COEUR d'ALENE - Members of North Idaho College's Board of Trustees are considering expanding the college's budget for the next fiscal year by $3 million.

Trustees met with upper-level administrators Wednesday for a budget workshop that provided an in-depth review of the draft college budget for 2012.

The college's proposed operating budget for the next year includes a 2 percent property tax increase, a 4 percent tuition increase, and a 2 percent across-the-board salary hike for full-time staff and faculty.

Ron Dorn, the college's vice president for Resource Management, said NIC's financial planners used a new budgeting process that included more involvement from throughout the campus community.

"I think it's been good for us. It's raised questions. I think we've seen it in a little more detail," Dorn said.

The college's 2011 general fund budget was $37.7 million. The budget that trustees are being asked to approve for 2012 is $40.7 million.

Budget planners say the increase is needed to counter the effects of skyrocketing enrollment and diminished state funding.

From 2007 to 2010, the number of credit-seeking students on campus went up by 37 percent. This year's spring semester enrollment is 6,426; the spring 2007 enrollment was 4,446.

Funding from the state is now at the same level it was in 2000.

NIC's three major sources of revenue are state general funds, local property taxes, and student tuition and fees.

The college's state allocation for 2012 was slashed by $354,500 for its general fund, and $71,000 for professional-technical education.

The proposed budget plan for next year also addresses a $1 million shortfall in the 2011 budget, a gap created because the funds budgeted for salaries were not enough to cover what was needed for personnel required to meet the demands of increased enrollment.

Upper-level administrators, all vice presidents and directors of the college's various divisions, slashed their budgets by nearly $1.3 million to help meet the shortfall.

The cuts include $75,000 previously allocated for legal fees for NIC President Priscilla Bell's office, $6,880 for "president travel," savings of $65,000 by leaving some positions vacant in the Resource Management Office, and $101,000 saved by eliminating PEP band, Cardinal Connections, reducing field trips, and stopping payments to high schools for dual credit.

The proposed tuition hike will raise the cost of a semester for a full-time student from $1,329 to $1,382. The $53 difference reflects a 4 percent increase.

Community colleges throughout the state are considering similar increases. The College of Southern Idaho is proposing a 4.8 percent hike, and the College of Western Idaho is looking at a 5.4 percent increase.

NIC's budget planners created the fiscal plan with a projected 4 percent fall enrollment increase, although President Bell said they believe that is conservative.

The proposed budget would need to be modified should enrollment or the county's property tax revenues change dramatically.

The budget includes a projected increase of $591,602 in property taxes levied, with $258,000 of that coming from a 2 percent increase, and the rest from new property expected to be on the rolls.

The 2 percent property tax increase is estimated to raise property taxes for the owner of a $200,000 home, after all exemptions are applied, by $2.91 per year.

The new budget also includes an additional $1.2 million needed to increase personnel, equipment and other resources to meet the needs of the higher number of students on campus. There are funds for 13 new jobs, including four new instructors' positions, included in the allocation.

No staff has been hired in the past three years, and there have been no staff or faculty salary increases.

John Martin, vice president of Community Relations, said NIC employees have consistently taken on additional duties and responsibilities through the years.

He said he is concerned that employees are at-risk of burning out, and cautioned that they may start seeing increased absenteeism and other problems if staffing isn't increased.

The budget also includes a 2 percent compensation increase for faculty and staff, an additional allocation of $1.5 million.

At the board's next regular meeting on Wednesday, the budget's first reading is on the agenda. Trustees could take action on the budget at that time, although board chair Mic Armon said it would be for information only, and they would vote on it at their May meeting.

President Bell reminded trustees that they could consider approving just the tuition hike next week, and said the college would then be able to handle fall registrations and financial aid awards in a more effective and timely manner.