II. The Budget Reality
Here is the reality of our predicament. It is not good, but not something we cannot overcome. Here is a message from Dr. Shirley Treanor Barker to all Division Deans on 8/25 :
I want to give you a brief budget update regarding budget allocations this coming year. As you know, we are in a very difficult budget situation at this time. Unfortunately, we can't keep doing business as usual. Fortunately, do to your due diligence, we have some one time funds available to help us make it through the coming year. Our challenge continues to be in the ongoing funding arena.
The plan for 2009-2010 is as follows:
• You will receive 50% of your ongoing Fund 14 B budget allocation compared to last year.
• You will keep your Fund 14 B carry forward from ‘08-09 ending balances.
• All unspent Fund 21 lottery allocations from the last couple years will be zeroed out and redistributed this year.
• You will receive the same Fund 21 lottery allocation as in the ’08-09 year.
• If you need additional funding for this coming year (Fund 14 B, Lottery, Instructional Equipment, etc) please speak with your VP and give them a list of your needs.
• You will be receiving a report of your Measure C FF&E expenses to date early in the Fall quarter.
• Categorical cuts from the state are still to be determined. It appears we will have cuts greater than anticipated.
Our goal is to give everyone the necessary funding to make it through the ’09-10 year and to be prudent in our expenditures, as it appears our ongoing expenses will exceed our ongoing revenues from the State again in the ’10-11 year.
Thanks for your willingness to work together to help us through get through the next couple challenging budget years.
What does this mean for us? The original B budget allocation for the Division last year was $151,805. That means this year we have $75,902 in B budget. Our carryover was $48,886.43. These figures may or may not be accurate as in all things budgetary.
Standard operating procedure in our division would be to go out and blow $124,788.43! Yahoo! Unfortunately, we cannot continue doing business as usual because this isn't the bad budget year, next year is. All signs point to 2010-2011 being the low water mark for education funding. My policy will be to allocate B budget from the $124,788.43 total casting a very jaundiced eye on all expenditures. My observation is we overspend, but when asked to can become very efficient budgeteers. So don't go out and buy anything with your own funds and automatically expect to be reimbursed! I may say no, and that wouldn't be any fun, would it? I am sure you will all take our budgetary situation very seriously, because it is. Again, together we can get through this.
Here is a message from Judy updating the budget as of 9/8/09:
September 8, 2009
Dear Colleagues:
On August 31, Interim Chancellor Mike Brandy presented a budget proposal to our Board of Trustees that reflects the best information and projections available as of this date. For his summary memo to the Board, please see the attachment to this email.
I want to share with you the directives that Mike has given the colleges and Central Services in order to address the fiscal challenges that await us in 10-11. While everyone is to be commended for bearing the painful reductions that have occurred thus far and the pending reductions for June 30, 2010, it is most unfortunate that our work is not yet complete.
As a district, we are projecting an $8.1 million shortfall of general revenue vs. expenses as of July 1, 2010. $3.8 million is attributable to reductions in state apportionment for 09-10; $1.6 million is attributable to increased expenses in step and column, utilities, and insurance in 10-11; and $2.7 million is attributable to an expected 9% increase in medical expenses in 10-11.
Additionally, district categorical funding in 08-09 was $16,865,558 and is being reduced during 09-10 to $9,056,610. Federal stimulus funding raised our hopes that there could be at least a one-time allocation for us of approximately $3.9 million, but as of August 27, California Community College League projections estimate that we may only receive between $750,000 and $900,000.
So what is Mike asking of the district? Here are the three plans he expects from the colleges and Central Services by November 1.
1. A plan for reducing on-going categorical expenditures by July 1, 2010
For Foothill, we must reduce our budget of $6,960,723 to $3,857,840. The most severely affected areas are EOPS, DSPS, Apprenticeship, and Matriculation whose combined reductions equal $2,885,364.
2. A plan to help eradicate the $8.1 million district deficit as of July 1, 2010
For Foothill, our portion to reduce is approximately $2.7 million and must represent on-going savings.
3. A two-year spending plan for our ending fund balance
For Foothill, our ending fund balance from 08-09 was $2,787,871. We have yet to project an ending balance for 09-10 in light of these directives that we were given on September 2.
Throughout the summer, President's Cabinet struggled with a number of scenarios in anticipation of further reductions and prioritized a number of actions that appear to be within our control at this time:
a. Maintain all personnel, including those in reduced categorical programs,
through June 30, 2010
b. Conduct searches for at least four faculty to be hired in 2010
c. Maximize generation of float
d. Protect $300,000 in college wide contingency (>.5% of our total budget)
for unanticipated expenses
We have been discussing immense amounts of data in the context of prioritizing the most critical programs and services for basic skills, transfer, and workforce development. During Fall 09, we will use our new participatory governance structure to inform, analyze, debate, and recommend. As your President, I seek your collective wisdom and commitment in downsizing the quantity of what we do while protecting the quality of the work that continues. The next two years may be the most difficult we will ever face, but I predict that we will emerge as an even stronger and more accomplished college. Know that I am profoundly grateful for your peerless dedication and phenomenal creativity on behalf of our students!
