Expenditure Policy – Priority of Funds for Operations

Purpose and Scope:

Recognizing that community colleges receive three primary sources of funding for operations: tuition and fees, local property taxes and state appropriations, this administrative policy establishes the prioritization of these resources to assist with operational expenditures in the College’s Operating Fund.

For purpose of this policy, community college appropriations shall be defined as indicated in the State of Michigan’s School Aid Act of 1979, MCLA 388.180.

 

Policy Statement:

Understanding that the level of funding for each revenue source will fluctuate annually based on a number of factors including but not limited to enrollment, inflation, tax assessed values, and the State of Michigan budget, it is important to establish a priority of funding to ensure that critical areas of the college budget, such as the needs for student instruction, are met particularly when one funding source or multiple sources decrease.

 

Funding Sources and Operational Costs: 

Funding sources will be expended in the following order to align with their purpose and future planning: 1. state appropriations, 2. tuition and fees, 3. other and 4. property taxes.

Operational costs as defined by the Center for Educational Performance and Information (CEPI) will be expended in the following order: 1. Instruction, 2. Academic Support, 3. Student Services, 4. Information Technology, 5. Physical Plant Operations, 6. Public Service and 7. Institutional Administration (Support). Upon any modification to or addition of expenditure categories by CEPI, this guideline will be reviewed in order to assess if there is any change in the prioritization of Operating Fund expenditures.

 

Change Log:

• 03-31-2026  Effective Date
• 04-06-2026  Approved by Executive Council
  
  

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