NPC Is Positioning Itself For Future Economic Challenges

She points out that last year, rural Arizona community colleges took an average 48 percent budget hit in reduced revenue from the state. For NPC, that translated to a $6.7 million reduction in state funding.

“That hurt,” Swarthout said.

During the last NPC governing board meeting, held June 21, the board voted to extend Swarthout’s contract an additional three years. In the same meeting, they approved the college’s three-year strategic plan. When asked how the college is preparing to face that impending funding cliff, she talks about wise budgeting practices, and how the freshly minted strategic plan will guide NPC leadership and staff to continue to position the college to withstand the challenges ahead.

Explaining the funding cliff, Swarthout said there are a few factors in play: a temporary state sales tax that provides funding for community colleges ends during the 2011-12 budget year, federal stimulus aid has already run out, operating state aid has already been reduced, and the legislature continues to talk seriously about doing away with equalization funding (a funding mechanism that helps fund rural community colleges) altogether, or changing the equalization funding structure in ways that could prove detrimental to NPC.

In addition to the state funding challenges, two other threats to NPC funding exist, Swarthout said. The potential for property devaluation due to recent wildfires and continued poor economic conditions may result in lower property taxes, a vital college revenue source. Also, the Congressional redistricting plan now under consideration for Arizona could negatively impact representation in rural areas by moving more legislative power to bigger cities, she said.

During recent budget hearings, NPC staff came under fire from governing board member Dusty Parsons who said, “The college has too much money,” referring to NPC’s $7 million-plus that will be carried over from this year.

It is precisely because Swarthout and her staff at the college have been reading the budgetary writing on the wall, however, that she said she and her team have been finding opportunities to cut costs and save money to hedge against future uncertainty, and plan for future needs. Swarthout said NPC leadership began restructuring early, consistently lowering costs and streamlining staff.

“We can’t cut anymore,” said Swarthout. “We are at a point where we must create different business models, modifying how we deliver education. I can’t look at one year out, I’m looking at 10 years out, and my focus must be on financial sustainability, service delivery and being fully accredited.”

In spite of the looming budget challenges, or perhaps because of them, Swarthout and NPC are making aggressive inroads in technological advancements aimed at aiding in retention, reaching underserved audiences and putting the college in a good position to be able to keep up with rapidly advancing technology as time goes by.

During the June meeting, the governing board approved the allocation of nearly $1 million in technological improvements and expansion, and work is already getting underway. The software that powers all of the college’s administrative functions is being overhauled and an extensive five-year training program is being put in place, the entire phone system is being replaced, and major expansions are being made to the college’s computer network system. The systems being put in place are not only intended to increase the college’s technological capabilities, but are being selected with an eye toward being able to maintain and upgrade them cost-effectively, in consideration of likely leaner times to come.

The advances are not being made with only budgetary concerns in mind, however. The system and operational improvements are firmly intended to allow NPC to continue to improve its delivery and quality of education to students.

The 2011-14 strategic plan emphasizes, among other things, increasing services to and retention of Native American students. Swarthout explains that community colleges strive to have their student populations match the demographics of the communities they serve. Native Americans make up close to 50 percent of the population within the college’s boundaries, while NPC’s current Native American student population stands at about 35 percent.

Commending Navajo County, Swarthout said, “The county sees the benefit of delivering education on the reservation, so we have centers in Kayenta, Hopi and Whiteriver,” adding that having the centers improves NPC’s ability to provide greater services to students in those communities. There are many corners of NPC’s influence area, however, where it is difficult to reach students, because the technological infrastructure simply doesn’t reach.

NPC has the second largest geographical spread in the country, an area of 21,000 square miles. Swarthout points out that the college’s boundaries encompass an area the size of West Virginia, which has 14 community colleges. With a vast number of miles to cover, the expanded networking capability that will be afforded by the upgrades being made this summer will allow the college to reach more students where they live within the year, increasing access to the college’s offerings. Along with greater bandwidth, the college will also be rolling out more web casts and online learning opportunities to expand distance learning opportunities. With more opportunity to reach students where they live, NPC expects to see retention rates rise. If students would normally have to miss class because of a sick child, now they can log on to a web cast and still make class. If gas prices are keeping students away from classes, the same goes: with increased web casts, more students can attend class from a distance. While many of these capabilities are old practice at for-profit, online colleges, rural community colleges haven’t been as capable of offering extensive services in these areas, so NPC’s strides are significant ones.

Swarthout is proud of the manner in which NPC is positioning itself for the future, and of the attitude of the college staff. Far from wallowing in the woes of being a rural college fighting for funding, she said she and her team have always taken the approach of, “Here’s the situation, and here’s how we’re going to solve it,” which has garnered positive recognition for the college among its peers, and is evident in the college’s strategic plan.

The college’s primary initiatives for the coming years are geared toward keeping an eye on the critical legislative and economic environment while positioning the college to be able to continue to deliver a full roster of programs and degrees, with full accreditation.

Swarthout plans to work over the next three years to develop more partnerships between the college and the communities it serves, and to personally be more present within communities. Swarthout has just stepped down as president of the state association of community college presidents, and has cut back on responsibilities that tied her closely to the legislature and governor’s office. Reducing these responsibilities that frequently took her away from the college will allow her the time she desires to strengthen community ties. She said the time she spent in these statewide roles benefited NPC by allowing her to work with college staff to get in front of emerging issues she was privy to through her work at the state level, but also because she was able to ensure NPC was visible to key decision makers who influenced policies related to rural colleges.

Swarthout is pleased to be exactly where she is: having signed on for another three years at a community college in a rural setting, serving native populations, on a scale where she gets to know the staff and the students.

“When I see a student cross the stage at graduation, I want to know who they are, what their story is, what they’ve accomplished. I’ve been in the big university settings, but you can’t achieve that level of intimacy with students and staff at that scale,” said Swarthout. “I needed that connection that I couldn’t get anywhere else. I get it here.”