Madison Area Technical College District, Wisconsin Budget Document Fiscal Year 2014 2015 madisoncollege.edu
INTRODUCTORY SECTION
Madison Area Technical College District Budget FY 2014-2015 District Board Members Janice K. Bultema - Employer Member Kelly J. Crombie - Elected Official Randy S. Guttenberg - School District Administrator Arlyn R. Halvorson - Employee Member Joseph J. Hasler - Employer Member France M. Huntley-Cooper - Additional Member Shawn W. Pfaff - Employee Member Carolyn S. Stoner - Additional Member Joel D. Winn - Additional Member Cabinet Jack E. Daniels, III - President Terry Webb - Provost Timothy Casper - Senior Executive/Special Assistant to the President Mark Thomas - Vice President for Administration Diane Walleser - Vice President of Marketing and Public Relations Keith Cornille - Senior Vice President of Student Development and Success Charles McDowell - Vice President of Human Resources Mirwais Qader - Chief Information Officer Official Issuing Document Timothy Casper - Senior Executive/Special Assistant to the President (608) 246-6033 tcasper@madisoncollege.edu Staff Preparing Document: Peter Maternowski....... Budget Director Bonny Laufenberg... Budget Consultant Mike Breezee. Budget Coordinator Jessica Esse. Administrative Assistant Contact Information for Budget Staff.. BudgetOffice@madisoncollege.edu 1
Madison Area Technical College District MARQUETTE JUNEAU ADAMS Madison College Reedsburg Madison College Portage RICHLAND SAUK COLUMBIA DODGE DANE IOWA Madison College Madison College Watertown JEFFERSON GREEN Madison College Fort Atkinson ROCK The Wisconsin Technical College System displaying the sixteen districts, of which Madison Area Technical College is a part, is shown on the subsequent map. 2
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TABLE OF CONTENTS INTRODUCTORY SECTION Page District Board Members and Cabinet 1 Official Issuing Document & Prepared By 1 District and Wisconsin Technical College System District Maps 2 Table of Contents 4 Table of Figures 5 Letter to the Citizens of Madison Area Technical College District 6 EXECUTIVE SUMMARY SECTION Madison College: Executive Summary 7 Major Initiatives and Successes 7 Progress on Madison College s Facilities Master Plan 8 Budget Inputs, Priorities and Goals... 8 Budget Results Summary 9 POLICY AND OPERATIONAL SECTION Background of Madison Area Technical College District 11 Governance 11 Madison Area Technical College District Board Members 12 Organizational Chart 13 District Mission, Vision, Values and Directives 14 2014 Highlights 15 Budget Planning Process and Development 25 FINANCIAL SECTION Fund Types 31 Fixed Assets and Long-Term Obligations 32 Basis of Accounting and Budgeting 32 Operating Budget Governmental Funds 33 Revenues 34 Expenditures 38 Fund Balance 40 Operating Budget - Proprietary Funds 41 General Fixed Assets 41 Capital Budget 41 General Long-Term Debt 43 Notice of Public Hearing 44 Budgetary Statements of Resources, Uses and Changes in Fund Balance Combined Budget Summary 46 General Fund 47 Special Revenue Aidable Fund 48 4
TABLE OF CONTENTS FINANCIAL SECTION (CONTINUED) Page Special Revenue Non-Aidable Fund 49 Capital Projects Fund 50 Debt Service Fund 51 Enterprise Funds 52 Internal Service Funds 53 Summary of Budgeted Revenue and Expenditures by Fund Type 54 Budgeted Expenditures by Object Level 55 Position Summary FTE Basis 55 Pro Forma Balance Sheet... 56 Schedule of Long-Term Obligations 58 Combined Schedule of Long-Term Obligations 62 SUPPLEMENTAL DATA SECTION Legal Description 63 List of Campuses 63 Degree/Diploma Program Offerings 64 Enrollment Statistics and FTE 68 Distribution of Real Property Value on an Equalized Basis 69 Direct and Overlapping Property Tax Rates 70 Legal Debt Margin 78 GLOSSARY SECTION Glossary / Acronyms & Definitions 79 TABLE OF FIGURES CHARTS AND GRAPHS WITH CORRESPONDING FIGURE NUMBER 1. Uses of Money 10 2. Sources of Money 10 3. District Resources 34 4. Tax Levy History 35 5. Total Mill Rate 35 6. State Aid as % of Revenue 36 7. Federal Aid Revenue 37 8. Expenditures in Dollars 38 9. Operational Expenditures 39 10. Fund Balance 40 11. Debt Service & Mill Rate... 43 ORGANIZATIONAL CHARTS, MAPS AND PHOTOGRAPHS District Map 2 WI Tech College System Map.. 3 District Board Photographs 12 College Org Chart 13 5
Citizens Madison Area Technical College District We welcome this opportunity to provide you with highlights of Madison Area Technical College s Fiscal Year 2014-15 financial plan to provide accessible, high quality learning experiences for our community. Madison College is focused on addressing the changing student population of our District and the evolving needs of our employers -- from targeted educational strategies for displaced workers, to flexible and accelerated program offerings, to measures that make a bachelor s degree more accessible. We are committed to maintaining our vision while exercising fiscal prudency to maximize limited resources. We know that our investment in Madison College students translates into a prosperous future for the entire region. Madison College is in the process of developing our strategic plan to guide our actions in the upcoming years. That plan, once finalized this summer, and this budget are intended to advance Madison College s ability to serve the residents, communities and businesses of South Central Wisconsin. The Executive Summary provides an overview of the District accomplishments, an update on the progress on our Facilities Master Plan, insight to the Fiscal Year 2014-15 major budgetary inputs and process, and a summary of the budget results. The remainder of this document presents the Fiscal Year 2014-15 Madison Area Technical College budget in greater detail. Madison College is a public educational institution that is responsive to the needs of its citizens, employers and partners. Because we are interested in assuring our communications meet those needs, we welcome your comments, concerns or suggestions. Please feel free to contact Mr. Tim Casper, Senior Executive/Special Assistant to the President, whose contact information is provided on page 1 of this document. Respectfully submitted, Jack E. Daniels, III, Ph.D. President Carolyn S. Stoner FY2013-14 District Board Chair 6
EXECUTIVE SUMMARY SECTION
