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CWC gets extra $300k in state's 'recapture' procedure
Dec 2, 2013 - By Katie Roenigk, Staff Writer
Central Wyoming College is set to receive almost $300,000 this year through the state's recapture/redistribution program.
The money is meant to cover a lack of local income from CWC's four mill levies. The extra revenue comes from community colleges that earned more than anticipated this year.
Originally, CWC administrators had estimated earning $150,000 this year through the state program. They asked the CWC Board of Trustees to increase that number to almost $300,000 during a meeting Wednesday.
Most of the money will go to "Fund 10," the budget that holds revenues from CWC's four mills.
About $23,000 will go to the budget for the Board of Cooperative Higher Educational Services to cover a change in carry forward funds.
Last year, administrators said CWC earned more than expected through its mills, calculated based on local assessed valuation.
The extra money totaled almost $250,000, and the state recaptured that funding to balance other colleges' budgets through the redistribution program.
"But this year we gained $297,000 (through the program),"said Ron Granger, CWC's vice president for administrative services. "So between the biennium, it about balanced out."
Four of the state's community colleges saw less local funding this year, Granger said, with three showing increases. Local revenue for all seven institutions was down by almost $122,000.
CWC's optional fifth mill is outside of the state funding model and is not subject to recapture and redistribution.
The board also approved a $94,000 increase in miscellaneous deposits. Lindy Paskett, director of finance for CWC, said the revenue had been held in escrow since the 1990s.
"That was a bonus to us," Paskett said. "I had no idea why we received that money."
After calling the bank and conducting some research, Paskett found out the money was left over from a CWC bond issue from 1998.
"It was the principle plus interest," Paskett said. "It had been growing since then."
The bank underwent an audit recently and realized it was withholding CWC's money. The company returned the check, but Paskett said she didn't want to use the funds until this year.
"I was scared," she said. "I didn't want to spend it and find out it wasn't ours. So we talked to our auditors, and they said we could leave it in deferred revenue."
Now she said she feels comfortable recognizing the money as CWC's.
"(The bank) said it was ours, and they haven't asked for it back," she said.
Granger requested a few other modifications to the school's budget for this year.
First, he said about $51,000 needs to come out of the Fund 10 revenue budget for retention bonuses.
"We had budgeted a little over $110,000; that's what we were first told we'd get (from the state)," Granger said. "But what they finally gave us was quite different. (So) we had to actually decrease our revenues from the state by that amount."
The change came with a $3,800 increase to CWC's portion of the 1 percent retention incentive.
Granger also asked for a $3,000 increase to Fund 10 revenues to cover modifications in the radio and broadcasting departments.
The board approved a $50,000 expense adjustment for building insurance based on the completion of the Health and Science Center in Riverton this year. Wages and other expenses for moving to the center added up to $25,000. And $112,000 was put in the expense budget for the administrative services discretionary fund.
"If we do a marketing study or (a study) for wages, this is what our discretionary fund would be used for," Granger said.
Administrators have discussed initiating a compensation and classification study with employees this year.