2015-16 CR Budget Talking Points – Fall 2015 – Preliminary Draft

The 2015-16 Final Budget is balanced, holds the fund balance above 6%, and meets
regulatory requirements like FON and 50% Law.
o Still waiting for complete budget numbers from the Chancellor’s Office.

We are relying on the Governor’s promise of additional base budget increases to balance
next year’s budget. Otherwise, CR will need to move quickly to make adjustments.
o Governor’s 2016-17 budget will be out in late January 2016.

CR’s payroll percentage is back above the statewide average. This is a red flag for long
term fiscal stability.
Payroll as a Percentage of Total Expenditures
2011-12
Actual
Redwoods
Average of 30 smallest
Average statewide

2012-13
Actual
84.1%
81.9%
83.7%
84.7%
81.0%
83.2%
2013-14
Budget
80.3%
79.9%
81.3%
2014-15
Budget Est
2015-16
Budget Est
84.8%
For long term fiscal stability, we need to deal with items where inflation is increasing
faster than the growth in the State budget, i.e. 1% annual State COLA.
o Utility costs, especially electricity.
o Health and welfare benefits.
o Salary steps.

The Chancellors Office is funding CR on enrollment stability for this year, but we still
need to focus on growing enrollments for next year. If we can’t grow enrollments, then
we will see a significant impact on the budget.
o We are evaluating the enrollment process with help and advice from EAB and
Pamela Cox Otto.
o We have several initiatives to promote enrollment growth, including:

Pelican Bay

Dual enrollment

Distance Education

Two year scheduling

Marketing
1
85.2%