BUTTE COLLEGE BUDGET FORUM

February 14, 2012

AGENDA

Introduction – Kenneth Bearden Whopping Big Change – Kim Perry Planning Initiatives – Les Jauron Budget Overview – Andy Suleski 2012/2013 Scheduling – Samia

Yaqub Enrollment Management – Clinton

Slaughter Student Success Act of 2012 – Al

Renville

THE CASE FOR CONTINUED WHOPPING BIG CHANGE

THE CASE FOR CHANGE

TOP ISSUESThe Fiscal Crisis: State Support, Tuition Increases, Education Protection Act (Nov. 2012)Student Access & Success: Enrollment Capacity, CalWORKS, Financial Aid Reform Educational Improvement: Student Success Task Force Report, College Readiness, AA/S-T DegreesAccountability: ARCC/Scorecard, Completion Agenda, Graduation Initiative

Know thyself - data and evidence as basis for change.Be willing to adapt rapidly – tradition is our enemy.Take reasonable risk & expect some failure. Eliminate what can’t be done well enough.Be genius – borrow generously.Reward success and champions of success.Make this work fun - We work to live, not live to work.Don’t have too many tenets.

TENETS OF EMBRACING CHANGE

PLANNING INITIATIVESRefined the Planning, Budgeting and Assessment process.Automating the Unit Planning Process for use next year.Focus of planning effort:

2011-2012: Conduct planning for off-campus programming, submit Accreditation Mid-term Report

2012-2013: Complete the Strategic Plan, begin developing a new Educational Master Plan, organize Accreditation Self-study

2013-2014: Complete the new Educational Master Plan, complete supporting plans (Technologies, Facilities, Human Resources, Student Equity), write Accreditation Self-study

2014-2015: Finalize Accreditation Self-study, undergo Accreditation Site Visit

BUTTE COLLEGEPLANNING, BUDGETING, AND ASSESSMENT (PBA) PROCESS

8. Final Budget Approval

Jan

Feb

Mar

Apr

May

JunJul

Aug

Sep

Oct

Nov

Dec

7. Budget Development

4. Strategic Direction Refinement

Process ensures that budget decisions are driven by planning

and that planning is based on assessment

2. Unit Planning

1. Process Review and Refinement

3. Faculty Hiring

5. Prioritizing

Unit Planning Guidance provides general criteria for prioritizing resource requests

Unit Plans must be aligned with Mission, Values, Strategic Direction, Program Review, and Student Learning Outcomes

Key inputs include institutional data, review of previous Strategic Direction Program Reviews, and Student Learning Outcomes

Approved: November, 2011

Items considered must be in a Unit Plan. These are then prioritized based on general priorities established in Unit Planning Guidance, Strategic Direction, Program Reviews, Student Learning Outcomes

6. Communicate Prioritization Results to Departments The Board updates its Budget Criteria annually

and reviews student success data at its winter and summer retreats

ENVIRONMENTAL SCAN

Provides internal and external factors that must be considered during planning.In Strengths, Weaknesses, Opportunities, Threats (SWOT) format.Based on college environmental scan but only includes budget-related items.Complete SWOT may be found on PBA planning page at

http://www.butte.edu/pba/planning.html

STRENGTHS

Strong and stable Board of Trustees. Alignment with Chico State.Grants to improve and expand programs and services.Increasing efficiency.Ability to leverage information technology.Fiscal stability relative to other colleges. Flexible economic development programs. Improved performance as reflected in ARCC and CCSSE. Proven ability to successfully scale CTE programs.Outstanding support to help students stay in school.

WEAKNESSES

Structural ongoing deficit of $1.2 million.Significant state-mandated budget reductions. State funding has resulted in a reduced schedule. Perceived access and political issues in Glenn County and Oroville/South Butte County. Perception of inadequate support for outlying centers.Impacted Career and Technical Education programs.

OPPORTUNITIES

Approximately 40% of 18-24 year old students come from outside the service area.National and state completion agendas. Increasing number of Hispanics, Asians, African Americans, Native Americans, and veterans in our service area. Potentially high growth rates in Oroville, south Butte County and Glenn County. Ability to leverage alignment with Chico State.Increasing number of transfers to in-state private and out-of-state institutions.

THREATS

State fiscal instability - $2.6 million reduction if initiative fails.Unfunded FTES. Service area demographics. Distance-learning from competitors. Centers in Red Bluff and Yuba College. Competition for students from private and out of state institutions.Financial challenges at CSU, Chico and other four year universities. Focus on the core (Transfer, CTE, Basic Skills) has limited community education offerings.Student fee increases from $26 to $46 per unit in one year.

STATE CHALLENGES

Unfunded PensionsUnfunded Retiree MedicalWall of Debt/DeferralsUnpaid MandatesUnpaid Bond DebtUnderfunded Prop. 98Navigating the Budget ProcessForecasting Revenue

STATE CHALLENGES

“THERE CAN BE NO HOPE WITHOUT FEAR…

…and no fear without hope.”