MADISON COLLEGE: EXECUTIVE SUMMARY Madison Area Technical College s FY2014-15 budget document provides a broad overview as well as detailed explanations of our budget requests and how we completed this year s process. The Executive Summary highlights some of the accomplishments over the last year; provides an update on the progress made on the Facilities Master Plan; defines the budgetary inputs used to develop the FY2014-15 budget as well as the goals considered in the budget planning process; and summarizes the budget results. INSTITUTIONAL SUCCESS MAJOR INITIATIVES AND SUCCESSES A few of the many student accomplishments achieved in the last year: During the past year the School of Academic High School Completion faculty through their instruction and guidance helped 625 individuals earn their GED credential. This was an increase of over 32% compared to last year. Madison College students and graduates in the following programs exceeded pass rates for national exams: Medical Laboratory Technicians earned a 100 percent pass rate on the Medical Laboratory Technician national exam. The national pass rate is 79 percent. Ninety-two percent of Associate Degree Nursing graduates who sat for the national board examination passed on their first attempt. This is above the national average. Students and Alumni that won competitions: Liberal Arts transfer student Makiko Omori was awarded the 2014 Coca-Cola New Century Scholar Award by the Coca-Cola Foundation. Makiko was the top scoring student from the state of Wisconsin and only one of 51 nationwide chosen out of 1700 for this award. The Women s Volleyball team claimed their first national title, winning all three games in the final matchup of the 2013 National Junior College Athletic Association s Division III National Championship. This national title is the fifth in school history. The Clarion received five awards at the Associated Collegiate Press Best of the Midwest Journalism Convention. The student newspaper won first place in the Best of Show competition for two-year newspapers, and fifth place Best of Show for publication website, a category that was open to both two-year and four-year college newspapers. Alumni Matt Minus was chosen as one of ten students from around the country to join the Cisco Live Dream Team to intern helping with set-up for the Cisco annual conference. 7
Culinary students won a silver medal at the Illinois State Cook Off at Le Cordon Bleu Culinary School. The team had the second highest score at this practice competition and just missed winning the gold medal by two-tenths of a point. Madison College s chapter of Phi Theta Kappa received numerous awards at the Wisconsin Regional Conference, including Most Distinguished Chapter in Wisconsin and first place honors in Outstanding Officer Team, College Project, Honors in Action Food Theme, and Outstanding Member. The chapter also continues to earn 5-Star Status. Note: For additional detailed Madison College successes go to the Policy and Operational Section, pages 15-24. PROGRESS ON MADISON COLLEGE S FACILITIES MASTER PLAN In FY2009-10, Madison College undertook the development of its first Facilities Master plan in a generation. The College s board of trustees adopted the plan in June of 2010 and it served as the basis for the $133,770,000 referendum that passed by nearly 60% of the vote on November 2, 2010. The referendum represented the culmination of extensive research to forecast our community s needs for education and job training (the Academic Plan) and included an assessment of facilities to meet the future needs of our students and the regional economy. Madison College began implementation of the Smart Future Building Plan immediately after the election to take advantage of historically low-interest rates and the competitive bidding climate for construction projects. These two factors permitted the College to make significant progress on its Facilities Master plan. The following projects were completed before the end of 2012: o Protective Services Facility - Truax o Regional Campus Additions and Remodeling Fort Atkinson, Watertown, Portage and Reedsburg The following projects were completed before the fall 2013-14 Semester: o Health Education Center Truax o Ingenuity Center Truax o Student Gateway and Achievement Center Truax The College is also in the process of planning for its: o Culinary and Baking Programs Madison o Emergency Vehicle Operator s Course and Tactical Training Center Town of Westport BUDGET INPUTS, PRIORITIES AND GOALS The following major budgetary inputs were used to develop the FY2014-15 operating budget: Targeted net reductions totaling $3.1 million, including the elimination of 15.25 FTE positions. Use of limited operational revenue (levy) growth factor $2.8 million. Support from auxiliary service funds totaling $1.189 million. Transfer from reserve of $280,000 for compensated absences to cover expected retiree costs. Minor revenue re-estimates of $290,000. Tuition rate increases as set by the Wisconsin Technical College System Board. 8
Assumed no increase in the equalized value of property. In addition to the major budgetary inputs, the following goals were considered in the budget planning process: College Initiative Contingency - Creation of a College Initiative Contingency to support any salary and wage adjustments for FY14-15, fund projects associated with the College Strategic Plan and cover any unanticipated shortfalls in revenues. Capital Planning Needs A goal to support the Academic Plan by implementing aspects of the Facilities Master Plan, invest in academic equipment for training and education, and complete enterprise-wide IT initiatives. Planned Fund Balance Uses The Wisconsin Technical College System requires districts to have a plan for fund balances. To adhere to these WTCS requirements, the FY2014-15 budget includes a transfer of fund balance from the enterprise and internal services funds to the general fund. The planned spend down of the fund balances will not affect the levels of services and offerings supported by these funds for FY2014-15. The FY2014-15 budget is shaped, in part, by the current college strategic planning effort, which involves the District Board, college leadership and individual units of the College. For an in-depth explanation of the roles and relationship of these groups and processes, please see the Budget Planning Process section on pages 25-30 in the Policy and Operational Section of this document. 