Northwest Arkansas Community College sets 2021 budget amid uncertainty

Jim Hall, executive director of community and government relations, receives a plaque at the Northwest Arkansas Community College board meeting Wednesday in recognition of his 29 years working for the college. Hall is retiring this summer. (NWA Democrat-Gazette/Dave Perozek)
Jim Hall, executive director of community and government relations, receives a plaque at the Northwest Arkansas Community College board meeting Wednesday in recognition of his 29 years working for the college. Hall is retiring this summer. (NWA Democrat-Gazette/Dave Perozek)

BENTONVILLE -- Northwest Arkansas Community College plans to spend 4.4% less in the coming fiscal year compared to the current year's budget, a reflection of officials' uncertainty about the impact of the coronavirus.

The college's board on Wednesday unanimously approved a budget of $41.7 million for fiscal 2021, which begins July 1. That's a drop of nearly $2 million from the $43.6 million budgeted for 2020.

Gulizar Baggson, associate vice president of finance and administration, said the college is estimating the total number of credit hours taken in 2021 will be 146,999, a 3% decrease from what was budgeted for this year.

"How sure are we about that, we don't know," Baggson said. "We are in May. School starts in late August. So we don't know whether those numbers will come through."

Tuition and fees make up about half of the college's revenue. The number of credit hours taken last fall semester increased 2.4% from the previous fall, according to college data.

Al Massri, vice president of finance and administration, said there's a theory the pandemic will steer more students toward community colleges so they may live at home rather than attend large universities where they may have to stay in a dormitory.

Another theory is students -- especially those just graduating high school -- will postpone their college plans for a year, he said.

"We will see which scenario is mostly the truth," Massri said.

The college's 2021 budget also accounts for estimated decreases in revenue of about 5% from both the state and local property taxes compared to the 2020 budget.

The college had planned to include salary increases in next year's budget before the pandemic hit. Those increases have been put on hold.

"I did share with faculty and staff if there's any way possible to give an increase in January, we will try to do that then," college President Evelyn Jorgenson said. "We're not doing it now just because there's so much that's unknown."

The federal government last month announced billions in aid for higher education as part of the Coronavirus Aid, Relief and Economic Security Act. Northwest Arkansas Community College's share is $3.1 million, Baggson said.

Half of that money -- about $1.55 million -- must be given to students, with the intention it be used on educational expenses. The college determined students who are eligible for Pell grants would receive a $250 stipend; those who are not Pell eligible, but meet other criteria, would receive a $125 stipend, according to Todd Kitchen, vice president of student services.

About 3,800 students at the college are receiving a stipend, Baggson said. The unofficial enrollment count was 7,604 this spring semester.

Pell grants are federal subsidies for certain students who meet federal eligibility requirements for financial aid.

The rest of the college's federal relief money can go toward expenses incurred because of the pandemic. The college hasn't received that part of the money yet, Jorgenson said.

Also, in response to the pandemic, the state ordered the college in March to cut more than $1.2 million from its budget for this fiscal year, or 10.3% of its state allocation.

The college met that order by cutting travel, implementing a hiring freeze and postponing capital improvements, officials said.

"For a small budget like ours, it was hard," Massri said, adding the college was committed to not cutting any area that directly affected students.

The college plans to reopen for face-to-face classes in August, though those plans could change depending on how much covid-19 spreads over the next several weeks and months, Jorgenson said.

"We have both students and faculty who are a little hesitant about coming back to face-to-face classes," she said. "So I think we'll still see a lot of our classes being online, or some kind of hybrid."

Tuition and fees

Northwest Arkansas Community College isn’t increasing tuition, though it is increasing four fees for the 2020-21 school year, only one of which will affect all students. That’s the library resources fee, which will go from $2 to $3 per credit hour.

Other fees on the rise apply to specific programs. The health technology fee will increase from $15 to $20 per credit hour. The culinary laboratory fee will increase from $265 to $295, and the construction technology fee will increase from $75 to $100, both per course.

Source: NWACC

NW News on 05/28/2020

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