You are the superintendent of Mt. Rossmoor Community College (MRCC). Mt. Rossmoor Community College is the fifth fastest growing community college in the nation. The college’s student body has grown 24% in the past 5 years largely due to the recent housing boom. Due to budgetary cuts on the state level, state universities will increase the cost of tuition by 8% this year, on top of last year’s increase of 14%. The result is that more students will be “priced out” of the state university system. Many of these same formerly state university students will attempt to satisfy general education requirements at local community colleges, including MRCC, thereby increasing demand for courses.
At the same time, however, MRCC’s budget will drop 15% this year due to the state budget crisis. As superintendent, you face some tough choices. Should the college significantly increase fees per unit, or maintain current fee levels by drawing down on its budgetary reserve, knowing that next year will not get better? Should the college increase or reduce course offerings? Should the college pursue furloughs, layoffs, or “golden handshakes?” There is even the question of offering online courses and shuttering buildings on MRCC’s main campus, so as to save on electricity and air conditioning.
In a white paper, please identify the policy problem, detail the policy options, identify stakeholders, and apply your own financial knowledge to make sound and ethical decisions in the public’s interest
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