0BUDGET RESULTS SUMMARY For FY2014-15, the total proposed tax levy will decrease by 46.42% with a resulting estimated mill rate decrease of 46.42%. The significant decrease in the levy is due to the recent change in Wisconsin policy that has the state providing $406 million in funding to college districts in FY2014-15. For more information regarding this policy change, see the Budget Planning Process and Development section of this document. In the District s FY2014-15 budget, the calculated tax impact on an average single family home in the City of Madison valued at $230,831 would be a tax decrease of $197.25. Compared to the adjusted FY2013-14 budget, expenditures for all funds (governmental and proprietary funds) for the FY2014-15 budget decreased 1.67% to $322,201,140 while operating expenditures (governmental funds only) decreased by 1.62% to $299,193,140. To support those expenditures, total revenues for all funds decreased by 0.98% to $274,690,932 and operating revenues also decreased by 0.98% to $250,224,237. The functional categories of planned expenditures or the planned uses of money for FY2014-15 are represented in the graphs that follow. A significant portion of Student Service Expenditures, 77.0%, and the majority of Federal Revenue, approximately 92.6%, is composed of student financial aid. 9
Figure 1 shows the functional categories in which expenditures are classified for reporting purposes. Figure 1 Figure 2 Figure 2 above shows the sources from which the District receives revenue. 10
POLICY AND OPERATIONAL SECTION
BACKGROUND OF MADISON AREA TECHNICAL COLLEGE DISTRICT Madison Area Technical College was first chartered as the Madison Industrial School in 1912, enrolling 63 students in its first classes. In 1917, the federal Smith-Hughes Act provided additional funding for vocational education, and the Madison Industrial School became known as the School of Vocational Education. Attendance continued to grow as the result of state legislation enacted in 1933 requiring compulsory education until the age of eighteen, which served to increase the number of students enrolled in high school and opened space at the vocational schools for more adult students. These changes in focus resulted in another name change in 1937 to the Madison Vocational and Adult School. Increasing state control and budgetary difficulties led to legislation, enacted in 1965, requiring formation of vocational districts by 1970. The Area Vocational, Technical and Adult Education District No. 4 was legally organized on July 1, 1967, under the provisions of Chapter 292, Laws of Wisconsin 1965. Its name was changed in 1992 to Madison Area Vocational, Technical and Adult Education District; and in 1994 to Madison Area Technical College District. The District is composed of the majority of five counties (Dane, Columbia, Jefferson, Marquette and Sauk) and parts of seven other counties (Adams, Dodge, Green, Iowa, Juneau, Richland and Rock). There are 225 municipalities and 40 public school districts within the District s boundaries. The District contains 4,414.48 square miles and had an equalized valuation for fiscal year 2013-14 of $67,454,400,159. The population in 2013 was 739,775. The District operates campuses in five cities: Fort Atkinson, Madison, Portage, Reedsburg and Watertown. GOVERNANCE The governing body of Madison Area Technical College District is the District Board, which consists of nine members. The members are appointed to staggered three-year terms by the county board chairpersons of the twelve counties in the District who meet once a year to appoint three members. The District Board membership categories include two employers, two employees, three additional members, one school district administrator and one elected official who holds a state or local office. The District Board powers, which include the authority to levy property taxes and borrow monies, are established under the provisions of Chapter 38 of the Wisconsin Statutes. Current members of the District Board are shown on the next page. 11
Madison Area Technical College District Board FY 2014-2015 Janice K. Bultema Kelly J. Crombie Randy S. Guttenberg Arlyn R. Halvorson Joseph J. Hasler Frances M. Huntley-Cooper Shawn W. Pfaff Carolyn S. Stoner Joel D. Winn Jack E. Daniels III, Ph.D. [Elected Official] Term Expires 6/30/17 Mayor, City of Columbus Owner, Mullin s Drive-In Attorney, Crombie Law Office LLC [Employer Member] Term Expires 6/30/15 Senior Vice President Human Resources UW Hospital & Clinics [School District Administrator] Term Expires 6/30/15 Superintendent, Waunakee Community School District [Employee Member] Term Expires 6/30/15 Dane County Highway Department and President of American Federation of State, County and Municipal Employees Local 665 [Additional Member] Term Expires 6/30/17 Retired [Employer Member] Term expires 6/30/16 Attorney, LaRowe Gerlach Taggart, LLP [Additional Member] Term Expires 6/30/16 Retired [Employee Member] Term expires 6/30/16 President, Pfaff Public Affairs LLC Mayor, City of Fitchburg President Madison Area Technical College [Additional Member] Term Expires 6/30/17 Retired 12
Madison College Organizational Chart 4-30-14 Madison College Foundation Board Directors Carolyn Jarrett Legal Advisor Jack E. Daniels, III President Tammy Thayer Chief Executive Officer Foundation Ellen Hustad Admin Asst Patricia Svendsen Admin Asst Tim Casper Sr. Executive/Special Assistant to the President Terry Webb Provost Keith Cornille Sr. VP of Student Development & Success Mark Thomas VP for Administration Diane Walleser VP Marketing & Public Relations Chuck McDowell VP Human Resources 13 Academic Innovation & Support School of Academic Advancement Center for Enrollment Support Services Facilities Services Financial Services Marketing HR Specialists School of Applied Science, Engr. & Technology School of Arts & Sciences Center for Academic Support Services Technology Services Public Safety Services Events Benefits, Compensation & Training School of Business & Applied Arts School of Health Education Center for Student Life & Enrichment Procurement Risk Management Recruitment & Outreach Employment, Diversity & Community Relations Economic & Workforce Devt Exec Directors School of Human & Protective Services Center for Student Development Auxiliary Services Public Relations Payroll Operations & Innovations Metro Oversight (Downtown, South and West)
