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Board Approves Capital Projects, Hears Outline of Savings Since 2008

April 13, 2012

Tucson, AZ – Pima Community College’s Board of Governors unanimously approved a two-year, $30 million capital improvement plan Wednesday, the latest step in a comprehensive public process to determine an operating budget for one of the nation’s largest community colleges.

The process begins each January and culminates in June, when the Board formally adopts a budget for the fiscal year. But as Executive Vice Chancellor Dr. David Bea told the Board Wednesday night, the reality is that fiscal stewardship is a continuous effort.

 “This is a mindset, something we think about every day,” he said. “It is a College-wide effort.”

In a 20-minute presentation, Dr. Bea detailed how during the past half-decade of economic turmoil and huge state funding reductions, PCC has been able to keep its tuition among the lowest in the state and still fulfill its mission to the community.

The way PCC achieved this goal was through “hard work and innovative ideas,” Dr. Bea said. And the result totals $52 million in savings since 2008.

With an annual operating budget of approximately $288 million, PCC is the equivalent of a medium-to-large company. Each year it purchases about $75 million in goods and services and, with more than 1,500 employees at its six campuses and learning centers, the College is one of southern Arizona’s largest employers.

 Dr. Bea outlined to the Board more than 30 cost-saving actions, which he divided into six main categories:

  • Staffing and Personnel:$  6.6 million
  • Revenue Increases and External Funding: $33.6 million
  • Expense Reductions and Budget Cuts: $7.0 million
  • Cost Center Budgeting and Performance Analysis:   $2.2 million
  • Capital Return on Investment:$2.6 million

 Among the specific actions highlighted in the presentation:

  • Enhanced grants development has yielded $21 million to improve facilities and services, including upgrades of Health-Related Professions and Aviation Technology facilities and construction of the new Center for Integrated Learning at Downtown Campus.
  • Aggressive negotiation of contracts with healthcare-insurance providers has saved the College more than $2 million.
  • Foreign Trade Zone agreements will reimburse PCC for lost property tax revenues, including $50,000 from Target Corp.
  • Commission of a new central plant at Desert Vista Campus produces more than $200,000 in savings on utility costs annually. The project received an Exemplary Practices Award from the Community College Business Officers organization in 2010.
  • As part of the FY 2013 capital plan, PCC will retire remaining debt owed to finance construction of the “A” Building on PCC’s Northwest Campus. The bonds will be callable in June, meaning that the $3.4 million principal can be paid early without having to pay additional interest, saving taxpayers about $1 million over the remaining 10-year life of the bond, Dr. Bea said. It also will eliminate the need to budget approximately $450,000 for debt service in FY 2013, helping PCC balance its operating budget.

Board Chairman Scott Stewart welcomed both the presentation and the savings.

“The College’s job is to deliver to the community as much quality education as we can, by rigorously analyzing what we do and making data-based decisions,” he said.

Capital budget approved

The Board Wednesday also approved capital projects totaling $18.6 million in Fiscal Year 2013 and $12.4 million in FY 2014. Many of the 203 capital projects directly benefit student learning, such as:

  • $994,881 to renovate West Campus facilities to integrate new teaching and learning technologies into Science, Technology, Engineering and Mathematics classes.
  • $181,900 to renovate culinary facilities at Desert Vista Campus.
  • $96,000 to purchase synthetic cadavers for the Public Safety and Emergency Services Institute at Community Campus. The cadavers are needed for the program to retain its national accreditation.

Grants will be the funding source for approximately $2 million in capital projects. Another $2 million come from previously appropriated money from Proposition 301, the ballot measure to boost workforce development funding that was approved by Arizona voters in 2000.

Other Governing Board action

  • The Board approved the hiring of Lori Cox as internal auditor. Ms. Cox, who attended PCC in 1982-83, has worked as an auditor in the public and private sectors for nearly 20 years. She has a master’s degree in Business Administration from Grand Canyon University and a bachelor’s degree in Business Administration from the University of Arizona. PCC has employed a Director of Internal Audit since at least 1995.
  • The Board approved the appointment of Jane Worrall as Acting Vice President of Student Development at East Campus. Ms. Worrall has been a PCC employee since 2000 and has served as Advisement Specialist, Student Service Manager, Director of International Education and Director of Enrollment. She has a bachelor’s degree in Psychology and American Studies from Heidelberg College and a master’s degree in Student Personnel Administration in Higher Education from The Ohio State University.
  • As part of its ceremony honoring PCC students and students, the Board recognized Santa Rita High School Principal Christopher Bonn as an Outstanding Community Partner. Mr. Bonn has been instrumental in collaboration between Santa Rita High School and East Campus counseling faculty that is preparing Santa Rita students for entry to college and putting them on a path to a bachelor’s degree.

The Governing Board’s next regularly scheduled meeting is Wednesday, May 16, at 7 p.m. at the Community Room at East Campus, 8181 E. Irvington Road. The meeting is the first of several that will be held at PCC facilities throughout the metropolitan Tucson area.

CONTACT:
C.J. Karamargin
Vice Chancellor for Public Information and Government Relations
(520) 206-4850
ckaramargin@pima.edu