Northern Essex Community College
Board of Trustees Audit and Finance Committee Minutes
Wednesday, May 7, 2025
Attendees: Trustees Jennifer Borislow, Jouel Gomez, Lloyd Hamm, and Evan Silverio, President Lane Glenn, Michael McCarthy, Anthony DeGregorio
Chairman Hamm called the meeting to order 4:00 pm. The minutes of the April 2 meeting were approved with a motion presented by Trustee Silverio and seconded by Trustee Gomez.
FY2026 College Operating Budget
The Audit & Finance Committee recommended that the Board of Trustees of Northern Essex Community College approve the FY2026 Operating Budget of $85,795,666.
The proposed FY2026 Operating Budget is based upon the following: estimated state appropriation support, the college’s Enrollment Plan, the college’s staff and faculty salaries & benefits plan, grants support, the 1.93% increase in the Institutional Support Fee – Regular and the 1.93% increase in the Institutional Support Fee – Allied Health Courses, and defined Other Operating Expenditures. The attached Financial Report further portrays the FY2026 proposed budget’s key assumptions and details.
On a Motion presented by Trustee Silverio and seconded by Trustee Hamm, the Board unanimously approved of the FY26 College Operating Budget.
Other Business:
• The FY2024 Single Audit Report by Withum regarding compliance for Each Major Federal Program was reviewed and discussed. The minor findings were noted, along with Management’s Corrective Action Plans.
The Key Budget Assumptions noted by Executive Vice President Michael McCarthy were as follows:
FY26 Proposed Budget Notes
May 7, 2025
Key Notes
- FY26 Budget for Tuition & Fees Revenue is projected at $33.6 million. This is an increase of ~$5.1 million from FY25 QT. 3 projections. Based on FY26 Projected reported credits of 85,201 which is an increase of 7,069 credits or a 9.05% increase from FY25 QT. 3. and includes the approved increase of fees of 1.93%.
- FY26 Budget for Student Financial Aid (SFA) is projected at ~$16.1 million. This is an increase of ~$2.5 million from FY25 QT. 3 projections; resulting in a projected discount rate of 47%. This is an increase from the FY24 YE discount rate of 38%. This increase is driven primarily by the projected amounts of funding for MassEducate ($4.4 million) and MassReconnect ($2.3 million) – based on similar awarded amounts for FY25.
- Note: MassEducate and MassReconnect funds received are presented on the State Grants Revenue line. Their funds awarded to students are treated as a Scholarship Allowance/Contra Revenue Account.
- FY26 Budget for Grants & Other Revenues is projected at ~$30.6 million, an~$2.7 million increase from FY25. This increase is to reflect the increase in Federal and State Grants and Contracts from FY25 QT. 3 projections for State and Federal (Pell) grants for students.
- FY26 Budget for Salaries & Benefits is an ~$764k increase over FY25 QT.3 projections. This net increase reflects the current faculty’s and staff’s salaries and the anticipated Unions and NUPs increases for FY26.
- FY26 Budget for Other Operating Expenses is projected at $23.3 million, an increase of ~$2.9 million from FY25 QT. 3. The major drivers are for electricity, gas, IT SW & HW expenses and furniture purchases to support the facilities renovation/relocation projects.
- FY26 Budget for Depreciation Expense is projected at $5.9 million to recognize the anticipated increases for capital assets/leases. This represents an increase of $450,000 over FY25 QT3.
- FY26 Bad Debt Expense is projected at $475k; a modest decrease from the FY25 QT.3 amount of ~$582k.
- FY26 State Support Appropriation amount for FY26 has not yet been finalized. The presented number of ~$36.8 million is the initial HWM’s Budget, the initial Governor’s Budget is ~$1.2 million higher.
- FY26 Net Investment Income Budget is $800k, reflective of the current uncertain market conditions.
- FY26 Capital Appropriations Budget for State Funded Capital Projects is a conservative $500k as we wait for additional information regarding the State’s recognition dates of our planned facilities projects.
- Results in a FY26 projected yearend positive increase of $247k change in Net Position.
With no further issues, the meeting was adjourned at 4:55 pm.
