Owens Community College is tightening its spending belt, but at the same time is giving students a free
pass.
The college has decided to eliminate its fees for parking, starting summer semester, at the same time it
is expecting a 13-percent cut in its state instructional payment next year.
The parking passes, at $20 per semester, bring in about $320,000 each year.
"The students will appreciate it," said John Satkowski, executive vice president of business
affairs.
The move will decrease administrative expenses while providing a benefit for students, he added. Despite
the loss in revenue, the college will realize savings from no longer purchasing parking passes, as well
as decreasing security hours patrolling the lots. The net revenue loss is about $240,000 – a mere
fragment of the college’s $99 million operating budget.
That budget, for fiscal year 2012, is looking better based on information trickling out of Columbus in
regards to Gov. John Kasich’s biennium budget bill.
The bill, according to Satkowski, cuts the state share of instruction within higher education by 13.1
percent. That "is pretty good news," he told members of the college’s finance committee on
March 22, and shared with the Owens Board of Trustees at its meeting Tuesday.
"You’re never happy about a 13.1 percent cut, but from a planning standpoint, we’re in good shape
going forward," he added.
"For bad news, this is good news," said Trustee Dave Habegger at the finance meeting, referring
to the 20-percent funding cut that was anticipated.
The college is anticipating $36.4 million in state subsidy in 2011-12, up $2.7 million from what was
anticipated.
According to Satkowski, a series of budget adjustments on campus has moved an anticipated $4.9 million
deficit at the end of FY12, to a positive balance of $424,723. Those adjustments include a reduction in
health care accrual, an increase in class sizes, a six-month hiring freeze, a reduction in non-adjunct
part-time positions, rent income from Lake Local Schools, energy savings, and a reduction in travel,
professional development and campus food service.
A tuition increase of 3.5 percent also would add $1.56 million to the budget revenue. However, no tuition
increase is planned for summer term, and there has been no public discussion by trustees of a fall
semester increase.
The college also has had a budget advisory council review potential areas of savings, including a cash
separation agreement with faculty and staff. Thirty-three people, of the 105 that are eligible, have
signed on to the program, which is open until April 12; the up-front payout to enrollees is estimated at
$1.45 million, but the college would realize an annual savings of $1.2 million.
"That’s a pretty conservative number," cautioned Satkowski.
The final link in the budget will come in June, when Owens – and other higher education institutions
across Ohio – learns whether a deferred state subsidy payment will be received this fiscal year, or not
at all. Owens is due $2.6 million.
"If we don’t get it in June, we won’t get it," Satkowski stated.