Enrollment growth, faculty compensation and student success were among the topics discussed by Lone Star College System administrators and trustees at a July 28 budget workshop for the 2014–15 fiscal year.



Revenues for 2013–14 are projected to finish around $308 million with expenses coming in at $317 million. The preliminary budget for 2014–15 projects an increase in revenue to around $320 million. Expenditures are projected at $331 million. Additional revenue is tied to a 4 percent projected enrollment increase, as well as a proposed $2 increase in tuition rate per credit hour and a $2 increase in technology fees per credit hour.



The balance of expenses and revenues in the final adopted budget will take into account the money in reserves necessary to keep the system's AAA bond rating—16 percent of total general fund expenditures—former Chancellor Richard Carpenter said. Carpenter stepped down as chancellor this summer, but remained as a consultant with LSCS during the budget process, working collaboratively with the new chancellor, Steve Head.



The proposed budget sets aside money for the further development of several new LSCS buildings, including the Energy & Manufacturing Institute at LSC–University Park, LSC–CyFair's Cypress Center, the CHI School of Cosmetology at LSC–North Harris, which opened in February, and a transportation center for the Truck Driving Academy at LSC–North Harris.



The 2014–15 school year will also start off with the full implementation of the LSCS Honors College. Students enrolled in the Honors College are offered specialized instruction and opportunities in advanced academics, including an international capstone experience. The budget calls for $440,000 to help fully implement the program.



"Last academic year, we began the move from an individual honors program to a more unified honors college," said Keri Rogers, vice chancellor of academic affairs. "This is the first full year of implementation, and some additional money is needed for undergraduate research opportunities."



Other student success initiatives include improving communication to incoming students through orientations and developing courses related to student success, including professional development and financial literacy.



"More than 9,000 students participated in the student success course this past year, and 94 percent of students surveyed said the course was an excellent experience for them," Rogers said.



LSCS officials are recommending a 4 percent increase in salary for part-time employees effective Sept. 1. The proposed budget includes a 2 percent increase for full-time employees Sept. 1, which would be followed by an additional 1.5 percent increase in March. Officials have also budgeted for 21 new faculty positions.



Property values in the district could increase by as much as 12 percent based on estimations in Harris and Montgomery counties, Chief Financial Officer Cynthia Gilliam said. This gives LSCS a chance to lower the property tax rate using a net effective rate, which adjusts property taxes based on changes in property value to keep payments consistent. It still brings in additional revenue because it does not take new property into account, she said.



"What I've recommended to the chancellor is to adopt a net effective rate," Gilliam said. "If you have a home and the value goes up 10 percent, we reduce the tax rate to keep your bill the same. This would be the third year in a row we go down on our tax rate."



The 2013–14 property tax rate is 11.60 cents per $100 of valuation.



All budget discussions during the workshop took place without any action taken by the board of trustees. LSCS officials say the budget could be adopted at the board's Aug. 7 meeting, or at a specially called meeting later in the month. A tax rate would be adopted separately at a later meeting.