College of DuPage looking to keep tuition, taxes flat

College of DuPage officials are planning to keep tuition flat and hold the line on property taxes during the next fiscal year, even while preparing for the possibility they won't receive any financial support from the state.

Under normal circumstances, the Glen Ellyn-based school's operating budget would include roughly $12 million in state funding. But because of the budget impasse in Springfield, COD only got about $3.5 million for the current fiscal year.

So with the next fiscal year starting July 1, COD officials decided to prepare their budget with the expectation of no state funding.

"We're planning for the worst-case scenario," COD board Vice Chairman David Olsen said during a Thursday meeting with the Daily Herald Editorial Board. "We're planning for the state to give us nothing."

On Thursday night, COD trustees reviewed a spending plan for fiscal 2017 calling for the college to have a roughly $172.9 million operating budget, about $8.5 million less than this year.

COD board Chairwoman Deanne Mazzochi said the proposed budget, which trustees are expected to vote on next month, is balanced and focuses on the school's priorities.

"Everyone was able to go back and think of more creative ways to use the resources that they have so we're delivering comparable quality services without any visible, hard cuts," Mazzochi said.

For example, the college set aside $3.4 million in its current budget for legal and professional fees. There's also a $4 million contingency fund to cover any additional college or legal spending.

As part of the proposed 2017 budget, the school plans to set aside just $1 million for legal and professional fees, and reduce the contingency fund to $3 million.

While departments were asked to control spending, core services to students were preserved. The proposed budget calls for no layoffs and no cuts to academic programs.

The spending plan has college employees getting 3 percent raises. Salaries and benefits make up about 70 percent of the operating budget.

"We can continue to fund MAP (Illinois Monetary Award Program) grants (for students needing financial help)," Olsen said. "We can continue to enhance the institution. We've even increased the number of academic programs that we offer at the college."

A projected $9 million surplus from the current fiscal year is expected to be rolled into the 2017 budget. It won't be added to the school's already healthy reserve fund, which totals $185 million.

Olsen said one reason the school is in a strong financial position is because taxpayers have been "incredibly generous" through the years.

Officials are planning to keep the property tax levy flat as part of the new budget. The college is projected to receive $79.2 million in property taxes for fiscal 2017.

"We recognize that it's still a challenging time for people in our district," Olsen said. "So that's why we've made a commitment to holding the line on property taxes."

Trustees also want to freeze tuition. If approved, students will pay the same amount they paid this spring, after it was cut by $5 per credit hour.

Right now, in-district students pay $135 per credit hour. That amount includes fees. Illinois students coming from outside the district pay $322 per credit hour.

The school is projected to collect $80.6 million from tuition and fees in fiscal 2017.

While the majority of the board supports holding the line on tuition and property taxes, Trustee Dianne McGuire said she is concerned because revenue is significantly less than it was last year.

"I am concerned about where we're going," McGuire said. "We're taking a hit here, and it's big. And we don't know what next year will hold."

McGuire said it's unknown if state funding will return to normal. She's also worried about what impact Illinois' pension problems could have on the college.

But Mazzochi pointed to how COD is projected to end the current fiscal year on June 30 with a surplus.

"I think there's a lot to be proud of in this budget, in particular the fact that our budget includes a tremendous amount for scholarships and waivers for our students," Mazzochi said.