Delta may face budget deficit

Delta may acquire $1.2 million less in revenue than usual due to declining enrollment and may face a budget deficit in the 2014-2015 school year.

Debra Lutz, Vice President of Business and Finance, said Delta is trying to reduce expenses and lower losses in revenue. The college has an annual budget of about $122 million, with more than half of that being in the general fund. Students are being kept in mind.

“Our goal as administration is to try and continue to offer the programs and services students need at an affordable price,” said Lutz.

Possible solutions include cutting sections of classes and being selective about what vacancies to fill.

The biggest problem causing the deficit is declining enrollment, lowering the tuition income. Reasons enrollment is declining include declining population in the area, lower graduating class sizes from K-12 schools and an increasing ability to find full-time jobs.

“The economy is good and we’re going to decline; that’s something to be aware of and manage,” said Lutz.

Lutz also said there is a proposal by Governor Rick Snyder causing colleges who raise tuition more than 3.2 percent to get no state funding, which limits the amount Delta can increase tuition.

Delta math professor Tim Allen, a member of the Faculty Salary Committee, said he doesn’t believe students will see much of a difference.

Because fewer students are enrolling, Allen said classes may not fill and may be canceled. However, according to the budget book, Delta’s projected credit hours for the fall are 205,000. The lowest credit hours in a given year was 175,000.

“Will Delta go out of business? No,” said Allen. “Delta’s a very healthy public institution. We have no debt. We may run a deficit, but there’s no debt. There’s a difference.”