DISTRICT MISSION, VISION, VALUES AND DIRECTIVES Mission: Madison College provides open access to quality higher education that fosters lifelong learning and success within our communities. Vision: The leader in accessible, affordable higher education that meets the evolving needs of our diverse communities. Values: Excellence, respect, commitment to students and diverse communities, and making higher education available to all. College Directives: 1. Focus on Successful Outcomes for Students 2. Ensure Our Sustainability 3. Support our Faculty and Staff 4. Address Student Preparedness 5. Align with Community Needs 6. Improve Recruitment and Strategic Outreach The Madison College Strategic Planning Steering Team is currently in the process of further defining each of the above directives with expected completion by August 2014. 14
2013-14 COLLEGE HIGHLIGHTS Mission Statement Madison College provides open access to quality higher education that fosters lifelong learning and success within our communities. Vision Statement The leader in accessible, affordable higher education that meets the evolving needs of our diverse communities. Values Excellence, respect, commitment to students and diverse communities, and making higher education available to all. Learning Accreditation The Respiratory Therapy Program was reviewed by the Commission on Accreditation for Respiratory Care, who found that the College s program met or exceeded all currently set thresholds for success on each of the required outcomes measures this is an accomplishment of which you, your staff, and institution should be proud. Curriculum & Programs The academic plan was updated to reaffirm the College s 102-year commitment to offering market-responsive, accessible and innovative academic programing to benefit students and stakeholders. Developed through the leadership of Associate Vice President of Learner Success Turina Bakken, the 2014 Impact Initiative Academic Plan presents five themes that have emerged as drivers for the College all centered on academic excellence and student success. They are Academic Technology, Changing Credentials, Flexible Delivery, Workforce Skills and Jobs of Tomorrow. A transfer agreement was reached with the Milwaukee School of Engineering (MSOE) that allows Madison College Electrical Engineering Technology students to transfer their courses to MSOE towards a bachelor s degree in Electrical Engineering. Madison College s 2014 graduates will fully meet the terms of the new agreement. 15
The College developed a new Digital Marketing one-year technical diploma designed for people who desire to incorporate cutting-edge marketing techniques into an organization s new and existing marketing activities. The entire curriculum will be offered in an online and hybrid format to attract and accommodate those currently working in the marketing field. Research in the Madison College District for jobs related to this new diploma program shows that a Post-Secondary or Associate s Degree is the most requested educational qualification by employers, and 81 percent of employers within the district require a Post-Secondary or Associate s Degree. The College received FANUC irvision certification which was passed on to students as they complete robotic coursework in Automated Manufacturing Systems Technology. Madison College is the first school in the state of Wisconsin to offer this industry credential to students. In other FANUC news, the College established a partnership with FANUC America Robotics to be one of only two institutions in the nation to be part of FANUC s Factory Authorized Satellite Training (F.A.S.T.) program to deliver FANUC curriculum and training to local industry. The College s Mentoring Minority Male Scholars Program (3MSP) and Women of Color Mentoring Program (WCMP) were recipients of a Great Lakes College Success grant provided by the Great Lakes Higher Education Guaranty Corporation. This grant provided $68,800 in funding for 50 students of color to receive academic and personal support, leadership development skills, and mentoring from staff and faculty within the Madison College community. Student Achievements -- Academics Graduates from the College s health programs continue to perform extremely well on their first attempt at national certification exams: Program Madison College Pass Rate National Average Pass Rate Associate Degree Nursing 92% 89% Dental Hygiene 100% 83% Dietary Manager 100% 69% Medical Assistant 93% 69% Medical Laboratory Technician 100% 79% Occupational Therapy Assistant 95% 81% Optometric Technician 100% 86% Physical Therapy Assistant 100% 82% Radiography 100% 93% Respiratory Therapy 100% 78% Surgical Technologist 82% 76% Therapeutic Massage 90% 69% 16
Student Achievements Awards Liberal arts transfer student Makiko Omori was awarded the 2014 Coca-Cola New Century Scholar Award by the Coca-Cola Foundation. An international student from Hachioji, Tokyo, Makiko was the top scoring student from the state of Wisconsin. Out of more than 1,700 nominations, Makiko was one of 51 students nationwide chosen for this honor. The Women s Volleyball team claimed their first national title, winning all three games in the final matchup of the 2013 National Junior College Athletic Association s Division III National Championship. This national title is the fifth in school history. Students from the Agricultural Equipment Technology program earned the top four awards in the team division at the Agricultural Machinery Service Technician state event. Madison College students were also awarded the top three individual honors at the competition. Students competing at the SkillsUSA National Leadership and Skills Conference won first place honors in Automotive Services Technology and third place in Automated Manufacturing. Interior Design Program students brought home 16 of the top awards at the annual state-wide Interior Design Competition. Students competed in several categories including a