Budget Updates
On May 14, 2009, the Governor published the May Revise of the 2008-09 and 2009-10 budget, projecting a significant deficit for the California Community College System. Through a strategy of additional apportionment deferral, enrollment/general apportionment reductions, property tax shortfall, reduction in the funding for Physical Education courses, and reductions to categorical funds, the Chabot-Las Positas Community College District (CLPCCD) is projecting a reduction in the 08-09 budget of $2,065,469 and the 09-10 budget by $7,381,787.
In order to develop a response to these proposed reductions, the District’s framework for managing these unexpected reductions includes the following guiding principles:
- Preserve employment of permanent employees
- Maintain the District enrollment targets and the DEMC agreed upon schedule for the upcoming year
- Maintain the full-time faculty obligation number (FON) of 299 for the District
- Maintain the District minimum reserve of 5%
- Maintain budget development milestones: present tentative budget on June 23, 2009 and adoption budget on September 1, 2009
- Fund operational increases (step and column, medical and dental benefits, utilities, insurance, retiree benefits, etc.)
- Leverage assets and pursue other sources of revenue
- Maintain constituent communication
Coupled with these guiding principles are a series of operational considerations that will be used to develop solutions for an action plan for the District Office. These operational considerations include the elimination or reduction of overtime, hourly, and temporary positions; the review of all non-instructional faculty positions, to include but not be limited to the implementation of short-term and/or long-term delay in recruiting and filling positions that are currently vacant; and the reduction of expenditures beyond personnel and staffing.
Of importance, the District allocation model will be used to distribute expenditure reductions or delays. To that end, the distribution of proposed 09-10 cuts using the allocation model is as follows:
Unrestricted Cuts |
Ongoing Categorical Cuts |
Totals |
|||
Chabot College |
47.47% |
$2,000,188 |
61.20% |
$1,928,893 |
$3,937,081 |
Las Positas College |
30.10% |
$1,273,416 |
38.80% |
$1,222,893 |
$2,496,309 |
District Services and M&O |
22.42% |
$948,396 |
$948,396 |
||
TOTAL |
$7,381,786 |
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The District has estimated that the reductions to the general fund (unrestricted funds) for 08-09 can be met through revenue generated from the previous roll-back and other revenue sources. Governor-directed cuts to categoricals for 08-09 should be covered by balances in these funds as of April 30, 2009. Vice Chancellor Legaspi’s analysis suggests that there is currently $3 million remaining in the District’s categorical funds, so the approximately $810,000 in one-time cuts proposed by the State should be covered by those sources.
The 09-10 budget presents new challenges for us to address as a College community. The District and M&O, through a strategy of self-imposed hiring freezes (having minimal effect on the colleges) and across the board cuts in their 4000-6000 budget lines, has an action plan for their distribution of the proposed cuts of $948,396. As the chart above describes, Chabot College’s portion is $3,937,081 while the cuts distributed to Las Positas College total $2,496,309.
The College’s Response: Conceptual Framework
In order to develop our College action plan for the proposed cuts based on the Governor’s May Revise, the following guiding principles will frame our LPC strategy:
- From the District’s Guiding Principles:
- Preserve employment of permanent employees;
- Maintain the District enrollment targets and the agreed upon DEMC schedule for the upcoming year.
- Maintain budget development milestones: present tentative budget on June 23, 2009 and adoption budget on September 1, 2009
- Leverage assets and pursue other sources of revenue
- Maintain constituent communication
- For the College:
- Maintain the full-time faculty obligation number (FON) of 107 for Las Positas College.
- Preserve direct services to students wherever possible
- Explore budget efficiencies for both short-term impact and long-term implications
- Maintain and model the highest standard of communication with the District and the College through multiple measures
- Align budget with institutional Strategic Goals
- Abandon broad, across-the-board cuts for targeted cuts that may go deeper rather than broader
- Expand resource development through grants, Foundation, and institutional advancement
- Respond to mandated responsibilities by the Systems Office and to expected services by accreditation agency
- Provide for a safe environment for teaching and learning
- Provide for operational efficiencies that may also produce cost-savings
COMMUNICATIONS PLAN
- Email to College Community
- Establish Website
- Hold Special Town Meeting
- Do paper mailing
- Assemble College Council
