Madison Area Technical College District, Wisconsin. Budget Document. Fiscal Year 2014 2015. madisoncollege.edu

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

(https://www.wra.org/hsrmarch2014/). The decrease is attributed, in part, to the harsh winter weather. In the 12 county South Central Wisconsin region, existing home sales decreased 3.5% over the 12 months ending March 2014. During that time, the median sale price in the region increased $3,600 or 2.3%. According to the Federal Housing Finance Agency, the house price index (HPI) purchase-only increased by 7.69% nationally and 5.46% in Wisconsin for the 12 month period ending with 2013 Q4 (http://www.fhfa.gov). Housing values are set for tax purposes in January of each year, and those values reported to taxing authorities the following fall are used for computing taxes, which are billed to property owners in December. Legislative In June 2013, the legislature passed its two-year spending plan for 2013-2015. That plan provides in fiscal year 2014-15 a $5 million increase in general state aid to college districts and begins to distribute 10% of that total aid, or $8.85 million, via performance, rather than the existing distribution formula based on enrollment, expenditures and property values. The amount of general aid to be distributed in this manner increases by 10% per year until it reaches 30% in fiscal year 2016-17. The legislature directed the Wisconsin Technical College System (WTCS) to develop a series of performance metrics, based upon nine factors that the legislature had identified, for distributing this portion of general state aid. The legislation requires each college district to select to be evaluated based upon seven of the nine factors. Based upon an analysis provided by the WTCS, had this new funding structure been in place in fiscal year 2013-14 Madison College would have received slightly more funding than it would with all the general state aid being distributed through the existing formula. In January 2014, the non-partisan Legislative Fiscal Bureau reported that the State of Wisconsin would have a gross balance of $1.042 billion for the fiscal year ending June 30, 2015 when considering the opening balance of $619 million; this represents an increase of $896 million over what was projected in August 2013 after the 2013-15 biennial budget was signed into law. This projected growth in the balance estimate was stimulated by expected future increases in individual income tax receipts, general sales and use tax receipts, and corporate tax receipts. Based upon this information, the legislature and governor introduced a series of tax reduction proposals in January, including one related to the state s 16 technical college districts. In an effort to reduce the amount property owners pay in property taxes, beginning with Tax Year 2015 (property tax bills issued December 2014) the state will provide $406 million in new aid to decrease the property taxes levied by the 16 technical college districts. Specifically, the state will divide the equalized value of each college district by the total state-wide equalized value and take the resulting quotient and multiply it by $406 million to determine how much aid the college would receive. As part of this legislation, the governor and legislature also eliminated the limit on operating levies and replaced it with a revenue limit. The basis of the initial revenue limit calculation begins with the amount that each college district levied for operations in the previous year. Beginning with Tax Year 2015 (college district fiscal year 2014-15), the revenue limit specifies 28

that the difference between the new state aid received by the college district and its revenue limit is the amount it can levy for operations. The new law also provides for a growth factor in the revenue limit. The allowable growth factor is a percentage increase in the prior year s revenue limit equal to the percent change in a district s valuation due to net new private construction. The ability for college districts to levy for the purposes of debt service is not affected. As a result of the new funding aid to college districts related to the property tax, the total funds available to college districts becomes the seventh largest state expenditure activity based on expenditures for fiscal year 2013-14. This means that in the future, as the state puts its biennial budget together, the funding of college districts will be subject to greater competition with other programs and interests. Based upon the Legislative Fiscal Bureau s January 2014 fiscal forecast, the legislature and governor also authorized spending $35 million in one-time funds on workforce development initiatives with approximately $31 million of this one-time money targeted to college districts to address academic programs with wait-lists in high-demand fields, identified by the state labor department. College districts will compete with one another for a portion of this funding. As Madison College begins to receive more of its operating funds from the state, approximately 48% in fiscal year 2014-15, its future funding outlook is less predictable. State policy-makers will biennially determine how much funding to provide to college districts and that may vary with the state s economic and fiscal condition and the policy preferences of elected officials. These changes to the college s funding underscore the continued need to focus on long-term planning and fiscal responsibility. In November 2014, all 99 seats of the state assembly, 17 seats of the state senate, and the governor will be on the ballot for (re-)election with election winners taking office in January 2015. Process for Budget Adjustments Continue the annual process of budget adjustment and revisions in the following steps: 1. All programs, services, and systems are expected to operate at capacity levels. Adjust overall budget parameters to reflect college needs, sound financial strategies, and updated assumptions. Reduce or eliminate expenditures that are not essential to operations and do not affect positions. Reduce or eliminate resources in areas not operating at full capacity as measured by students or staff members served. Reallocate resources until capacity is reached in programs and services. Consider and implement budget savings strategies that cross college departments and major college divisions. 29

2. If further budget adjustments are necessary, those adjustments shall be made by: Reducing or eliminating non-core programs and services. Reducing or eliminating core programs and services. Annual Budget Calendar November 2013 through March 2014 April 2, 2014 April 9, 2014 April 29, 2014 May 14, 2014 June 11, 2014 Budget Planning Inputs and Assumptions Budget Workshop with the District Board Public Hearing Notice for District Board Review and Approval Public Notice Published Official Public Hearing Official Budget Adoption by District Board 30

FINANCIAL SECTION

FUND TYPES The accounts of Madison Area Technical College are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenue and expenditures. District resources are allocated to and accounted for in individual funds, based upon the purpose for which they are to be spent and the means by which spending activities are controlled. In this section of the document, the various funds will be grouped into general fund types and broad fund categories, as follows: Governmental Funds and Proprietary Funds. Under these broad fund groupings, revenue sources and expenditure uses will be discussed and presented in charts and graphs. GOVERNMENTAL FUNDS Governmental funds are those through which most functions of the District are financed. The acquisitions, uses and balances of expendable financial resources and related liabilities, except those accounted for in proprietary funds, are accounted for through governmental funds. The measurement focus is on changes in financial position rather than on net income. The District maintains the following governmental fund types: General Fund The principal operating fund that accounts for all financial activities not required to be accounted for in another fund. Special Revenue Aidable Fund Used to account for the proceeds and related financial activities of specified revenue sources that are legally restricted to expenditures for specified purposes. The District accounts for business and industry contracts, federal and state grants and Adult and Continuing Education Community Service courses within this fund type. Special Revenue Non-Aidable Fund Used to account for assets held by Madison Area Technical College in a trustee capacity or as an agent for individuals, private organizations, other governmental units and/or other funds. Capital Projects Fund Accounts for financial resources used for the acquisition or construction of capital assets and remodeling, other than those financed by proprietary and trust funds. Debt Service Fund Used to account for the accumulation of resources for and the payment of general long-term debt principal, interest, and related costs. PROPRIETARY FUNDS Proprietary funds are used to account for ongoing activities that are similar to those often found in the private sector. The measurement focus is on the determination of net income. These funds are maintained on the accrual basis of accounting. Enterprise Funds Used to record revenues and expenses related to rendering services to students, faculty, staff, and the community. These funds are intended to be selfsupporting and are operated in a manner similar to private business where the intent is that all costs; including depreciation expense, of providing certain goods and services to the students and other parties is recovered primarily through user charges. These services complement the education and general objectives of the District. The financial transactions of such activities as the Bookstore, Cafeteria and Child Care Center are accounted for in the Enterprise Funds of the District. 31

Internal Service Funds Used to account for the financing and related financial activities of goods and services provided by one department of the District to other departments of the District, or to other governmental units, on a cost reimbursement basis. The District accounts for the activities of the Department of Technology Services, Self Insurance and Duplication in the Internal Service Fund. FIXED ASSETS AND LONG-TERM OBLIGATIONS ACCOUNT GROUPS Fixed assets used in governmental fund-type operations (general fixed assets) are accounted for in the general fixed assets account group rather than in governmental funds. No depreciation is required, nor has any been provided on general fixed assets. Fixed assets acquired for enterprise and internal service operations are accounted for in the related fund and are depreciated. Long-term liabilities to be financed from governmental funds are accounted for in the general long-term obligation accounts group rather than in governmental funds. The general long-term obligations account group also includes the non-current portion of the post-retirement benefits and sick pay, which will be paid from the general fund at some future time. The two account groups are not funds. They are only concerned with the measurement of financial position. They are not involved with the measurement of the results of operations. BASIS OF ACCOUNTING AND BUDGETING Basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of the measurement made, regardless of the measurement focus applied. Governmental funds are accounted and budgeted for on a modified accrual basis. Under the modified accrual basis of accounting, transactions are recorded in the following manner: Revenues are recognized when they become both measurable and available (susceptible to accrual). All revenues are considered susceptible to accrual, except summer school tuition and fees which are recorded as deferred revenue. Expenditures are recognized when the liability is incurred, except for interest and principal on general long-term obligation debt, which are recognized as expenditures when due. Expenditures for claims and judgments are recognized when it becomes probable that an asset has been impaired or a liability has been incurred. Expenditures for compensated absences, including vacation and sick leave, are recognized when the liability is incurred for past services of an employee that vest and accumulate. Fixed assets are recorded as capital outlays at the time of purchase. Proceeds of long-term obligations are treated as a financing source when received. The proprietary funds are accounted and budgeted for on an accrual basis, whereby revenues are recognized when measurable and earned, and expenses are recorded as liabilities when incurred and, where applicable, depreciation expense is also included. 32

OPERATING BUDGET GOVERNMENTAL FUNDS This section provides a highly summarized version of the FY2014-15 budget. Following this analysis, balance sheets, statements and schedules provide fund-by-fund numerical detail, as required by the Wisconsin Technical College System Board Financial Accounting Manual. Over 91% of Madison Area Technical College s revenues and expenditures are accounted for in governmental fund types (General, Special Revenue Aidable and Non-Aidable, Capital Projects and Debt Service funds). Governmental fund type revenues and expenditures on a budgetary basis for FY2013-14 and FY2014-15 are presented in the table below, and graphically in Figure 3 on page 34 and Figure 8 on page 38. Revenues: Adjusted Budget FY2013-14 Budget FY2014-15 Increase (Decrease) in Dollars and Percentages Local Government $123,909,932 $66,251,237 ($57,658,695) -46.53% Intergovernmental: Federal (excluding Fin. Aid) 5,325,578 4,399,000 (926,578) (17.40) State 15,151,605 74,819,000 59,667,395 393.80 Tuition and Fees 41,664,161 42,321,000 656,839 1.58 Institutional/Other 4,043,229 3,792,000 (251,229) (6.21) Financial Aid Revenues 62,609,833 58,642,000 (3,967,833) (6.34) TOTAL REVENUES $252,704,338 $250,224,237 ($2,480,101) (0.98%) Expenditures: Operational: Instruction $113,848,545 $114,055,000 $206,455 0.18% Instructional Resources 3,473,504 3,671,000 197,496 5.69 Student Services 16,785,853 17,084,000 298,147 1.78 General Institutional 11,350,321 12,210,000 859,679 7.57 Physical Plant 15,882,314 15,390,000 (492,314) (3.10) Public Service 330,409 332,000 1,591 0.48 Capital Outlay 46,965,822 48,001,000 1,035,178 2.20 Debt Service 32,860,370 29,808,140 (3,052,230) (9.29) Financial Aid Expenditures 62,609,833 58,642,000 (3,967,833) (6.34) TOTAL EXPENDITURES $304,106,971 $299,193,140 ($4,913,831) (1.62)% Other Sources (Uses): Operating Transfers In $2,940,000 $1,189,000 ($1,751,000) (59.56)% Operating Transfers Out (732,004) 0 732,004 (100.00) Debt Proceeds 21,000,000 31,070,000 10,070,000 47.95 TOTAL OTHER SOURCES $23,207,996 $32,259,000 $9,051,004 39.00% 33

REVENUES For FY2014-15, governmental fund revenues are budgeted to decrease by $2,480,101 or 0.98%. Figure 3 shows total governmental fund revenues, which increased from $230.4 million in FY2010-11 to $250.2 million in FY2014-15. This growth in revenues is a result of enrollment and tuition changes and the Smart Future Building Plan initiative to expand and upgrade the District facilities. Figure 3 The growth of government fund revenue sources, for the past four years plus the FY2014-15 budget, has averaged 3.78%. In comparison, the average increase for the preceding five year period was 7.81%. The decrease in the local government fund revenue sources is attributable to legislation enacted into law in the spring of 2014, which reduces district property taxes by shifting a portion of operational funding to the State effective July 1, 2014. Tuition and fee revenue has been fairly steady; this is due to increases in tuition rates as enrollments have declined recently as the District s employers continue to recover from the Great Recession. The FY2014-15 budget assumes enrollment is level compared to FY2013-14 projected actual. The decrease in the FY2014-15 institutional revenue is due to a decrease in rebate earnings. Factors affecting specific revenue categories represented in the graph above include: Local Government Revenue Local Government revenue provides 26.55% of all governmental funds revenue. Compared to the FY2013-14 actual tax levy, the FY2014-15 property tax levy is budgeted to decrease by $57,641,695. This decrease reflects a shift of $60,446,405 to state funding and a projected $2.8 million in available operating levy from net new construction value in the District. Figure 4 shows Madison Area Technical College s tax levy compared to the WTCS state average levy. 34

Figure 4 Prior to FY2014-15 the District was permitted to levy property taxes up to a statutorily allowed operational mill rate of 1.5 mills; the District consistently remained below the limit. For the FY2014-15 budget, this operational mill rate limit is eliminated and an estimated.89 mills are removed from property taxes and transferred to state funding. See Figure 5 for a graphic representation of the District s mill rate history. Note: The mill rate limitation was eliminated with 2013 Wisconsin Act 20 and replaced with a revenue limit. Figure 5 The decline in the mill rate through FY2007-08 occurred due to the District s relatively healthy economy coupled with Madison Area Technical College s commitment to maintaining a mill rate below the then statutorily allowed mill rate. The increases in mill rate from FY2008-09 through FY2010-11 represent increased base operating expenditures to accommodate enrollment growth due to the Great Recession and strategic initiatives coupled with assessed valuation changes. The changes in the mill rate in FY2011-12 and FY2012-13 reflect declines in assessed value, but represent no increase in operating levy, as state law did not permit the levy to increase. The increase in FY2013-14 represents an allowable increase due to net new construction within the District. The FY2014-15 budget decreases by $57.6 million due to the shift of property taxes for 35

operations to state funding, assumes no growth in the District s equalized valuation, and includes an estimated increase of 2.98% in operating revenues due to net new construction. State Revenue State revenue, budgeted to be 30.78% of total governmental funds revenue, includes the following major components: general state aid, performance-based aid, new state operational aid in lieu of property taxes, grants, WI GI Bill Remissions, student aid, inter-district supplemental aid, state aid in lieu of personal property tax on computers and state aid in lieu of property taxes on DNR exempt land. Although the District generates 13.87% of the statewide aidable FTEs, it is projected that the District will receive roughly 13.20% of the statewide general operating aid for FY2014-15. Each district s share of the aid is based on an expenditure-driven formula equalized for tax-levying ability, expressed as taxable property per full time equivalent student for 90% of the general state aid with a total state appropriation of $79.68 million. Madison College expects to receive $10.876 million or 13.65%. The remaining 10% of general state aid appropriation or $8.85 million provides that a performance based formula be used based on the college s performance with respect to performance criteria with 9.17% coming to Madison College or $812,000. Districts receive a percentage of the operational aid in lieu of property taxes based upon the equalized value of each district compared to the equalized value of the state. The District expects to receive 14.89% of this funding or $60.446 million in FY2014-15. Figure 6 Madison Area Technical College s state aid revenue had been declining as a percentage of total district revenue from FY2005-06 through FY2013-14. Figure 6 represents a 341.25% increase in state revenue as a percentage of total revenues for governmental funds for FY2014-15. This increase in state revenue as a percentage of total revenues is due to multiple factors including: the shift of a portion of operating revenues from property taxes to state funding; the shift of general state aid distribution between the existing formula and performance based funding; a decrease in the amount of total state grant dollars available; increasing competition for the 36

grants; an increase in computer aid, and reduced inter-district supplemental aid. These factors contribute to the change in state aid as a percentage of overall revenue in governmental funds. Federal Revenue Federal revenue is primarily derived from grants for services or projects and student financial aid. For FY2014-15, those revenues are expected to decrease by $4.99 million or 7.74%. As depicted in Figure 7, the level of total federal revenue decreases for FY2014-15. It is anticipated that funding for federal student aid will decline by $4 million due to a decrease in federal dollars available to students. Federal funds from the National Science Foundation will be reduced by $572,000 from the FY2013-14 level. The District is also anticipating that funding from the Carl D. Perkins Career & Technical Education Improvement Act (Carl Perkins Act) and the Adult Education and Family Literacy Act will increase by $237,000 compared to FY2013-14. The federal grants from the Department of Labor will also increase the federal revenues by $308,000. Tuition and Fees Figure 7 Tuition and Fees, which make up approximately 16.91% percent of total governmental fund revenues, are estimated to increase $657 thousand or 1.58%, reflecting an increase in tuition rates with enrollment holding steady compared to FY2013-14. Tuition and material fee rates are set annually by the WTCS Board based upon estimated total operational expenditures of all Wisconsin technical college districts. This revenue category also includes miscellaneous student fees, including out-of-state tuition, community service course fees, group dynamics course fees, testing fees, application and graduation fees. 37

