BUTLER TWP — Butler County Community College trustees have approved taking two loans totaling $3 million in light of the state budget impasse.

The lack of a state budget has left the college in need of about $3.5 million, Jim Hrabosky, vice president of finance and administration, told the trustees at their Wednesday meeting.

BC3 has only 30 days of cash remaining in its operating fund, he said. By the end of December, the deficit will total roughly $6 million.

To fulfill the short-term needs of BC3, the trustees approved one line of credit at $1 million and another for $2 million, both from Farmers National Bank in Emlenton. These loans have a variable interest rate. The current rate is 4.25 percent.

Hrabosky said he didn’t expect the rate to change.

By taking out the two loans, the college will be operational through April, if the state budget impasse continues, he said.

In what President Nicholas Neupauer termed “an interesting twist,” the state may refund schools for the interest payments on loans taken to relieve the lack of funding.

When the college receives money from the state, the loans will be paid off, Hrabosky said. However, the agreement regarding the $1 million line of credit may continue as an ongoing loan should the college find itself in an emergency situation in the future.

Despite the need to borrow money, the college is in a fairly good financial position, according to Hrabosky. Its operating expenses are under projection by about $284,000, he told the trustees. This saving comes primarily from salaries and wages, with a decrease in spending of $91,000 due to recent retirements.

“This is probably the most positive our budget has looked in the last 24 months,” he told the board. “We’re off to a good start this fiscal year.”

Increases in out-of-county enrollment have provided BC3 with additional revenue because an out-of-county student pays higher tuition than does a Butler County resident. A county resident pays $1,500 per semester, not including fees, as a full-time student, while any other full-time student pays $3,000 per semester.

This student growth is primarily in Jefferson and Armstrong counties, Neupauer said, emphasizing the college’s move toward a regional enrollment approach.

The number of students who take BC3 classes in high school also has grown. There are 480 high-school students this fall semester, up from 385 students in the fall of 2014, according to Sean Carroll, BC3’s coordinator of high school programming.

This is also a monetary benefit to the college since these students pay slightly higher fees than a regular county student.

“There have been some challenging situations including the state budget,” said board Chairman Ray Steffler. “We just have to remain focused on enrolling students. We just have to believe in the tooth fairy and what have you and maybe we’ll have a (state) budget.”

Neupauer said the college remains optimistic that a budget will be passed soon, saying there is no question that the impasse has caused financial difficulties. While waiting for a state spending plan, the college only allows travel expenses when absolutely necessary and has been able to delay payment to some of its vendors.

“Proactive planning only helps to a certain point,” he said, acknowledging the college’s need to borrow money.

The state typically provides $7.8 million to the college each year, Hrabosky said. In January, BC3 will receive its funding from the county, an expected $3.8 million.