1

Conquering Challenges by

Creating Opportunities

2

3

4Unemployment Trends

5MO General Revenue Collections

6Projected State Aid Cuts

7MCC Projected Budget Deficits

8MCC Expense Breakdowns

9

Current Employer Costs 2002 2010 Percent Change

Medical $3,272,234 $6,538,615 100%

PSRS/PEERS $3,816,605 $6,404,279 68%

Other* $4,623,775 $5,393,419 17%

Total $11,712,614 $18,336,313 57%

Fringe Benefit Increases

10Early Retirement Costs

Early Retirement Costs 2002 2010 Percent Change

Incentive Payment $353,259 $747,548 112%

Retiree Insurance Benefit $476,124 $1,147,656 141%

Net Early Retiree Premium Pay $825,925 $1,287,879 56%

Total $1,655,308 $3,183,083 92%

11Projected Retirement Liability

12

MCC Budget 101

• Unexpended Plant Fund = our savings account• Operating Budget = our pay check• Bond Debt = our mortgage• Bond Debt is paid by Unexpended Plant Fund

+ Operating Budget• Last FY, we paid our debt without digging into

reserves to create a one year cushion before the BIG shoe falls.

13

Organizational Culture

• Culture is more important than strategy.• Culture underlies an organization’s ability to

adapt.• A culture of uncertainty and resistance

paralyzes innovation.• Organizational culture can enable or destroy

the ability to change.

14

Culture Change

• Breaking down silos• A more interactive Cabinet• A better informed Budget Response Team• New PRP “proof-of-concept”• Faculty liaison• Regular meetings with governance leaders• Officer group meetings on campuses

15Tough Decisions for the Future

• PERSONNEL COSTS HAVE RISEN TO ALMOST 80% OF THE TOTAL BUDGET:– Rising costs of health benefits– Rising costs of current early retirement benefits– Full-time v. part-time, what’s the right ratio?

• WE WILL WORK TOGETHER TO FIND THE RIGHT ANSWERS.

16

Opportunities

• Institute for Workforce Innovation• Leasing• Grants• Auxiliary Services

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Opportunities (cont.)

• AnnexationSchool District Projected Annual Net Fiscal

ImpactSt. Joseph $2,178,011Liberty $1,164,035Platte County R-III $773,348Raymore-Peculiar R-III

$634,096

Total $4,749,490

18Difficulty Creates OpportunityAlbert Einstein proposed 3 rules of work:• Out of clutter, find simplicity• From discord, find harmony• In the middle of difficulty lies

opportunity

19Adaptability Creates Opportunity

“It is not the strongest of the species that survives, nor the most intelligent, but rather the one most adaptable to change.”

- Charles Darwin

20Academic Opportunities• Expansion of Online Learning – A Virtual MCC

Campus• In 1992, Smith Corona was a $500 million

corporation. Its CEO stated, “Many people believe that the typewriter and word-processor is a buggy-whip industry, which is far from true. There is still a strong market for our products in the U.S. and the world.”

21Academic Opportunities• A culture of assessment with an eye for

improvement• A district-wide Developmental Education

effort• “Stackable Credentials”• Articulation

22Impediments to InnovationIn 2006, the Boston Consulting Group found the

four biggest impediments to innovation to be:• Lengthy Development• Lack of Coordination• Risk-Averse Culture• Limited Customer Insight

23

Colin Powell

“Being responsible sometimes means [ticking] people off. Good leadership involves responsibility to the welfare of the group, which means that some people will get angry at your actions and decisions. It’s inevitable, if you’re honorable.”

I will pursue the welfare of MCC. Mark James

24“Creating Opportunities”

I will create opportunitiesWill you?