Budget PresentationSeptember 2009

Budget Facts Major Budget Strategies Process and Timelines Vision Institutional Priorities Next steps Q&A

Outline

67%

20%

7%1%5%

FacultyClassifiedAdminSuppliesOther

CSM Budget FactsHow do we spend our funds?

Historically about 95% of our total budget of covers personnel costs. Current estimate: 97%

Of this amount, approximately 70% is committed to permanent employees.

CSM Budget FactsFixed vs. Discretionary Costs

Approximately 70% of our budget is already accounted for!

The bulk of our so-called “discretionary” costs are dedicated to the classroom to cover adjunct faculty costs, summer school, and basic operations.

Conclusion: we have no real discretionary costs.

CSM Budget Facts

FY 2008/09 Operating Budget: $28.3M FY 2009/10 Operating Budget: $25.1M

◦ Budget cut = $3.2M or 11.3% Main Budget Balancing Strategies:

◦ Eliminate low-enrolled sections ($1M)◦ Execute managed hiring ($1.5M)◦ Use ending balance ($700K)

Budget Facts:Fiscal Year 2009/10

Operating Budget 2008/09: $28.3M Operating Budget 2009/10: $25.1M Operating Budget (best guess) $22.3M

Cumulative Budget Cut: $6M or 21.2% The District is over its enrollment cap.

There are no funds to add sections, and more reductions in sections may be necessary.

Budget FactsFiscal Year 2010/11

Major Budget Strategies:The Dilemma

$28.3M

Major Budget Strategies:The Dilemma

$22.3M

Major Budget StrategiesHow will we survive?

Either become hyper-efficient (MPG)

OR

Accept the fact that we can no longer serve as many students ( change our ultimate destination).

We will need to do both

Continued deterioration of state budget. Basic Aid Status. Federal Stimulus. Board decision on KCSM. Salary adjustments. Retirement or separation incentives. Accreditation requirements and/or other

legal mandates.

Major Budget Strategies:Factors beyond our control

Eliminate low-enrolled courses (completed). Execute the managed hiring process

(completed). Reduce administration by 2.0 FTE. Offer certain programs or courses through

Community Education. Eliminate or reduce community partnership

programs. Eliminate or consolidate low-enrolled, high-cost

programs. Execute managed hiring round II if necessary.

Major Budget Strategies:The Plan

No “summer surprise” Some budget strategies already approved

by BPC. Administration has developed preliminary

recommendations. Semester start – additional analysis Use college shared governance structures.

Process and Timelines

Strategy•Major Budget Strategies

Action Items•Specific Recommendations

Execution

•Full implementation 2010/11Process and Timelines

Action Constituencies When?Meet with constituency leadership to clarify process, roles, and responsibilities

Academic Senate, AFT, CSEA, Associated Students

9/24

Final approval of Major Budget Strategies

BPC College Council

BPC - first reading complete10/7 College Council meeting

Contact all individuals impacted

TBD ASAP

Identify and vet specific action items

Academic Senate for 10+1 items.IPC and appropriate institutional planning committees including BPC for all other items.

October and November 2009

Approve specific recommendations

IPCCollege Council

End of fall 2009 semester

Accept or modify recommendations

College President End of fall 2009 semester

Implement final recommendations

Spring/summer 2010

Process and Timelines

CSM Committee Structure

Major Budget Strategies:If we fail to act

Bankruptcy CSM = College of Sacramento

What is our vision?

“Warnecke 2.0” = “CSM 2.0”

The college must remain a comprehensive institution but must also must reconnect with its primary identity.

Given limited resources for student support, the college must make significant changes in the manner in which student services are delivered.

Given the current economic climate as well as the significant improvement to college facilities, the college has a one-time opportunity to recapture a student population that it has lost over the last 20+ years.

It takes all of us: faculty, staff and administrators to provide an

outstanding education to our community. The college will be staffed to reflect this basic value.

VisionWhat does “CSM 2.0” Look Like?

CSM is an academic institution with a rich tradition. CSM has the best transfer program in the Bay Area and one of the best in the state. CSM

is the clear preference for transfer-bound students.

CSM has outstanding, relevant, cutting-edge CTE programs that lead to demonstrated high-wage, high-demand careers. Partnerships with businesses are paramount for financial support, curriculum guidance, and job placement.

CSM’s developmental educational program is designed based upon best practices. Students leave our developmental education program well-prepared to succeed in other college courses.

Every individual at CSM has an unparalleled commitment to student success. We meet students where they are at, and take them to where they need to go. However, we hold all students to high expectations.

CSM is recognized for its innovative practices and its willingness to take calculated risks.

VisionWhat is our primary identity?

VisionHow do we get there?

It is no use saying “We are doing our best.” You have got to succeed in doing what is necessary.

---Winston Churchill

Student Success

Academic Excellence  

Relevant, High-Quality Programs and Services

Integrated Planning, Fiscal Stability, and the Efficient Use of Resources

  Institutional Dialog  

Institutional Priorities

Q&A