South Seattle Community College All College Meeting December 1, 2010

South Seattle Community College Budget Update Budget Planning Accreditation Core Themes Strategic Planning  

Seattle Community College District FY2010-2011 State Budget Reductions Fiscal Year Began July 1, 2010 Budget Reduction of $46M or 6.5% in the community college system. (incl. 1% one-time compensation reduction) Approximately $4.7M reductions for Seattle Community College District. Reductions include $4M in general budget and $720K in compensation/salaries for SCCD.  

South Seattle Community College FY2010-2011 South’s Numbers 6.5% reduction for South General reduction of $1,133,898 Compensation reduction of $203,745 Total reduction of $1,337,643 After November 18, 2010 state revenue forecast anticipate an additional 4.6% cut from general fund for this year  

South Seattle Community College FY2010-2011 South’s Numbers Tuition increase 7% added $1,290,313 to budget (more aggressive allocation approach) College received additional $617,085 to cover higher cost of health benefits –now $850 per month per person  

South Seattle Community College FY2010-2011 NEW Worker Retraining Funding Increased funding of $744,469 for Worker Retraining for South Seattle Community College 170 additional WRT FTEs WRT funding may provide some flexibility in offsetting budget reductions WRT funding increase is only for 2010-11  

Source of Funds Operating Budget South Seattle Community College Sources of Funds Source of Funds Operating Budget State $20,655,128 Tuition $12,097,338 Cost Offset $1,945,822 Operating Budget $34,698,288

South Seattle Community College Sources of Funds 2010-11 FY 2007-08 FY State Allocation 59.53% 70.12% Tuition 34.86% 24.64% Cost Offset 5.61% 5.24% TOTAL: 100.00%

South Seattle Community College FY2010-2011 How Funds Are Allocated by Unit President’s Direct Reports 4.10% Instruction 70.35% Student Services 8.52% Administrative Services 17.03% Total: 100.00%  

Budget Strategies FY2010-2011   The Colleges and the District Office utilized a flat budget development model, as net reductions are projected to be minimal No reductions or very minimal reductions to the department budgets in FY2010-11

South Seattle Community College FY2010-2011 Significant budget changes for FY2010-11 Fund 3 new full-time faculty positions Fund one new security officer position Increase $78K in part-time faculty pool Increase Office Assistant Academic to 100% Reduce $200K in apprenticeship contracts Reallocate IT Manager position to IT Specialist Transferred positions to operating budget in Workforece Education due to WorkFirst and BFET programs budget reductions Reinstate Dean of B&TS to 100%  

Budget Was Balanced- Then!! Revenue forecasts didn’t hold Governor Required to Order Across-the Board Budget Cuts Triggered by Budget and Accounting Act Additional 6.3% Cut ordered for Current Fiscal Year for All Agencies (it is not over)  

Budget Information Additional Cuts Expected for Next Biennium, Which Begins July 1, 2011 What is the SSCC plan? Planning for a total reduction of 18% for current year and next biennium Estimated Reduction of $1.78 mil  

What Is the SSCC Plan? Formula is Simple: Need to Either Cut Costs or Increase Revenue College Could Use Reserves This Year to Cover Cut - not a Sound Fiscal Strategy! SSCC will do LESS with LESS The College/District is Planning for a 10% Cut  

Ways to Balance Budget Additional Revenue Use of Reserves Savings (reduce expenses) Efficiencies (consolidate departments) Cost Shifts (move expenses to fee budgets) Reductions (primarily positions)  

Fiscal Outlook FY2011-2013 Biennium 2011-13 Outlook Projected $5.7 billion deficit for Washington Additional 18% cut to Community and Technical College system (total of 35% since FY 09) The state’s capital budget outlook is also grim Expected enrollment changes may have peaked Tuition & fee impacts on students Pent-up demand for COLA’s  

Budget Considerations Cut goods and services, equipment, and travel - not a solution Voluntary separation incentives and buyouts Review low enrolled, high cost, low-wage, low demand programs Reduce enrollment targets Reduce services and hours of operations Consider semester system Consolidation of programs/departments Explore differential tuition for high-demand high-wage programs

Budget Considerations (cont.) Change mandatory waivers Increase fees Increase tuition for credits 11-18 Pursue more grants and contracts Transfer positions to sustainable local accounts No back-filling of positions vacated Limit sabbatical awards Utilize positions with benefits Increase minimum class requirement, cancel low enrolled sections

Budget Considerations (cont.) Centralize e-mail throughout the CTC system Do not charge state agencies the sales tax Require direct deposit for payroll Amend procurement requirements related to recycled paper and compostable supply Reduce provisos and earmarks Running Start Program Limit slots in high demand classes Eliminate priority enrollment advantages Charge all college fees

Budget Development Fiscal Responsibility Strategic Planning   SSCC budget process is based on: Fiscal Responsibility Strategic Planning South will follow well established Budget Development process!

Thank you!