Budget News Archives

December 9, 2009 Update

Dear Colleagues:

There is some new information regarding budget reductions and timelines that I would like to share with you before the end of fall. Ordinarily, this would be a time to wind down the quarter and take a well-deserved break before the start of a new calendar year. Unfortunately, our budget challenges are not on hiatus, so I want you to know what Foothill faces and how we are proceeding.

Yesterday, an emergency meeting of the Operations Planning Committee (OPC) was held to discuss the process by which we must arrive at budget reductions for the 10-11 fiscal year totaling $4,474,048 by mid-January. The meeting included committee members Shirley Barker, Karen Erickson, Ion Georgiou, Judi McAlpin, Sindy Olsen, Eloise Orrell, and Jay Patyk. Joining them were Dolores Davison, Richard Galope, Kurt Hueg, Rose Myers, Leslye Noone, and Denise Swett. The OPC reviewed and provided input on our guiding principles and criteria for budget reductions, and in particular discussed the process by which these budget deliberations will take place over the next month. I want to ensure the college community is informed and aware of this process before many leave on break.

As of December 3, Foothill must respond to reductions in the 10-11 budget as follows:

General Fund (14) $1,049,112
Categorical Programs $3,424,936
TOTAL $4,474,048

The consequences of implementing these reductions include but are not limited to:
Elimination of 14 to 17 non-instructional positions (These are in addition to the 16 positions identified in May of 2009 for elimination as of June 30, 2010)

• Elimination of part-time counseling services
• 20-30% reduction in tutorial services
• 30-50% reduction in book vouchers, loans, and grants through EOPS
• Reductions in services for disabled students
• Reductions in student employee opportunities
• Reductions in acquisition of library materials
• Reductions in course offerings at high schools
  
• Cap on Middle College Program
• Loss of more than $100,000 in revenue from apprenticeship programs

All but the first item are impacting our students during the 09-10 fiscal year; elimination of the additional 14 to 17 non-instructional positions will take effect for the 10-11 fiscal year. Human Resources has indicated that initial conversations with collective bargaining representatives will occur the week of January 18, followed by early alert meetings with affected employees from January 26 through January 29. During the month of February, eliminated positions with seniority rights will be analyzed and the bumping sequence will be finalized in preparation for Board of Trustees action on March 8.

In response to this fast timeline, the OPC convened immediately and accomplished the following:

• Discussed the most recent budget data and timelines;
• Provided input on the elements that will shape Foothill's budget such as Core Missions; Strategic Initiatives; Program Review; Operating Principles for Budget Augmentation and Reduction; and Criteria for Budget Reductions; and
• Recommended strategies for keeping the college community informed of processes and decisions.

The OPC convened with very short notice and accomplished the above tasks with efficiency and thoughtfulness. I am grateful for their advice and look forward to their future contributions as a standing committee in our governance structure.

I anticipate the next update to be after the Governor publishes a budget on January 10 and invite you to contact me if you have any questions in the meantime.

Sincerely,

Judy

September 8, 2009 Update

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 more information, please see his summary memo to the Board (PDF).

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 ongoing 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 ongoing 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:

1. Maintain all personnel, including those in reduced categorical programs,
   through June 30, 2010
   
2. Conduct searches for at least four faculty to be hired in 2010
   
3. Maximize generation of float
   
4. 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!

Looking forward to seeing you soon,

Judy

July 28, 2009 Update

The Governor signed legislation today revising the 2009-2010 State budget, including deep cuts to community colleges. As reported by Scott Lay, CEO of the Community College League of California, the cuts will reduce community college spending by $680 million from the amount approved in February when the 09-10 budget was passed. The Foothill-De Anza Community College District is in the process of analyzing the new budget, and information on the impact to the district will be made available in the coming weeks. For the full detail on the budget updates signed by the governor, visit the Community College League Web site.

July 21, 2009 Update

Governor Schwarzenegger and state leaders announced a tentative budget deal yesterday they expect to be voted on by the legislature on Thursday. The plan addresses the state's 26.3 billion deficit by making large cuts to education, health and other state programs. Community college leaders will be issuing an analysis of the budget deal shortly, and Foothill-De Anza leadership is working to define the impact this budget will have on district resources. More information will be forthcoming as the budget plan moves toward a vote in the legislature. Please use the links at the bottom of this page to find the most recent information from state leaders.

Kurt Hueg, Associate Vice President, External Relations

May 21, 2009 Update

Dear Colleagues:

As I sat down to write about the latest budget news, I found an email from the California Community Colleges Chancellor's Office announcing an additional $3 billion shortfall over the estimate given by the Governor just a week ago. I am uncertain as to whether it is a good or bad sign that my $21 billion shortfall message to you remains exactly the same at the $24 billion level.

Let me begin by thanking Chancellor Martha Kanter, Interim Chancellor-elect Mike Brandy, Vice Chancellor Andy Dunn, and Vice Chancellor Dorene Novotny who participated in the Budget Town Hall on May 21. They provided a great deal of information, insight, and encouragement as we prepare ourselves for the most serious reductions in community college funding that any of us have ever seen in our decades of service as educators.

Some of the most critical points for us to understand at this moment are:

• Categorical programs at Foothill could lose as much as $843,000 from a $7 million budget for 08-09.
• Regardless of funding source, only the most essential expenditures should be incurred until further notice.
• We need to reduce our FTES target for 09-10 by about 5% in order to reduce the amount of unfunded FTES.
• Despite our effforts to maintain all positions through June 30, 2010, it is highly likely that layoffs will have to be implemented by December 31, 2009.
• We need to plan additional reductions in personnel and operating budgets for 09-10.
• We must take drastic action quickly and in advance of a final state budget.