Institutional and Other Revenue Institutional revenues include contracts for instruction with business and industry and high schools; interest and investment income; gifts, grants and bequests; equipment sales and Other Institutional Revenues. Institutional and Other Revenue represent about 1.98% of total governmental funds revenues. EXPENDITURES For FY2014-15, governmental fund expenditures are budgeted to decrease by $4,913,831 or 1.62%. The majority of the change is due to net expenditure decreases in the Special Revenue Non-Aidable for student financial assistance and Debt Payment Fund compared to FY2013-14 levels. Operating expenditures increase over FY2013-14 by.66%. Figure 8 shows total governmental fund expenditures, which increased from $253 million in FY2010-11 to $299.2 million in FY2014-15. Instruction is the largest category for FY2014-15 expenditures, representing approximately 38.12% of total expenditures. Figure 8 Following the requirements of the Wisconsin Technical College System, the expenditure functions are defined within the expense expenditure categories of Operational, Debt Service and Capital Outlay as follows: Operational Expenditures Instruction. This function includes teaching; academic administration, including clerical support; other activities related directly to the teaching of students; guiding the students in the educational program; and coordination and improvement of teaching. Instructional Resources. This function includes all learning resource activities such as: the library, learning resource center, instructional resources administration and clerical support. 38

Student Services. This function includes those non-instructional services provided for the student body, such as: student services administration and clerical support; student recruitment; admissions; registration; counseling, including testing and evaluation; health services; financial aid; placement; and follow-up. General Institutional. This function includes all services benefiting the entire District, exclusive of those chargeable directly to other functional categories. Examples of this type of expenditure are legal fees, external audit fees, general liability insurance, data processing, personnel, employment relations, and affirmative action. This function includes the cost of: the District Board, the Office of the President, the District Finance Office, and general supporting administrative offices serving all functions of the District. Physical Plant. This function includes all services required for the operation and maintenance of the physical facilities. General utilities such as heat, light and power are included in this function. Public Service. This function records the cost of offering noncredit courses for public betterment. Figure 9 depicts the components of total operating budget expenditures for FY2014-15. The amounts expended on personnel-related costs represent 79.66% of the budget, a decrease of 1.56% compared to the prior year adjusted budget. Debt Service Figure 9 This classification includes principal and interest payments on outstanding debt. Debt Service is budgeted to decrease by $3.0 million or a reduction of approximately 9.29%. The debt service fund is decreasing due to the retirement of higher interest debt. Due to the District s financial health, the District s debt continues to be received favorably in the debt markets. District issuances are sold at low interest rates, which also help minimize annual increases in the debt service tax levy. 39

Capital Outlay These expenditures are for the acquisition of fixed assets or additions to fixed assets that are presumed to have benefits for more than two years. It includes expenditures for land or existing buildings, improvements or grounds; construction, addition or remodeling of buildings; and purchase of moveable equipment and furniture costing more than $500 per unit or set. Capital outlay is budgeted to increase by roughly $1 million, or 2.20%, over last year s adjusted budget. The increase is due to the completion of portions of the new construction for the Smart Future Building Plan projects. For detailed information on this portion of the District s budget, please see pages 41-43. FUND BALANCE Madison Area Technical College s governmental fund type fund balances at June 30, 2013, totaled $82,226,636 on a budgetary basis. The District Board and management are committed to maintaining adequate fund balances in order to maintain appropriate levels of working capital, avoid major fluctuations in tax levies, fund post-retirement benefits and avoid future potential reduction in services to the citizens. District Board policy sets an upper and lower limit for the General and Special Revenue Undesignated Fund Balance. The limits are shown in Figure 10. Figure 10 shows the budgetary basis fund balance for the past twelve years for the operational funds, with the first ten being actual year-end balances, and the most recent two showing estimated or budgeted fund balance amounts. Figure 10 The largest component of the operational governmental fund balances is the fund balance for the general fund. At June 30, 2013, Madison Area Technical College s budgetary basis general fund balance was $50.86 million. The balance was comprised of $11.5 million, or 22.18%, of reservations for such items as, prepaids, non-current assets, compensated absences and retiree health insurance. Fund balance is also made up of designations, which are items the Board has specifically identified to ensure adequate resources exist for smooth operations of the District for the long term. As state aid revenue is determined in the year it is earned, fluctuations from 40

budgeted amounts are likely. Therefore, the adjusted designation for state aid fluctuations of $1.3 million ensures adequate resources will be available to support expenditures, even if significant adjustments negatively affect the year s state aid received by the District. Designation for Operations of $37.44 million represents the working capital of the District. This resource carries the District over between receipts of large inflows of money (i.e., tax revenue receipts and tuition revenue) and supports the goal to continue to maintain a positive cash flow and to operate without the need to borrow short term for operations. Maintaining a budgetary basis fund balance does not, however, necessarily guarantee this outcome in the future. OPERATING BUDGET PROPRIETARY FUNDS The District uses proprietary fund types, non-governmental funds, to account for Enterprise and Internal Service, or businesslike operations of the District. Enterprise Funds are used to account for the activity of operations primarily funded by user charges. The Enterprise Fund type includes the operations of the Bookstore, Cafeteria, Parking, Vending, Meeting and Events Management and others. The FY2014-15 budget includes Enterprise Funds generating revenues of $10.224 million and expenses of $10.164 million, for a net gain of $60,000. Internal Service Funds account for the activities of departments that sell their goods or services primarily to other District departments. Examples of Internal Service activities are District Stores, Technology Services and Telephone Services. For FY2014-15, these funds are budgeted to generate $12.920 million in revenue and expenses of $12.844 million, to generate a planned net gain of $76,000. GENERAL FIXED ASSETS General Fixed Assets of the District totaled $302.2 million on a cost basis at June 30, 2013. With a total cost of $302,162,069 less $93,172,684 accumulated depreciation this nets to $208,989,385 of General Fixed Asset cost. Items included in this figure are land, building, improvements and equipment (based on a $5,000 capitalization policy). The Enterprise Funds have net fixed assets of $1,506,211 ($4,507,672 total asset cost less $3,001,461 accumulated depreciation). The Internal Service Funds have net fixed assets of $4,100,203 ($12,463,772 total asset cost less $8,363,569 accumulated depreciation). Total Net Assets of the District are $214,595,799. CAPITAL BUDGET Preventive maintenance is the most effective tool in preserving the useful life of equipment and buildings and avoiding costly, unnecessary repairs. The District takes a proactive approach to maintenance management and realizes the importance of its role in meeting institutional goals and objectives. As a result of budgetary constraints, however, individual projects must be identified and prioritized in the order of importance to the overall institution. As the District adjusts to changes that result from operating in a dynamic environment, it constantly reorders priorities in the maintenance plan. 41

The District plans to borrow $31.07 million for capital projects in FY2014-15. This is an increase in borrowing compared to the prior year and is based on the prioritization of district wide capital needs of $21 million plus $10.07 million for additional construction related to the Smart Future Building Plan. In addition to the funds that will be borrowed in FY2014-15, there will also be an amount of unspent funds that carry over from the prior year. This carryover of certain capital project allocations becomes necessary when funds are received in one year, but cannot be spent until a subsequent year. This delay is necessitated by the approval, planning and scheduling process. Occasionally, a particular project must follow a previous project, which might postpone the time line for a year. Facilities management attempts to schedule most construction work during the summer, when fewer classes are in session. As the fiscal year bridges the summer session, certain projects planned for one fiscal year may actually be finished in the following fiscal year. The budget for the 2014-15 fiscal year capital projects fund is shown in summary form below: FY2014-15 Summary Capital Fund Budget New Construction (Referendum Fund) $10,070,000 Included in the FY2014-15 Capital budget is $21 million as follows: Remodel/Repair/Site Work (1) Remodeling, Site work and maintenance projects $ 3,000,000 Capital Furniture District-wide furniture routine replacement 500,000 Contractual Commitments (2) $ 500,000 Technology Requests (3) District-wide Computer Refresh $ 1,500,000 Other Technology Purchases 2,500,000 Workday Implementation 5,000,000 STEPS 400,000 Capital Initiatives (4) Instructional equipment for Learner Success and Learner Development $ 7,200,000 Non-instructional equipment for Administrative Services, Human Resources and Enrollment and Planning 400,000 Total Capital Borrow $21,000,000 Capital expenditures from restricted funds $ 84,000 Prior Year carry-over new construction, remodel/repair projects 9,000,000 Prior Year carry over for miscellaneous equipment 7,847,000 Total Planned Expenditures $48,001,000 Notes: (1) Remodel/Repair/Site Work category includes: expenditures for land or existing building, improvement of grounds; construction, addition or remodeling of buildings; and district wide furniture for existing or new facilities. 42

(2) (3) (4) Contractual Commitments category includes: ADA improvements, capital grant-match requirements, capital contracts, fees related to participation in capital procurement program, and business process review projects. Technology Requests category includes: technology infrastructure costs (hardware upgrades and replacements) and replacement of printers, copiers, projectors, televisions, computers, monitors and major software applications and software. Capital Initiatives category includes: the purchase of moveable equipment and furniture costing more than $500 per unit or set for Instructional and Non-instructional purposes. Capital initiative requests are developed through a process that starts with unit planning within individual departments and divisions. Final Approval of Capital Projects and Equipment Purchases The District Board approves the projects and establishes the funding for all capital projects and equipment purchases. In addition, the WTCS Board approves new construction and repair/remodel projects that cost more than $30,000. GENERAL LONG-TERM DEBT Please see pages 58-62 for details of the current long-term debt obligations of the District. As illustrated in Figure 11, the FY2014-15 debt service levy plan is $30,153,237. This level equates to a 0.44702 mill rate for debt. The capital plan and referendum impact are fully addressed in the FY2014-15 budget. Any adjustments to the current plan will be based upon an assessment of needs related to technology and renovation of existing facilities serving students. Figure 11 Maintaining a strong financial condition and being fiscally accountable is important to the District. The College continues to maintain a triple A rating, the highest rating achievable, with both Moody s Corporation and Standard & Poor s. The rating agencies have stated that with a responsibly structured debt repayment schedule and continued strong financial operations, the triple A ratings would be retained. 43

MADISON AREA TECHNICAL COLLEGE DISTRICT Notice of Public Hearing July 1, 2014 - June 30, 2015 A public hearing on the proposed FY 2014-2015 budget for the Madison Area Technical College District will be held on May 14, 2014 at 5:30 PM in Room 122 of the Madison Area Technical College Truax campus, 1701 Wright Street, Madison, Wisconsin. The detailed budget is available for public inspection at the District's Budget Office. PROPERTY TAX AND EXPENDITURE HISTORY Fiscal Equalized Mill Rates Total Mill Rate % Year Valuation (1) Operational Debt Service Mill Rate Inc./(Dec.) 2010-11 70,001,364,576 1.32749 0.14713 1.47462 12.31% 2011-12 69,257,861,580 1.34174 0.36770 1.70944 15.92% 2012-13 67,787,364,099 1.37085 0.44479 1.81563 6.21% 2013-14 67,454,400,159 1.39401 0.44698 1.84099 1.40% 2014-15 (1) 67,454,400,159 0.53945 0.44702 0.98646-46.42% Expenditures Tax on Fiscal Total Expenditures Percent Tax Tax Levy % $100,000 of Year All Funds (2) Inc./(Dec.) Levy (3) Inc./(Dec.) Property 2010-11 334,880,188 34.75% 103,225,150 8.75% $147.46 2011-12 319,878,503-4.48% 118,392,167 14.69% $170.94 2012-13 356,611,690 11.483% 123,076,899 3.96% $181.56 2013-14 327,677,586-8.114% 124,182,932 0.90% $184.10 2014-15 322,201,140-1.671% 66,541,237-46.42% $98.65 BUDGET/FUND BALANCE SUMMARY 2014-15 - ALL FUNDS Special Capital Debt General Revenue Projects Service Proprietary Fund Funds Fund Fund Fund Total Tax Levy $ 34,513,000 $ 1,760,000 $ - $ 30,153,237 $ 115,000 $ 66,541,237 Other Budgeted Revenue 116,506,000 67,208,000 84,000-23,029,000 206,827,000 Subtotal $ 151,019,000 $ 68,968,000 $ 84,000 $ 30,153,237 $ 23,144,000 $ 273,368,237 Budgeted Expenditures 152,488,000 68,896,000 48,001,000 29,808,140 23,008,000 322,201,140 Excess of Revenues Over (Under) Expenditures $ (1,469,000) $ 72,000 $ (47,917,000) $ 345,097 $ 136,000 $ (48,832,903) Operating Transfers 1,189,000 - - - (1,189,000) - Proceeds from Debt - - 31,070,000 - - 31,070,000 Est. Fund Balance 7/01/14 52,670,527 1,260,296 16,847,000 2,966,845 5,367,173 79,111,841 Est. Fund Balance 6/30/15 $ 52,390,527 $ 1,332,296 $ - $ 3,311,942 $ 4,314,173 $ 61,348,938 (1) Equalized valuation is assumed to increase 0.00% in fiscal year 2015. (2) The total expenditures for fiscal years 2010-11 through 2012-13 represent actual amounts; 2013-14 is the adjusted budget and 2014-15 is the proposed budget. (3) The tax levy for fiscal years 2010-11 through 2013-14 represent actual amounts and 2014-15 is the proposed budget. 44

Madison Area Technical College District NOTICE OF PUBLIC HEARING Budget Summary-General Fund July 1, 2014 - June 30, 2015 2013-14 2013-14 2012-13 Original Adjusted 2013-14 2014-15 Actual (1) Budget Budget Estimate (2) Budget REVENUES Local government $ 91,137,150 $ 91,959,000 $ 92,131,599 $ 92,115,999 $ 34,513,000 State Aids 12,912,598 13,319,000 13,544,000 13,208,646 73,752,000 Program Fees 37,260,468 39,852,000 38,029,664 37,825,000 38,301,000 Material Fees 1,302,537 1,328,000 1,250,769 1,341,000 1,283,000 Other Student Fees 1,484,015 1,567,000 1,642,000 1,752,523 1,915,000 Institutional 1,051,364 1,051,000 1,051,000 867,528 1,000,000 Federal Aids 318,569 240,000 240,000 270,000 255,000 Total Revenues $ 145,466,701 $ 149,316,000 $ 147,889,032 $ 147,380,696 $ 151,019,000 EXPENDITURES Instruction $ 102,860,771 $ 103,679,000 $ 104,206,184 $ 102,423,000 $ 105,829,000 Instructional Resources 3,299,997 3,586,000 3,413,504 2,941,000 3,586,000 Student Services 13,278,925 15,158,000 15,090,440 14,295,000 15,141,000 General Institutional 13,298,362 11,885,000 11,161,181 12,852,000 12,210,000 Physical Plant 13,711,130 15,875,000 15,882,314 14,941,000 15,390,000 Public Service 307,728 328,000 330,409 326,000 332,000 Total Expenditures $ 146,756,913 $ 150,511,000 $ 150,084,032 $ 147,778,000 $ 152,488,000 Net Revenue $ (1,290,212) $ (1,195,000) $ (2,195,000) $ (397,304) $ (1,469,000) OTHER SOURCES (USES) Operating Transfer In 1,533,000 1,940,000 2,940,000 2,940,000 1,189,000 Operating Transfer (Out) (1,838,205) - (732,004) (732,004) - Net Revenue and Other Source $ (1,595,417) $ 745,000 $ 12,996 $ 1,810,692 $ (280,000) Transfers To (From) Fund Balance Reserve for Prepaid Expenditures $ (193,189) $ - $ - $ - $ - Reserve for Noncurrent Assets (1,000) - - - - Reserve for Post-Employment Sick Pay (29,616) 745,000 745,000 385,000 (280,000) Reserve for Post-Employment Health Ins - - - - - Designated for State Aid Fluctuations 64,900 - - - - Designated for Subsequent Years (458,365) - (66,054) (66,054) - Designated for Subsequent Year (1,234,550) - (665,950) (665,950) - Designated for Operations 256,403 - - 2,157,696 - Total Transfers To (From) Fund Balance $ (1,595,417) $ 745,000 $ 12,996 $ 1,810,692 $ (280,000) Beginning Fund Balance 52,455,252 50,555,084 50,859,835 50,859,835 52,670,527 Ending Fund Balance $ 50,859,835 $ 51,300,084 $ 50,872,831 $ 52,670,527 $ 52,390,527 EXPENDITURES BY FUND % Change (3) General $ 146,756,913 $ 150,511,000 $ 150,084,032 $ 147,778,000 $ 152,488,000 1.60% Special Revenue - Aidable 9,249,179 9,260,000 11,586,914 11,586,914 10,254,000-11.50% Special Revenue - Non-Aidable 61,578,542 63,004,000 62,609,833 62,609,833 58,642,000-6.34% Capital Projects 83,425,188 63,589,000 46,965,822 29,752,049 48,001,000 2.20% Debt Service 32,849,014 31,267,395 32,860,370 32,860,370 29,808,140-9.29% Enterprise 10,601,965 10,804,000 10,804,000 10,200,000 10,164,000-5.92% Internal Service 12,150,889 12,865,000 12,766,615 12,137,984 12,844,000 0.61% Total Expenditures by Fund $ 356,611,690 $ 341,300,395 $ 327,677,586 $ 306,925,150 $ 322,201,140-1.67% REVENUES BY FUND General $ 145,466,701 $ 149,316,000 $ 147,889,032 $ 147,380,696 $ 151,019,000 2.12% Special Revenue - Aidable 9,149,822 9,280,000 11,621,990 11,621,990 10,326,000-11.15% Special Revenue - Non-Aidable 61,506,976 63,004,000 62,609,833 62,609,833 58,642,000-6.34% Capital Projects 472,062 470,000 432,551 432,551 84,000-80.58% Debt Service 30,155,604 30,150,932 30,150,932 30,152,132 30,153,237 0.01% Enterprise 10,312,087 10,917,000 10,917,000 10,200,000 10,224,000-6.35% Internal Service 11,958,492 11,553,000 12,454,615 12,262,095 12,920,000 3.74% Total Revenues by Fund $ 269,021,744 $ 274,690,932 $ 276,075,953 $ 274,659,297 $ 273,368,237-0.98% (1) Actual is presented on a budgetary basis. (2) Estimate is based upon eight months of actual and four months of estimate. (3) Reflects the percentage change from prior year adjusted budget. 45

