Budget Presentation September 2009

 Budget Facts  Major Budget Strategies  Process and Timelines  Vision  Institutional Priorities  Next steps  Q&A

 Historically about 95% of our total budget of covers personnel costs. Current estimate: 97%  Of this amount, approximately 70% is committed to permanent employees.

 Approximately 70% of our budget is already accounted for!  The bulk of our so-called “discretionary” costs are dedicated to the classroom to cover adjunct faculty costs, summer school, and basic operations.  Conclusion: we have no real discretionary costs.

 FY 2008/09 Operating Budget: $28.3M  FY 2009/10 Operating Budget: $25.1M ◦ Budget cut = $3.2M or 11.3%  Main Budget Balancing Strategies: ◦ Eliminate low-enrolled sections ($1M) ◦ Execute managed hiring ($1.5M) ◦ Use ending balance ($700K)

 Operating Budget 2008/09: $28.3M  Operating Budget 2009/10: $25.1M  Operating Budget (best guess) $22.3M Cumulative Budget Cut: $6M or 21.2%  The District is over its enrollment cap. There are no funds to add sections, and more reductions in sections may be necessary.

$28.3 M

$22.3M

Either become hyper-efficient (MPG) OR Accept the fact that we can no longer serve as many students ( change our ultimate destination).

We will need to do both

 Continued deterioration of state budget.  Basic Aid Status.  Federal Stimulus.  Board decision on KCSM.  Salary adjustments.  Retirement or separation incentives.  Accreditation requirements and/or other legal mandates.

 Eliminate low-enrolled courses (completed).  Execute the managed hiring process (completed).  Reduce administration by 2.0 FTE.  Offer certain programs or courses through Community Education.  Eliminate or reduce community partnership programs.  Eliminate or consolidate low-enrolled, high- cost programs.  Execute managed hiring round II if necessary.

 No “summer surprise”  Some budget strategies already approved by BPC.  Administration has developed preliminary recommendations.  Semester start – additional analysis  Use college shared governance structures.

Strategy Major Budget Strategies Action Items Specific Recommendations Execution Full implementation 2010/11

ActionConstituenciesWhen? Meet with constituency leadership to clarify process, roles, and responsibilities Academic Senate, AFT, CSEA, Associated Students 9/24 Final approval of Major Budget Strategies BPC College Council BPC - first reading complete 10/7 College Council meeting Contact all individuals impacted TBDASAP Identify and vet specific action items Academic Senate for 10+1 items. IPC and appropriate institutional planning committees including BPC for all other items. October and November 2009 Approve specific recommendations IPC College Council End of fall 2009 semester Accept or modify recommendations College PresidentEnd of fall 2009 semester Implement final recommendations Spring/summer 2010

Bankruptcy CSM = College of Sacramento

What is our vision?

 The college must remain a comprehensive institution but must also must reconnect with its primary identity.  Given limited resources for student support, the college must make significant changes in the manner in which student services are delivered.  Given the current economic climate as well as the significant improvement to college facilities, the college has a one-time opportunity to recapture a student population that it has lost over the last 20+ years.  It takes all of us: faculty, staff and administrators to provide an outstanding education to our community. The college will be staffed to reflect this basic value.

 CSM is an academic institution with a rich tradition.  CSM has the best transfer program in the Bay Area and one of the best in the state. CSM is the clear preference for transfer-bound students.  CSM has outstanding, relevant, cutting-edge CTE programs that lead to demonstrated high-wage, high-demand careers. Partnerships with businesses are paramount for financial support, curriculum guidance, and job placement.  CSM’s developmental educational program is designed based upon best practices. Students leave our developmental education program well- prepared to succeed in other college courses.  Every individual at CSM has an unparalleled commitment to student success. We meet students where they are at, and take them to where they need to go. However, we hold all students to high expectations.  CSM is recognized for its innovative practices and its willingness to take calculated risks.

It is no use saying “We are doing our best.” You have got to succeed in doing what is necessary. ---Winston Churchill

 Student Success  Academic Excellence  Relevant, High-Quality Programs and Services  Integrated Planning, Fiscal Stability, and the Efficient Use of Resources  Institutional Dialog

Q&A