DEARBORN — Henry Ford Community College (HFCC) is on track to end the year with a $1.2 million surplus, achieving an almost $18 million turnaround after facing a financial crisis for the last two years that nearly put its future in jeopardy. 

Last summer, the college began its recovery with an overhaul led by the appointment of President Stan Jensen. At its lowest point, the college faced a $16 million deficit due to a number of factors that included rising expenses and uncollected debt from thousands of students.

In order to begin its financial turnaround, HFCC had to begin the school year on a sour note. 14 full time positions were cut, which is expected to save the campus more than $9.5 million over the next five years.

Personnel and benefit expenses were also slashed after contract renegotiations with the college’s faculty. Compared to last year, personnel costs are on track to be $42 million, down from $46 million. 

The college faced criticism for cutting a few executive leadership positions and allocating less money toward faculty benefits. Faculty members appeared divided last year when they backed other contenders for the presidential position, but Board of Education members ultimately decided to appoint Jensen, who had gained a positive reputation as the president of Colorado Mountain College. 

Working in HFCC’s favor is state law, which now mandates that employees must pay a portion of their benefits under Public Act 152. This is projected to save the college $2 million annually. Altogether, the college is projecting to save $29.1 million in personnel and benefit expenses over the next five years. 

But while personnel expenses had been weighing down the college, unpaid student bills had also been causing a negative impact. In 2013, the college began buckling down on students who owed debts that amounted to thousands of dollars per account.  The school also went after schemers who would enroll for classes, take the financial aid money and never show up. 

Last summer, the college offered an amnesty program to students who wished to continue their education but owed a large debt. Now, the college says the program has actually been more successful than they had anticipated. With 424 participants put on payment plans, the college has been able to collect $157,608, far surpassing its target of $100,000.

HFCC still faces a steep decline in student enrollment this year. According to the college, enrollment is down nearly 38 percent this winter semester.  For the winter of 2014, 2,274 newly registered students entered the college, compared to winter 2013, when the college enrolled 3,669 new students.  

But the college says there are several factors that play into the drop in enrollment, with the largest contributor being its stricter policies on financial aid applications in an attempt to limit fraud.   The College has also incorporated more stringent student registration and transcript policies in an effort to limit uncollected debt.

“HFCC now requires all high school official transcripts for enrollment. As a result, we have experienced a dramatic decrease in the number of students who enroll for the sheer purpose of defrauding the college and the federal financial aid system, thus the drop in figures,” says Gary J. Erwin, the Director of the college’s communications department. “The 2014 number is a truer, more precise number of those who have actually registered and currently attend classes for winter 2014.”

In order to offset the deficit from previous years, the college also had to increase tuition rates this year. This winter term, in-district students are now paying $87 per credit hour, up from $82. Out-of-district students are paying $149.25 per hour, up from $142.  International student tuition also increased from $147 to $154.

Despite the small bump in tuition, HFCC is still less expensive than most colleges in the state.  Out of 29 community colleges in Michigan, HFCC is the sixth largest and remains one of the least expensive. The college plans to review tuition rates for the 2015 school year in the next couple of months.

At the moment, however, the college says it is focusing on re-branding. It is currently in the process of accepting proposals for a marketing research study in an attempt to help increase enrollment rates in the future. The college is aiming to launch a new campaign before the fall of 2014.

“At the present time, the college is marketing, within budget, as precisely as possible, and gaining more traction in the media with the many good news stories that are coming out of the college,” Erwin adds. 

Dearborn residents recently renewed an HFCC millage that is expected to give the college  an extra $3.3 million this year in revenue. The college plans to use the money for enhancing programming for international students, building a comprehensive Student Success Center, upgrading technology and lab equipment, and implementing more class-to-career programs.