Part of the budget process included addressing a revenue shortfall. “The revenue shortfall is due to a $6-million enrollment revenue loss during the 2015-16 academic year, a $1-million revenue loss from our sponsoring school districts, uncertainties in state funding and increased operating expenses,” said HACC President John J. “Ski” Sygielski, Ed.D.
The budget reflects several initiatives to increase revenue:
- Tuition increase for students
- Fundraising campaign spearheaded by the HACC Foundation
- New academic programs at various campus locations and virtual learning opportunities
- Student retention initiatives
- Targeted expansion of community partnerships
In addition, the budget includes several cost-saving measures that total $3,167,240:
- Two-day furlough for employees
- Early retirement option for eligible employees
- Reduction in out-of-state travel
- Reduction in computer leasing costs
- No salary increase for the President’s Cabinet members
The budget also includes a 2-percent salary increase for full-time employees. Sygielski said, “While we are tightening our financial belt in other ways and will continue to do so, we felt it was important to provide a modest salary increase for HACC employees. This increase demonstrates the College’s gratitude for hardworking employees and allows us to remain competitive when hiring new employees.”
Tuition Increase for Students
“As painful as it is to raise tuition and fees, for now, it is the only way for the College to raise additional revenue to cover part of the current shortfall,” Sygielski said.
- Increased tuition by:
- $13.50 per credit hour for students who live in one of HACC’s 22 sponsoring school districts (sponsoring school districts pay a portion of the tuition for residents who attend HACC)
- $6 per credit hour for students who live in a non-sponsoring school district
- $6 per credit hour for students who live out of state
- Increased the technology fee by $2 per credit hour
- Implemented a $1.50 per-credit-hour fee for security-related investments on all five HACC campuses
The increases are effective immediately for students enrolling for the fall term that begins Aug. 29, 2016.
The tuition increase will generate additional revenue of $2,579,598.
Fundraising Campaign Spearheaded by the HACC Foundation
Through 2019, HACC and the HACC Foundation are raising $14 million for:
- Cooper Student Center ($10 million) - For the first time in 45 years, HACC is renovating the Cooper Student Center on the Harrisburg Campus.
- Emergency Assistance Funds ($500,000) - The Emergency Assistance Funds are available to assist students facing financial emergencies and unexpected financial burdens.
- President's Fund for Excellence ($1.5 million) - Transforming HACC will require strong college support and change. It will also require new, flexible and ongoing sources of revenue that can be invested quickly as needs arise and promising big ideas surface. The President's Fund for Excellence is a vital resource that enables HACC to address the immediate priorities of today, while building a stable foundation for the future.
- Scholarships ($2 million) – Scholarships help to offset tuition and book costs for financially disadvantaged and deserving students
Two-Day Furlough for Employees
A budget-required furlough day is an unpaid, pre-scheduled day off. The College will close on furlough days.
The furlough days will be:
- March 9, 2017
- March 10, 2017
These dates were selected because credit classes are not held on these days, minimizing the impact of the College’s closure on our students. Also, these dates occur during a month with three pay dates, reducing the financial impact of a furlough on our employees.
This measure will save $747,000.
Early Retirement Option for Eligible Employees
HACC offered eligible employees a voluntary early retirement incentive through the end of fiscal year 2015-16.
The early retirement incentive package included:
- One week of salary for each year of full-time service in a lump sum payment (less taxes and other deductions)
- Healthcare coverage until the end of the month of the date of separation
- Vacation payout (in accordance with HACC policy)
- Sick leave payout (in accordance with HACC policy)
Reduction in Out-of-State Travel
Out-of-state conferences and other professional development events will be held to a minimum. Despite this restriction and in accordance with the College’s Journey to Excellence 2015-19 strategic plan, professional development remains a high priority at HACC. Employees are encouraged to participate in activities offered in-house as well as webinars and in-state conferences.
This cost-saving measure will save the College $450,000.
Reduction in Computer Leasing Costs
HACC is revamping its computer leasing program.
The College is phasing out the practice of leasing computers by purchasing replacement computers in bulk. This technique eliminates the costs associated with returning computers, extending leases or buying the computers at the end of a lease. In addition, it gives the College a repository of computers in which to expand use, better serve our students through expanded PC loan programs or engage the community through charitable donations to schools and other partners. Computers that are subsidized by state funds will continue to be leased.
With this reduction in computer leasing costs, the College will save $171,301.
No Salary Increases for Certain Executive-Level Employees
Members of the President’s Cabinet – including Sygielski, vice presidents and campus leaders – voted unanimously to forego salary increases for 2016-17.
Sygielski said, “I am proud of my leadership team and this selfless act. The leadership team members have family, bills and other personal obligations like other HACC employees. Despite these commitments, they sacrificed and agreed to give up their salary increases.”
This no-salary-increase measure will save $42,903 for the College.
HACC, Central Pennsylvania’s Community College, offers more than 120 career and transfer associate degree, certificate and diploma programs to approximately 19,000 students. Also, the College serves students at its Gettysburg, Harrisburg, Lancaster, Lebanon and York campuses; through virtual learning; and via workforce development and continuing education training. For more information on how HACC is uniquely YOURS, visit hacc.edu. Also, follow us on Twitter (@HACC_info), like us on Facebook (Facebook.com/HACC64) and use #HACCNews.
About the HACC Foundation
The HACC Foundation is a 501(c)(3) nonprofit organization that was established in 1985 to raise funds for HACC, Central Pennsylvania's Community College. In fiscal year 2014-15 alone, the HACC Foundation contributed close to $2.3 million to the College in support of financial assistance for 2,479 students, innovative academic programs, state-of-the-art training equipment and modernized facilities.
Donors to the HACC Foundation include individuals, community organizations and corporations. In fiscal year 2014-15, more than 935 donors contributed almost $2 million to the HACC Foundation.
The HACC Foundation is gratefully YOURS. For more information, please visit haccfoundation.org. Also, follow us on Twitter (@HACC_info), like us on Facebook (Facebook.com/HACC64) and use #HACCNews.