Madison Area Technical College District COMBINED BUDGET SUMMARY FY 2014-15 Budget and Statement of Resources, Uses and Changes in Fund Balance 2013-14 2013-14 2012-13 Original Adjusted 2013-14 2014-15 Actual Budget Budget Estimate(1) Budget REVENUES Local government $ 123,134,320 $ 123,826,932 $ 124,182,932 $ 124,167,332 $ 66,541,237 State Aids 16,054,697 16,749,000 17,454,760 17,119,406 77,019,000 Program Fees 37,263,624 39,907,000 38,084,664 37,880,000 38,645,000 Material Fees 1,586,032 1,364,000 1,292,299 1,382,530 1,332,000 Other Student Fees 2,001,132 2,220,000 2,287,198 2,397,721 2,344,000 Institutional 26,031,271 26,594,250 28,278,755 27,186,963 27,983,500 Federal Aids 62,950,668 64,029,750 64,495,345 64,525,345 59,503,500 Total Revenues $ 269,021,744 $ 274,690,932 $ 276,075,953 $ 274,659,297 $ 273,368,237 EXPENDITURES Instruction $ 118,276,451 $ 123,957,000 $ 125,844,515 $ 120,078,580 $ 125,266,000 Instructional Resources 11,171,260 7,715,000 10,273,556 7,344,034 8,843,000 Student Services 76,023,376 79,171,000 79,580,662 78,705,996 76,121,000 General Institutional 17,522,711 22,386,000 20,630,913 21,261,127 18,702,000 Physical Plant 109,720,090 83,953,395 66,800,292 56,233,116 67,998,140 Auxiliary Service 23,547,542 23,775,000 24,081,976 22,849,345 24,850,000 Public Service 350,260 343,000 465,672 452,952 421,000 Total Expenditures $ 356,611,690 $ 341,300,395 $ 327,677,586 $ 306,925,150 $ 322,201,140 Net Revenue/(Expenditures) $ (87,589,946) $ (66,609,463) $ (51,601,633) $ (32,265,853) $ (48,832,903) OTHER SOURCES (USES) Proceeds from Debt 39,750,000 31,070,000 21,000,000 21,000,000 31,070,000 Premium on Notes Issued 1,808,752-700,000 700,000 - Operating Transfer In 3,371,205 1,940,000 3,611,726 3,611,726 1,189,000 Operating Transfer (Out) (3,371,205) (1,940,000) (3,672,004) (3,672,004) (1,189,000) Total Resources (Uses) $ (46,031,194) $ (35,539,463) $ (29,961,911) $ (10,626,131) $ (17,762,903) TRANSFERS TO (FROM) FUND BALANCE Reserve for Prepaid Expenditures (180,286) - - - - Reserve for Noncurrent Assets (1,000) - - - - Reserve for Debt Service (1,255,679) (1,116,463) (2,009,438) (2,008,238) 345,097 Reserve for Post-Employee Sick Pay (29,616) 745,000 745,000 385,000 (280,000) Reserve for Post-Employee Health Ins - - - - - Reserve for Capital Projects (41,903,750) (32,049,000) (25,533,271) (8,319,498) (16,847,000) Reserve for Self Insurance 218,431 - - - - Reserved for Student Financial Assistance (71,566) - - - - Retained Earnings (1,323,856) (3,139,000) (2,467,274) (2,144,163) (1,053,000) Designated for State Aid Fluctuations 64,900 - - - - Designated for Subsequent Years (458,365) - (66,054) (66,054) - Designated for Subsequent Year (1,234,550) - (665,950) (665,950) - Designated for Operations 144,143 20,000 35,076 2,192,772 72,000 Total Transfers To (From) Fund Balance $ (46,031,194) $ (35,539,463) $ (29,961,911) $ (10,626,131) $ (17,762,903) Beginning Fund Balance 135,769,166 96,043,087 89,737,972 89,737,972 79,111,841 Ending Fund Balance $ 89,737,972 $ 60,503,624 $ 59,776,061 $ 79,111,841 $ 61,348,938 EXPENDITURE BY FUND General $ 146,756,913 $ 150,511,000 $ 150,084,032 $ 147,778,000 $ 152,488,000 Special Revenue Aidable 9,249,179 9,260,000 11,586,914 11,586,914 10,254,000 Special Revenue Non-Aidable 61,578,542 63,004,000 62,609,833 62,609,833 58,642,000 Capital Projects 83,425,188 63,589,000 46,965,822 29,752,049 48,001,000 Debt Service 32,849,014 31,267,395 32,860,370 32,860,370 29,808,140 Enterprise 10,601,965 10,804,000 10,804,000 10,200,000 10,164,000 Internal Service 12,150,889 12,865,000 12,766,615 12,137,984 12,844,000 Total Expenditures by Fund $ 356,611,690 $ 341,300,395 $ 327,677,586 $ 306,925,150 $ 322,201,140 (1) Eight (8) months actual and four (4) months estimate. 46

Madison Area Technical College District GENERAL FUND FY 2014-15 Budget and Statement of Resources, Uses and Changes in Fund Balance 2013-14 2013-14 2012-13 Original Adjusted 2013-14 2014-15 Actual Budget Budget Estimate(1) Budget REVENUES Local Government $ 91,137,150 $ 91,959,000 $ 92,131,599 $ 92,115,999 $ 34,513,000 State Aids 12,912,598 13,319,000 13,544,000 13,208,646 73,752,000 Program Fees 37,260,468 39,852,000 38,029,664 37,825,000 38,301,000 Material Fees 1,302,537 1,328,000 1,250,769 1,341,000 1,283,000 Other Student Fees 1,484,015 1,567,000 1,642,000 1,752,523 1,915,000 Institutional 1,051,364 1,051,000 1,051,000 867,528 1,000,000 Federal Aids 318,569 240,000 240,000 270,000 255,000 Total Revenues $ 145,466,701 $ 149,316,000 $ 147,889,032 $ 147,380,696 $ 151,019,000 EXPENDITURES Instruction $ 102,860,771 $ 103,679,000 $ 104,206,184 $ 102,423,000 $ 105,829,000 Instructional Resources 3,299,997 3,586,000 3,413,504 2,941,000 3,586,000 Student Services 13,278,925 15,158,000 15,090,440 14,295,000 15,141,000 General Institutional 13,298,362 11,885,000 11,161,181 12,852,000 12,210,000 Physical Plant 13,711,130 15,875,000 15,882,314 14,941,000 15,390,000 Public Service 307,728 328,000 330,409 326,000 332,000 Total Expenditures $ 146,756,913 $ 150,511,000 $ 150,084,032 $ 147,778,000 $ 152,488,000 Net Revenue $ (1,290,212) $ (1,195,000) $ (2,195,000) $ (397,304) $ (1,469,000) OTHER SOURCES (USES) Operating Transfer In 1,533,000 1,940,000 2,940,000 2,940,000 1,189,000 Operating Transfer Out (1,838,205) - (732,004) (732,004) Total Revenue and Other Sources $ (1,595,417) $ 745,000 $ 12,996 $ 1,810,692 $ (280,000) TRANSFERS TO (FROM) FUND BALANCE Reserve for Prepaid Expenditures $ (193,189) $ - $ - $ - $ - Reserve for Noncurrent Assets (1,000) - - - - Reserve for Post-Employment Sick Pay (29,616) 745,000 745,000 385,000 (280,000) Reserve for Post-Employment Health Ins - - - - - Designated for State Aid Fluctuations 64,900 - - - - Designated for Subsequent Years (458,365) - (66,054) (66,054) - Designated for Subsequent Year (1,234,550) - (665,950) (665,950) - Designated for Operations 256,403 - - 2,157,696 - Total Transfers To (From) Fund Balance $ (1,595,417) $ 745,000 $ 12,996 $ 1,810,692 $ (280,000) Beginning Fund Balance 52,455,252 50,555,084 50,859,835 50,859,835 52,670,527 Ending Fund Balance $ 50,859,835 $ 51,300,084 $ 50,872,831 $ 52,670,527 $ 52,390,527 The General Fund is the primary operating fund of the district. Its accounts reflect all financial activity not required to be accounted for in another fund. Changes in Fund Balance: No change, due to creation of an intentionally "balanced budget" for this fund. Note: (1) Eight months actual and four months estimate. 47

Madison Area Technical College District SPECIAL REVENUE - AIDABLE FUND FY 2014-15 Budget and Statement of Resources, Uses and Changes in Fund Balance 2013-14 2013-14 2012-13 Original Adjusted 2013-14 2014-15 Actual Budget Budget Estimate(1) Budget REVENUES Local Government $ 1,580,000 $ 1,444,000 $ 1,627,401 $ 1,627,401 $ 1,585,000 State Aids 787,329 813,000 1,297,131 1,297,131 1,060,000 Program Fees 3,156 55,000 55,000 55,000 344,000 Material Fees 283,495 36,000 41,530 41,530 49,000 Other Student Fees 517,117 653,000 645,198 645,198 429,000 Institutional 1,801,394 2,450,000 2,976,752 2,976,752 2,791,000 Federal Aids 4,177,331 3,829,000 4,978,978 4,978,978 4,068,000 Total Revenues $ 9,149,822 $ 9,280,000 $ 11,621,990 $ 11,621,990 $ 10,326,000 EXPENDITURES Instruction $ 7,276,335 $ 8,171,000 $ 9,642,361 $ 9,642,361 $ 8,226,000 Instructional Resources 32,720 60,000 60,000 60,000 85,000 Student Services 1,133,508 953,000 1,695,413 1,695,413 1,943,000 General Institutional 789,857 76,000 189,140 189,140 - Physical Plant 16,759 - - - - Total Expenditures $ 9,249,179 $ 9,260,000 $ 11,586,914 $ 11,586,914 $ 10,254,000 Net Revenue $ (99,357) $ 20,000 $ 35,076 $ 35,076 $ 72,000 OTHER SOURCES (USES) Operating Transfer In - - - - - Operating Transfer Out - - - - - Total Revenue and Other (Uses) $ (99,357) $ 20,000 $ 35,076 $ 35,076 $ 72,000 TRANSFER TO (FROM) FUND BALANCE Reserve for Prepaid Expenditures $ 12,903 $ - $ - $ - $ - Designated for Operations (112,260) 20,000 35,076 35,076 72,000 Total Transfers To (From) Fund Balance $ (99,357) $ 20,000 $ 35,076 $ 35,076 $ 72,000 Beginning Fund Balance 1,005,487 870,487 906,130 906,130 941,206 Ending Fund Balance $ 906,130 $ 890,487 $ 941,206 $ 941,206 $ 1,013,206 The Special Revenue-Aidable Fund is used to account for the proceeds of specific revenue sources (other than debt service, major capital projects, or financial aid) that are restricted to expenditures for designated purposes because of legal or regulatory provisions. The Special Revenue-Aidable fund consists of federal and state grants and business and industry contracts. Note: (1) Eight months actual and four months estimate. 48

Madison Area Technical College District SPECIAL REVENUE - NON-AIDABLE FUND FY 2014-15 Budget and Statement of Resources, Uses and Changes in Fund Balance 2013-14 2013-14 2012-13 Original Adjusted 2013-14 2014-15 Actual Budget Budget Estimate(1) Budget REVENUES Local Government $ 151,271 $ 158,000 $ 158,000 $ 158,000 $ 175,000 State Aids 2,314,207 2,307,000 2,303,155 2,303,155 2,200,000 Institutional 724,464 741,000 981,661 981,661 1,166,000 Federal Aids 58,317,034 59,798,000 59,167,017 59,167,017 55,101,000 Total Revenues $ 61,506,976 $ 63,004,000 $ 62,609,833 $ 62,609,833 $ 58,642,000 EXPENDITURES Student Services $ 61,578,542 $ 63,004,000 $ 62,609,833 $ 62,609,833 $ 58,642,000 Total Expenditures $ 61,578,542 $ 63,004,000 $ 62,609,833 $ 62,609,833 $ 58,642,000 Net Revenues $ (71,566) $ - $ - $ - $ - OTHER SOURCES (USES) Operating Transfer In - - - - - Total Revenue and Other Sources $ (71,566) $ - $ - $ - $ - TRANSFERS TO (FROM) FUND BALANCE Reserved for Student Financial Assistance $ (71,566) $ - $ - $ - $ - Beginning Fund Balance 390,656 390,656 319,090 319,090 319,090 Ending Fund Balance $ 319,090 $ 390,656 $ 319,090 $ 319,090 $ 319,090 The Special Revenue Non-Aidable Fund is used to account for assets held by the district as an agent for student organizations, government units, or private organizations. The college accounts for student financial aid in this fund. Changes in Fund Balance: Non-aidable: No change, due to creation of an intentionally "balanced budget" for funds held in trust. Note: (1) Eight months actual and four months estimate. 49

Madison Area Technical College District CAPITAL PROJECTS FUND FY 2014-15 Budget and Statement of Resources, Uses and Changes in Fund Balance 2013-14 2013-14 2012-13 Original Adjusted 2013-14 2014-15 Actual Budget Budget Estimate(1) Budget REVENUES Local government $ - $ - $ - $ - $ - State Aids 40,563 310,000 310,474 310,474 7,000 Institutional 296,971-15,477 15,477 1,000 Federal Aids 134,528 160,000 106,600 106,600 76,000 Total Revenues $ 472,062 $ 470,000 $ 432,551 $ 432,551 $ 84,000 EXPENDITURES Instruction $ 8,139,345 $ 12,107,000 $ 11,995,970 8,013,219 $ 11,211,000 Instructional Resources 7,838,543 4,069,000 6,800,052 4,343,034 5,172,000 Student Services 32,401 56,000 184,976 105,750 395,000 General Institutional 3,434,492 10,425,000 9,280,592 8,219,987 6,492,000 Physical Plant 63,143,187 36,811,000 18,057,608 8,431,746 22,800,000 Auxiliary Service 794,688 106,000 511,361 511,361 1,842,000 Public Service 42,532 15,000 135,263 126,952 89,000 Total Expenditures $ 83,425,188 $ 63,589,000 $ 46,965,822 $ 29,752,049 $ 48,001,000 Net (Expenditures) $ (82,953,126) $ (63,119,000) $ (46,533,271) $ (29,319,498) $ (47,917,000) OTHER SOURCES (USES) Proceeds from Debt 39,750,000 31,070,000 21,000,000 21,000,000 31,070,000 Operating Transfer In 928,355 - - - - Operating Transfer Out - - - - - Premium on Notes Issued 371,021 - - - - Total (Expenditures) and Other Sources $ (41,903,750) $ (32,049,000) $ (25,533,271) $ (8,319,498) $ (16,847,000) TRANSFERS TO (FROM) FUND BALANCE Reserve for Capital Projects $ (41,903,750) $ (32,049,000) $ (25,533,271) $ (8,319,498) $ (16,847,000) Beginning Fund Balance 67,070,248 32,049,000 25,166,498 25,166,498 16,847,000 Ending Fund Balance $ 25,166,498 $ - $ (366,773) $ 16,847,000 $ - The Capital Projects Fund is used to account for financial resources to be used for the acquisition or construction of major capital assets and remodeling (other than those financed by enterprise or internal service funds). Changes in Fund Balance: Each year's budget assumes that all capital funds carried forward from the previous year will be fully expended, along with new funds received. Note: (1) Eight months actual and four months estimate. 50

Madison Area Technical College District DEBT SERVICE FUND FY 2014-15 Budget and Statement of Resources, Uses and Changes in Fund Balance 2013-14 2013-14 2012-13 Original Adjusted 2013-14 2014-15 Actual Budget Budget Estimate(1) Budget REVENUES Local government $ 30,150,899 $ 30,150,932 $ 30,150,932 $ 30,150,932 $ 30,153,237 Institutional 4,705 - - 1,200 - Total Revenues $ 30,155,604 $ 30,150,932 $ 30,150,932 $ 30,152,132 $ 30,153,237 EXPENDITURES Physical Plant $ 32,849,014 $ 31,267,395 $ 32,860,370 $ 32,860,370 $ 29,808,140 Net Revenue $ (2,693,410) $ (1,116,463) $ (2,709,438) $ (2,708,238) $ 345,097 OTHER SOURCES (USES) Operating Transfer In - - - - - Premium on Notes Issued 1,437,731 700,000 700,000 - Total Revenues and Other Sources $ (1,255,679) $ (1,116,463) $ (2,009,438) $ (2,008,238) $ 345,097 $ - TRANSFERS TO (FROM) FUND BALANCE Reserve for Debt Service $ (1,255,679) $ (1,116,463) $ (2,009,438) $ (2,008,238) $ 345,097 Beginning Fund Balance 6,230,762 4,185,747 4,975,083 4,975,083 2,966,845 Ending Fund Balance (2) $ 4,975,083 $ 3,069,284 $ 2,965,645 $ 2,966,845 $ 3,311,942 The Debt Service Fund is used to account for the accumulation of resources for, and the payment of general long-term debt principal and interest Changes in Fund Balance: The amount of fund balance at the end of any fiscal year must include the amount needed to make debt service payments in the first six months of the succeeding year. Therefore the change in fund balance represents the amount of change in the payments from one year to the next. Note: (1) Eight months actual and four months estimate. (2) The Reserve for Debt Service is established by Board resolution as required by State Statutes. 51