written exam and testing their space planning and material selection skills in an on the spot design competition in residential, commercial or kitchen design. Interior design professionals specializing in residential, commercial or kitchen design judged the student projects. The College s student newspaper, The Clarion, received six awards at the Associated Collegiate Press (ACP) National College Media Convention. Among the awards was the National Pacemaker Award, considered the Collegiate Pulitzer that recognizes excellence in student journalism. The Clarion received five awards at the annual Associated Collegiate Press Best of the Midwest Journalism Convention. The student newspaper won first place in the Best of Show competition for two-year newspapers, and fifth place Best of Show for publication website, a category that was open to both two-year and four-year college newspapers. Members of The Clarion staff also won second, third and fourth place honors. Students competing at the Culinary Salon hosted at Madison College won a silver medal from the American Culinary Federation (ACF). The competition featured chefs from around the country competing alongside the Madison College student team. In addition, culinary alumnus Eric Clark and instructors Julia Julian and Kevin McGuinnis won gold medals in the Mystery Basket competition. Culinary students won a silver medal at the Illinois State Cook Off at Le Cordon Bleu Culinary School. The team had the second highest score at this practice competition and just missed winning the gold medal by two-tenths of a point. The Culinary students will compete at a regional competition in March. 17
Alumni Matt Minus was chosen as one of ten students from around the country to join the Cisco Live Dream Team to intern helping with set-up for the Cisco annual conference. This is the fourth year Matt has been chosen to be the Alumni team lead for Dream Team. The team consists of national and local students and instructors who were chosen from more than 80 applicants. Madison College is the only institution to send students to Cisco Live for three years. Four Madison College teams competed at the Agricultural Machinery Service Technician national event, earning second, fourth, eighth and tenth place honors. Individual awards were also given to top performers in the national Post-Secondary Agriculture Student (PAS) contest, with Madison College students receiving two of the top three individual awards. Student Denise Cohn received a Distinguished Regional Officer Award at the Phi Theta Kappa annual convention in April. Denise is a student at the Reedsburg campus and serves as the vice president of Phi Theta Kappa for the Wisconsin Region. Madison College s chapter of Phi Theta Kappa received numerous awards at the Wisconsin Regional Conference, including Most Distinguished Chapter in Wisconsin and first place honors in Outstanding Officer Team, College Project, Honors in Action Food Theme, and Outstanding Member. The chapter also continues to earn 5-Star Status. Gainful Employment The most recent Graduate Employment Report, which surveys graduates six months after graduation, indicates that 80 percent of Madison College graduates find jobs within six months of graduation. Of those, over 80 percent of graduates are employed within the district and over 95 percent are employed within the state of Wisconsin. The average monthly salary for a Madison College graduate employed in a position related to their twoyear degree is $2,746. Madison College received almost $1.9 million of a state consortium grant totaling $27.1 million to increase capacity and create unique learning experiences in the Help Desk and Network Security programs. This Department of Labor grant will fund the statewide INTERFACE Project that develops, improves, and expands adult educational training pathways to careers in information technology-related occupations. Madison College s funding will have an emphasis on veterans and foreign trade impacted workers. There is a two-year waiting list for the Network Security associate degree program, and the ability of students to get work experience that assists them in competing in a heavily credentialed market will be greatly enhanced through this grant. With the help of a $123,000 grant from the Workforce Development Board of South Central Wisconsin, Madison College offers free Workplace Skills classes to individuals who are unemployed or needing to sharpen their computer skills. Participants can improve their basic computer skills, refresh math skills, and get assistance with reading and writing as it relates 18
to job searches and preparing resumes. Workplace Skills Centers are located throughout the Madison College district in Dane, Jefferson, Sauk and Marquette counties. Beginning in the fall of 2013, students who complete certain noncredit classes, workshops, trainings and other outlets at Madison College, that are not necessarily tied to a formal degree or certificate, will earn digital badges to recognize the skills they have learned. These badges are especially useful for those who have recently upgraded their skills or who want to show they have acquired a new skill. According to Mozilla, Madison College is the first two-year college in the nation to join the small but growing number of higher education institutions worldwide that offer badges to affirm learning. Skilled Workers Madison College collaborated with the Fisher Barton Group to provide customized training for employees at the Fort Atkinson and Watertown campuses. Employees of Fisher Barton received manufacturing training at the Fort Atkinson campus and training in welding and automation at the Watertown campus. Fisher Barton is a manufacturing company with operations in South Carolina, Texas, Illinois, Vietnam, Ireland and four locations in Wisconsin. Animation faculty and students partnered with the University of Wisconsin to work on an ambitious prototype game based on neural plasticity. Over a six month period students animated a variety of characters, rigged multiple characters, helped troubleshoot technical issues and generally consulted on the project. College Access Open Access / Welcoming Environment The Madison College Guidebook was launched in February. This recruitment brochure