By Kelsey Hinton
Ever wonder what Daytona State’s electric bill costs? Last month, it was $141,000. Energy conservation is one area Interim President Frank Lombardo hopes to cut costs to bridge what could be up to a $10 million deficit the College faces for the 2011-2012 school year.
In their April 21 meeting, the Board of Trustees discussed ways they plan to bridge what they currently estimate to be a $9 million reduction in revenues, a number DSC Chief Financial Officer Dennis Micare said fluctuates based, in part, on funding decisions by the Florida Legislature. Another determinate is enrollment. “We grew so fast, and we’re at a point now we’re starting to plateau, so we cant count on that increase in enrollment,” Lombardo said. “So what we have to do is do a better job of managing the money we have.”
Currently, the school faces a $3.9 million reduction in federal stimulus funds, a $3.2 million reduction in enrollment and a $1.9 million reduction in state funds.
“This is a work in progress, but it’s going very well,” Micare said about finding areas to save money. “We’ve reduced 8.3 million dollars from the current budget.”
So far, the board has cut $5.5 million in staff and lump-sum salaries, $2.3 million in operational expenses and $5 million in equipment. About $3 million set aside for salary increases was cut, along with $2.5 million in vacant positions that were eliminated. Operational expenses include travel expenses, memberships and supply and material funding.
The board still has about $700,000 to cut to bridge the $9 million deficit. “Anything not tied into a student or teaching a student has got to be looked at,” Lombardo said.
Lombardo discussed two proposed areas that haven’t yet been considered: a reduction in contribution to the Florida Retirement System (FRS) and a tuition increase.
The school could save $500,000 for every 1 percent reduction it contributes to the FRS, the primary retirement plan for nearly a million government employees statewide, Lombardo said, and generate an additional $280,000 for every 1 percent increase in tuition. Currently, the Florida Legislature is considering a tuition hike between 5 and 8 percent, Lombardo said.
Board Member Bob Davis sees the silver lining in the budget crisis. “You know, sometimes these economic times are good for this country, because we start turning over rocks,” Davis said.
For instance, the board is taking a closer look at the school’s energy consumption. Simple measures like shutting off lights in unused space will be taken, as well as arranging classes to close some buildings earlier.
Excess supplies and unused equipment are also being inventoried. “We found one office had a whole year’s supply of toner in there. It reminds me of that TV show Hoarders,” Lombardo said with a chuckle.
Overall, the board expressed confidence they would be able to find cuts without sacrificing jobs or educational quality. In fact, Lombardo seemed thankful. “As bad as we are, there’s always somebody who’s even worse,” he said.