Kenai Peninsula College Director Gary Turner said with Gov. Bill Walker proposing somewhere between a 5 to 8 percent state operating budget reduction, he has had discussions with staff about what the impacts to the college could be.
“KPC is extremely fiscally conservative and responsible,” he said. “We think we will do OK, but how long will (the state deficit) last? My crystal ball is broken.”
KPC fiscal year 2013 budget was $16.6 million with a payroll of $11.1 million, according to its website. Despite tuition coming in from the 2,887 students enrolled, the state still picks up 60 percent of the cost, he said.
The University of Alaska Board of Regents last November decided to not approve a tuition increase. While that was great news for students, tuition helps with operating costs and the college will have to take that into account, Turner said. “We are in the planning process but the governor and the Legislature have the final say,” he said. “Until then we are shooting in the dark.”
Administrators have run several financial scenarios based on the state’s deficit projections to get an idea of what their budget could look like. He said 73 percent of the college’s costs are in faculty and staff.
Starting Jan. 20, the Legislature will be busy putting together a state operating budget, but Congress is already discussing a proposal by President Barack Obama for tuition-free community college.
American’s College Promise is a proposal that aims to make two years of community college free for responsible students. According to a White House press release the proposal could save a full-time community college student an average of $3,800 in tuition per year.
Turner said while the free community college is a great idea, it brings up a lot of questions of how the federal government would pay for it. If Congress approves it, the next question would be what the Alaska Legislature and governor would think with states expected to fund a quarter of the cost.
“We are in a fiscal crisis right now,” he said. “I don’t know if the state is willing to take that kind of step.”
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