I convened President's Cabinet immediately following the Town Hall in order to outline an action plan in response to what we know and believe at this moment in time. Here are a few key events in the coming months:

• May 26: Budget discussion at Admin Council
• May 28-29: Cabinet Retreat to review budget detail for all funds; review five-year trends for all instructional departments; finalize distribution of functional responsibilities for administrators; simulate additional 09-10 budget reductions
• Late May: Oppose budget cuts at legislative hearings in Sacramento
• June 1: State of the College report to the Board of Trustees
• June 3: Budget discussion at Ed Resources and Roundtable
• Late July: Analysis of 08-09 FTES/productivity and Summer 09 enrollments; budget report to Ed Resources
• Late August: Analysis of 08-09 ending fund balance, Summer 09 FTES/productivity, and Fall 09 registrations; budget report to Ed Resources
• September 10: Annual Leadership Retreat
• Early October: Analysis of Fall 09 census data; revision of Winter 10 and Spring 10 course schedules as necessary

There is a great deal more to be done to fine tune, fill out, and finalize our budget and I will keep you apprised along the way.

As we gather together throughout the month of June to celebrate our students' achievements and our colleagues' years of service, I hope you will feel consoled, and even uplifted, that all your hard work has profound meaning and impact for the students of Foothill. May the end of the academic year find you reflecting not on what is being taken from us, but on what we and our students have given to each other.

Sincerely,

Judy

May 15, 2009 FHDA Update

We are providing the list of filled positions to be eliminated (PDF) now to give us all as much time as possible to work on effective transitions. It is with great regret that we propose eliminating these positions. As new information becomes available to us, we will update this list to let you know what steps we are taking to address this crisis. Please see the district's budget update Web site for answers to frequently asked questions.

May 5, 2009 Update from Scott Lay, President of the Community College League of California

Unfortunately, the news continues to get worse on the state budget front. Last week, the final April tax revenues were tallied, which found the state's revenues $1.8 billion below projections. This is on top of the $7.8 billion deficit projected by the Legislative Analyst's Office in March. If Propositions 1C, 1D and 1E don't pass, the deficit will be $15.4 billion, and could increase if unemployment continues to climb and revenues remain sluggish.

The Governor's May Revise is expected May 28, after which the Legislature is certain to revisit the 18-month budget adopted in February. Few insiders, however, expect quick action by the Legislature, with major corrective actions likely delayed into the summer.

April 17, 2009 State Budget Update

Great uncertainty continues to swirl around the California State Budget. I wanted to share two articles that ran this week in the San Francisco Chronicle, that help clarify the current budget situation. The first reports that California’s revenues are falling far short of projections estimated for the budget passed last February. This article outlines the wide disparity that is possible in the revenue that the state projected with its February budget, and what really may transpire from property and personal income taxes.

The second article I am including a link to is regarding Propositions 1A and 1B, which are on the ballot for the May 19 special election. These two initiatives are linked together, and this article does a good job of explaining their relationship, and potential impact on the state budget.

February 2, 2009 Budget News

The Foothill-De Anza Board of Trustees will hold a meeting on March 9 to act on any certificated layoffs or contract changes that require notification by March 15 pursuant to the Education Code. No faculty would lose employment during the 09-10 year. Assignment of additional duties to administrators would be effective July 1, 2009

While classified layoffs at Foothill can be avoided through December, 2009, we need to plan now for possible reductions effective January 1, 2010. We will continue to manage our vacancies to minimize the number of filled positions that would be affected. Updated program plans, data analysis, and dialogue will drive the choices for reduction. A calendar of key dates over the next ten months will be published on or about February 10.

One other concern I wanted to address will come as a small bit of good news to those of you who feared that some students would have to drop out if they received IOU's instead of cash for their Cal Grant. As of January 15, it was expected that Cal Grant payments to community colleges would be delayed until the state's cash-flow situation was resolved and the state could issue additional mid-year cash instruments. Vice Chancellor Dunn authorized February payments to our students in keeping with the System Office request to protect student enrollments and provide interim financing, as many districts were able to do during last fall's budget delay. The State ultimately forwarded payments to us for February through April, but May payments are in question.

I appreciate the many ideas and suggestions that have been offered and I welcome the opportunity to talk with you at your department/division/constituency meetings. Please contact Annette Stenger at 7200 if you would like to schedule some time. We will continue to use Town Halls, e-mails, Web updates, and face-to-face meetings to enhance communication and discussion.

Thank you so much for your patience and dedication during these difficult times. Together we will find solutions!

January 16, 2009 Budget News

Yesterday Governor Schwarzenegger chose not to put forth the usual outline for the coming year’s budget during his brief State of the State address. Instead, his twelve-minute speech focused solely on urging lawmakers to adopt a budget plan immediately to address the current fiscal crisis. There was no more information provided than what was in his Dec. 31 budget proposal.

For California’s community colleges the prospect of a mid-year cut is still likely, but the size of the cut will not be known until a budget plan to solve the fiscal crisis is approved. Using a range of possible cuts, our district leadership has estimated the impact of mid-year cuts and what it would translate to each college and central services. Based on this information, Foothill College has created contingency plans to address our share of the cuts, which you will find on this Web site as they become available. These plans address not only the impact of mid-year cuts, but also our own ongoing deficits at both the college and district level. When a state budget plan is approved, we will work quickly to share information and communicate its impact at the district and college level.