describes the diversity of programs offered, highlights what students experience, provides tips on starting the application process, and helps illustrate the College s place in the community. The Guidebook features students, faculty and staff and was produced with input from key stakeholders from across the College. Madison College s Gateway to College program helps students who have dropped out of high school or who may not graduate. Funded through a $325,000 grant from the Gateway to College Foundation, students can obtain their high school diploma and earn college credits at the same time. Eighteen Middleton/Cross Plains students were enrolled at the College through the Gateway to College program during the fall 2013 semester, and students from the Sun Prairie Area School District enrolled during the spring 2014 semester. The College bookstore implemented a Financial Aid Book Charge Program that allows students to complete online textbook ordering for the first time utilizing financial aid funds. 19
A district-wide virtual tour was launched on the College website in January to give students a visual impression of the college. Website visitors can take a virtual tour that features highlights of each Madison College location. Facilities New facilities that opened at the Truax campus in the fall of 2013-14 reflect the goals outlined in the College s Facilities Master Plan (the Facilities Master Plan is available on the College website at http://madisoncollege.edu/in/facility-master-plan): Health Education Building: This new 177,000 square foot building houses fourteen health programs and contains a virtual hospital training center with six simulations labs; community health, dental and therapeutic massage clinics; and active learning classrooms with realistic hands-on skills practice settings. The College s first geothermal field provides groundsourced heating and cooling. Geothermal energy, a key sustainability initiative in the College s Smart Future Building Plan, is expected to result in significant fuel savings. Gateway Entrance: Madison College s new front door, this building is the new gateway to student-centered services and includes a welcome center, enrollment and financial services center, new Student Achievement Center, career and employment center, expanded library, and second-story coffeehouse. The 93,000 square foot Gateway also features a three-story atrium and a gallery to showcase student works. Since opening in July 2013, the Student Achievement Center has had more than 26,000 visitors, an example of student use of this new facility. Ingenuity Center: A new 64,000 square foot addition attached to the new Gateway Entrance, the Ingenuity Center focuses on advancing manufacturing for our district. Gaining real world experience in design, automation, industrial maintenance, machining and quality control techniques, students are being well-prepared to help manufacturers compete in a complex and global marketplace. The Ingenuity Center houses a state-of-the-art machining training center, a hands-on CNC simulation lab, a rapid prototyping lab with complex 3D printing, an advanced robotics lab and a material science lab, plus multiple active-learning classrooms and labs. Technology The College bookstore successfully implemented online textbook adoptions, allowing faculty to submit their textbook requirements online. Streamlining the entire book procurement process, this new process will continue to build history so that faculty can review the list of course materials they have used in the past to assist them in submitting future textbook adoptions to the bookstore. Madison College is implementing Workday, a securely hosted, integrated human resources/payroll and finance system that will change the way the College conducts business 20
by automating, streamlining, and standardizing current business processes. A large cross functional implementation team is working diligently to launch the Workday application to the College. Human resources and payroll are scheduled to launch in January 2015, and finance is scheduled to begin in July 2015. Global Education The College s Center for International Education admitted over 70 new international students for the fall 2013 semester the largest single group of international students to date. The College s international student community represents nearly 40 cultures from Africa, Asia, the Americas, Europe, the Middle East, and Oceania. The Center for International Education partnered with the Student Life office to offer Cultural Connect, a new initiative that pairs U.S. and international students in a semesterlong peer mentoring partnership. The Goal of Cultural Connect is to foster meaningful interaction that will help integrate international students into the campus culture and help U.S. students cultivate global competencies. Enhancement of Collaborative Community Efforts Madison College partnered with Robbins Manufacturing and the Fabricators and Manufacturers International Association to provide customized training specific to the intricacies of press brake and other industry-specific operations. This partnership was highlighted in The Fabricator, North America s leading publication for the metal forming and fabrication industry. 21
- Selected College Accomplishments - A strategic planning process was initiated to map the College s future direction. The first phase of the process was completed in January when new Mission, Vision and Value statements were approved by the District Board. The next phases of the process will include working toward the completion of the College s strategic directives, classifying action items that have been identified as priorities, and assessing what resources are needed to make them happen. Input sessions with internal and external stakeholders from across the district have occurred this spring to learn about trends that will impact the future direction of the District. The strategic plan is scheduled to be finalized and communicated in August 2014. Madison College Matters, a web-based newsletter designed to keep College employees informed through an interactive and content-rich environment, was named a national Gold Award winner by the Higher Education Marketing Report the leading trade publication for educational marketers. This award recognizes the best educational websites, digital content, electronic communications, mobile media and social media. Nearly 150 two- and four-year colleges and universities submitted entries for this year s competition. The College s Biotechnology Program received a donation of cell culture media, reagents, supplies and equipment estimated at a total value of $50,000 from Cellular Dynamics International. The program also received a donation from Roche/Nimblegen valued at $15,000 for supplies, reagents and equipment that was actively used by students in the Biotechnology and Stem Cell certificate courses. FANUC Robotics donated an S430 robot valued at over $18,000 to be displayed in the Ingenuity Center. Madison College s woodworking program won Stiles Machinery s Own an Ironwood online contest, receiving $4,000 towards a new Ironwood BR23 construction boring machine. 22
