NIC to raise tuition

COEUR d'ALENE - North Idaho College trustees decided Wednesday to balance the college's budget for the next fiscal year by increasing tuition rather than levying more property taxes.

The trustees accepted the college administration's proposal to fill a budget shortfall of $352,182 for fiscal year 2015 by raising tuition by $2 per credit for Kootenai County students and $6 per credit for out-of-district students. Local students taking 12 credits will now pay $1,511 per semester, a 1.6 percent increase.

"We are still one of the lowest-cost colleges in the region, and in the state," said NIC Controller Sarah Garcia, who presented the administration's budget recommendation to trustees.

The decision to accept the recommendation appeared to be unanimous among the five trustees, but during a discussion prior to voting on it, Trustee Todd Banducci said he opposed the recommendation.

"I don't want to increase the tuition for the in-district students," Banducci said, adding that they are also the taxpayers that support the college.

He suggested they consider hiking the out-of-district tuition by $8 per credit, and "hold the line" for the Kootenai County students, but that idea didn't gain ground among the other trustees: Ken Howard, Christie Wood, Judy Meyer and Ron Nilson.

It was the final step in an annual budget process made challenging by student enrollment declining 10 percent this year, a more dramatic drop in students - and their tuition dollars - than anyone at the college expected. A similar enrollment decline is expected for the next fiscal year, which begins July 1.

The shrinking number of students resulted in a $2.3 million budget hole to fill at the start of the planning process.

Prior to Wednesday's trustee meeting, NIC budget planners were able to shave $1.5 million in expenses from the overall budget. Those reductions include a $600,000 decrease in adjunct instructor salaries, $150,000 in salary savings realized by not filling the physical plant director's position and leaving two technician positions vacant, $100,000 in savings from NIC's change in athletic conference, and a $300,000 decrease in utilities expenses. Another $50,000 in general fund support was withdrawn from several auxiliary funds that operate on campus, including the children's center, fleet services and mail and copy services.

The administration's original budget recommendation to the trustees included a "step" or pay grade increase for full-time employees, and a 2 percent pay hike for all part-time workers at the college. The trustees nixed that idea which would have required an additional $634,000 in new revenue.

But NIC employees will still receive a slight pay bump.

Earlier this year, the Legislature mandated a 1 percent salary increase and a 1 percent merit pay hike for state employees, and NIC employees fall under that category, the college is required to fund those salary increases. Part-time employees will also receive a 1 percent raise.

The other new item in the budget for next year is $60,000 for a school resource officer, an armed policeman who will be stationed at NIC. That need is driven by the new state law that will allow concealed weapons to be carried on state college campuses in Idaho beginning July 1.

The general operating budget for North Idaho College for the next year will be $43.7 million, $1.1 million less than it was this year.