Town Hall Meeting June 10, 2009

1. 2008-2009/2009-2010 Budget Update Jeanine Hawk - Vice-President, Business & Administration Prepared In Collaboration with Fiscal Services Staff Town Hall Meeting June 10, 2009

2. May Revise Implications for 2008-09 Town Hall Meeting June 10, 2009 Unrestricted General Fund 2008-09 Property tax shortfall: -$803,250 2008-09 General apportionment shortfall: -$790,000 Good News (is there any??) Reduction is $1,593,250 Deficit Factor Budgeted is $1,420,257

3. May Revise Implications for 2008-09 Town Hall Meeting June 10, 2009 Restricted General Fund – Categoricals (-14.7%) Basic Skills: -$94,088 Cooperative Agencies Resources for Education (CARE): -$14,707 Counseling, Placement and Assessment (Matriculation-Credit -$211,033 Counseling, Placement and Assessment (Matriculation-Noncredit): -$6,955 Disabled Students Programs and Services: -$231,136 Extended Opportunities Programs and Services: -$206,316 Instructional Equipment: -$35,416 Part-time Faculty Compensation: -$146,992 Scheduled Maintenance: -$35,420 Reduction is $982,062

4. May Revise Implications for 2009-10 Town Hall Meeting June 10, 2009 Unrestricted General Fund 2009-10 General apportionment shortfall 2009-10 Physical education cut 2009-10 Property tax shortfall NO GROWTH Total Reduction is $5, 213,854 Deficit Factor Budgeted at Tentative is $1,433,108

5. May Revise Implications for 2009-10 Town Hall Meeting June 10, 2009 Restricted General Fund – Categorical Reduction-53% (was -58.8%) Basic Skills: -$333,102 Cooperative Agencies Resources for Education (CARE): -$52,066 Counseling, Placement and Assessment (Matriculation-Credit): -$747,126 Counseling, Placement and Assessment (Matriculation-Noncredit): -$24,624 Disabled Students Programs and Services: -$818,296 Extended Opportunities Programs and Services: -$730,425 Instructional Equipment: -$125,386 Part-time Faculty Compensation: -$520,399 Scheduled Maintenance: -$125,397 Total Reduction is $3,476,821

6. Possible Savings Towards a Balanced Budget: • Reduce Schedule to Funded FTES $ 2,025,839 • Virtual Hiring Freeze-24 Positions 826-1.7 mil • Reduce Contracts/Services Additional 5% 474,105 • Maximize Categorical 08-09 Carry-Over 160,000 • Unallocated Basic Skills 450-900,000 • Reduce Categorical Budgets by 30% 1,500,000 • Backfill IE and Scheduled Maintenance 350-700,000 • Total Potential Savings $5.8 – 8.3 mil. Town Hall Meeting June 10, 2009

7. So What’s the Big Picture?? Ongoing: Structural Deficit $ 3,048,787 State Reductions Physical Education 2,100,000 Categoricals (53.3%) 3,476,821 Total Ongoing Reductions Needed $ 8,625,608 AND One-Time: State Reductions Deficit Factor & Tax Shortfall $ 1,853,739 Categoricals (14.7%) 982,063 Total One-Time Reductions Needed $ 2,835,802 Town Hall Meeting June 10, 2009

8. Town Hall Meeting June 10, 2009

9. Fund Balance Actuals and Projected Town Hall Meeting June 10, 2009 8.31% 7.87% 5.14% 5.00% 1.57% .57%

10. Budget Objectives Adopted by the BOT – April, 2007 • Protect the College’s ongoing operation by maintaining a fund balance of 5% or more going forward from 2006/07. • Going forward from the 2007/08 budget establish benchmarks that will help guide budget decisions for the College. • Develop a budget plan that brings available ongoing revenues and expenditures into balance effective with the adoption budget for 2009/10. • Proposed New Objective: • Protect the College’s ongoing operation, including categorical programs, by maintaining a fund balance of 5% or more thru 2010/11. Town Hall Meeting June 10, 2009

11. Budget Principles Adopted by the BOT – April, 2007 • Maintain course offerings that are responsive to current student needs but are also fiscally sound based on established measurements such as: WSCH/FTEF. • Establish and maintain an acceptable cost effective level of learning resources and student support services based on comparative performance data as determined by the College. • Maintain employment for permanent personnel and avoid layoffs. • To the degree that they are the basis for revenue projections ensure that enrollment growth estimates are realistic and can be achieved within the fiscal limitations of the College. • Where possible and practicable, use staff attrition and/or existing vacancies as one means of reaching budget targets. • Expedite changes that may produce lower costs over time such as energy saving retrofits, alternative energy sources, reduction or consolidation of facility usage, etc. • Continue to seek external sources of funding, such as grants, to support the College’s core missions, but avoid those with matching, management, or reporting requirements that demand significant college resources. Town Hall Meeting June 10, 2009

12. Budget Principles Adopted by the BOT – April, 2007 – continued Establish priorities for Unrestricted General Fund support of activities or programs outside of the core mission of the College. Develop a budget process that manages the growth of expenditures based on: analysis of program need (rather than historical allocations); realistic expectations of revenues; updated market information; and performance measurements. In light of the current financial circumstance review ongoing and future planning initiatives in terms of their long term advantages to the College in meeting public demand for services, improving student success outcomes, or to provide new revenues. Modify, defer, or abandon as appropriate those for which the costs outweigh their potential for furthering the College’s core missions and goals. Make effective use of the College’s established planning structures and processes to recommend specific actions to reach the stated objectives, following the principles listed above. The College President shall clarify how these recommendations will be evaluated and the timelines necessary to arrive at a set of final recommendations for any particular budget cycle. Programs will not be eliminated or reduced without careful review. Benchmarks will be used as a guide to inform the decision-making process. Town Hall Meeting June 10, 2009

13. Next Steps: • Principles and Process • Department/Program Dialogue • budgetideas@smc.edu • Budget Committee & DPAC Recommend Ways to Reach Target • BOT Workshop June 23 • Begin to Implement Solutions – July 1 • Continue to Advocate with Legislators • Provide Quality Teaching, Learning and Program Services to over 21,000 FTES • Wait for the Final Budget – BOT Adopt August/September Town Hall Meeting June 10, 2009