Madison Area Technical College District ENTERPRISE FUNDS FY 2014-15 Budget and Statement of Resources, Uses and Changes in Fund Balance 2013-14 2013-14 2012-13 Original Adjusted 2013-14 2014-15 Actual Budget Budget Estimate(1) Budget REVENUES Local Government $ 115,000 $ 115,000 $ 115,000 $ 115,000 $ 115,000 State Aids - - - - - Institutional 10,193,881 10,799,250 10,799,250 10,082,250 10,105,500 Federal Aids 3,206 2,750 2,750 2,750 3,500 Total Revenues $ 10,312,087 $ 10,917,000 $ 10,917,000 $ 10,200,000 $ 10,224,000 EXPENDITURES Auxiliary Services $ 10,601,965 $ 10,804,000 $ 10,804,000 $ 10,200,000 $ 10,164,000 Net Revenues $ (289,878) $ 113,000 $ 113,000 $ - $ 60,000 OTHER SOURCES (USES) Operating Transfer In 663,154-671,726 671,726 - Operating Transfer (Out) (1,533,000) (1,100,000) (1,100,000) (1,100,000) (500,000) Total Revenues and Other (Uses) $ (1,159,724) $ (987,000) $ (315,274) $ (428,274) $ (440,000) TRANSFERS TO (FROM) FUND BALANCE Retained Earnings $ (1,159,724) $ (987,000) $ (315,274) $ (428,274) $ (440,000) Beginning Fund Balance 2,854,999 2,085,153 1,695,275 1,695,275 1,267,001 Ending Fund Balance $ 1,695,275 $ 1,098,153 $ 1,380,001 $ 1,267,001 $ 827,001 The Enterprise Funds are used to account for ongoing activities which are similar to those often found in the private sector. Their measurement focus is based upon determination of net income. The services are provided primarily through user charges. Examples of enterprise funds are: bookstore, cafeteria, day care center and parking. Changes in Fund Balance: Activities accounted for in the Enterprise Fund are expected to show a net profit. In addition, amounts are transferred to the General Fund periodically on an as needed basis. The change in fund balance represents the net effect of these two activities. Note: (1) Eight months actual and four months estimate. 52

Madison Area Technical College District INTERNAL SERVICE FUNDS FY 2014-15 Budget and Statement of Resources, Uses and Changes in Fund Balance 2013-14 2013-14 2012-13 Original Adjusted 2013-14 2014-15 Actual Budget Budget Estimate(1) Budget REVENUES Institutional $ 11,958,492 $ 11,553,000 $ 12,454,615 $ 12,262,095 $ 12,920,000 Federal Aids - - - - - Total Revenues $ 11,958,492 $ 11,553,000 $ 12,454,615 $ 12,262,095 $ 12,920,000 EXPENDITURES Auxiliary Services $ 12,150,889 $ 12,865,000 $ 12,766,615 $ 12,137,984 $ 12,844,000 Net Revenues $ (192,397) $ (1,312,000) $ (312,000) $ 124,111 $ 76,000 OTHER SOURCES (USES) Operating Transfer In 246,696 - - - - Operating Transfer Out - (840,000) (1,840,000) (1,840,000) (689,000) Total Revenues and Other Sources $ 54,299 $ (2,152,000) $ (2,152,000) $ (1,715,889) $ (613,000) TRANSFERS TO (FROM) FUND BALANCE Reserve for Self Insurance $ 218,431 $ - $ - $ - $ - Retained Earnings (164,132) (2,152,000) (2,152,000) (1,715,889) (613,000) Total Transfers To (From) Fund Balance $ 54,299 $ (2,152,000) $ (2,152,000) $ (1,715,889) $ (613,000) Beginning Fund Balance 5,761,762 5,906,960 5,816,061 5,816,061 4,100,172 Ending Fund Balance $ 5,816,061 $ 3,754,960 $ 3,664,061 $ 4,100,172 $ 3,487,172 The Internal Service Funds are used to account for the financing and related financial activities of providing goods or services from one department to another within the college on a cost-reimbursement basis. The internal service funds utilized by the district are as follows: district stores, educational services, information systems, telephone services, and self-insurance. Changes in Fund Balance: For a variety of reasons, in any given year the amounts charged to the various user departments may not exactly equal the cost of providing those services. This is reflected in the small amount of change in fund balance. Note: (1) Eight months actual and four months estimate. 53

Madison Area Technical College District SUMMARY OF BUDGETED REVENUE AND EXPENDITURES BY FUND TYPE FY 2014-15 Budget Government Fund Type Proprietary Fund Type Special Revenue Capital Debt Internal General Aidable Non-Aidable Projects Service Enterprise Service Total REVENUES Local government $ 34,513,000 $ 1,585,000 $ 175,000 $ - $ 30,153,237 $ 115,000 $ - $ 66,541,237 State Aids 73,752,000 1,060,000 2,200,000 7,000 - - - 77,019,000 Program Fees 38,301,000 344,000 - - - - - 38,645,000 Material Fees 1,283,000 49,000 - - - - - 1,332,000 Other Student Fees 1,915,000 429,000 - - - - - 2,344,000 Institutional 1,000,000 2,791,000 1,166,000 1,000-10,105,500 12,920,000 27,983,500 Federal Aids 255,000 4,068,000 55,101,000 76,000-3,500-59,503,500 Total Revenues $ 151,019,000 $ 10,326,000 $ 58,642,000 $ 84,000 $ 30,153,237 $ 10,224,000 $ 12,920,000 $ 273,368,237 54 EXPENDITURES Instruction $ 105,829,000 $ 8,226,000 $ - $ 11,211,000 $ - $ - $ - $ 125,266,000 Instructional Resources 3,586,000 85,000-5,172,000 - - - 8,843,000 Student Services 15,141,000 1,943,000 58,642,000 395,000 - - - 76,121,000 General Institutional 12,210,000 - - 6,492,000 - - - 18,702,000 Physical Plant 15,390,000 - - 22,800,000 29,808,140 - - 67,998,140 Auxiliary Service - - - 1,842,000-10,164,000 12,844,000 24,850,000 Public Service 332,000 - - 89,000 - - - 421,000 Total Expenditures $ 152,488,000 $ 10,254,000 $ 58,642,000 $ 48,001,000 $ 29,808,140 $ 10,164,000 $ 12,844,000 $ 322,201,140 Net Revenues (Expenditures) $ (1,469,000) $ 72,000 $ - $ (47,917,000) $ 345,097 $ 60,000 $ 76,000 $ (48,832,903) OTHER SOURCES (USES) Proceeds from Debt - - - 31,070,000 - - - 31,070,000 Operating Transfer In 1,189,000 - - - - - - 1,189,000 Operating Transfer (Out) - - - - - (500,000) (689,000) (1,189,000) Net Revenues (Expenditures) and Other Sources (Uses) $ (280,000) $ 72,000 $ - $ (16,847,000) $ 345,097 $ (440,000) $ (613,000) $ (17,762,903) TRANSFERS TO (FROM) FUND BALANCE Reserve for Debt Service $ - $ - $ - $ - $ 345,097 $ - $ - $ 345,097 Reserve for Post-Employee Sick Pay (280,000) - - - - - - (280,000) Reserve for Capital Projects - - - (16,847,000) - - - (16,847,000) Retained Earnings - - - - - (440,000) (613,000) (1,053,000) Designated for Operations - 72,000 - - - - - 72,000 Total Transfers To (From) Fund Balance $ (280,000) $ 72,000 $ - $ (16,847,000) $ 345,097 $ (440,000) $ (613,000) $ (17,762,903) Beginning Fund Balance 52,670,527 941,206 319,090 16,847,000 2,966,845 1,267,001 4,100,172 79,111,841 Ending Fund Balance $ 52,390,527 $ 1,013,206 $ 319,090 $ - $ 3,311,942 $ 827,001 $ 3,487,172 $ 61,348,938

Madison Area Technical College District BUDGETED EXPENDITURES BY OBJECT LEVEL All Funds 2014-15 Budget Year General Fund Special Revenue Aidable Fund Special Revenue Non-Aidable Fund Capital Projects Debt Service Enterprise Funds Internal Service Funds Total Salaries and Wages $ 88,957,790 $ 6,923,187 $ - $ - $ - $ 2,852,514 $ 4,771,313 $ 103,504,804 Fringe Benefits 31,943,023 1,821,138 - - - 816,042 1,895,371 36,475,574 Personnel Services $ 120,900,813 $ 8,744,325 $ - $ - $ - $ 3,668,556 $ 6,666,684 $ 139,980,378 Current Expense 31,587,187 1,509,675 58,642,000 - - 6,495,444 6,177,316 104,411,622 Capital Outlay - - - 48,001,000 - - - 48,001,000 Debt Service - - - - 29,808,140 - - 29,808,140 Total Budgeted Expenditures $ 152,488,000 $ 10,254,000 $ 58,642,000 $ 48,001,000 $ 29,808,140 $ 10,164,000 $ 12,844,000 $ 322,201,140 55 POSITION SUMMARY- FTE BASIS 2014-15 Budget Year Government Fund Type Proprietary Fund Type Fiduciary 2012-13 Budget 2012-13 Actuals 2013-14 Budget General Fund Special Revenue Aidable Fund Capital Projects Enterprise Funds Internal Service Funds Trust and Agency Funds Total 2014-15 Budget Administrators / Supervisors 106.00 100.00 104.52 82.25 3.68 5.28 4.78 5.68 0.35 102.02 Instructors 472.15 476.91 478.40 461.40 13.50 - - - - 474.90 Specialists 1.00 1.00 1.00 1.00 - - - - - 1.00 Other Staff 442.93 443.78 442.32 324.46 29.80 6.93 21.02 50.55 8.18 440.94 Total 1,022.08 1,021.69 1,026.24 869.11 46.98 12.21 25.80 56.23 8.53 1,018.86 Note: Above numbers include all full time funded and authorized positions. Temporary, casual and part time positions are not included.

Madison Area Technical College District Pro-Forma Balance Sheet July 1, 2014 56 Government Fund Type Proprietary Fund Type Account Groups Special Revenue Special Revenue Capital Debt Internal Capital Long-Term General Aidable Non-Aidable Projects Service Enterprise Service Assets Debt Total Assets Cash & Investments $ 21,803,093 $ 78,891 $ 29,090 $ 17,847,000 $ 2,966,845 $ (2,012,999) $ 296,332 $ - $ - $ 41,008,252 Receivables: Local taxes 36,400,000 - - - - - - - - 36,400,000 Federal and State Aid 310,000 900,000 300,000 - - - - - - 1,510,000 Tuition, Less Allowance for Doubtful 17,600,000 - - - - 50,000 - - - 17,650,000 Other 350,000 540,000 5,000 - - 110,000 3,500 - - 1,008,500 Inventories - - - - - 1,600,000 62,500 - - 1,662,500 Prepaid Items 732,434 187,315 - - - - 12,840 - - 932,589 Fixed Assets, Less Depreciation - - - - - 1,525,000 4,000,000 216,741,000-222,266,000 Other Debits Available in General Fund for Compensated Absences - - - - - - - - - - Available in Debt Service - - - - - - - - 2,966,845 2,966,845 Amount to be Provided for Long-Term Obligations - - - - - - - - 168,132,655 168,132,655 Total Assets $ 77,195,527 $ 1,706,206 $ 334,090 $ 17,847,000 $ 2,966,845 $ 1,272,001 $ 4,375,172 $ 216,741,000 $ 171,099,500 $ 493,537,341 Liabilities Vouchers Payable $ 1,300,000 $ 290,000 $ 15,000 $ 1,000,000 $ - $ (295,000) $ 160,000 $ - $ - $ 2,470,000 Accrued Payroll 7,400,000 240,000 - - - 85,000 115,000 - - 7,840,000 Deferred Revenue 15,800,000 235,000 - - - 215,000 - - - 16,250,000 Due to Student Organizations 15,000 - - - - - - - - 15,000 Due to Other Organizations 10,000 - - - - - - - - 10,000 Compensated Absences - - - - - - - - - - Capital Lease Obligation - - - - - - - - 59,500 59,500 General Obligation Debt - - - - - - - - 171,040,000 171,040,000 Unfunded Pension - - - - - - - - - - Total Liabilities $ 24,525,000 $ 765,000 $ 15,000 $ 1,000,000 $ - $ 5,000 $ 275,000 $ - $ 171,099,500 $ 197,684,500 Fund Equity Investment in Fixed Assets $ - $ - $ - $ - $ - $ - $ - $ 216,741,000 $ - $ 216,741,000 Retained Earnings - - - - - 1,267,001 3,455,015 - - 4,722,016 Reserve for Self Insurance - - - - - - 632,317 - - 632,317 Reserve for Prepaid Items 732,434 187,315 - - - - 12,840 - - 932,589 Reserve for Noncurrent Assets 2,990 - - - - - - - - 2,990 Reserve for Compensated Absences 10,101,495 - - - - - - - - 10,101,495 Reserve for Capital Projects - - - 16,847,000 - - - - - 16,847,000 Reserve for Debt Service - - - - 2,966,845 - - - - 2,966,845 Designated for State Aid Fluctuations 1,331,900 - - - - - - - - 1,331,900 Designated for Subsequent Years 902,860 - - - - - - - - 902,860 Designated for Subsequent Year - - - - - - - - - - Designated for Operations 39,598,848 753,891 319,090 - - - - - - 40,671,829 Total Fund Equity $ 52,670,527 $ 941,206 $ 319,090 $ 16,847,000 $ 2,966,845 $ 1,267,001 $ 4,100,172 $ 216,741,000 $ - $ 295,852,841 Total Liabilities and Fund Equity $ 77,195,527 $ 1,706,206 $ 334,090 $ 17,847,000 $ 2,966,845 $ 1,272,001 $ 4,375,172 $ 216,741,000 $ 171,099,500 $ 493,537,341

Madison Area Technical College District Pro-Forma Balance Sheet July 1, 2015 57 Government Fund Type Proprietary Fund Type Account Groups Special Revenue Special Revenue Capital Debt Internal Capital Long-Term General Aidable Non-Aidable Projects Service Enterprise Service Assets Debt Total Assets Cash & Investments $ 36,507,077 $ (5,259) $ 14,390 $ 1,010,000 $ 3,311,942 $ (2,205,199) $ (99,098) $ - $ - $ 38,533,853 Receivables: Local taxes 21,840,000 - - - - - - - - 21,840,000 Federal and State Aid 300,700 1,080,000 315,000 - - - - - - 1,695,700 Tuition, Less Allowance for Doubtful 17,424,000 - - - - 49,500 - - - 17,473,500 Other 339,500 523,800 4,850 - - 106,700 3,395 - - 978,245 Inventories - - - - - 1,552,000 60,625 - - 1,612,625 Prepaid Items 750,000 187,315 - - - - - - - 937,315 Fixed Assets, Less Depreciation - - - - - 1,450,000 3,800,000 239,742,000-244,992,000 Other Debits Available in General Fund for Compensated Absences - - - - - - - - 9,821,495 9,821,495 Available in Debt Service - - - - - - - - 3,311,942 3,311,942 Amount to be Provided for Long-Term Obligations - - - - - - - - 164,030,563 164,030,563 Total Assets $ 77,161,277 $ 1,785,856 $ 334,240 $ 1,010,000 $ 3,311,942 $ 953,001 $ 3,764,922 $ 239,742,000 $ 177,164,000 $ 505,227,238 Liabilities Vouchers Payable $ 1,313,000 $ 292,900 $ 15,150 $ 1,010,000 $ - $ (177,000) $ 161,600 $ - $ - $ 2,615,650 Accrued Payroll 7,474,000 242,400 - - - 85,850 116,150 - - 7,918,400 Deferred Revenue 15,958,000 237,350 - - - 217,150 - - - 16,412,500 Due to Student Organizations 15,450 - - - - - - - - 15,450 Due to Other Organizations 10,300 - - - - - - - - 10,300 Compensated Absences - - - - - - - - - - Capital Lease Obligation - - - - - - - - 54,000 54,000 General Obligation Debt - - - - - - - - 177,110,000 177,110,000 Unfunded Pension - - - - - - - - - - Total Liabilities $ 24,770,750 $ 772,650 $ 15,150 $ 1,010,000 $ - $ 126,000 $ 277,750 $ - $ 177,164,000 $ 204,136,300 Fund Equity Investment in Fixed Assets $ - $ - $ - $ - $ - $ - $ - $ 239,742,000 $ - $ 239,742,000 Retained Earnings - - - - - 827,001 2,854,855 - - 3,681,856 Reserve for Self Insurance - - - - - - 632,317 - - 632,317 Reserve for Prepaid Items 732,434 187,315 - - - - - - - 919,749 Reserve for Noncurrent Assets 2,990 - - - - - - - - 2,990 Reserve for Compensated Absences 9,821,495 - - - - - - - - 9,821,495 Reserve for Capital Projects - - - - - - - - - - Reserve for Debt Service - - - - 3,311,942 - - - - 3,311,942 Designated for State Aid Fluctuations 1,331,900 Designated for Subsequent Years 902,860 - - - - - - - - 902,860 Designated for Subsequent Year - - - - - - - - - - Designated for Operations 39,598,848 825,891 319,090 - - - - - - 40,743,829 Total Fund Equity $ 52,390,527 $ 1,013,206 $ 319,090 $ - $ 3,311,942 $ 827,001 $ 3,487,172 $ 239,742,000 $ - $ 299,759,038 Total Liabilities and Fund Equity $ 77,161,277 $ 1,785,856 $ 334,240 $ 1,010,000 $ 3,311,942 $ 953,001 $ 3,764,922 $ 239,742,000 $ 177,164,000 $ 503,895,338

