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 400,000-500,000 jobs have been lost

every month since the crisis began• University of Chicago Medical Center cutting 450 jobs• Arizona State deploys mandatory stepped furloughs 10-

15 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 Weatherthe 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 toserve 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 constructingbuildings now? Can’t we use that money to carryus over?

ExcellentQuestion!

Somethingrotten in

Denmark?

Why are somepeople going totraining or onretreats and others not?

What about thoseexecutives? I haveread that somehighly compensatedpresidents have cuttheir own pay.

Uh-Oh

Volunteers won’t work. They are a

Pain in the Whoops

Why don’t weraise tuitionand fees?

Oh yeah, dude,let me fix

your problem.

What do we want to do?

Let’s Talk.