Lane Community College wants to speak plainly about our finances. We know many people care deeply about our college’s future, and we share that commitment. Recent discussions have created confusion about what our audited financial positions mean. This is understandable. Financial statements can be complex, and when pieces of information are taken out of context, it can create confusion. Here is the full picture, and what it really means for employees, students and the future of Lane.
What happened in FY 2025
The college’s independent audit for the year ending June 30, 2025 shows that the college’s net position declined compared to the previous year. This follows a reported increase in FY 2024 that was driven primarily by pension accounting effects not recurring operational strength.
What the audit really shows
- Most of LCC’s net position continues to be tied up in buildings, infrastructure and other capital assets that are legally restricted and cannot be used for salaries or running programs.
- Our unrestricted net position remains negative, meaning we do not have a pool of flexible funds to commit to ongoing expenses.
- Large swings in reported totals are driven by GASB (Governmental Accounting Standards Board) reporting requirements related to pension valuation change, not by sudden increases in spendable cash.
What this means for daily operations
Net position is a broad measure of financial health, not spendable case or operating surplus. The audit makes clear that one year’s accounting results should not be used to justify long-term commitments.
The college’s response
To address structural budget pressure and protect programs and services, the Board approved the administration’s three-year financial mitigation plan. The plan aims to restore the college’s general fund reserve to at least the policy standard of 10 percent by FY 2029 through careful planning and ongoing adjustments.
The plan acknowledges:
- Persistent structural deficits without action
- The need for ongoing revenue and expenditure alignment
- The importance of maintaining reserves to support payroll, operations, and unexpected events.
Our commitment
Lane Community College remains committed to transparency, fiscal responsibility, and making decisions based upon the full audited record. We will continue to work with our community, students, and employees to navigate financial challenges while protecting our core mission.
Financial Facts at a Glance
Audit Results:
- FY 2025 net position decreased by about $9.8 million
- End-of-year net position: $91.1 million
- Unrestricted net position remains negative
- Pension accounting adjustments drove much of the year-over-year change
Revenue & Expense
- Tuition and fees up modestly; state support down due to payment timing
- Wages and benefits represent over 72 percent of the operating budget
What this means
- Strong capital position does not equal spendable operating cash
- Government accounting rules can create large swings in reporting totals
Budget and Planning
- Board policy requires a 10 percent reserve for stability
- A three-year mitigation plan was approved by the Board of Trustees and is underway to rebuild reserves by FY 2029
Key Takeaway
Lane is navigating real financial challenges with a clear mitigation strategy, grounded in audited financial facts and long-range planning.
Lane Community College educates over 17,000 students annually at six locations across Lane County and online. Students and alumni from all 50 states and 79 countries create more than an $675 million dollar impact on the local economy, helping to support more than 8,900 local jobs. Lane provides affordable, quality, professional technical and college transfer programs; business development and employee training; academic, language and life skills development; and lifelong personal development and enrichment courses.