Shoreline Community College All-Campus Meeting October 30, 2009

National conversation "In today's global economy, innovation is critical. The emergence of challengers from rapidly developing economies such as India and China has transformed the playing field.“ James P. Andrew, Senior Partner Boston Consulting Group "A skilled, educated workforce is the most critical element of innovation success - and the hardest asset to acquire. Innovation requires capable and skilled people at every level—from the factory floor to the top floor.“ Emily Stover DeRocco, President, The Manufacturing Institute

National conversation  American Graduation Initiative $12 billion Increase CC grads 5 million by 2020  Gates/Lumina/AACC/ACCT accountability grant $1 million, eight pilot sites  Gates/NAM grant SCC one of four pilot projects

National conversation Workforce Pipeline Challenges Shrinking number of high school graduates Retiring workers Global competition Smaller, more mobile world

National conversation 88 million adults face at least one education barrier H.S. Diploma, No college No H.S. Diploma Speak English “Less Than Very Well” 26.4 M 56.3 M 5.2 M 8.2 M 5.0 M Source: Report on the National Commission on Adult Literacy, June, 2008 / U.S. Census Bureau

National conversation

Accreditation/Policy Governance  Core themes 1. Educational Attainment/Student Success 2. Program Excellence 3. Community Engagement 4. Access and Diversity 5. College Stewardship

Financial Outlook

Financial Review and Outlook  June 2009: WA revenue forecast projects $1.0B shortfall  SCC: ~$550,000  Reduction to system budget puts WA below threshold required for stimulus $  OFM pushes reduction to FY 2011, SBCTC and college’s protest  Exemption researched, none available

Financial Review and Outlook  September 2009: WA revenue forecast projects $1.2B shortfall, plus caseload impact = $1.8B  I-1033 (“Eyman Initiative”): potential additional impact (SCC portion: $986,593 in FY2011)  Federal stimulus spending threshold: impact not > $80M

Financial Review and Outlook  Potential range of SCC budget reduction in FY 2011 (without I- 1033: $1.35M (6%) to $2.7M (12%)  Potential range with I-1033 impact: $2.3M (10%) to $3.8M (16.8%)

Is SCC different?  5 consecutive years of budget cuts  Total cut since 2005: $5.5M (average of $1.1M per year)  51% ($2.8M) of the total reduction is non-systemic (only SCC)

“Can Someone Please Make Sense?” The Message  “The recession is over and economic activity has stopped declining”  “The risk to the outlook is still significant, but downside risks have diminished and are now balanced with upside risks” The Facts  Though the recession may be ending, recovery to peak output will be slow  Employment growth will lag the recovery, as will the peak in the unemployment rate  Job losses will continue through the end of the year and the unemployment rate will continue to rise through mid-2010

“Can Someone Please Make Sense?” The Message  “Recent data are showing signs of imminent turnaround in the Washington economy” The Facts  The September 2009 forecast for the biennium is $29.6 billion, which is $230.9 million less than expected in June. Twenty percent of the forecast reduction is the result.

What Can We Expect?  Larger budget cut (one year v. two)  Less number of “vacant” positions available to reduce  Diminished capacity to meet and support current FTE targets  Reorganize and Restructure

Reorganize and Restructure: How Should the College Think About This?  Anticipate within a wide range of budget reduction targets  Input from College Council, Budget and Strategic Planning Committees  Incorporate Budget Committee findings and recommendations

Reorganize and Restructure: How Should the College Think About This? 1. Define “Transparency” 2. Establish principles and guidelines (i.e., “criteria”) for reorganizing and financial planning 3. Create a timeline

Planning for the Future: FY 2011 and Beyond  To stay in front of the curve, plan months ahead  Balance the college’s revenue portfolio  Even after “recovery,” the CTC system in WA will look very different than it does today  Proactive v. Reactive

What Can We Do?  Meet student needs  Focus on the core themes  Strategic pursuit of resources Snap-On Amgen Solar center  Sustain, build community  Help define “transparency”