Madison Area Technical College District SCHEDULE OF LONG-TERM OBLIGATIONS FY 2014-15 Budget Year SCHEDULE OF LONG-TERM OBLIGATIONS FY 2014-15 Budget Year Page 1 Principal Interest Total General Obligation Promissory Notes (7 Years) issued in June 2009 to UMB Bank N.A. in the amount of $2,935,000 for the financing of building repairs and remodeling ($1,000,000), building construction ($355,000), and the purchase of equipment ($1,580,000): 2014-15 175,000 8,225 183,225 2015-16 175,000 4,375 179,375 Total 350,000 12,600 362,600 General Obligation Promissory Notes (7 Years) issued in February 2010 to M&I Marshall & Ilsley Bank in the amount of $6,320,000 for the financing of building repairs and remodeling ($875,000), building construction ($200,000) and the purchase of equipment ($5,245,000): 2014-15 950,000 78,338 1,028,338 2015-16 1,085,000 56,963 1,141,963 2016-17 1,085,000 29,838 1,114,838 Total 3,120,000 165,138 3,285,138 General Obligation Promissory Notes (6 Years) issued in April 2010 to Piper Jaffray & Co. in the amount of $10,360,000 for the financing of building repairs and remodeling ($595,000), site improvement projects ($1,310,000) and the purchase of equipment ($8,455,000): 2014-15 2,260,000 59,600 2,319,600 2015-16 720,000 14,400 734,400 Total 2,980,000 74,000 3,054,000 General Obligation Promissory Notes (5 Years) issued in May 2010 to Robert W. Baird & Co. in the amount of $1,540,000 for the financing of building repairs and remodeling ($1,030,000), building construction ($255,000) and site improvement projects ($255,000): 2014-15 310,000 7,750 317,750 Total 310,000 7,750 317,750 General Obligation Promissory Notes (5 Years) issued in September 2010 to Bernardi Securities, Inc. in the amount of $4,740,000 for the financing of building repairs and remodeling and site improvement projects ($505,000) and purchase of equipment ($4,235,000): 2014-15 1,260,000 22,050 1,282,050 Total 1,260,000 22,050 1,282,050 General Obligation Promissory Notes (5 Years) issued in February 2011 to Robert W. Baird & Co. in the amount of $13,740,000 for the financing of the purchase of equipment: 2014-15 2,745,000 109,800 2,854,800 2015-16 2,745,000 54,900 2,799,900 Total 5,490,000 164,700 5,654,700 General Obligation School Improvement Bonds (10 Years) issued in March 2011 to M&I Marshall & Ilsley Bank in the amount of $12,100,000 for the financing of capital expenditures included in the Campus Master Plan: 2014-15 1,160,000 273,925 1,433,925 2015-16 1,205,000 244,925 1,449,925 2016-17 1,245,000 214,800 1,459,800 2017-18 1,290,000 177,450 1,467,450 2018-19 1,335,000 138,750 1,473,750 2019-21 2,820,000 148,925 2,968,925 Total 9,055,000 1,198,775 10,253,775 58

SCHEDULE OF LONG-TERM OBLIGATIONS FY 2014-15 Budget Year Page 2 Principal Interest Total General Obligation Promissory Notes (5 Years) issued in April 2011 to Piper Jaffray & Co. in the amount of $4,530,000 for the financing of building repairs and remodeling ($1,010,000), building construction ($305,000) and purchase of equipment ($3,215,000): 2014-15 900,000 40,500 940,500 2015-16 900,000 22,500 922,500 Total 1,800,000 63,000 1,863,000 General Obligation School Improvement Bonds (20 Years) issued in May 2011 to Piper Jaffray & Co. in the amount of $41,500,000 for the financing of capital expenditures included in the Campus Master Plan: 2014-15 1,495,000 1,472,575 2,967,575 2015-16 1,535,000 1,442,675 2,977,675 2016-17 1,585,000 1,404,300 2,989,300 2017-18 1,630,000 1,356,750 2,986,750 2018-19 1,685,000 1,291,550 2,976,550 2019-31 27,290,000 9,043,375 36,333,375 Total 35,220,000 16,011,225 51,231,225 General Obligation School Improvement Bonds (20 Years) issued in July 2011 to Citigroup Gobal Markets, Inc. in the amount of $57,100,000 for the financing of capital expenditures included in the Campus Master Plan: 2014-15 1,480,000 2,086,100 3,566,100 2015-16 2,330,000 2,041,700 4,371,700 2016-17 4,225,000 1,971,800 6,196,800 2017-18 4,430,000 1,802,800 6,232,800 2018-19 3,660,000 1,625,600 5,285,600 2019-31 34,370,000 10,623,850 44,993,850 Total 50,495,000 20,151,850 70,646,850 General Obligation Promissory Notes (9 Years) issued in August 2011 to BOSC, Inc. in the amount of $7,050,000 for the purchase of equipment: 2014-15 910,000 94,350 1,004,350 2015-16 910,000 76,150 986,150 2016-17 910,000 57,950 967,950 2017-18 910,000 39,750 949,750 2018-19 340,000 17,000 357,000 2019-20 340,000 8,500 348,500 Total 4,320,000 293,700 4,613,700 General Obligation Promissory Notes (9 Years) issued in February 2012 to Piper Jaffray & Co. in the amount of $7,050,000 for the purchase of equipment ($5,410,000), financing of building repairs and remodeling ($1,390,000), and site improvement projects ($250,000): 2014-15 1,000,000 100,000 1,100,000 2015-16 1,000,000 80,000 1,080,000 2016-17 1,000,000 60,000 1,060,000 2017-18 500,000 40,000 540,000 2017-19 500,000 30,000 530,000 2019-21 1,000,000 30,000 1,030,000 Total 5,000,000 340,000 5,340,000 General Obligation Promissory Notes (7 Years) issued in June 2012 to Robert W. Baird & Co. in the amount of $7,000,000 for the purchase of equipment: 2014-15 550,000 68,700 618,700 2015-16 550,000 52,200 602,200 2016-17 550,000 35,700 585,700 2017-18 550,000 19,200 569,200 2018-19 90,000 2,700 92,700 Total 2,290,000 178,500 2,468,500 General Obligation Promissory Notes (9 Years) issued in August 2012 to Hutchinson Shockey Erley & Co. in the amount of $10,500,000 for the purchase of equipment ($9,500,000) and site improvement projects ($1,000,000): 2014-15 1,290,000 94,500 1,384,500 2015-16 1,270,000 75,150 1,345,150 2016-17 1,250,000 56,100 1,306,100 2017-18 1,240,000 37,350 1,277,350 2018-19 250,000 18,750 268,750 2019-21 750,000 25,000 775,000 Total 6,050,000 306,850 6,356,850 59

SCHEDULE OF LONG-TERM OBLIGATIONS FY 2014-15 Budget Year Page 3 Principal Interest Total General Obligation Promissory Notes (9 Years) issued in February 2013 to Janney Montgomery Scott LLC in the amount of $10,500,000 for the purchase of equipment ($9,000,000) and financing of building remodeling and improvement projects ($1,500,000): 2014-15 1,150,000 201,050 1,351,050 2015-16 1,180,000 178,050 1,358,050 2016-17 1,215,000 142,650 1,357,650 2017-18 1,250,000 106,200 1,356,200 2018-19 1,290,000 68,700 1,358,700 2019-22 1,500,000 60,000 1,560,000 Total 7,585,000 756,650 8,341,650 General Obligation Promissory Notes (4 Years) issued in June 2013 to Citigroup Global Markets in the amount of $5,750,000 for the purchase of equipment ($3,250,000), financing of building remodeling and improvement projects ($1,500,000) and site improvement projects ($1,000,000): 2014-15 1,440,000 75,300 1,515,300 2015-16 525,000 32,100 557,100 2016-17 545,000 16,350 561,350 Total 2,510,000 123,750 2,633,750 General Obligation School Improvement Bonds (20 Years) issued in June 2013 in the amount of $13,000,000 to Piper Jaffray & Co. for the financing of capital expenditures included in the Campus Master Plan: 2014-15 - 482,750 482,750 2015-16 250,000 482,750 732,750 2016-17 215,000 477,750 692,750 2017-18 245,000 473,450 718,450 2018-19 240,000 468,550 708,550 2019-33 11,255,000 4,077,450 15,332,450 Total 12,205,000 6,462,700 18,667,700 General Obligation Promissory Notes (10 Years) issued in September 2013 to BMO Capital Markets GKST Inc. in the amount of $9,215,000 for the purchase of equipment ($7,715,000) and financing of building remodeling and improvement projects ($1,500,000): 2014-15 1,495,000 230,675 1,725,675 2015-16 1,540,000 185,825 1,725,825 2016-17 1,590,000 139,625 1,729,625 2017-18 1,635,000 91,925 1,726,925 2018-19 280,000 42,875 322,875 2019-23 1,220,000 92,275 1,312,275 Total 7,760,000 783,200 8,543,200 General Obligation Promissory Notes (10 Years) issued in January 2014 in the amount of $9,285,000 to Piper Jaffray & Co. for the purchase of equipment ($7,785,000) and financing of building remodeling and improvement projects ($1,500,000): 2014-15 1,130,000 175,450 1,305,450 2015-16 1,155,000 152,850 1,307,850 2016-17 1,185,000 129,750 1,314,750 2017-18 1,200,000 106,050 1,306,050 2018-19 1,235,000 82,050 1,317,050 2019-23 1,500,000 114,000 1,614,000 Total 7,405,000 760,150 8,165,150 General Obligation Promissory Notes (10 Years) to be issued in June 2014 in the amount of $2,500,000 for the purchase of equipment and other projects: 2014-15 215,000 50,208 265,208 2015-16 225,000 68,550 293,550 2016-17 230,000 61,800 291,800 2017-18 240,000 54,900 294,900 2018-19 245,000 47,700 292,700 2019-24 1,345,000 123,300 1,468,300 Total 2,500,000 406,458 2,906,458 60

SCHEDULE OF LONG-TERM OBLIGATIONS FY 2014-15 Budget Year Page 4 Principal Interest Total General Obligation Promissory Notes (10 Years) to be issued in August 2014 in the amount of $9,250,000 for the purchase of equipment and other projects: 2014-15 825,000 189,111 1,014,111 2015-16 860,000 337,000 1,197,000 2016-17 900,000 302,600 1,202,600 2017-18 935,000 266,600 1,201,600 2018-19 970,000 229,200 1,199,200 2019-24 4,760,000 573,000 5,333,000 Total 9,250,000 1,897,511 11,147,511 General Obligation School Improvement Bonds (19 Years) to be issued in December 2014 in the amount of $10,070,000 for the financing of capital expenditures included in the Campus Master Plan: 2014-15 485,000 73,707 558,707 2015-16 360,000 407,363 767,363 2016-17 380,000 392,063 772,063 2017-18 395,000 375,913 770,913 2018-19 410,000 359,125 769,125 2019-33 8,040,000 2,797,138 10,837,138 Total 10,070,000 4,405,307 14,475,307 General Obligation Promissory Notes (10 Years) to be issued in January 2015 in the amount of $9,250,000 for the purchase of equipment and other projects: 2014-15 510,000 33,917 543,917 2015-16 1,050,000 349,600 1,399,600 2016-17 895,000 307,600 1,202,600 2017-18 780,000 271,800 1,051,800 2018-19 1,110,000 240,600 1,350,600 2019-24 4,905,000 549,800 5,454,800 Total 9,250,000 1,753,317 11,003,317 General Obligation Promissory Notes (10 Years) to be issued in June 2015 in the amount of $2,500,000 for the purchase of equipment and other projects: 2014-15 - - - 2015-16 205,000 68,611 273,611 2016-17 215,000 91,800 306,800 2017-18 225,000 83,200 308,200 2018-19 235,000 74,200 309,200 2019-25 1,620,000 233,800 1,853,800 Total 2,500,000 551,611 3,051,611 Lease purchase agreement with Dane County Airport for land at Truax Airpark campus: * 2014-15 5,113 39,447 44,560 2015-16 4,826 40,180 45,006 2016-17 4,556 40,900 45,456 2017-18 4,300 41,611 45,911 2018-19 4,059 42,311 46,370 2019-32 36,058 610,681 646,739 Total 58,912 815,130 874,042 Grand Total $ 198,833,912 $ 57,705,922 $ 256,539,834 * Capital Lease: Effective in 1983 the District entered into a 99-year agreement with Dane County to lease land for the Truax Campus. Commencing April 1, 2033, and continuing thereafter, the District has the option to purchase the leased land at a then-calculated value equal to the original base value of $570,000 increased at the rate of 1% per year. This lease has been accounted for as a capital lease. Payments made under terms of the lease are recorded in the Debt Service Fund. 61

Madison Area Technical College District COMBINED SCHEDULE OF LONG-TERM OBLIGATIONS FY 2014-15 Budget Summary FY2014-15 Budget Principal Interest Total 2014-15 23,740,113 6,068,028 29,808,140 2015-16 21,779,826 6,468,816 28,248,642 2016-17 19,224,556 5,933,375 25,157,931 2017-18 17,459,300 5,344,948 22,804,249 2018-19 13,879,059 4,779,661 18,658,720 2019-24 48,272,126 17,647,710 65,919,836 2024-29 34,442,833 9,623,263 44,066,097 2029-33 20,036,099 1,840,120 21,876,220 Total $ 198,833,912 $ 57,705,922 $ 256,539,834 62

SUPPLEMENTAL DATA SECTION

LEGAL DESCRIPTION OF MADISON AREA TECHNICAL COLLEGE DISTRICT Columbia County less the portion of the School District of Markesan; Dane County less the portion of the Barneveld School District and the Pecatonica Area School District; Jefferson County less the portion of the Oconomowoc Area School District, the Palmyra-Eagle Area School District, and the School District of Kettle Moraine; Marquette County less the portion of the School District of Princeton and the School District of Markesan; Sauk County less the portion of the School District of Hillsboro, the School District of Ithaca, and the School District of Weston; plus the portion of the School District of Wisconsin Dells in Adams County; the Columbus School District, the Randolph School District and the Watertown Unified School District in Dodge County; the School District of Belleville, the School District of New Glarus and the Oregon School District in Green County; the Wisconsin Heights School District, the Mount Horeb Area School District and the River Valley School District in Iowa County; the School District of Reedsburg, the School District of Wisconsin Dells, and the School District of Wonewoc and Union Center in Juneau County; the River Valley School District and the School District of Wonewoc and Union Center in Richland County; and the Oregon School District and the Stoughton Area School District in Rock County. Madison Area Technical College - Madison Truax Airpark - Main District Campus, 1701 Wright Street, Madison, Wisconsin 53704 1,442,701 square feet Downtown Education Center, 211 North Carroll Street, Madison, Wisconsin 53703 201,445 square feet Commercial Avenue Education Center, 2125 Commercial Avenue, Madison, Wisconsin 53704 109,281 square feet Madison Area Technical College - Fort Atkinson 827 Banker Road, Fort Atkinson, Wisconsin 53538 36,840 square feet Madison Area Technical College - Portage 330 Collins Street, Portage, Wisconsin 53901 17,932 square feet Madison Area Technical College - Reedsburg 300 Alexander Avenue, Reedsburg, Wisconsin 53959 29,559 square feet Madison Area Technical College - Watertown 1300 West Main Street, Watertown, Wisconsin 53098 37,441 square feet Leased space in nine facilities totals 169,514 square feet. Grand Total Square Footage = 2,044,713 The District rents additional space in public school buildings and other facilities to provide instruction. 63

MADISON AREA TECHNICAL COLLEGE DISTRICT DEGREE/DIPLOMA PROGRAM & OTHER INSTRUCTIONAL OFFERINGS Madison College is second largest among the Wisconsin Technical College System s 16 colleges. It provides real-world smart, work-ready education through a comprehensive curriculum of technical, liberal arts and science, adult basic education and life enrichment studies and activities, as well as customized employee training. Madison College offers associate degrees, vocational diplomas and certificates, and non-degree courses in more than 140 programs of study. The college, with campuses in Madison, Fort Atkinson, Portage, Reedsburg and Watertown, serves all or parts of 12 counties located in south-central Wisconsin and offers instruction at numerous other communities in the district. The following degree, diploma, and apprenticeship programs, certificates, and other types of instructional offerings are available at Madison College: School of Academic Advancement Two-Year Associate Degree Programs Individualized Technical Studies Other Instructional Offerings Adult Basic Education Adult Secondary Education Developmental Education Other Instructional Offerings (continued) English as a Second Language High School Completion Options Middle College Programming Transition Programming ABE/ESL Bridge to Programs School of Applied Science, Engineering, and Technologies Cluster: Agriscience & Natural Resources Two-Year Associate Degree Programs Veterinary Technician Certificates Renewable Energy Certificate Introduction to Wind Energy Certificate Cluster: Biotechnology & Electron Microscopy Two-Year Associate Degree Programs Biotechnology Laboratory Technician Electron Microscopy Technician Certificates Bioinformatics Certificate Biotechnology Post-baccalaureate Certificate Biotechnology Intensive Post-Baccalaureate Certificate Stem Cells Technology Certificate Cluster: Applied Engineering Technology Two-Year Associate Degree Programs Architectural Studies Transfer Program Architectural Technician Civil Engineering Technology Electronics Electrical Engineering Technology Mechanical Design Technology Certificates Electronic Assembler Certificate Cluster: Manufacturing Two-Year Associate Degree Programs AMST: Automated Manufacturing Systems Technology Industrial Maintenance Technician Technical Studies Journeywork Machine Tooling Technics One-Year Technical Diploma Programs Industrial Mechanic - HVAC Industrial Mechanic Welding Certificates CNC Specialist Certificate Industrial Automation Post-Baccalaureate Certificate Machine tool Operations Certificate Cluster: Transportation Two-Year Associate Degree Programs Auto Collision Repair & Refinishing Technician Automotive Technician Automotive Technology-Comprehensive Diesel & Heavy Equipment Technician Diesel Equipment Technology John Deere Ag Equipment One-Year Technical Diploma Programs Motorcycle, Marine & Outdoor Power Products Auto Collision Repair & Refinishing Technician 64

