North Seattle Community College

1. North Seattle Community College All College Meeting May 6, 2009

2. Today’s Agenda • Opening Remarks-Ron LaFayette • Swine Flu Preparedness-David B. • Budget Update FY 08-09-Alan W. • Budget Update 09-11 Biennium-Alan • Drawing for 2010 Pontiac • Other Funding Sources- Mary Ellen • Final Comments- Ron LaFayette • Questions?

3. North Seattle Community College FY 2008-2009 Budget Update by W. May 6, 2009

4. Where Does Funding Come From?

5. Source of Funds-Operating Budget

6. How is Money Spent? • Salaries & Benefits 84.50% • Goods & Services 12.1% • Personal/Client Services 2.2% • Computer Equipment .5% • Other Equipment .4% • Travel .3% • Quiz!

7. Budgets by Macro Unit • Instruction 68.10% • Administrative Services 18.97% • Student Services 8.81% • President’s Area 4.05% • Incl. HR, PIO, Ed. Fund, Inst. Effectiveness

8. Budget Reduction FY 08-09 • Governor Ordered 4.3% Budget Cut • North’s Cut $780,984 • College used Mostly “one time” dollars; also • Travel • Equipment • Goods & Services • Lapsed Salaries • No Permanent Staff Reductions • 09-11 Biennium is a Different Story . . .

9. State Budget Facts • State Revenue Shortfall Est. $9bil • Legislature Cut from 09-11 Budget $4bil • Difference $5bil • Stimulus Funds • Rainy Day Reserves • Borrowing from other Funds • Underfunding Mandates • Expect more cuts over next 4 yrs. • No movement on income tax or sales tax increase

10. How Did We Get Here? • Long Story with Lots of Blame to go Around • 25 People to Blame- Time Magazine

11. North’s Budget Situation • NSCC has been in Budget Reduction Mode Since FY2000-01 • Overspent Budget that Year-Borrowed $ • Took Several Years to “Balance” Budget • Lost 312 FTE and $1.2 mil Over Last Two Fiscal Years; Due to Low Enrollments • This is North’s 3rd “big” Budget Cut

12. NSCC’s Reduction for 09-11 • NSCC Cut 10.7% or $1,514,796 • Tuition will Increase 7% each Year • Tuition Increase Mitigates Cut • Cut Includes the 4.3% for FY 08-09 • Previously Mentioned $780,984

13. NSCC’s Reduction for 09-11 • District will Budget 5% of the Authorized 7% Tuition Increase • Tuition Waivers $3.2 mil in FY 07-08 • Why is this important? • Typical Student Pays $75.80 per Credit • ABE Students $25 per qtr. Parent Ed. $11 per Credit

14. Unknowns That Will Impact Budget • Furloughs Being Bargained with Unions • Each Furlough Day saves North $56,363 • Every Furlough Day Saves 1 job • Incentive Separations- Currently an Offer to Only Exempt Staff • National, State, Local Economy • Mid-year Budget Cuts?

15. What Are Cuts for 09-11 Biennium? • Personnel Reductions Combination of • Vacancies • Retirements • Shift of positions to non-state funds • Staff reductions • Next . . . Reductions by Macro Unit

16. President’s Area • President • Human Resources • Public Information Officer • Ed Fund • Institutional Effectiveness

17. Instruction

18. Student Services • Registration • Financial Aid • Admissions • Advising • Records

19. Administrative Services • Business Office • Cashiers • Facilities • Information Technology Services • Security

20. Other Savings • 5 Furlough Days @ $56,363 per day • All FT Job Categories • Saves $281,815

21. Other Sources of Revenue • NSF Grant • Workforce Development Council • Other

22. Other Information • Financial Report for FY 07-08 to be Released • Executive Team Voluntarily Taking 5 Furlough Days