Baruch Spinoza

2011-12 MID-YEAR CUTS?

Overly Optimistic Revenues trigger mid-year reductions$102 million more cut to community colleges

$30 million one-time deficit$72 million ongoing workload reduction

$1 million Impact to Butte CollegeAlready included in 2011-12 budgetNo action required

ANOTHER HURDLE2011-12 DEFICIT FACTOR

Trigger 1 Enrollment Fee Shortfall - $30 MUnderestimated BOG Fee Waivers - $106 MProperty Tax Shortfall - $40 M$179 million cut to Community CollegesImpact to Butte College Reserves - $1.7 million

GOVERNOR’S 2012-13 P.B.

PROPOSED BUDGET

or PANDORA’S

BOX

GOVERNOR’S 2012-13 P.B.(PROPOSED BUDGET)

$9.2 Billion Budget DeficitClose deficit with deep program cuts and temporary revenue increaseNo reductions to community collegesNo new program revenue for CCs$218 million to buy back deferralsCategorical Flexibility Annual “funding increases” beginning 2013/14

In-Home Support Service

Cuts

Cal Grants Cuts

State Mandate

Cuts Cal Works Cuts

Medi-Cal Cuts

November Tax

Initiative

P.B.

The Evils and Hope Within the Box

AUTOMATIC BUDGET TRIGGERS

Automatic reductions should the November ballot fail ($5.4 billion)Public Safety ($200 million)Trigger cuts to education ($5.2 billion)

K-12 ($4.3 billion)Community colleges ($500 million)UC and CSU ($400 million)

UC and CSU

$400M

Courts & DOJ

$126M

Forestry and Fire $15 million

Fish & Game and

Parks $5.5M

Mid-Year Trigger

Cuts $5.4 billion

Prop. 98 $4.837B

(CCs share =

$482 million)

2012-13 WORST CASE

No offset to apportionment deferrals ($218 million)Additional cut of $264 millionFor Butte College:

$2.637 million cut$1 million fixed costsReplace faculty from lost grant funding - $600K

EARLY IN THE BUDGET PROCESS

A lot WILL CHANGE by MayCannot get too alarmed by what might happenMust continue to plan strategically Despite not knowing what might happen

Make decisions that make positive changes in our student’s livesPlan for the worst and hope for the best

BY THE NUMBERS

Unrestricted Revenue $56.9MTransfer In (Retiree Fund) .5M Total Revenue $57.4MUnrestricted Expenses $57.0MS/C/L Salary Increases .5MMedical Premium Increases .5MReplace Grant Funded FON .6M Total Expenditures

$58.6MStructural Budget Gap

$1.2M

ACTIONS TAKEN

Layoffs and Staff ReductionsSchedule ReductionsManaging the FONInvestment in SolarInvestment in Non-resident StudentsUse of ReservesUse of Retiree Medical Benefit Fund

CLOSING THE BUDGET GAP

No New Revenue in 2012-13Cuts to Close $1.2 million Structural GAPReserves to Cover Deficit FactorReserves to Cover $2.6 million Mid-yr CutsDistrict Reserves:

$14.9 millionLess $1.7 million 2011-12 deficitLess $2.6 million 2012-13 mid-year cutsPossible Ending Reserve =< $10.6 million

2008-09 2009-10 2010-11 2011-12 2012-130

2000000400000060000008000000

100000001200000014000000160000001800000020000000

$18.6

$15.5 $16.2$14.9

RESERVES

2008-09 2009-10 2010-11 2011-12 2012-130

2000000400000060000008000000

100000001200000014000000160000001800000020000000

$18.6

$15.5 $16.2

$13.2

RESERVES

2008-09 2009-10 2010-11 2011-12 2012-130

2000000400000060000008000000

100000001200000014000000160000001800000020000000

$18.6

$15.5 $16.2

$13.2

$10.5

RESERVES

HOW DO WE COMPARE?

Many districts have drastically reduced or eliminated summer sessionSome districts have begun to eliminate some athletic and instructional programsReserves at dangerously low levelsResorting to costly borrowingSmaller districts looking to form consortiums to help provide servicesNo one-year exemption for small districts

MAINTAIN HOPE

Strive to be resourceful, patient and understandingThrough Doubt and Uncertainty, anything is possible

THE 2012-2013 SCHEDULE

Goal: A schedule that is 300 FTES smaller than this year’s schedule.We did it:

Fall/Summer 2012 will have approximately 328 fewer FTES:• 99 fewer sections, approx. 247 FTES• TRABAJO ESL courses: 81 FTES

Spring 2013 will stay the same size.

CRITERIAMaintain diversity of course offerings throughout the day and evening. Protect basic skills progression in Math and English.  Protect courses that meet AA-T/AS-T degrees.Balance GE offerings to meet student need.  Reduce physical education and fine arts courses with repeatability factors to more closely match the needs of degree-seeking students.Reduce nursing courses to reflect the smaller cohorts.Limit the number and frequency of electives offered for degree and certificate programs.Maintain offerings in Glenn County.Maintain summer-bridge type programs.Maintain a ratio of basic skills, career tech, and transfer courses that is similar to the present.

