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Posted: 12:00 a.m. Tuesday, Jan. 29, 2013
By Meagan Pant
Staff Writer
Sinclair Community College is addressing a $2.9 million revenue shortfall — the result of lower-than-expected enrollment after the school switched to a semester calendar this year — by adjusting its budget to delay some capital projects and reflect the lower cost of offering fewer classes.
“We’re adjusting our expenses to live within our income the way any good family does when there’s a slight shortfall,” said Bernard Wright, chairman of Sinclair’s trustees board. “It’s not a major collapse. There’s just a little bit less than we had originally budgeted for.”
Sinclair was among 17 Ohio public colleges and universities that made the switch to a semester calendar from the quarter system this year. All but three of the schools experienced an enrollment dip as a result. Sinclair’s full-time equivalency enrollment fell 13 percent this year compared to last, which was a 3 percent larger drop than the college expected and budgeted. Sinclair had 23,563 students enrolled during the fall semester reporting period, according to the Ohio Board of Regents.
The schools that made the calender switch also said enrollment was impacted by an improving economy that has some students choosing work instead of school and changes to federal financial aid have made some ineligible for help paying for college. Most schools also saw record graduating classes as students worked to finish school ahead of the conversion.
Locally, Clark State Community College budgeted for fewer students but enrollment exceeded the school’s estimates. However, others in the state are dealing with large revenue shortfalls due to lower enrollment. Last week, Columbus State Community College adjusted its budget down $17 million, the Columbus Dispatch reported. In November, Hocking College near Athens addressed a 22 percent enrollment drop and the $4.3 million budget deficit by laying off 23 people and making other personnel changes.
Wright noted that for Sinclair, the budget adjustment does not involve layoffs. “We’re essentially not scheduling classes with adjunct professors because the students aren’t there,” he said.
The school is also delaying some maintenance projects and making other adjustments. The action was approved by the Sinclair Board of Trustees on Saturday. The college spent an additional $225,000 on marketing this school year to avoid a deeper drop in enrollment.
“We’ll make adjustments that are appropriate to make to come out with a balanced budget,” said Wright, senior executive vice president and trust officer at LCNB National Bank in Lebanon. “We feel like that’s a major responsibility as we serve the public. We operate without debt. We are financially responsible.”
Clark State is not facing a revenue shortfall, said spokeswoman Jennifer Dietsch, because the school “planned its budget around an anticipated decline in enrollment.” “Fall enrollment exceeded our projections so we are not facing any revenue shortfall and do not need to make any mid-year budget adjustments,” she said.
How Sinclair will address its $2.9M revenue shortfall
Position vacancies and other estimated personnel savings: $900,000
Reduction in capital spending: $700,000
Reduction in enrollment-related instructional cost: $500,000
Reduction in discretionary operating costs: $400,000
Other adjustments: $400,000
Source: Sinclair Community College
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