LSC Chief Financial Officer Jennifer Mott said she is factoring in lower growth rates than average for the upcoming year and is asking for general reductions from the colleges because of a loss of state funding and student revenue. LSC is also factoring in less funding from the state in its proposed budget.
Mott said an assumption for the budget is based on an overall 10% decline in student credit hours for FY 2020-21 despite current enrollment numbers indicating an 8.5% decline.
"Historically, we have seen a 3%-4% annual growth rate on a long-term average, so lowering it to 2% is being more conservative in possible future growth," Mott said.
LSC Chancellor Stephen Head said the proposed budget is built on a worst-case scenario for the time being, but enrollment numbers are beginning to trend in the right direction.
In order to reduce expenditures for the budget, Mott said each college was asked to drop 5%, which totaled $13.9 million. The college system has also eliminated 50 vacant positions.
Among the major new expenditures for the year are $5 million for coronavirus personal protective equipment, sanitation and contingency funds, $948,000 for online instruction enhancements and around $1.8 million for new facility funding.
No action was taken on the presentation. The LSC board of trustees will meet to adopt the proposed budget and propose a tax rate Aug. 20. The tax rate will officially be adopted in September.