From: BC All On Behalf Of Sandra Serrano
Sent: Wednesday, July 29, 2009 4:30 PM
To:
Subject: 2009-10 Budget Status
For the last year we have all listened with deep concern to the workings of Sacramento ’s budget process. The latest news from the state capitol remains dreadful, and it will result in a 9% reduction to the fiscal year 2009-10 KCCD budget. The most severe allocation cut was to categorical programs, which were cut overall by 40.6 %. We will offset some of these reductions with KCCD reserve contributions; but, regrettably, the magnitude of the mandated reductions to categorical programs will require that we eliminate job positions throughout our district.
We want employees to know where we are with the tentative budget and the disproportionate cut to categorical programs. As we prepare the final budget, we are now looking at layoffs to categorical programs that will impact general fund positions based on seniority.
You should also know that we are moving through our planning process, which includes hiring new faculty to maintain our educational programs and comply with the 50% Law. As we face the challenges and opportunities of fiscal year 2009-2010, o ur commitment to you is that we will do all we can to limit the impact of the state budget reductions on our students, community, and employees.
What is the state’s budget cut impact on KCCD’s budget?
According to state projections, our district can expect a $10.5 million cut in the 2009-10 state revenues. This is the equivalent to closing the doors of our entire district for one month. We had expected those cuts to be spread across all budget lines, and we began by asking you to help us reduce our budget through deferrals and reductions of expenditures. Now, because the state is drastically reducing categorical program funding—budgets of specially-funded programs like Extended Opportunity Program Services (EOPS), Disabled Student Programs and Services (DSPS), Basic Skills, and Matriculation will be reorganized and scaled down.
Why not completely eliminate a few categorical programs instead of cutting them all?
Eliminating some categorical programs is not an option. Some services for the disabled, such as providing sign language interpreters for deaf and hard-of-hearing students, are required by state and federal law. To make large reductions in a small budget area, therefore, will require restructuring categorical programs to offer services required by law, consolidating work responsibilities, and eliminating job positions. The impact will be felt across the district because bumping rights will be in force for employees whose positions are reduced or eliminated.
The impact will also be felt in the way KCCD complies with the 50% Law—the state law that requires us to spend a minimum of 50% of our budget to directly support classroom instruction. Because of reduced instructional costs combined with the effect of reserve contributions to transition categorical programs to lower state budget levels, KCCD’s 2009-10 tentative budget is out of compliance with the 50% Law. The 50% Law compliance test on the tentative budget yielded 46.7%; however, Bakersfield College is correcting coding errors that are expected to improve compliance and each college was authorized to hire one full-time temporary faculty for the 2009-10 academic year.
Why not use the district reserves to fill in budget gaps?
Our reserves cannot sustain protecting such large ongoing cuts from Sacramento over several years. Up to this point, through a combination of careful planning and operational efficiencies, we have avoided the drastic measures taken by some community colleges. We anticipate continued funding declines for three years--through the 2011-12 fiscal year. The fiscal year 2010-11 is expected to be worse than this budget year, and 2011-12 is expected to be the worst budget year of the three. There will come a point when we cannot cut personnel and continue to educate our community with general education, basic skills and career technical training—our core mission. At that time, we will need our reserves to preserve our core mission and the employees essential to providing education.
When will district budget cuts take effect?
There is potential for some one-time monies from the federal stimulus plan being infused in California Community Colleges, and this may help us briefly put off--but not avoid--position eliminations. The earliest position eliminations may take place as soon as mid-November, but we hope to delay implementation of job cuts until as late as January 2010.
Sacramento budget analysts tell us that community colleges will see themselves returned to the low funding levels of the 2006-07 budget year. As a result, KCCD will educate as many as 3,700 fewer students, offer fewer services, and employ fewer people. Moreover, we expect a mid-year round of funding cuts from Sacramento that will require us to further reduce our budget in spring 2010 and again in the 2010-11 school year.
The coming months.
We are preparing our final budget to present to the KCCD trustees in September. Our budget planning includes identifying affected positions to be reduced and presented to KCCD trustees at the September board meeting. Human Resources will be working on the impact of an expected reduction to our classified workforce, including classified management. Meanwhile, as colleges prepare for mid-year and ongoing state budget cuts, college presidents will provide preliminary lists of educational administrators and faculty who may receive March 15 notices of possible change in or elimination of assignment. The college presidents will seek your assistance in developing careful plans with a long-term focus.
This budget news, especially the uncertainty of the impact on our workforce, is very difficult for all of us. Thank you for your continued support and encouragement of one another as we work through this time together.
