Budget Overview
The total recommended FY25 Operating Budget for the Montgomery College is $334,695,418, a decrease of $10,469,640 or 3.0 percent from the FY24 Approved Budget of $345,165,058, which fully funds the College's budget request.
Montgomery College's requested budget adopts a fiscally conservative maintenance of effort budget for FY25. This budget keeps Montgomery College affordable for students with no tuition increase.
In addition to the total recommended operating budget for the College, the agency's Capital Improvement Program (CIP) requires Current Revenue funding. Approximately $15.584 million in FY25 Current Revenue is assumed in the County Executive's FY25-30 CIP.
Montgomery College's budget request is not detailed in this document. The College's budget request may be obtained by contacting the College's Budget Office, 9221 Corporate Boulevard, Rockville, MD 20850, phone 240-567-7292, or may be found on the College's website at https://www.montgomerycollege.edu/offices/administrative-and-fiscal-services/budget-office/index.html.
State law requires the Board of Trustees and the President to prepare and submit operating and capital budgets to the County Council. The operating budget request is normally submitted to the Council and County Executive in January each year. The College's approved budget is included in the County Approved FY25 Operating and Capital Budgets prepared by the Office of Management and Budget in July.
The County Executive relies on the Board of Trustees to determine the most appropriate manner and use to deliver education services within the recommended budget appropriation.
Spending Affordability Guidelines
On February 6, 2024, the County Council approved FY25 spending affordability guidelines (SAG) of $212.3 million for the tax-supported funds of Montgomery College.
Enrollment
Enrollment at Montgomery College is up 4.0% from last year. Fall 2023 credit enrollment exceeded projections by 2.0%. The College projects steady enrollment increases to continue for several years, with an estimated FY25 enrollment of 11,472 FTEs, an increase of 1.1% compared to the FY24 Actual figure of 11,346 FTEs. An FTEs enrollment for one year is calculated as the total number of credit hours divided by 30.
Tuition and Fees
For FY25, the College's budget anticipates no tuition and fees increases for credit-bearing students. The Board of Trustees will act on tuition rates during its April 2024 meeting.
Tuition & Related Charges and Other Student Fees represent approximately 21.6% of the revenue proposed by the County Executive to fund the FY25 Current Fund budget.
State Funding
The $68.1 million of State funding assumed in the County Executive's Recommended FY25 budget is the amount provided in the governor's FY25 Proposed budget. It is comprised of $54.7 million in the Current Fund and $13.4 million in the Workforce Development and Continuing Education (WDCE) enterprise fund. The College allocates State-provided formula funds based on the proportionate share of FTES enrolled in each category.
Final action by the Maryland General Assembly on the governor's budget, which includes the amount necessary to conform to the mandated John R. Cade funding formula for community colleges, and the Budget Reconciliation and Financing Act will occur later this spring and determine the final State aid provided to the College.
Tax Supported Funds
The County Executive recommends an appropriation of $150.7 million in the four tax-supported funds (Current, Emergency Plant Maintenance and Repair, Cable Television, and Grants). The County's contribution to these funds for FY25 is equal to the FY24 level.
Current Fund
For the Current Fund, the County Executive is recommending an appropriation of $283.0 million, an increase of $2.8 million, or 1.0%, from the $280.2 million approved in FY24.
Emergency Plant Maintenance and Repair Fund
The Emergency Plant Maintenance and Repair Fund supports unanticipated expenditures to make emergency repairs not funded elsewhere in the budget. The County Executive recommends the Board's request of $350,000 in FY25, which is equal to the FY24 level.
Tax-Supported Grant Fund
The Tax-Supported Grant Fund provides for community needs not met elsewhere in the budget. The County Executive recommends the Board's request of $400,000 in FY25, equal to the FY24 level, to support the College's adult literacy programs.
Cable Television
The County Executive recommends an appropriation of $1.9 million for the Cable Television Fund, which provides for production and operation of the College's higher education channel on the County's cable system. The requested amount is $81,858, or 4.1%, less than the $2.0 million approved for FY24 and would provide instructional programs and public service offerings by the College to the community. Additional detail on the College's cable budget can be found in the Cable Communications Plan section.
Other Funds
The College's Workforce Development and Continuing Education (WDCE) Fund is supported by a combination of student tuition and fees and State reimbursements that are based on the most recent actual FTES enrollment. The County Executive recognizes the importance of higher education to the economic development of Montgomery County and recommends the Board's request of $22.7 million for this fund, the same amount as the FY24 Approved.
The Auxiliary Enterprises Fund includes the Robert E. Parilla Performing Arts Center, Takoma Park/Silver Spring Cultural Arts Center, MBI (Macklin Business Institute) Café, sports camps, and facility rentals. For FY25, the College requests and the County Executive recommends an appropriation of $2.0 million.
The Grants and Contracts fund includes those revenues received by the College from all sources. The College requests and the County Executive recommends an appropriation of $18.1 million.
The Major Facilities Reserve Fund supports the operation and maintenance of the College's plant and draws revenue from user fees, other revenue, and interest. The County Executive supports the College's FY25 request of a $2.0 million appropriation for this fund to support the financing costs of The Morris and Gwendolyn Cafritz Foundation Arts Center.