Shoreline Community College All-Campus Meeting February 20, 2009

General Assumptions  Expected to meet current FTE targets  Anticipate reduction between $2.45 and $3.25 million (10%-15% of base)  Implement layoff / $2.45M level  President to speak with Classified and Faculty unions regarding the level at which communication will occur

Status of Current-Year Budget Reductions  $1.27 million $707,000 : Vacant positions, not filled $197,000 : Position Savings and Transfers $370,000 : Goods & Services / Travel / Hourly

Status of Current-Year Budget Reductions  State of WA Budget Actions First 2009 Supplemental Budget  SCC targeted reduction: $1.01 million ESSB 5460: “Belt-tightening” bill  Hiring freeze  Personal services contracts freeze  Out-of-state Travel and Training freeze  Equipment purchase freeze  Exemptions through OFM via SBCTC

Shoreline’s Budgeting Process  SBCTC established FY 2010 budget reduction target: 5%-20%  PSET-Budget Committee jointly established “Points of Consideration” document  SET identified potential reductions, submitted FY 2010 budget draft (Jan. 16, 2009)  Budget draft further modified and adjusted by PSET, emphasized 10%-15% range

Shoreline’s Budgeting Process  Methods, Tools, and Consultations: Points of Consideration document Anonymous comments from staff, faculty and students collected from December 2008 – February 2009 Discussions with Faculty and Classified unions Communications with SBCTC Joint meetings with Budget-Strategic Planning Committees 2008 Student Body Survey

Revenue for Fiscal Year in millions State appropriation$ % Tuition12.631% Local and miscellaneous*3.69% $ % *Course fees, indirect cost recovery, interest income, etc.

Salaries and Wages: Historic Trends and Projected Impact of Budget Reductions

Shoreline Community College Trends in Salaries and Wages, 2005–08 Fiscal Year (July through June), in millions 2005– – –08 Administrative exempt$ 4.920%$ 4.117%$ 3.816% Faculty13.956%14.058%13.958% Classified6.024%6.025%6.427% $ %$ %$ %

Shoreline Community College Trends in Salaries and Wages, 2005–09 Fiscal Year (July through June), in millions 2005– – – –09 Budget, as Adopted Administrative exempt$ 4.920%$ 4.117%$ 3.816%$ 4.015% Faculty13.956%14.058%13.958%14.957% Classified6.024%6.025%6.427%7.228% $ %$ %$ %$ %

Shoreline Community College Effect of Budget Reductions Fiscal Year 2008–09 (July through June), in millions Budget, as AdoptedReductions at 10%Reductions at 15% Administrative exempt$ %($0.24 ) $ %( $0.35) $ % Faculty %( 1.06 ) %( 1.34) % Classified7.1828%( 0.32 ) %( 0.54) % $ %($1.62 ) $ %( $2.23) $ %

Impact of Personnel Reductions

Personnel 10% and 15% TotalAdmin Exempt FT Faculty 15%42** of 33 10%, 13 of 33 positions are currently vacant 16 of 42 15%, 16 of 42 positions are currently vacant

Distribution of Personnel Reductions (%) TotalAdmin Exempt FT Faculty 10% % of positions reduced 15% % of positions reduced 12%45%43%

Distribution of Reductions by Total Personnel (%) TotalAdmin Exempt FT FacultyClassified Personnel* 10% % of Total Personnel 15% % of Total Personnel 9%13%11% *Position numbers include all FT and/or permanent appointments, regardless of funding source

Where do we go from here?  President continues discussions with Faculty and Classified unions  President to meet with affected personnel first week of March  March 6 th All-Campus Meeting  Budget development process continues (Revenue, Other expenditures, etc.)  Prepare for continued impacts into and throughout next year