2016 BUDGET PALAVER: Presidency gives fresh conditions for assent
2009 Economic Conditions and Budget College Community Discussion.
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Transcript of 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)
What about thoseexecutives? I haveread that somehighly compensatedpresidents have cuttheir own pay.
Uh-Oh