The Northwest College Board of Trustees took up the difficult discussion of the college’s budgetary challenges at its regular meeting this month.

Gov. Mark Gordon has recommended a 15% budget reduction for all state agencies. While the Legislature still needs to approve the recommendations, NWC is preparing for a big financial hit — potentially a $1.4 million drop in the coming fiscal year.

“Ultimately we will be forced to make some decisions here in the coming months that will have a pretty large impact on campus,” warned NWC Interim President Lisa Watson. 

The board didn’t take any actions at the Dec. 14 meeting, but various proposals — including layoffs — were discussed.

“Obviously, no one is interested in a reduction in force. Unfortunately, that is what the governor has left us with,” Watson said.

However, she stressed that the board, staff, and faculty were scrutinizing every possible non-personnel cut they could, making layoffs an absolute last resort.

“We’re trying ever so diligently not to leave a single rock unturned,” Watson said. 

Next month, the board will vote on the updated budget. At that time, there will be an effort to communicate to the wider community the reasoning for the decisions, Watson said. 

Trustee Carolyn Danko said this community education is important.

“I don’t think they truly realize what will happen to our community when you pull $3.5 million out,” Danko said. She noted that the lost state funding is money that is spent here in the Big Horn Basin.

“It’s going to hurt a lot,” Danko added.

She expressed concern that voters are under the impression the college’s budget cuts won’t affect businesses outside the institution.

“So [legislators are] talking about increases in that ungodly word we can’t seem to hear: user fees, otherwise known as taxes,” Danko said.

Falling revenues

Watson presented the board with the projected revenues for fiscal year 2022, which begins in July. Altogether, revenues are projected to drop from $21 million to $18 million.

The interim president said the projections contain a lot of uncertainty, because “there’s a lot of moving variables to the revenue picture right now.”

State appropriations to the college are expected to drop $1.4 million, down 12% from the fiscal year 2021 budget, and local appropriations will fall by more than $450,000 — also a 12% drop from the previous year.

With tuition increases the Wyoming Community College Commission passed in September, and an expected flatlining of enrollment rates, NWC tuition revenues are expected to increase by 8% in fiscal year 2022. At this month’s meeting, the board approved new fees and fee increases for most courses offered. Combined with increased tuition revenue, the fee increases will bring in over $500,000 from the previous year.

Watson presented several proposed non-personnel cuts that will bring an estimated $585,000 in savings to the college.

Eliminating all soft dollar athletic scholarships is expected to save the college $226,000. These are the scholarships granted not as hard dollars, but rather reductions in tuition. They don’t actually cost the school money, but they do utilize instructional resources without any direct compensation.

The board is also working with the Northwest College Foundation to see if it can help absorb some of the lost opportunities from the elimination of the soft dollar scholarships.

Costs associated with dual and concurrent enrollment scholarships, which are mandated by state law, are increasing. This will offset some of the savings, netting a total $180,000 saved.

Changing philosophy

The college will also be taking a closer look at bad debt. Changes to student account management, as well as efforts to improve student financial preparation, will save a projected $25,000. In the past, the college has gone to greater lengths to help students who might have trouble paying for their college. As the college looks at its revenue buckets, Watson said they might have to adjust its thinking.

“Our budgets may not be able to afford that philosophy, unfortunately,” Watson said.

The college is also looking to reduce its footprint at Cody Center for a savings of about $50,000 per year. The lease expires on Dec. 31, and Watson said they had negotiated a one-month extension to give them time to work out some kind of deal with Cody High School.

Watson didn’t provide specifics on what was being negotiated with the high school, but it would supplement the space they retain at Cody Center with “some specialized space,” if an agreement can be reached with the high school. They will also be doubling up on the use of space at Cody Center.

Further savings will come from reducing the work study program, costs of educational supplies, physical plant operations, vehicle and equipment replacement, and modifications to computer service operations.

NWC Board of Trustees President Dusty Spomer asked how the cuts might impact the institution’s accreditation.

“I can’t imagine it not weakening our position as far as accreditation,” Spomer said.

Watson said the administration works closely with the Higher Learning Commission, which governs NWC’s accreditation, to be sure any budgetary decisions don’t subsequently result in a loss of accreditation.

The next board meeting is set for 3 p.m. on Jan. 11, in the Yellowstone Building on campus.