School of Applied Science, Engineering, and Technologies (continued) Cluster: Construction One-Year Technical Diploma Programs Cabinetmaking and Millwork Construction and Remodeling Apprenticeships Bricklaying Carpentry Cement Mason/Concrete Finisher Electrician Environmental Service Technician/HVAC Installer Technician Apprenticeships (continued) Industrial (Maintenance) Electrician Ironworking Machinist Maintenance Mechanic/Millwright Painter and Decorator Plumbing Sheet Metal Steamfitter Tool and Die Voice Data and Video School of Arts and Sciences Two-Year Associate Degree Programs Liberal Arts Transfer: Associate Degree Arts Associate Degree Science Associate Degree Engineering Certificates Ethnic Studies Certificate Journalism Certificate Global Studies Certificate Other Instructional Offerings Engineering Transfer Blueprint Program General Education School of Business and Applied Arts Cluster: Accounting & Finance Two-Year Associate Degree Programs Accounting Business Management Finance Human Resource Management One-Year Technical Diploma Programs Accounting Assistant General Accountancy Certificates Human Resources Certificate Cluster: Applied Arts Two-Year Associate Degree Programs Animation Concept Development Graphic Design and Illustration Interior Design Photography Visual Communications Media Design Certificates Video Production Certificate Web Page Design Certificate Other Instructional Offerings College Transfer Art Cluster: Business & Marketing Two-Year Associate Degree Programs Fashion Marketing Marketing Paralegal Supervisory Management One-Year Technical Diploma Programs Small Business Entrepreneurship Paralegal Post-baccalaureate Certificates Risk Management & Insurance Certificate Nonprofit Management Certificate Property Management Certificate Quality Management Certificate Real Estate Sales Certificate Retail Management Certificate Sales Academy Certificate Social Media Certificate Facilities Management Certificate Mobile Marketing Certificate Sustainable Business Certificate Business Plan Certificate Entrepreneurship Certificate 65

School of Business and Applied Arts (continued) Cluster: Hospitality Two-Year Associate Degree Programs Culinary Arts Hotel & Restaurant Management Meeting & Event Management Recreation Management: Activity/Fitness Emphasis Recreation Management: Outdoor Education Emphasis One-Year Technical Diploma Programs Baking &Decorative Arts Barber/Cosmetologist Food Service Production Apprenticeship Programs Barber/Cosmetologist Certificates Event Marketing Certificate Fitness/Health Club Certificate Meeting and Event Management for Administrative Professionals Cluster: Business Technology Two-Year Associate Degree Programs Administrative Professional Court Reporting Medical Administrative Specialist One-Year Technical Diploma Programs Business Software Application Specialist Certificates Project Management Certificate Virtual Assistant Certificate Website Development Certificate Basic Medical Reception Skills Certificate Certificate in Microsoft Office Advanced Certificate in Microsoft Office Basic Medical Billing Specialist Certificate Cluster: Information Technology Two-Year Associate Degree Programs IT Computer Systems Administration Specialist IT Network Security Specialist IT Network Specialist IT Mobile Applications Developer IT Web Software Developer One-Year Technical Diploma Programs IT-Help Desk Support Specialist Certificates Bioinformatics Certificate IT Cisco Certified Networking Assoc. (CCNA) Certificate IT CompTia A+ Computer Essentials Certificate IT Information Security Certificate IT-iPhone Applications Development Certificate IT Java Professional Developer Certificate IT LAMP Open Source Development Certificate IT Microsoft Visual Studio.NET Certificate IT PHP Professional Web Developer Certificate IT--VMware Certified Professional Certificate IT-Android Applications Development Certificate IT-Microsoft Technologies Certificate Internet Developer Certificate Website Development Certificate IT-Certified Information Systems Security Professional-CISSP IT-Cisco Certified Entry Networking Technician- CCENT IT-HDI-Customer Service Analyst Certificate 66

School of Health Education Cluster: Health-Related Programs Two-Year Associate Degree Programs Medical Laboratory Technician Dental Hygienist Occupational Therapy Assistant Physical Therapist Assistant Radiography Respiratory Therapist One-Year Technical Diploma Programs Medical Assistant Medical Coding Specialist Optometric Technician Surgical Technologist Less-Than-One-Year Technical Diploma Programs Dental Assistant Therapeutic Massage Certificates Clinical Ophthalmic Assistant Certificate Dietary Manager Certificate Phlebotomy Training Certificate Polysomnography Advanced Technical Certificate (ATC) Cluster: Nursing Two-Year Associate Degree Programs Associate Degree Nursing One-Year Technical Diploma Programs Practical Nursing Less-Than-One-Year Technical Diploma Programs Nursing Assistant Other Instructional Offerings Nursing Completion LPN to ADN Cluster: Safety Education Other Instructional Offerings Group Dynamics Multiple Offender Responsible Beverage Server Traffic Safety School of Human and Protective Services Cluster: Education Two-Year Associate Degree Programs Early Childhood Education Apprenticeship Programs Child Care Development Specialist Apprentice Cluster: Emergency Medical Services Less-Than-One-Year Technical Diploma Programs Emergency Medical Technician Basic (EMT-B) Emergency Medical Technician Intermediate Technician Emergency Medical Technician Paramedic Cluster: Human Services Two-Year Associate Degree Programs Human Services Associate Cluster: Protective Services Two-Year Associate Degree Programs Criminal Justice Law Enforcement Fire Protection Technician Less-Than-One-Year Technical Diploma Programs Criminal Justice Law Enforcement Academy Fire Service Certification Certificates Digital Forensics Certificate Homeland Security Other Instructional Offerings Emergency Preparedness Motorcycle Driving 67

MADISON AREA TECHNICAL COLLEGE DISTRICT ENROLLMENT STATISTICS Ten Fiscal Years Student Enrollment (1) Aidable Non-Aidable Year College Transfer Associate Degree Technical Diploma Vocational Adult Basic Education Community Service Grand Total 2006 6,433 10,359 5,392 18,208 6,381 3,174 43,333 2007 7,296 10,818 5,746 17,560 6,141 3,104 44,300 2008 7,454 10,826 5,306 16,291 5,680 2,475 41,848 2009 7,706 10,982 5,580 13,712 5,859 2,103 39,486 2010 8,951 12,200 5,972 12,321 6,371 1,989 40,353 2011 9,461 12,358 5,610 9,920 6,867 2,930 39,716 2012 13,215 17,320 4,696 9,839 6,365 3,940 41,509 2013 11,032 14,872 3,641 6,384 4,308 3,968 33,199 2014 - est 10,808 13,875 4,401 7,516 5,079 3,919 31,120 2015 - budget (3) (3) (3) (3) (3) (3) (3) Full-time Equivalents (2) Aidable Non-Aidable Year College Transfer Associate Degree Technical Diploma Vocational Adult Basic Education Total Aidable Community Service Total Notes: (1) 2006 2,657 4,295 1,050 347 470 8,819 72 8,891 2007 2,957 4,452 1,082 348 440 9,279 71 9,350 2008 3,088 4,379 1,032 375 489 9,363 65 9,428 2009 3,237 4,465 1,039 277 531 9,549 55 9,604 2010 3,683 5,199 1,071 270 541 10,764 48 10,812 2011 3,844 5,329 1,042 216 551 10,982 68 11,050 2012 3,806 5,083 939 226 535 10,589 83 10,672 2013 3,794 4,872 930 205 555 10,356 89 10,445 2014 - est 3,689 4,664 912 210 513 9,988 88 10,076 2015 - budget 3,603 4,714 887 206 509 9,919 81 10,000 Student enrollment represents the unduplicated count of students enrolled in District courses. A student may be enrolled in more than one program, but is counted only once in the Grand Total. Therefore, the Grand Total column does not equal the sum of the individual programs. (2) A full-time equivalent (FTE) is equal to 30 annual student credits based on a mathematical calculation, which varies somewhat by program and which is subject to state approval and audit of student and course data. (3) Information not yet available. Source: Prior year actuals from WTCS Client Reporting System. Current year estimate and planning year budget from Budget Office. 68

MADISON AREA TECHNICAL COLLEGE DISTRICT DISTRIBUTION OF REAL PROPERTY VALUE ON AN EQUALIZED BASIS COLUMBIA, DANE, JEFFERSON, MARQUETTE, AND SAUK COUNTIES (1) Last Ten Calendar Years (Jan. 1 to Dec. 31) Calendar Year Residential Commercial Manufacturing Agriculture and Ag Forest Undeveloped Forest Other Personal Property Total District Equalized Valuation (2) Total Direct Tax Rate 69 2003 33,136,537,000 10,691,275,100 1,140,936,200 264,168,700 251,127,400 658,330,600 1,347,675,400 1,330,869,100 48,820,919,500 46,955,056,209 1.36310 % of Total 67.9% 21.9% 2.3% 0.5% 0.5% 1.3% 2.8% 2.7% 2004 37,067,498,900 11,702,660,600 1,166,731,400 270,704,700 172,134,500 685,331,400 1,472,898,500 1,390,835,800 53,928,795,800 53,262,965,615 1.31242 % of Total 68.7% 21.7% 2.2% 0.5% 0.3% 1.3% 2.7% 2.6% 2005 41,540,610,200 12,769,261,000 1,258,830,200 482,411,200 194,526,900 429,507,900 1,577,912,800 1,451,194,200 59,704,254,400 58,990,853,872 1.26664 % of Total 69.6% 21.4% 2.1% 0.8% 0.3% 0.7% 2.6% 2.4% 2006 46,235,793,100 13,794,575,000 1,303,094,400 574,186,900 239,256,200 410,743,800 1,633,800,400 1,554,720,600 65,746,170,400 64,919,717,380 1.21225 % of Total 70.3% 21.0% 2.0% 0.9% 0.4% 0.6% 2.5% 2.4% 2007 49,154,867,100 15,046,258,900 1,391,779,100 616,366,400 245,295,000 427,138,100 1,672,150,600 1,619,675,000 70,173,530,200 69,274,786,682 1.19897 % of Total 70.0% 21.4% 2.0% 0.9% 0.3% 0.6% 2.4% 2.3% 2008 50,872,236,300 15,584,109,200 1,446,066,700 630,833,000 266,613,800 442,146,100 1,797,773,200 1,766,662,700 72,806,441,000 71,847,552,594 1.21141 % of Total 69.9% 21.4% 2.0% 0.9% 0.4% 0.6% 2.5% 2.4% 2009 50,600,204,900 16,119,589,400 1,427,680,200 658,563,400 266,615,900 413,641,200 1,790,582,000 1,840,161,500 73,117,038,500 72,154,407,451 1.31303 % of Total 69.2% 22.0% 2.0% 0.9% 0.4% 0.6% 2.4% 2.5% 2010 48,374,961,900 16,356,586,600 1,429,021,400 656,579,700 269,221,000 394,712,000 1,709,273,200 1,794,513,100 70,984,868,900 70,035,643,183 1.47462 % of Total 68.1% 23.0% 2.0% 0.9% 0.4% 0.6% 2.4% 2.5% 2011 48,281,413,000 15,761,347,200 1,422,285,100 627,588,900 248,517,200 376,942,900 1,689,525,100 1,704,475,500 70,112,094,900 69,185,451,307 1.70944 % of Total 68.9% 22.5% 2.0% 0.9% 0.4% 0.5% 2.4% 2.4% 2012 47,009,477,900 15,732,402,000 1,400,086,900 608,345,800 268,804,600 355,649,500 1,701,923,900 1,697,416,500 68,774,107,100 67,889,606,595 1.81563 % of Total 68.4% 22.9% 2.0% 0.9% 0.4% 0.5% 2.5% 2.5% Source: Wisconsin Department of Revenue, Bureau of Local Financial Assistance Notes: (1) The District is comprised of the majority of five (5) counties (Columbia, Dane, Jefferson, Marquette, and Sauk) and parts of seven (7) other counties (Adams, Dodge, Green, Iowa, Juneau, Richland, and Rock). Real property values are presented for Columbia, Dane, Jefferson, Marquette, and Sauk counties. These five counties comprise over 96% of the District's total equalized valuation. Therefore, the above total column will be greater than the actual total equalized value for the District. (2) Due to varying assessment policies in the municipalities contained in the District, the District uses equalized value of taxable property for tax levy purposes. This equalized value of property approximates estimated actual (full) value of taxable property in the State of Wisconsin. The District Equalized Valuation is the equalized value of property, excluding tax incremental financing districts, within the district. Amount shown is for the five counties listed only.

MADISON AREA TECHNICAL COLLEGE DISTRICT DIRECT AND OVERLAPPING (2) PROPERTY TAX RATES Last Ten Years (Rate per $1,000 of Equalized Value) Calendar Year Taxes are Payable 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 District direct rates Operational (1) $ 1.37085 $ 1.34174 $ 1.32749 $ 1.18113 $ 1.08671 $ 1.07564 $ 1.08232 $ 1.12170 $ 1.16530 $ 1.21658 Debt Service 0.44479 0.36770 0.14713 0.13190 0.12470 0.12333 0.12993 0.14494 0.14712 0.14652 Total Direct Rate $ 1.81564 $ 1.70944 $ 1.47462 $ 1.31303 $ 1.21141 $ 1.19897 $ 1.21225 $ 1.26664 $ 1.31242 $ 1.36310 Adams County T Dell Prairie 17.97 17.31 16.66 15.00 14.68 14.20 14.91 15.80 17.64 18.04 T Jackson 19.24 18.38 18.12 16.44 15.58 14.97 15.46 16.46 18.45 18.38 T New Haven 19.16 18.67 18.08 16.41 16.01 15.55 16.32 17.51 19.82 20.54 T Springville 19.90 18.92 18.50 16.78 15.92 15.07 16.00 16.95 19.40 19.27 C Wisconsin Dells 26.57 26.13 25.62 22.89 21.91 21.60 21.83 23.14 25.05 25.03 70 Columbia County T Arlington 22.04 21.88 20.73 19.63 18.38 18.77 17.96 18.91 20.35 21.61 T Caledonia 18.32 17.78 16.98 16.51 15.58 15.13 15.33 15.90 16.91 16.76 T Columbus 21.26 20.68 19.77 18.31 17.76 18.52 18.37 18.86 21.00 21.07 T Courtland 20.52 19.49 19.00 17.35 16.29 17.37 18.10 18.14 19.71 20.19 T Dekorra 19.10 18.89 17.81 17.06 16.08 15.67 15.00 15.68 17.31 18.32 T Fort Winnebago 19.35 18.73 17.73 17.41 16.66 16.17 16.43 16.76 17.85 17.85 T Fountain Prairie 22.75 22.43 21.42 19.72 17.89 19.61 19.02 18.63 23.95 22.81 T Hampden 21.21 20.69 19.91 18.28 17.69 18.12 18.06 18.56 20.12 20.36 T Leeds 21.87 21.70 20.76 19.17 18.61 18.74 18.69 19.28 20.37 21.43 T Lewiston 19.16 18.62 17.56 17.18 16.58 16.06 15.42 15.82 16.82 16.38 T Lodi 19.90 20.32 19.35 18.52 16.70 16.31 16.86 17.60 18.73 20.13 T Lowville 18.92 19.05 19.32 17.66 16.90 16.31 17.00 17.59 19.49 18.38 T Marcellon 19.62 19.21 18.52 17.61 15.67 15.22 14.40 15.21 16.14 15.69 T Newport 17.16 16.60 16.03 14.64 14.24 14.17 14.45 15.00 16.52 16.39 T Otsego 19.43 19.80 21.54 19.27 18.81 17.63 19.33 19.37 21.89 18.76 T Pacific 14.67 14.77 13.81 12.83 12.63 12.01 12.31 13.30 13.80 13.11 T Randolph 18.63 18.41 17.81 16.30 15.23 16.07 16.41 15.92 18.32 19.28 T Scott 19.41 19.24 18.66 17.33 15.86 15.92 15.66 15.81 17.53 17.68 T Springvale 18.79 18.71 19.31 17.74 16.33 15.73 16.76 16.66 19.01 17.80 T West Point 19.08 18.90 18.24 17.30 15.62 15.44 15.39 16.50 17.48 18.11 T Wyocena 18.69 18.64 18.23 17.24 15.45 14.99 14.49 15.26 16.34 15.81 V Arlington 23.03 22.47 21.35 21.06 20.07 19.68 18.57 19.50 21.17 23.37 V Cambria 26.89 25.73 24.94 23.36 22.29 22.58 22.71 22.85 25.26 24.50 V Doylestown 17.05 17.84 19.79 17.68 17.26 15.96 18.16 18.28 20.46 16.95 V Fall River 23.14 23.01 21.90 20.28 19.23 19.75 19.93 19.00 25.17 24.16

MADISON AREA TECHNICAL COLLEGE DISTRICT DIRECT AND OVERLAPPING (2) PROPERTY TAX RATES Last Ten Years (Rate per $1,000 of Equalized Value) Calendar Year Taxes are Payable 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 V Friesland 22.58 21.52 21.01 19.01 17.98 18.11 18.45 18.30 20.56 21.59 V Pardeeville 23.67 23.70 22.95 21.73 19.53 19.27 18.72 19.47 20.57 19.76 V Poynette 26.74 25.48 24.69 23.01 21.47 21.75 20.84 22.04 23.88 25.12 V Randolph 28.03 26.48 25.46 24.47 22.88 22.87 23.68 25.06 25.76 26.56 V Rio 22.98 23.84 25.13 22.60 21.72 20.55 23.13 23.46 26.02 21.91 V Wyocena 23.81 23.35 22.55 21.48 19.38 18.86 17.89 18.75 20.00 19.87 C Columbus 26.64 25.86 24.98 23.46 22.49 23.44 23.72 24.98 27.13 27.51 C Lodi 25.00 25.60 24.57 23.24 21.33 21.06 21.69 22.85 24.21 25.62 C Portage 26.24 24.70 23.80 23.15 22.23 21.60 21.91 22.45 23.64 23.26 C Wisconsin Dells 24.20 23.85 23.33 21.00 20.11 20.01 19.92 20.82 22.36 22.22 71 Dane County T Albion 19.35 17.98 17.40 16.03 14.41 14.96 14.77 16.26 17.63 17.46 T Berry 18.95 18.02 18.09 16.83 16.06 15.93 15.87 16.74 18.04 19.27 T Black Earth 19.63 18.47 18.63 17.40 17.07 16.68 16.17 17.05 18.43 18.62 T Blooming Grove 21.70 21.11 20.41 19.04 18.23 18.16 18.37 18.87 20.13 21.06 T Blue Mounds 17.57 17.20 16.36 15.25 14.63 14.57 13.73 15.43 16.19 16.28 T Bristol 19.46 19.03 18.22 16.85 15.92 15.48 15.17 15.77 16.06 17.13 T Burke 19.46 19.33 18.59 16.86 16.27 16.21 16.34 16.98 17.64 19.76 T Christiana 18.96 18.12 17.60 16.02 15.15 14.77 14.83 15.57 16.72 17.80 T Cottage Grove 22.21 21.72 21.04 19.60 19.57 18.48 18.51 18.79 20.29 21.64 T Cross Plains 18.26 17.53 16.93 15.70 14.86 15.04 15.29 15.67 16.97 17.78 T Dane 18.31 18.56 17.90 16.91 15.14 14.86 14.85 15.56 16.57 17.89 T Deerfield 21.39 20.95 19.22 17.81 17.98 16.58 16.94 17.37 19.70 20.72 T Dunkirk 19.68 17.81 16.81 15.29 13.73 13.82 13.67 14.15 15.43 15.71 T Dunn 20.22 18.78 18.01 16.57 15.79 15.75 15.43 16.20 17.53 18.11 T Madison 24.11 23.28 22.72 21.23 20.48 20.80 20.46 21.18 22.79 24.26 T Mazomanie 17.99 16.80 16.98 15.97 15.53 15.24 14.75 15.68 17.26 17.52 T Medina 19.02 17.99 17.33 16.51 16.62 16.37 15.92 18.13 19.03 20.32 T Middleton 19.01 18.25 18.18 16.86 15.70 15.44 14.87 15.38 16.90 18.21 T Montrose 19.09 18.11 17.19 16.34 15.80 16.10 16.38 17.23 18.55 19.69 T Oregon 19.85 19.22 18.54 17.21 16.42 16.93 16.07 17.22 18.76 20.07 T Perry 18.73 18.37 17.55 16.29 15.76 15.96 15.42 17.13 18.10 18.41 T Pleasant Springs 18.21 16.76 15.92 14.67 13.83 13.46 13.41 13.88 15.04 15.22 T Primrose 18.73 18.58 17.67 16.36 15.73 15.94 15.33 16.31 17.52 18.03 T Roxbury 17.63 17.17 17.05 15.74 14.16 14.24 13.95 15.41 16.21 17.10

