2009 Economic Conditions and Budget College Community Discussion

Read All About It! GM cutting 10,000 jobs The economy lost 598,000 jobs in January An average of 400, ,000 jobs have been lost every month since the crisis began University of Chicago Medical Center cutting 450 jobs Arizona State deploys mandatory stepped furloughs days Yale $100,000,000 under budget due to endowment reductions UNM asks for voluntary furloughs State of NM faces revenue shortfalls up to $800,000 Unemployment continues to rise from 7.2% to 7.6% in January alone

What about SFCC? Early in January we were told to expect a $1.2 million decrease in formula revenues next year Mid-January we found that property taxes were coming in 2.5 % lower, indicating a potential $300,000 shortfall in revenues A plan was put into place to maintain a 14% fund balance to cover half of the short fall. The other half would require a reduction in operating expenditures. This would require us to reduce our $27,429,210 budget by $600,000 Our goal is to never let fund balance go below 10%

The Big Hit Friday the Governor announced further cuts in the current year –$253,600 in General Revenue –$2,300 in Nurse Expansion –$600 in Sign Language Services

This along with the property tax decline will put our fund balance at 11.91% if we do nothing else If we close with this balance, we will have to cut the budget next year by $730,000 If we don’t, our fund balance will fall to 7%

This is not just a budget crisis Keep focused on accomplishing our mission – Now more than ever! This is a People Crisis on a National Scale What are we going to do about it?

How to Weather the Storm Keep jobs safe! Cut the Fat Volunteer to save to give to help We can continue to serve our students when the country needs us to serve them the most

What are we currently doing to save? We have initiated a soft hiring freeze We have frozen equipment expenditures We are only moving forward on essential facility expenditures We have frozen travel We have combed the budget for cuts We have implemented energy use reduction projects

Next Steps - Immediate Continue Soft Freeze of Positions – Possible Hard Freeze in Fiscal Year 10/11 Minimize Temporary Position Usage –Justification will be required to keep temporary positions Each Department should review for those employees who may want to reduce hours Minimize consulting contracts –All contracts will be reviewed and justified –All contracts must be submitted for approval before services begin – this has always been the rule. It will now be strictly enforced. We can use blanket approvals for contracted instructors and other such expenditures.

Options and Ideas Voluntary Spending Reduction – Team Approach Mandatory Spending Reduction Voluntary – Days Off without Pay Mandatory – Days Off without Pay Retirement Packages Summer Off Packages 4/10 Hour Work Weeks Partial Facility Closures Salary Cuts and Lay-Offs (as last resorts)

Let’s Talk Questions coming from the trenches Introducing Joe the Student

Why are we constructing buildings now? Can’t we use that money to carry us over? Excellent Question!

Something rotten in Denmark? Why are some people going to training or on retreats and others not?

What about those executives? I have read that some highly compensated presidents have cut their own pay. Uh- Oh

Volunteers won’t work. They are a Pain in the Whoops

Why don’t we raise tuition and fees? Oh yeah, dude, let me fix your problem.

What do we want to do? Let’s Talk.