1. South Seattle
Community College
All College Meeting
December 1, 2010

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

3. Seattle Community College DistrictFY
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.

4. 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

5. 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

6. South Seattle Community CollegeFY
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

7. 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

8. South Seattle Community College Sources of FundsFY FY
State Allocation
59.53%
70.12%
Tuition
34.86%
24.64%
Cost Offset
5.61%
5.24%
TOTAL:
100.00%

9. South Seattle Community CollegeFY
How Funds Are Allocated by Unit
President’s Direct Reports %
Instruction %
Student Services %
Administrative Services %
Total: %

10. Budget Strategies FY
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 FY

11. South Seattle Community College FY2010-2011
Significant budget changes for FY
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%

12. 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)

13. 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

14. 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

15. 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)

16. 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

17. 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

18. 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

19. Budget Considerations (cont.)
Centralize 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

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

21. Thank you!