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A Community College Responds to a State Budget Crisis: An Evaluation of the Financial Plan of Prince George's Community College.

In 1992, in response to legislative mandate, Prince George's Community College (PGCC) (Maryland) conducted an evaluation of the effectiveness of the its financial plan. Specifically, the evaluation focused on cost containment measures used to maintain low tuition and moderate future increases in student charges; cost per student of each academic discipline; county support for POCC in relation to tuition and fees; and the maintenance of effort by the County Executive and the County Council. Evaluation highlights included the following: (1) to meet the immediate crisis of a fiscal year (FY) 1992 funding deficit of $3.8 million, PGCC implemented several cost containment measures and an employee furlough plan, transferred capital expense reserve fee revenues to the operating budget, and introduced a new instructional services fee; (2) for FY93, PGCC utilized administrative reorganization, implemer,d a voluntary resignation incentive program, and trimmed personnel to meet an anticipated further deficit of $1.8 Million; (3) the five most expensive disciplines identified by cost analysis were education, office administration, nuclear medicine, respiratory therapy, and electronics technology; (4) the five least expeasive disciplines were early childhood management, paralegal studies, criminal justice, and developmental math and English; (5) only two of the nine programs included in a program core discipline review were estimated to offer substantial potential net savings upon termination; (6) statewide, County aid provided 39% of community college unrestricted revenues in FY91, while PGCC received only 29% of its aid from county support; (7) Prince George's County allocated 1.2% or less of its budget to PGCC, while peer counties had contributed on average twice as large a share of their budgets to their community colleges; and (8) with the lowest level of county support, PGCC had the highest tuition and fee charges among its peer colleges. (JMC)