WHAT’S BEEN CUT?

Lowest level basic skills and ESLForeign language conversation Studio art and musicPE activity NursingAg leadershipSome GE courses in areas D and E and US History/American Ideals

ENROLLMENT AT P-1

Credit Noncredit Enhanced Noncredit TotalsCap $ 45,116,637.00$ 2,913,196.00$ 95,119.00$ 48,124,952.00$ Cap FTES 9883.53 1061.29 29.43 N/ALate Summer 2011 474.53 7.74 5.93 N/AFall 2011 5060.91 322.65 29.57 N/ASpring 2012 (Includes Winter '12) 4924.66 558.08 40.00 N/AEarly Summer 2012 159.68 22.94 0.22 N/AFLEX FTES 84.79 59.77 0.00 N/AFTES Total (Estimated) 10704.57 971.18 75.72 N/ATotal FTES - Cap(+unfunded/-underfunded) 821.04 -90.11 46.29 N/ATotal $ value of Apportionment Claim 48,864,542.27$ 2,665,848.12$ 244,732.16$ 51,775,122.55$ $ Value in Excess of Cap 3,747,905.27$ (247,347.88)$ 149,613.16$ 3,650,170.55$ % over/under cap 8.31% -8.49% 157.29% 7.58%

2010-2011 Cap = $51,312,9622011-2012 Workload Reduction Scenario A = -$3,188,0102011-2012 Cap = $48,124,952

SPRING FTES

1-Nov 15-Nov 1-Dec 15-Dec 1-Jan 15-Jan 1-Feb Census0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

5500

6000

SP'11SP'12

Tota

l FTESfo

r th

e T

erm

ENROLLMENT TODAY

Credit Noncredit Enhanced Noncredit TotalsCap $ 45,116,637.00$ 2,913,196.00$ 95,119.00$ 48,124,952.00$ Cap FTES 9883.53 1061.29 29.43 N/ALate Summer 2011 474.53 7.74 5.93 N/AFall 2011 5060.91 322.65 29.57 N/ASpring 2012 (Includes Winter '12) 4662.90 695.33 40.00 N/AEarly Summer 2012 159.68 22.94 0.22 N/AFLEX FTES 84.79 59.77 0.00 N/AFTES Total (Estimated) 10442.81 1108.43 75.72 N/ATotal FTES - Cap(+unfunded/-underfunded) 559.28 47.14 46.29 N/ATotal $ value of Apportionment Claim 47,669,652.37$ 3,042,593.57$ 244,732.16$ 50,956,978.11$ $ Value in Excess of Cap 2,553,015.37$ 129,397.57$ 149,613.16$ 2,832,026.11$ % over/under cap 5.66% 4.44% 157.29% 5.88%

2010-2011 Cap = $51,312,9622011-2012 Workload Reduction Scenario A = -$3,188,0102011-2012 Cap = $48,124,952

STUDENT SUCCESS ACT OF 2012

A Bit of History

PROPOSED SWEEPING REFORMS ARE CHARACTERIZED BY 4 THEMES

1. Rationing access will be the norm.

2. Community Colleges can no longer be all things to all people.

3. Students need to be held accountable for their lack of progress or success.

4. Professional students will no longer be tolerated.

SUMMARY OF KEY ELEMENTS IN PROPOSED BILL LANGUAGE

Alignment of high school and community college courses.Condense/compress basic skills courses.Re-prioritizing registration – (continuing/new) provide higher priority for students with declared majors or doing above average work – deprioritize high unit low achieving students.Common statewide assessment tests.Early declaration of goals – first semester education plan.Creation of student service transcript to track progress toward goals.On-line degree audit.

KEY ELEMENTS CONTINUED

Required comprehensive orientation.1st year experience classes required.Streamline class schedule to better fit student needs.Allow remedial students to start classes first semester.Provide adequate professional development for teachersOn-line advising.Mandatory sit out time for first time disqualified students showing no progress towards goals.Mandatory assessment and placement for all classes.Focus on completion of degrees, certificates, and transfer.Reinforces need to harness new technologies to assist in delivering support services.Institutional scorecard.

Delineates the student’s and the institution’s responsibility for the purpose of achieving the student’s educational goals and completing the student’s program of study.Defines role of BOG in developing policies for requiring student participation in activities and appeals processes.Places conditions on eligibility for BOG Fee Waiver. Students must:

Identify a goalMeet academic and progress standardsA maximum unit cap

THESE KEY ELEMENTS WILL BE PHASED IN OVER A REASONABLE PERIOD OF TIME AS DETERMINED BY THE BOG.

KEY ELEMENTS CONTINUED

AND AFTER ALL OF THAT…….. DARE TO BE

AUDACIOUS