking, Overlook Closure and Reduced Volume, Bakery Hill Closure and Reduced Volume, Child Care Closure and Reduced Capacity, Catering and Events, Interest Revenue

1 FY21 Draft Budget Assumptions

FY21 Budget Summary

• Approval of balanced FY21 Budget recommended by President and Finance Committee

• FY21 key budget assumptions have not changed since May 26, 2020 Board Meeting

• FY21 Budget Resolution 20.49 requires the Board to affirm this budget or approve a revised budget no later than October 1, 2020

• FY21 Budget assumes a -9.1% Across the Board Pay Cut effectiveOctober 1, 2020• The delay enables the College to evaluate the key assumptions before the

last resort of a pay cut

• The FY21 Budget as presented does not include fiscal impact of Voluntary Separation Plan

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FY21 Budget (Exhibit A)

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FY21 BUDGETState Appropriations, SSI 22,770,148State Appropriations, Capital 2,862,909Instructional Fees 24,159,925Instructional Fees, CCP 675,505Grants & Contracts 5,550,646Pell 7,988,608Other Revenue 3,118,192WDC Revenue 1,806,052

Total Revenue 68,931,984

FY21 BUDGETAdministrative Unit 6,983,725Support Unit 4,682,748Faculty Unit 9,581,810Adjunct 4,451,626Overload 1,894,382Student Wages 147,587Benefits 8,087,146Retirement 4,214,535WDC Adjunct 454,796

Personnel Expenses 40,498,353

Advertising & Promotions 978,698Contracted Services 3,856,367Information & Communications 900,143Other Expenses 2,982,753Repairs & Maintenance 2,367,187Scholarships & Waivers 9,025,097Supplies 1,822,273Travel 143,993Utilities 1,448,150Depreciation 3,689,279Loss on Disposals 0Capital Expenditures 1,219,691

Operating Expenses 28,433,631Total Expenses 68,931,984

Total Revenue = Total ExpenseFY21 Net Surplus = $0

FY21 Budget Assumptions (1 of 2)

• State Subsidy for Instruction and State Capital Component -20%• Assumes 20% cut to the FY21 state appropriations and College’s allocation

• Ohio cut our 4th quarter SSI 15.2% and State Capital Component 20%• Direction from ODHE is to plan for 20% cut for FY21• Actual SSI/Capital Component cuts may not be announced until late June/early July, and

may be rolling throughout FY21

• Instructional Fees -20%• Fall 2020, Spring 2021, and Summer 2021 enrollment compared to prior

semester• The College reviewed Enrollment Considerations at the May Board Meeting

• CARES Act Higher Education Relief Fund Institutional Stimulus• FY21 increased COVID related expenses $200,000 (PPE, Sanitizing, etc.)• FY21 Budget $1,900,000 positive net surplus impact relies on OACC verbal

discussion the Department of Education Undersecretary• Potential Additional Stimulus Funding

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FY21 Budget Assumptions (2 of 2)

• Personnel & Operating Expenses• Hiring Freeze (with limited accreditation/compliance exceptions)• FY20 Furloughs• Reduction of Adjunct and Overload (due to projected enrollment declines)• Part-time, Non-Benefits eligible reductions to hours• Impact of VSP not included in FY21 Budget• Partial Auxiliary Operations• Outsourced Retail Food Services• Travel Moratorium (with limited accreditation/compliance exceptions)• Across the Board Operating Expense Reductions

• Supplies (excluding COVID related supplies)• Contract Services• Printing & Binding

• Across the Board Salary & Wage reduction (benefits eligible only)• 9.1% effective October 1, 2020

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Conclusion

• Despite the significant loss of funds due to the health crisis, the College is presenting a balanced FY21 Budget• Exhibit A to Board Resolution 20.49

• Questions/Comments from Members of the Board of Trustees?• Request Approval of the FY21 Budget via Board Resolution 20.49• Pursuant to Board Resolution 20.49

• Administration will report to Board and Finance Committee on monthly basis regarding status of material items impacting the FY21 Budget

• Administration will present a revised FY21 Budget on or before October 1, 2020 to the Finance Committee and Board of Trustees

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20.50 Vendor Contract ApprovalsWHEREAS, the Board of Trustees establishes expectations with regards to accountability and transparency, and has adopted a Contract Management Policy. WHEREAS, the College has complied with Ohio Revised Code and Ohio Administrative Code in its procurement processes, and in doing so, recommends contracts for FY20 as follows:

1) Gannett GP Media, Inc., $302,200.00 for digital recruitment marketing (General Fund);2) Hyland, LLC, $66,604.24 for Perceptive Content/Image Now software used for record retention (General Fund);3) LAZ Parking Midwest, LLC, not to exceed $250,000 for management of Clifton campus parking (General Fund).

IT IS HEREBY deemed that the Board of Trustees of Cincinnati State Technical & Community College approves entering into contracts with the above to provide said goods and services.

By Order of the Board of Trustees

For: Cincinnati State Technical and Community College

Attest: _________________________ ____________________________________John Silverman, Secretary Mark Walton, Chairman

Approved: June 23, 2020

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Academic Quality & Student Learning Updates

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20.52 Student Engagement & Education / Student Activities Report

20.53 Shared Governance / Faculty Senate Report

Status of the College Community

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President’s ReportOutstanding Accomplishment

Professor Julie McLaughlin, Department Chair for First Year Experience courses at Cincinnati State, is a 2020 recipient of the

Outstanding First-Year Student Advocate Award presented by the National Resource Center for The First-Year Experience & Students in Transition.

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President’s ReportUpcoming Events

OACC Governing Board Meeting – June 25

Campus Open for Enrollment Services – June 29

Virtual Commencement – August 9

Fall Semester Starts – August 24

Board of Trustees MeetingAdjourned to Executive Session