College Publisher Test Site

Daytona State College is scrambling to make budget cuts, as the threat of a reduction in state funding looms nearer.

Though DSC's fund balance is $4 million ahead of last year, enrollment is skyrocketing while state funding is dwindling - a sure sign of these troubled economic times.

Executive Vice President Rand Spiwak informed the Board of Trustees at their February meeting that the Florida Senate held a special session to officially enact a four percent holdback in funding for state institutions, a loss that amounts to over $2 million.

In breaking down operating revenues for the 2008-09 fiscal year, state funding dropped to 52 percent, while student funding increased to 46 percent.

Now state institutions around Florida are alarmed over the possibility of a cut in state funding between 10 and 15 percent in July. Daytona State is no exception.

In an article published in the Daytona Beach News-Journal on Feb. 20, education writer Mark Harper painted a picture of a bleak future for the college. He wrote, "while President Kent Sharples has been able to afford to hand out $1,000 bonuses to his employees the last two Christmases, now he's looking for ways to keep from eliminating their jobs."

That prompted Sharples to release a statement to faculty and staff addressing the financial shape of the college.

"We are not looking at major layoffs or cuts," Sharples stated. "We are continuing to watch our financial situation on a daily basis … as we progress into these unknown times of reduced state revenue."

On Mar. 19, the Florida House of Representatives began considering a possible 25 percent cut. At the March Board meeting, Sharples' tone sharply changed.

"We might as well shut down the summer term," he remarked.

The most notable impact the budget reductions will have on students is an expected increase in tuition. Governor Charlie Crist recommended a five percent increase, while the state Senate and House recommended six to eight percent.

"The state is gradually cutting back on its share of the burden," said Harper. "The cost of running these state institutions is falling on the backs of the students, which means increased tuition."

But according to Spiwak, students on financial aid won't feel the pinch as much as fee-paying students. The amount of a student's Pell Grant is determined by the cost of education and financial need.

"A student on financial aid may actually have more left over after tuition and fees are paid because their awards are going to be increased a greater amount than the increase in fees," he said.

Spiwak said the college is in the shape it's in right now because the administration planned ahead while they were still seeing growth. They made successful cuts in non-instructional areas; in addition, they did not add any new services or give any raises.

Planning ahead in the event a 10 percent revenue cut is implemented, he said the college would cut back on temporary staffing, saving about $3.6 million. He suggested the tuition increase would make up for the remaining $1 million cut.

But how prepared is the college for a 25 percent cut, which might be just around the corner?

"We can survive with a ten percent cut, but if it goes beyond ten, we got more serious concerns," Spiwak warned.

Article Tools