MADISON AREA TECHNICAL COLLEGE DISTRICT DIRECT AND OVERLAPPING (2) PROPERTY TAX RATES Last Ten Years (Rate per $1,000 of Equalized Value) 72 Calendar Year Taxes are Payable 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 T Rutland 19.88 18.61 17.85 15.99 15.07 15.13 14.72 15.38 16.80 17.37 T Springdale 17.56 17.03 16.26 15.09 14.61 14.46 14.30 15.45 16.08 16.12 T Springfield 18.09 17.49 17.51 16.23 14.92 14.92 14.88 15.57 16.99 17.92 T Sun Prairie 20.44 19.85 19.03 17.82 17.05 16.54 16.27 17.00 17.40 18.70 T Vermont 19.00 18.25 17.95 16.73 16.37 16.18 15.63 16.25 16.78 16.85 T Verona 21.83 20.94 20.47 19.29 18.82 18.23 19.51 19.13 20.50 20.54 T Vienna 19.67 19.81 19.34 18.00 16.87 16.47 16.64 17.40 18.73 19.97 T Westport 18.77 18.25 17.93 16.74 15.18 15.02 14.62 15.23 16.56 16.64 T Windsor 21.75 21.53 20.73 18.38 17.92 17.64 18.13 18.80 19.98 22.59 T York 19.12 18.49 17.53 16.60 16.00 16.37 16.16 17.11 18.70 18.95 V Belleville 23.91 22.34 20.95 20.45 19.68 20.41 20.06 21.15 22.71 24.39 V Black Earth 22.87 21.21 21.70 20.47 19.80 19.26 19.17 20.28 21.97 22.29 V Blue Mounds 21.96 21.35 20.59 18.92 18.46 18.11 16.58 18.39 19.33 19.63 V Brooklyn 25.12 24.74 23.47 21.83 20.97 21.17 20.83 22.01 23.44 25.30 V Cambridge 26.27 25.11 24.65 22.55 21.73 19.78 19.96 21.06 22.29 23.98 V Cottage Grove 22.71 22.37 21.92 20.72 21.58 20.23 20.94 21.07 22.47 24.13 V Cross Plains 22.83 22.13 22.02 20.30 19.04 19.02 18.82 19.70 20.93 22.88 V Dane 23.04 23.07 22.30 20.75 18.56 18.35 18.88 19.66 20.97 22.59 V Deerfield 24.06 24.01 22.16 20.78 20.80 18.93 19.44 19.58 21.45 22.64 V Deforest 23.50 23.02 22.12 20.29 20.04 20.08 20.50 21.46 22.53 25.40 V Maple Bluff 22.89 22.21 22.10 20.39 19.55 19.78 19.84 20.97 22.39 23.58 V Marshall 23.19 21.46 20.66 19.94 19.70 19.12 17.99 20.38 21.23 22.25 V Mazomanie 22.94 22.04 21.65 20.47 19.80 19.29 18.71 19.69 21.93 23.26 V McFarland 24.84 23.38 22.88 21.38 20.77 20.80 20.61 21.58 22.50 23.07 V Mount Horeb 21.43 21.00 20.12 18.93 18.55 18.59 17.82 19.86 20.55 21.44 V Oregon 22.74 22.15 21.25 19.92 19.06 19.00 18.74 19.84 21.37 23.02 V Rockdale 23.69 22.79 22.32 20.51 19.66 19.35 19.44 19.72 20.98 22.36 V Shorewood Hills 21.86 20.79 20.17 18.74 17.78 18.21 18.20 18.89 20.49 21.52 V Waunakee 23.20 22.66 22.11 20.96 19.36 19.06 18.73 19.38 20.48 20.25 C Edgerton 23.93 22.28 21.56 19.80 17.94 18.65 18.43 20.44 22.00 22.62 C Fitchburg 24.66 23.89 23.01 21.08 20.30 19.95 20.61 20.98 22.50 22.91 C Madison 25.40 24.37 23.53 21.73 20.64 20.72 20.63 21.46 23.02 24.19 C Middleton 21.77 20.78 20.35 19.02 17.57 17.60 17.60 18.09 19.84 20.95 C Monona 23.86 23.63 22.49 21.24 21.12 19.67 19.72 19.88 21.58 22.91 C Stoughton 24.52 22.44 21.17 19.85 18.56 18.43 18.26 18.82 20.27 20.31 C Sun Prairie 26.18 25.47 24.52 22.86 21.91 21.44 21.32 21.82 21.80 23.85 C Verona 24.30 23.51 23.01 21.68 21.34 20.20 21.56 21.19 22.68 22.20

MADISON AREA TECHNICAL COLLEGE DISTRICT DIRECT AND OVERLAPPING (2) PROPERTY TAX RATES Last Ten Years (Rate per $1,000 of Equalized Value) Calendar Year Taxes are Payable 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 Dodge County T Calamus 20.04 20.16 20.21 18.75 17.66 17.93 18.32 18.64 21.20 21.59 T Clyman 21.43 21.14 21.12 19.99 18.87 19.79 19.85 20.73 21.78 22.03 T Elba 20.85 20.17 19.48 19.01 17.24 17.96 17.86 18.53 20.48 20.37 T Emmet 20.38 19.68 19.00 17.55 16.73 16.84 16.77 17.15 19.09 18.98 T Fox Lake 20.95 20.03 20.02 18.09 17.25 17.54 17.62 19.07 21.05 21.22 T Lebanon 21.30 20.49 19.84 18.62 17.83 18.03 18.01 18.87 20.88 21.19 T Lowell 22.12 19.74 22.22 21.46 19.78 20.56 20.35 21.32 22.64 23.35 T Portland 20.41 20.63 19.43 19.29 17.69 18.16 17.95 19.23 21.72 20.96 T Shields 20.73 20.14 19.48 18.01 17.23 16.71 16.75 17.70 19.81 19.14 T Westford 18.56 18.13 18.28 17.05 16.07 16.34 16.77 18.10 19.27 20.11 V Randolph 30.96 29.28 28.16 26.62 24.77 25.53 26.60 27.66 28.38 28.92 C Watertown 26.63 25.27 24.30 22.17 21.02 20.71 20.55 21.59 23.78 23.65 73 Green County T Adams 22.26 21.97 21.60 20.54 20.06 19.25 19.27 19.68 21.57 23.95 T Brooklyn 22.59 22.12 21.35 20.22 18.85 18.52 18.07 19.48 20.84 23.14 T Exeter 21.16 20.35 19.19 18.43 17.70 17.63 16.97 18.04 19.46 21.30 T New Glarus 23.97 23.98 23.02 21.63 20.39 20.38 20.02 20.43 22.33 23.30 T Washington 23.08 22.41 22.19 21.19 19.29 17.51 17.32 17.92 18.74 20.65 T York 22.70 22.71 22.37 21.45 19.95 19.11 18.52 19.47 20.85 20.54 V Belleville 26.51 25.00 23.60 23.17 22.11 21.48 20.96 22.86 23.41 26.12 V Brooklyn 27.77 27.47 26.14 24.56 23.42 23.33 22.80 24.48 25.25 27.13 V New Glarus 28.60 28.66 27.19 25.47 24.01 23.90 23.10 23.71 26.44 27.78 Iowa County T Arena 20.10 19.48 19.21 18.19 16.64 16.60 16.84 16.60 18.05 18.84 T Clyde 21.73 21.29 21.61 19.51 17.83 17.85 18.31 17.95 19.21 19.65 T Dodgeville 21.97 21.59 21.53 20.51 18.78 19.18 19.45 20.09 20.04 20.80 T Moscow 24.49 24.50 24.87 23.88 22.09 21.36 20.90 22.44 23.63 23.19 T Ridgeway 24.94 24.34 24.18 24.00 22.34 22.69 22.97 23.99 24.26 24.49 T Wyoming 20.73 20.38 20.17 19.14 17.48 17.40 17.54 17.47 18.57 19.03 V Arena 27.01 25.88 26.98 25.77 24.72 23.73 23.55 23.94 25.57 26.83

MADISON AREA TECHNICAL COLLEGE DISTRICT DIRECT AND OVERLAPPING (2) PROPERTY TAX RATES Last Ten Years (Rate per $1,000 of Equalized Value) 74 Calendar Year Taxes are Payable 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 Jefferson County T Aztalan 20.14 19.22 18.39 16.78 15.88 15.08 15.60 16.90 18.53 19.72 T Cold Spring 19.27 18.48 18.26 16.70 15.64 15.46 15.14 16.34 17.49 18.30 T Concord 19.24 18.03 17.45 16.07 15.09 14.84 14.78 15.66 17.59 17.23 T Farmington 17.29 16.63 15.85 14.66 14.23 13.95 13.98 14.82 16.77 17.54 T Hebron 20.76 18.71 17.97 16.34 15.48 15.51 15.55 15.85 17.37 19.07 T Ixonia 19.58 18.23 17.79 16.67 15.38 15.01 14.89 15.67 16.63 18.41 T Jefferson 20.02 19.60 17.68 15.82 14.75 14.43 14.70 15.46 16.81 18.12 T Koshkonong 18.82 18.13 17.60 16.14 15.25 15.48 15.26 15.37 17.02 17.85 T Lake Mills 18.96 17.34 17.20 15.90 15.48 13.52 14.11 15.60 17.60 18.06 T Milford 18.48 17.09 16.75 15.50 15.05 13.51 13.98 15.20 17.19 18.07 T Oakland 22.39 21.39 20.94 19.32 18.28 18.05 18.10 19.12 20.46 22.12 T Palmyra 19.09 18.69 17.81 16.70 15.60 15.29 15.67 17.34 18.34 19.78 T Sullivan 20.40 19.78 18.68 17.22 16.10 15.65 15.93 17.22 18.49 19.92 T Sumner 19.87 18.89 18.37 16.89 15.64 16.16 15.92 16.63 18.35 19.04 T Waterloo 19.37 18.90 18.01 17.38 16.19 15.66 15.60 16.99 19.28 19.17 T Watertown 17.52 16.74 16.18 14.70 13.91 13.83 13.69 14.49 16.26 16.50 V Cambridge 27.66 26.36 25.99 23.07 22.69 21.06 21.52 22.70 24.26 26.09 V Johnson Creek 22.72 21.04 20.33 19.41 18.95 18.85 19.02 20.44 24.07 24.67 V Sullivan 24.18 23.67 22.22 19.05 17.99 17.41 17.93 19.06 20.63 22.23 C Fort Atkinson 25.25 24.41 23.93 21.93 20.81 21.01 20.88 21.28 23.18 24.32 C Jefferson 25.72 24.62 22.98 20.65 19.64 18.94 19.71 21.07 22.51 23.99 C Lake Mills 24.92 23.04 22.73 21.28 20.96 18.65 19.36 20.91 23.03 23.67 C Waterloo 26.07 26.29 24.49 24.27 22.28 22.16 21.72 23.39 26.37 26.85 C Watertown 25.34 23.92 23.00 20.84 19.73 19.35 19.11 20.10 22.11 22.34 C Whitewater 22.64 21.68 21.50 19.78 18.72 18.49 18.23 20.01 20.91 21.70

MADISON AREA TECHNICAL COLLEGE DISTRICT DIRECT AND OVERLAPPING (2) PROPERTY TAX RATES Last Ten Years (Rate per $1,000 of Equalized Value) Calendar Year Taxes are Payable 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 Juneau County T Lindina 22.89 22.78 22.13 21.00 19.49 18.65 18.09 20.70 22.35 22.75 T Lyndon 19.71 19.24 18.60 17.01 16.00 15.85 16.32 17.89 19.61 19.71 T Seven Mile Creek 26.39 26.17 25.33 24.07 22.52 22.05 22.39 25.62 26.96 24.92 T Summit 26.22 26.45 24.92 23.38 22.70 22.12 22.28 23.16 25.18 25.07 T Wonewoc 24.59 24.02 23.86 21.34 21.18 21.28 22.20 22.31 24.04 23.63 V Union Center 25.47 25.21 24.11 22.06 21.18 21.13 21.71 21.28 22.79 23.00 V Wonewoc 28.82 28.93 26.80 24.42 23.73 23.59 23.62 23.66 25.37 26.17 C Wisconsin Dells 25.60 25.34 24.70 22.14 20.89 21.03 21.07 22.34 (3) (3) 75 Marquette County T Buffalo 18.65 17.55 17.17 17.45 16.49 15.91 15.43 16.19 17.04 17.44 T Crystal Lake 19.22 18.14 18.40 16.55 15.56 15.98 15.63 16.99 17.42 17.87 T Douglas 19.65 18.73 18.22 16.73 16.34 16.45 16.54 16.81 17.91 18.01 T Harris 19.47 18.40 18.74 16.90 15.86 16.25 16.01 17.63 18.06 18.47 T Mecan 18.71 17.61 17.20 17.36 16.49 15.91 15.49 16.17 17.12 17.38 T Montello 18.57 17.59 17.21 17.40 16.44 15.87 15.30 16.03 16.96 16.95 T Moundville 20.89 20.00 19.11 18.23 17.67 17.49 17.86 18.40 19.23 19.37 T Neshkoro 19.24 18.11 18.23 16.63 15.75 16.01 15.70 16.91 17.48 17.86 T Newton 19.97 18.89 19.22 17.37 16.51 16.79 16.15 17.52 17.92 18.30 T Oxford 19.33 18.18 18.46 16.66 15.67 15.92 15.62 16.96 17.42 17.77 T Packwaukee 19.06 18.02 17.72 17.72 16.81 16.33 15.98 16.66 17.54 17.68 T Shields 18.98 17.93 17.52 17.79 16.79 16.19 15.79 16.48 17.23 17.82 T Springfield 19.09 18.00 18.32 16.50 15.56 15.91 15.56 16.89 17.35 17.78 T Westfield 18.77 17.74 18.06 16.28 15.28 15.61 15.33 16.65 17.08 17.49 V Endeavor 26.16 25.02 24.14 22.90 22.02 22.19 22.70 23.12 23.83 22.94 V Neshkoro 24.01 22.75 22.98 21.01 20.16 20.60 20.56 21.84 22.17 22.68 V Oxford 24.25 23.03 23.52 21.87 20.42 20.27 20.11 21.64 22.29 23.04 V Westfield 26.79 25.52 25.39 23.82 22.30 22.94 22.15 23.79 24.15 24.66 C Montello 25.85 24.32 23.16 23.24 21.61 20.67 19.81 20.76 21.66 21.56 Richland County T Buena Vista 19.77 18.99 19.34 19.47 18.27 18.10 19.22 19.50 21.34 20.79 T Ithaca 25.31 25.50 25.19 24.38 22.90 22.43 23.87 25.36 28.22 22.98 T Westford 25.31 23.18 24.46 23.15 22.53 20.38 21.06 21.84 24.03 25.37 V Lone Rock 23.01 22.11 21.76 21.12 19.37 19.14 20.11 19.85 21.86 21.93