- Selected Staff Accomplishments - Supervisory Management instructor Cindy Spankowski received the 2013 Council for Accelerated Programs Excellence in Teaching Award for her distinguished career as a pioneer in accelerated teaching at the College. Peter Dettmer, Automated Manufacturing Systems Technology instructor, was recognized as the Wisconsin Association for Career and Technical Education Best New Instructor and received the National Institute for Staff and Organizational Development s Teaching Excellence Award. Child and Family Centers Director Cigdem Unal was selected as one of only two recipients nationwide for the Legacy Leader Fellowship Award from the National Association for the Education of Young Children (NAEYC). Meeting and Event Management instructor Janet Sperstad was selected as the 2014 Education Honoree for the Professional Achievement Award from the Professional Convention Management Association (PCMA) Foundation. Each year the PCMA selects three honorees a meeting professional, an educator, and a supplier. Ms. Sperstad is the first community college educator to receive this award. Information Technology instructor Michael Bender was awarded the Microsoft Most Valuable Player (MVP) Award for the second year in a row. This award is the Microsoft Corporation s method of acknowledging community leaders who share their passion, technical expertise and real-world knowledge of Microsoft products with others. There are only 997 Microsoft MVP s worldwide. Simulation instruction coordinator Jeffrey Wenzel was awarded the Advocate in Simulation award by Simulation iq. Presented to three individuals from across the nation, Wenzel s award recognizes his role in advocating learning through clinical simulation education in the School of Human and Protective Services and the School of Health Education. Diane Walleser, Vice President of Marketing and Public Relations, received the Strategic Enrollment Management (SEM) Award of Excellence from the American Association of Collegiate Registrars and Admissions Officers (AACRAO). This award recognizes achievement and visionary leadership in strategic enrollment management and student success. Information Technology instructor Brent Sieling received a certificate of recognition as an Advanced Level Instructor by Cisco Networking Academy. This award recognizes Brent in the top 25 percent of instructors worldwide based on his excellence in participation in professional development opportunities, attention to student needs, student performance and use of resources. 23
Student Life Director Renee Alfano was among 30 Phi Theta Kappa advisors presented with a 2014 Distinguished Advisor Award at the annual NerdNation convention. This award recognizes advisors who have served at least four years and have made significant contributions to the growth of their chapter members, served as the chapter s advocate on campus, and encouraged the chapter to be involved on the local, regional, and/or international level of the organization. Interior Design faculty were selected by a jury of design professionals to participate in the Design MMoCA 2014 exhibit at the Madison Museum of Contemporary Art. Design MMoCA celebrates art and design by placing the region s design community at center stage. Madison College is the only non-profit organization that is part of this year s exhibit. International Education Director Geoff Bradshaw was appointed to the editorial advisory board of International Education magazine. Dr. Bradshaw was nominated for the position based on his experience in the field of international education and his reputation as an advocate for community college internationalization. 24
BUDGET PLANNING PROCESS AND DEVELOPMENT Multi-Year Planning The fiscal year 2014-15 Madison Area Technical College planning structure includes five major actors or processes that have a role in strategic planning and budget development. These actors are the District Board, the College Strategic Planning Team, the Interest-Based Problem Solving Team, the President s Cabinet and the various units of the college, both alone and as larger areas represented in the unit planning process. The role of the Board of Trustees, which is appointed by the County Board Chairs of the district, is to approve the mission, vision, and values for the college. The College uses the Board's vision and themes to determine the most important outcomes to pursue to achieve that vision and to assess to track progress. The College, primarily through its Strategic Planning Team, then articulates the desired outcomes as the College Directives, which are detailed in the College s Strategic Plan. Individual units and divisions of the college, which make up all employee work groups, participate in the strategic planning process through the unit planning process. Unit plans are intended to create a vision for the future, identify how individual units can support college advancement, and help support and achieve the directives as defined by the Strategic Planning Team. The current College Directives are: Focus on Successful Outcomes for Students Ensure Our Sustainability Support our Faculty and Staff Address Student Preparedness Align with Community Needs Improve Recruitment and Strategic Outreach Annual Budget Process The District budget is established annually. This process involves the review and revision of the current year base