BEST PRACTICES IN BUDGETING FOR COMMUNITY COLLEGESNovember 2014

Christina Day, Budget Manager

Portland Community College

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Budgeting Best Practices forCommunity Colleges

External Environment

SB 253: Higher Attainment and SB 1581: Achievement Compacts

The Oregon Education Investment Board (OEIB) is chaired by Governor John Kitzhaber and was created in 2011 by SB909 to oversee an effort to build a unified system for investing in and delivering public education from birth to college & career.

Formed by SB 242 & HB 3120, the HECC is responsible for advising the Legislature, the Governor, and the Oregon Education Investment Board on higher education policy.

CCWD is uniquely positioned to provide leadership for the coordination of postsecondary educational programs delivered by community colleges with Oregon’s Workforce Investment Act program implementation.

These bills sets the long-range goal that, by 2025, 100% of Oregonians are to have a high school diploma, 40% at least a bachelor’s degree, and 40% at least an associates or technical degree and authorize establishment of compacts toward the goal. 

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Internal Changes

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Budgeting Best Practices forCommunity Colleges 

1. Prepare & Develop Inputs to the Budget Process• Adopt/Re-Affirm budgeting principles and policies to guide the

budget process• Examine internal and external forces that impact the budget

2. Define Goals & Identify Gaps• Develop goals for the college and its sub-units• Determine the gaps between the goals and current state, and

identify the root causes of the gaps

3. Develop Strategies to Achieve the Goals• Research proven policies and practices• Develop strategies

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Budgeting Best Practices forCommunity Colleges4. Prioritize Spending to Enact the Strategies & Allocate

Resources• Prioritize spending to enact the strategies• Allocate funds based on the results of the prioritization process• Create a budget document that communicates how resources

have been allocated to enact the strategies

5. Check Performance• Monitor and evaluate outcomes from budgeting decisions

6. Enhanced Budgeting Practices• Allocate costs of shared support services to sub-units to better

understand the true cost of offering services• Establish criteria and measures for success of the budget

process

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Define Goals & Identify Gaps Set goals to use as a guide for the budget and

planning process

Goals articulate the vision – Clarify the college’s responsibilities

Assess the college’s strategic environment

Set SMARTER goals for longer-term improvementSpecific, Measurable, Achievable, Relevant, Timely, Exciting, Resourced

Distribute goals across college

Examples: PCC’s current Strategic Planning process, Panther Path

PREPARE• Entering

students will be academically, personally and financially prepared to navigate the PCC system successfully on day one of classes.

ENGAGE• Students

will choose their educational path, developing the skills, knowledge and connections needed to balance school and life demands.

COMMIT• Students

will implement their GRAD Plan, utilizing resources to reach educational goals in and outside of the classroom.

COMPLETE

• Students will successfully complete their educational goal and develop post-completion strategies for next steps.

THRIVE• PCC alumni

will thrive in their personal, educational and career pursuits, advancing the region’s long-term vitality.

College level ready

0-25%goal

completion

Lifelong learning

25-75% goal

completion

75-100% goal

completion

Access & Diversity Quality EducationEconomic

Development

Student Success

The Panther PathAn intentional path to student success and completion

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Define Goals & Identify Gaps Determine the gaps between the goals and

current state, and identify root causes of the gaps.

PCC’s Completion Investment CouncilRepresentative of all College areas, including faculty, staff,

academic and administrative leadership, student government and labor federations.

1st Year spent becoming PCC expert body on completion and student success from a strategic and institutional perspective – “Prepare” phase of path

2nd Year making recommendations on best

areas to invest in improvements to further

student success. 3rd Year beginning “Engage” phase

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Develop Strategies to Close the GapsAfter district goals and gaps have been identified, the college must find ways to close the gaps

Research policies and practices that have proven effective for improving student achievement

Start the budgeting and planning process early enough to consider new ways of thinking

Determine the role the research might play in the college’s plan and budget for improving student achievement

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Develop Strategies to Close the Gaps

At PCC -

CIC Recommendations will focus on critical strategies:Clear pathways and transitions – assessment/placement,

collaborating with high schools, bridging students with industry and community (CLIMB, Coop Ed)

Developmental Ed – improve progression through pre-college/college reading, writing and math. New advising/intervention, accelerated courses, alternative math pathways…

Professional Development – implement best practices in ProDev, prioritize ProDev strategies that most immediately impact student success (i.e. PT Faculty training), leverage internal expertise

Improve internal communication and messaging – includes how staff/faculty communicate with students, communicating internal program successes & initiatives

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Prioritize Spending to Enact Strategies

Prioritize ExpendituresHave an inventory of current expenditures (programs)

Be aware of potential new expendituresFor example, operating costs for new construction

Align programs/spending with the college’s strategies and goals

Cost effectiveness of programs

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Prioritize Spending to Enact Strategies

Special Challenges in Prioritizing Programs & SpendingSupport of stakeholders (e.g. community partners)Prioritize new programsReview of underperforming programsInnovation/entrepreneurial fundCapital replacement and facilities maintenance At PCC

Finalization of Strategic Planning New budgeting methodology

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Participate in Budgeting for Student Success

• Draft Best Practices• Available at http://www.gfoa.org/cc-bestpractice-draft

• Enhance & Implement• Pilots using best practices to develop

2014-2015 budget• Application for the inaugural Distinguished Budget

Presentation Award for Schools for 2016-2017 budget

• Education & Training• Training, webinars, e-learning , and other resources on education

budgeting.

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Questions?

Christina Day

Budget Manager

Portland Community College

(971) 722-2851

Christina.day1@pcc.edu