MADISON AREA TECHNICAL COLLEGE DISTRICT DIRECT AND OVERLAPPING (2) PROPERTY TAX RATES Last Ten Years (Rate per $1,000 of Equalized Value) Calendar Year Taxes are Payable 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 Rock County T Porter 22.02 20.88 20.31 18.98 17.87 17.90 17.95 18.95 20.57 20.77 T Union 22.83 21.85 21.22 19.83 19.16 18.30 18.57 19.19 21.15 20.34 76 Sauk County T Baraboo 17.77 17.05 17.10 16.68 15.30 15.12 14.91 16.27 17.25 17.11 T Bear Creek 22.61 21.85 21.52 20.76 19.42 19.03 19.59 19.49 21.36 20.13 T Dellona 16.07 15.59 15.17 14.04 13.50 13.12 13.37 13.94 15.34 15.72 T Delton 16.25 15.65 15.61 14.97 13.93 13.72 13.57 14.60 15.65 16.01 T Excelsior 18.70 18.06 17.38 16.55 15.47 15.33 15.46 16.22 17.37 17.09 T Fairfield 17.37 16.69 16.76 16.29 14.95 14.82 14.50 15.90 16.94 17.03 T Franklin 20.98 20.26 19.82 18.99 17.43 16.86 17.20 17.09 18.33 18.16 T Freedom 21.93 21.26 20.34 19.50 17.89 17.66 17.47 18.60 19.52 19.30 T Greenfield 17.68 17.01 17.12 16.64 15.34 15.17 14.99 16.39 17.33 17.76 T Honey Creek 21.01 20.43 20.12 18.95 17.08 17.03 16.97 18.74 19.47 19.95 T Ironton 22.51 21.45 21.71 20.27 19.58 18.55 20.07 19.71 21.57 22.16 T La Valle 19.37 18.95 18.07 17.29 16.30 15.61 15.90 16.20 17.57 17.73 T Merrimac 17.32 16.83 16.71 15.82 14.33 14.22 14.03 15.45 16.25 17.07 T Prairie Du Sac 17.85 17.36 17.21 16.27 14.73 14.60 14.39 15.74 16.45 17.17 T Reedsburg 18.34 17.72 17.01 16.26 14.93 14.68 14.91 15.30 16.55 16.11 T Spring Green 19.47 18.70 18.46 17.45 16.03 15.12 15.60 15.00 16.54 16.69 T Sumpter 18.88 18.28 17.52 16.56 14.71 15.07 14.89 16.21 16.55 17.05 T Troy 20.53 20.02 19.92 18.54 16.99 16.16 16.32 17.45 18.27 18.56 T Washington 24.26 22.45 23.02 21.88 21.28 19.07 19.03 19.99 21.99 23.44 T Westfield 21.69 21.04 20.09 19.22 17.98 17.85 18.06 18.88 19.86 19.74 T Winfield 18.53 17.95 17.16 16.42 15.25 15.00 15.25 15.76 16.97 16.95 T Woodland 20.79 20.85 19.97 18.47 17.95 17.47 17.80 16.63 18.01 19.04 V Ironton 22.86 22.25 22.13 20.75 19.42 19.67 19.74 19.78 21.79 20.62 V Lake Delton 17.11 16.67 16.27 14.89 14.52 14.17 14.33 15.11 17.08 17.54 V La Valle 23.95 23.36 22.34 20.95 19.32 19.23 19.42 20.22 21.80 22.08 V Loganville 25.41 24.75 23.74 22.50 21.37 21.31 21.54 22.38 24.78 23.80 V Merrimac 20.12 19.56 19.72 19.17 18.20 17.76 18.20 19.48 20.88 21.94 V North Freedom 19.98 18.97 19.00 18.23 16.73 16.31 15.89 17.39 18.40 19.22 V Plain 25.84 24.28 23.09 22.42 20.67 20.21 20.44 20.32 23.81 23.69 V Prairie Du Sac 22.92 22.38 22.01 20.63 18.83 18.08 17.86 19.71 20.72 21.81 V Rock Springs 22.91 22.12 21.31 20.05 18.26 18.23 18.57 19.24 21.06 21.32 V Sauk City 22.89 22.25 22.05 20.93 19.21 19.07 18.97 20.65 21.14 22.11

MADISON AREA TECHNICAL COLLEGE DISTRICT DIRECT AND OVERLAPPING (2) PROPERTY TAX RATES Last Ten Years (Rate per $1,000 of Equalized Value) Calendar Year Taxes are Payable 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 V Spring Green 24.06 23.38 23.00 21.59 20.08 19.90 20.33 20.46 22.36 22.74 V West Baraboo 24.41 23.45 23.04 22.90 21.56 21.13 20.52 21.52 21.85 22.84 C Baraboo 25.21 23.79 23.69 23.11 21.29 21.38 20.94 22.50 23.84 24.73 C Reedsburg 26.24 24.56 23.45 22.00 20.68 20.55 21.07 21.96 23.39 23.01 C Wisconsin Dells 23.81 23.50 23.21 20.92 19.99 19.77 19.73 20.67 22.17 22.43 Source: Town, Village, and City Taxes, Wisconsin Department of Revenue, Division of State and Local Finance, Bureau of Local Government Services 77 Notes: (1) The operational property tax includes tax levies for all district funds except the debt service fund. (2) Tax rates shown for overlapping governments are the Full Value Rates - Gross. This rate is the total property tax divided by the full value of all taxable general property in the municipality, excluding tax incremental financing (TIF) districts. Total property tax includes state taxes and special charges on counties and tax districts, state trust fund loans, general county and county special purpose taxes, local taxes, county special charges, special purpose district taxes, and school taxes (elementary, secondary, and technical college). It reflects the amount of surplus funds applied (if any) by a tax district to reduce any of the above apportionments or charges. It does not include special assessments and charges to individuals, delinquent taxes, omitted taxes, forest crop taxes, managed forest land taxes, or occupational taxes. (3) The City of Wisconsin Dells expanded into Juneau County and was first taxed in 2006.

MADISON AREA TECHNICAL COLLEGE DISTRICT LEGAL DEBT MARGIN INFORMATION 5% (1) 2% (2) Legal Debt Margin Calculation for Fiscal Year 2013 Debt Limit Debt Limit 2012 Equalized Valuation - TID In $ 70,547,400,399 70,547,400,399 x 5% x 2% Total debt limit 3,527,370,020 1,410,948,008 Debt applicable to limit: General obligation notes 61,460,000 61,460,000 General obligation bonds 112,340,000 112,340,000 Less: debt service funds available (GAAP Basis) (3,278,488) (3,278,488) Total amount of debt applicable to debt limit 170,521,512 170,521,512 Legal total debt margin $ 3,356,848,508 $ 1,240,426,496 Legal Debt Margin, Last Ten Fiscal Years Fiscal Year Debt Limit Total net debt applicable to the limit Legal debt margin Total net debt applicable to the limit as a percentage of debt limit 2004 2,506,455,462 20,260,329 2,486,195,133 0.81 2005 2,765,274,139 25,177,317 2,740,096,822 0.91 2006 3,062,047,235 22,847,029 3,039,200,206 0.75 2007 3,373,627,444 21,544,259 3,352,083,185 0.64 2008 3,602,662,408 20,046,638 3,582,615,770 0.56 2009 3,737,196,389 27,204,410 3,709,991,979 0.73 2010 3,753,410,945 37,632,587 3,715,778,358 1.00 2011 3,642,741,706 102,424,455 3,540,317,251 2.81 2012 3,595,875,772 157,129,718 3,438,746,054 4.37 2013 3,527,370,020 170,521,512 3,356,848,508 4.83 Notes: (1) The Wisconsin State Statutes Chapter 67.03(1) provides that the aggregates amount of indebtedness of a District shall not exceed 5% of the value of the taxable property located in the District. (2) The maximum bonded indebtedness of the District for purchasing and contructing buildings and equipment may not exceed 2% of the value of the taxable property within the District. For fiscal years 2004 to 2010, the District had no bonded indebtedness. Source: Madison College CAFR for the year ended June 30, 2013. 78

GLOSSARY SECTION

ADA - Americans with Disabilities Act GLOSSARY / ACRONYMS & DEFINITIONS Agency Funds - Account for assets held in trust by the district. The Agency Funds are used to record resources and related financial activity where the district acts as an agent or custodian for others rather than as an owner. These funds include all other fiduciary accounts, including deposits from student activities and clubs. Appropriations - An authorization granted by a legislative body (District Board) to make expenditures and to incur obligations for specified purposes. The District controls expenditures at the functional level within a fund. Assessed Valuation - The valuation set upon real estate or other property by the state through the Wisconsin Department of Revenue. This valuation is multiplied by the tax rates set annually by the board to determine taxes due. Assessed value may be less than market value. Assets - Property and resources owned or held which have monetary value. Auxiliary Services - The expenditure function used to record costs for all activities of a commercial enterprise or of a proprietary nature, such as the bookstore, child care, cafeteria and vending machine operations. Avocational - Non-academic courses for self-improvement; also known as Community Service courses. Balance Sheet - A statement which discloses the assets, liabilities, reserves and equities of a fund or account group at a specific date to exhibit financial position. Bond - A written promise to pay a specified sum of money, called the face value or principal amount, at specified date(s) in the future, called the maturity date(s), together with periodic interest at a specified rate. Bond Rating - A level of risk assigned to general obligation promissory notes assessed by Moody s Investors Service or Standard and Poor s. The higher the rating, the less risky the notes are. The District has an Aaa bond rating, which represents the lowest risk category possible to obtain. Bonded Debt - The portion of indebtedness represented by outstanding bonds, which include general obligation promissory notes, backed by approved, irrevocable future tax levies for debt service. Budget - A plan of financial operation embodying an estimate of proposed expenditures for a given period and the proposed means of financing them. CAC Contract Alternative Committee A team made up of six members with representation from the full-time faculty, the administration and the Paraprofessional and School Related 79

GLOSSARY / ACRONYMS & DEFINITIONS Personnel (PSRP). The team is charged with developing an alternative process for the College to use to determine wages, hours and working conditions after the collective bargaining agreement expired. CAFR - Comprehensive Annual Financial Report - The District s annual financial report containing financial, demographic and statistical information about the district. Capital Leases - An extended commitment to rent real property or capital equipment over a period of more than two years that vests certain ownership rights with the lessee. Capital Outlay - An appropriation and expenditure category for government assets with a value of $500 or more and a useful economic lifetime of more than one year. Capital Projects Fund - Accounts for financial resources used for the acquisition or construction of major capital assets and remodeling (other than those financed by enterprise or internal service funds). Compensated Absences - The amount owed in the future to faculty and staff, received as a benefit for current service. CPI - Consumer Price Index Current Expense - Expenses that are not salaries, wages or fringe benefits. Current expense includes: supplies, paper, travel, utilities and insurance. Debt - An obligation resulting from borrowing money. Debt Limit - The maximum amount of gross or net debt legally permitted. Debt Proceeds - Amounts received from the issuance of general obligation promissory notes. Debt Service - Expenditures for the retirement of debt, as well as the interest payment on that debt. Debt Service Fund - Accounts for the accumulation of resources for and the payment of general long-term debt principal and interest. Deficit - The excess of expenditures/uses over revenues/resources. Depreciation - The expiration of the useful life of a fixed asset over a determined period of time attributable to wear and tear, deterioration, action of the physical elements, inadequacy, and obsolescence. Also, the portion of the cost of a fixed asset charged as an expense during a particular period. 80

GLOSSARY / ACRONYMS & DEFINITIONS Designated for Subsequent Year - A portion of this year s designated fund balance to provide for the excess of expenditures and other financing uses over revenues and other financing sources budgeted in the next year. Designated for Subsequent Years - Fund balance set aside to fund operations subsequent to the forthcoming budget year. An amount equal to 5% of the state aids in the district s current adopted budget must be designated for subsequent year before this classification may be used. This classification may not exceed 15% of the state aids in the district s current adopted budget and may only be used in the General Fund. Encumbrances - Obligations in the form of purchase orders, contracts, or salary commitments which are chargeable to an appropriation and for which a part of the appropriation is reserved. They cease to be encumbrances when paid, or when an actual liability is established. Enterprise Funds - Account for ongoing activities which are similar to those often found in the private sector and the services are provided primarily through user charges. Their measurement focus is based upon determination of net income. Equalized Valuation - The full value of the taxable property in a district, as determined by the Wisconsin Department of Revenue. Full value less the value of tax incremental financial districts (TIF) is used for allocation of tax levy to municipalities in a taxing district. Equity - The excess of assets over liabilities generally referred to as fund balance. Expenditure - A decrease in the net financial resources of the district generally due to the purchase of goods and services, the payment of salaries and benefits, or the payment of debt service. Expenses - Outflows or other uses of assets or liabilities incurred from delivering or producing goods, rendering services, or carrying out other activities that constitute an entity s operation. Fixed Assets - Assets of a long-term character which are intended to continue to be held or used. Examples of fixed assets include items such as land, buildings, furniture, and other equipment. Fringe Benefits - Compensation in addition to regular salary or wages provided to an employee. This includes health and dental insurance, Social Security, Wisconsin Retirement, and salary continuance (disability insurance). Full-Time Equivalent (FTE) A unit that measures the workload of an employee or course load of a student that takes into account the part time status of some individuals. Function - A group of related activities aimed at accomplishing a major service/activity for which a governmental unit is responsible, such as instruction or student services. 81

GLOSSARY / ACRONYMS & DEFINITIONS Fund Balance - The excess of assets over liabilities. They may be: Reserved: A portion of fund balance that is not available for other expenditures and is legally segregated for a specific future use. Designated: A portion of fund balance established to indicate tentative plans for financial resource utilization in a future period. Such plans are subject to change and may never be legally authorized, or may result in expenditures such as designations for operations and for subsequently-budgeted expenditures. Fund - An independent fiscal and accounting entity with a self-balancing set of accounts, including assets, liabilities, and fund balances, e.g., general fund, special revenue fund, which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations. FY - Fiscal Year - A twelve-month period to which the annual operating budget applies and, at the end of which, a governmental unit determines its financial position and the results of its operation. Madison Area Technical College uses a July 1 to June 30 fiscal year. GAAP - Generally Accepted Accounting Principles - The uniform standards used to report financial information. General Fund - The primary operating fund of the district, its accounts reflect all financial activity not required to be accounted for in another fund. General Obligation Debt (or General Obligation Promissory Notes) - Long-term debt for facility upgrade and capital equipment backed by the full faith and credit of the district. Governmental Fund Types - The general, special revenue, capital projects, and debt service funds. IBPS Interest-Based Problem Solving The collaborative approach used for decision-making by the Contract Alternative Committee with the goal being to resolve issues by satisfying interests of all those affected. Institutional Revenue - Revenue generated for contracts for instruction with business and industry, interest income, and miscellaneous user charges. Intergovernmental Revenue - Revenue received from state, federal, or other government agencies. Internal Service Fund - Account for the financing and related financial activities of providing goods or services from one department to another department within Madison Area Technical College on a cost-reimbursement basis. Levy - The total amount of taxes or special assessments imposed by a governmental unit. 82

GLOSSARY / ACRONYMS & DEFINITIONS Liabilities - Debt or other legal obligations arising out of transactions for goods or services received in the past, which are owed but not necessarily due. Local Government Revenue - Revenue received from property taxes. Madison College - Madison Area Technical College. Mill Rate - Tax rate (taxation) in mills ($.001) per dollar of valuation. MOU Memorandum of Understanding Obligations - Amounts that a governmental unit may be required to legally meet out of its resources, including both liabilities and unliquidated encumbrances. Operating Budget - Plans of current expenditures and the proposed means of financing them. The annual operating budget is the primary means by which most of the financing, acquisition, spending, and service delivery activities of a government are controlled. The use of annual operating budgets is usually required by law. Operating Funds - The general and special revenue funds combined. Operating Transfers - A transfer of resources from one fund to another as required by law or appropriation. The funds are considered revenues of the source fund, not the receiving fund. Operational Expenditures - The salaries, fringe benefits, materials, supplies, services, and other expenditures related to district operations. Overlapping Debt - The proportionate share of the debts of local governments, located wholly or in part within the limits of the reporting government, which must be borne by property within each government. Pro Forma Balance Sheet - A statement which projects the district s balance sheet for a future period. Promissory Notes - See General Obligation Debt Proprietary Fund Types - This group of funds comprises the businesslike operations of the district and includes the enterprise and internal service funds. These are categorized as nongovernmental funds. Reserve - An account used to earmark a specific portion of fund balance to indicate that it is not available for other expenditures, but is designated for a specific purpose. Reserved Fund Balance - See Fund Balance 83

GLOSSARY / ACRONYMS & DEFINITIONS Retained Earnings - An equity account reflecting the accumulated earnings of a proprietary (enterprise and internal service) fund. Revenue - All funds that the district receives, including tax payments, fees for specific services, receipts from other governments, and interest income. Self-Insurance - The funding of liability, property, and dental insurance needs through the district s financial resources rather than commercial insurance plans. Special Revenue Fund - Accounts for the proceeds of specific revenue sources (other than debt service, major capital projects, or expendable trust) that are restricted to expenditures for designated purposes because of legal or regulatory provisions. Special Revenue Funds consist of federal and state grants and business and industry contracts. Special Revenue Non-Aidable Fund Funds used to account for assets held by Madison Area Technical College in a trustee capacity or as an agent for individuals, private organizations, other governmental units and/or other funds. State Aid - Funds made available by the legislature for distribution to each district, based on a prescribed formula of distribution, to offset some of the instructional expenses. Statements - Presentation of financial data which shows the financial position and the results of financial operations of a fund, a group of accounts, or an entire entity for a particular accounting period. Statute - A written law enacted by a duly organized and constituted legislative body. STEPS Student Transformation through Effective Practice and Systems. A multi-phase, multiproject Madison College initiative designed to bring transformational changes to student administration systems and processes that serve students, staff and faculty. Tax Rate - The amount of tax stated in terms of the unit of the tax base (mill rates). Tax Incremental District (TID) Actual area (parcels) designated for expansion where improvements are being made using TIF financing. Tax Incremental Finance (TIF) An economic development program that helps promote local tax base expansion by using property tax revenues to fund site improvements to attract new development, rehabilitation/conservation, industrial, mixed-use, eliminate blight and environmental remediation. Special statutes govern the creation of TIF districts. Taxes - Compulsory charges levied by a governmental unit for the purpose of financing services performed for the common benefit. 84

GLOSSARY / ACRONYMS & DEFINITIONS Tuition and Fees - Revenue generated from charges to students. The WTCS Board sets statewide tuition and material fee rates. Workday An ERP system the college is installing to provide improved management of Finance and Human Resources operations. An Enterprise Resource Planning system (ERP) is a software application that integrates information and processes across common business management functions such as Finance/Accounting and Human Resources providing enhanced reporting and planning capabilities. WTCS - Wisconsin Technical College System 85