budget and establishment of revenue and expense parameters that will be used as inputs to the budget development process. In addition to planning a budget for the next year, budget impacts are analyzed for future years. The planning for the future years is progressively less detailed, since the activities in those years are less certain, and accurate forecasting is necessarily more difficult. In the process of reviewing and revising the current year base budget, the District uses a modified zero-based budgeting approach, in which specific elements of the budget are reset to equal estimated actual need. The following aspects of the budget are zero-based budgeted: salaries for all full time positions (52% of the general fund budget), fringe benefit package costs based on actual benefit eligibility and elections (21% of the general fund budget), district utilities (2% of the general fund budget), operating lease expenditures (1% of the general fund budget), and all district insurance costs (1% of the general fund budget). The budget elements that are zero-based budgeted equal 77% of the general fund budget. 25
The following fund budgets are also budgeted completely using a zero-based budgeting methodology: Capital Equipment, Projects Fund and the Debt Service Fund. The following inputs and assumptions are used to further refine the revenue and expenditures budgets: Enrollment trends and goals Tuition and fee rate changes Debt proceed assumptions Investment earnings assumptions State aid estimates Salary and fringe Impact of upcoming retirements Impact of annual turnover Non-Salary expenditure assumptions Utility assumptions Capital planning expenditures Equalized Valuation assumptions Net New Construction assumptions Tax levy calculation and compliance with revenue limits ECONOMIC CONDITIONS AND OUTLOOKS IMPACTING BUDGET PROCESS ASSUMPTIONS The four areas impacting Madison College the most are: employment rate; inflation; property values and net new construction in the District; and the recently implemented revenue limit on the operating budget and associated state funding. Traditionally, greater unemployment rates typically result in increased enrollments. Inflation, especially in the areas of utility costs and health care benefits, has been a concern in recent years. Property values in the District impact the level of taxes for property owners and the ability of the District to support educational and training needs of residents and employers in the District. The College s fiscal year 2014-15 budget is affected by policy changes included in the State of Wisconsin s 2013-15 biennial budget that begin to distribute a portion of general state aids via performance. Separate legislation passed in the spring of 2014 creates a new revenue limit for college districts and replaces a significant portion of its property tax funding with state aid. Both of these items are discussed in greater detail in the Legislative section of the document. Employment According to the National Bureau of Economic Research, the Great Recession ended in June 2009. For Wisconsin, and the nation, the recession resulted in the most job losses in the last 50 years. The Madison area continues to fare better than the national economy: the adjusted Madison metro area s unemployment rate decreased from 5.2% in January 2013 to 4.4% in January 2014 compared to the Wisconsin adjusted rate of 6.2% and the U.S. adjusted rate of 6.6% for January 2014. (Bureau of Labor Statistics http://data.bls.gov adjusted rate for the Madison Metropolitan Statistical Area and CPS Summary). 26
The following is a snapshot of employment in the Madison region (http://data.bls.gov): Year Period Labor Force Employment Unemployment Unemployed Rate (Unadj.) 2004 Annual 327,246 316,085 11,161 3.4 2005 Annual 332,979 321,840 11,139 3.3 2006 Annual 336,708 325,188 11,520 3.4 2007 Annual 339,116 327,032 12,084 3.6 2008 Annual 340,862 328,617 12,245 3.6 2009 Annual 345,812 324,368 21,444 6.2 2010 Annual 346,629 325,977 20,652 6.0 2011 Annual 346,985 328,428 18,557 5.3 2012 Annual 348,836 331,527 17,309 5.0 2013 Annual est. 352,645 335,639 17,006 4.8 Note: 2013 data is an estimate as BLS has not issued final figures for December 2013. According to the most recent Wisconsin Economic Outlook report from the Wisconsin Department of Revenue from winter 2014, the Wisconsin economy grew, as evidenced by increased employment, but Wisconsin employment is not estimated to return to its 2008 peak level of 2.9 million jobs until mid-2015. Real personal income is expected to grow 2.9% in 2013 and 4.0% in 2014 (http://www.dor.state.wi.us/ra/econ/2014/winter2014_fullrpt.pdf). During the recession, Wisconsin lost substantial jobs in its two largest sectors: Trade, Transportation and Utilities and Manufacturing. Trade, Transportation and Utilities job growth was projected at 2.1% for 2014. Manufacturing job growth was projected to increase by 1.3% in 2014 and 2.4% in 2015. The Education and Health Services sector added jobs throughout the Great Recession and is expected to increase employment by 1.7% in 2014 and 2015. Finally, the report predicts that overall job growth will increase by over 40,000 jobs in 2014 and 2015. Inflation According to the Bureau of Labor Statistics, energy costs (fuels and utilities) have increased by 8.5% from March of 2013 to March of 2014 in the Midwest Region (http://www.bls.gov/ro5/ro5cpi08.pdf). Overall, the national energy index has seen an increase of 28.4% for natural gas while electricity, gasoline and fuel oil have declined by 0.2%, 2.6% and 2.3% respectively. The overall Midwest Region consumer price index is up 1.5% over the same period, compared to a national increase also of 1.5%. To manage energy costs, the College has committed that all new construction and remodel projects will be energy efficient. When new facilities and additions opened in the fall of 2013, total energy costs for the College increased. Medical inflation could be as high as 2.10% for the 12 month period ending January 2015 (http://forecast-chart.com/inflation-medical-care-cost.html). Property Values The Wisconsin REALTORS Association reported in April 2014 that existing Wisconsin home sales dropped for the third straight month in March 2014 down 11.3% relative to March 2013 27