BUTLER TWP — Butler County Community College’s operating budget may be hit by smaller state subsidies and reduced federal financial aid in 2011-12. BC3’s operating budget is $26 million for the 2010-11 year, which ends June 30.

Like other community college administrators, Nick Neupauer, BC3 president, is looking for Gov. Tom Corbett’s state budget, scheduled to be released March 8. Corbett might cut the state’s education subsidy.

In addition, both congressional Democrats and Republicans are pushing for cuts to federal Pell Grants, a primary form of student aid for BC3 students, Neupauer said.

In the 2010-11 year, BC3’s state subsidy was about 32 percent of its operating fund, or about $8.31 million. It included $6.9 million in state base appropriations, $658,868 in state economic development funding and $770,000 in federal stimulus money used to offset BC3 salaries.

“Stimulus funds are dried up,” Neupauer said.

In 2011-12, federal stimulus dollars filled a gap in state funds available for its subsidy, and were earmarked for staff salaries.

“The 14 community colleges are taking a unified approach that the stimulus dollars will be in place during 2011-12,” Neupauer said.

No promises have been made, but the colleges have lobbied state officials to replace the federal funds with state dollars.

Neupauer said BC3 has developed contingency plans to cover the loss of federal or state dollars.

In 2010-11, student tuition and fees are expected to comprise about $13.88 million, or 53 percent, of BC3’s operating budget. About $12 million has been collected so far.

At the same time, students received about $11 million in financial aid, said Julie Louttit, BC3 director of financial aid.

Financial aid includes about $6 million in Pell Grants — $3 million for tuition and fees, and $3 million for textbooks and living expenses, administrators said.

But congressional Democrats want Pell Grants discontinued for summer sessions and congressional Republicans want Pell Grants reduced from a maximum of $5,550 to $4,700, Neupauer said.

Although the college will be able to award Pell Grants this summer, a reduction would leave students outside Butler County short, administrators said.

Democrats also are suggesting that student loans begin accruing interest immediately, rather than waiting until after a student graduates, as some do now, Neupauer said.

In response, national community college association members, including Neupauer, are lobbying against the cuts.

The associations are analyzing projected budget cuts to determine how enrollments might be affected, Neupauer said.

BC3 gets 13 percent of its operating budget, about $3.4 million, from Butler County. An additional 2 percent comes from miscellaneous sources, including interest-bearing accounts and college reserves transferred from savings to the operating budget, said Jake Friel, BC3 controller.