PRELIMINARY DRAFT – 2-1-2012
CR Budget Planning Committee
Working Notes for Budget Planning at Governor’s January 2012 Budget Proposal
BPC Deliverable: Memorandum to the President/Superintendent identifying specific strategic and
tactical budget recommendations in a ranked order of priority.
Listening Sessions
Generates budget balancing
ideas
Ideas from Listening Sessions
are forwarded to BPC
BPC prioritizes Ideas in a rank
order and forwards
recommendations to Executive
Cabinet
Cabinet makes public its
prioritization and
recommendations to Board
from Listening Sessions
Board approves CR’s budget
through its annual process
(March 2012 Meeting)
The Budget Balancing Process:
Open and transparent
Stakeholders input
o Open meetings, email suggestions, written reports and documents to review
2/2/2012 1:24 PM
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draft discussion revenue1 (2).docx
PRELIMINARY DRAFT – 2-1-2012
CR Budget Planning Committee
Working Notes for Budget Planning at Governor’s January 2012 Budget Proposal
BPC Deliverable: Memorandum to the President/Superintendent identifying specific strategic and
tactical budget recommendations in a ranked order of priority.
Clear deadlines
All area of the budget are under consideration
o Budgets for required services will not be cut below minimum for compliance
o Budget may include strategic investments, for example to increase fundraising
o Expenditure budgets will not be cut, if the relevant expense is to continue
o All forecasted expenses will be included in the budget
Spreadsheet will document budget changes to balance the budget
o Identify strategic versus tactical choices
o Itemize revenue estimates and cost cutting
o Will not rely on “unidentified temporary savings” above that realized in recent years
o Will form the basis for loading next year’s budget
o Will meet the 50% Law and forecast a minimum 5% ending fund balance, etc.
Need to prioritize more options than needed to balance the budget, in case particular options don’t
work out.
Statement of Ethics and respect for the individual
o No discussion of specific employees or positions, except vacant positions
o No speculation on individual retirements, etc.
o Avoid overly broad generalizations about employees or classes of our employees
o All reasonable views will be listened to and respected
o Follows principles in the Participatory Governance agreement
o Respect for collective bargaining agreements and other contracts
Budget Balancing Principles:
Short and long term fiscal sustainability
Ability to increase revenue
Reduces the negative impact:
o On current and future students
o On current employees
o Accreditation
Flexability: Positions the college to react quickly to change
o Ability to restore eliminated programs
o Decision does not lock the college into a single option
o Ability to eliminate an activity with less impact on other areas of the college
Prefer strategic solutions over tactical fixes
o Strategic: Long term and sustainable, example: Eliminate vacant position
o Tactical: Short term, one time fix, example: Furloughs
Revenues and Transfers:
2/2/2012 1:24 PM
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draft discussion revenue1 (2).docx
PRELIMINARY DRAFT – 2-1-2012
CR Budget Planning Committee
Working Notes for Budget Planning at Governor’s January 2012 Budget Proposal
BPC Deliverable: Memorandum to the President/Superintendent identifying specific strategic and
tactical budget recommendations in a ranked order of priority.
Bookstore, Dining, Housing, Parking: $300,000 annual transfer to help the general fund
o Parking
 Daily fee to $2.00 and accept debit cards at machines
 Annual/Semester fee increase to max allowed
 Parking fines increase to cover costs and return revenue to CR
 Eliminate faculty/staff parking. All parking is general.
 Designated parking spot purchase for premium charge
o Dining and Bookstore
 Construction has changed student traffic patterns and reduced revenue
Improve signage: Bond funds to cover signage cost
o Directional sign near the Library, Light Center
o Sign above dining entrance pointing to bookstore and above
bookstore entrance pointing to dining
Move Higher One ATM from Library to front of bookstore or dining
Consolidate cash handling operations at the Bookstore
 Budget to at least break-even and generate share of net revenue
o Housing
 Annual inflationary increase in fees
 Complete roof and exterior repairs and heater upgrade using auxiliary capital
reserves
 Replace Suddenlink internet with CENIC after upgrade, if feasible
Increase self-support enrollments and revenue (Continuing Education): May go counter to closing
Eureka downtown?
Increase grant activity: Currently seeking additional grants
Increase fundraising: Foundation campaign
Health Fee: Budgeted to receive $30,000 annual general fund support
o Budget to eliminate the transfer and generate net revenue
o Do not budget to transfer funds out to general fund
o Increase health fee to max allowed, $17/term, and increase to $17 at centers
o Provide additional services to centers, such as flu shot clinic or 1 day a term health center
o Make health fee non-refundable?
Child Development Laboratory: Budgeted to receive $50,000 annual general fund support
o Options for reducing reliance on general fund or keep the $50K transfer?
o Minimum required service levels?
2/2/2012 1:24 PM
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draft discussion revenue1 (2).docx
PRELIMINARY DRAFT – 2-1-2012
CR Budget Planning Committee
Working Notes for Budget Planning at Governor’s January 2012 Budget Proposal
BPC Deliverable: Memorandum to the President/Superintendent identifying specific strategic and
tactical budget recommendations in a ranked order of priority.
Shively Farm: Budgeted to receive $23,000 annual general fund support
o Options for reducing reliance on general fund or keep the $23K transfer?
o Farm is similar to a lab for an academic program
Concurrent Enrollment Fee Remission: Reduce budget to $20K for 2012-13 from $55,000 budget
o At beginning of 2011-12, budget reduced from $95,000 to $55,000
o Year-to-date actuals stand at $124K
o For 2012-13, this fee remission will sunset; needy students may apply for BOG
De-Registration: CR cannot afford additional bad debt write-offs
o Education and marketing to students to complete financial aid and BOG paperwork early
o Continue to run de-registration; with enrollment caps, each student enrolled needs to be a
paying customer (cash pay, financial aid, BOG, or payment plan)
Delinquent student account collections: Collect on debts owed to increase cash and reduce bad
debt expense
o Better collections on new payment plans?
2/2/2012 1:24 PM
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draft discussion revenue1 (2).docx