College of the Redwoods - Budget Planning Committee (BPC) PRELIMINARY DRAFT - For Discussion Only
2013-14 BPC Budget Balancing Options
ESTIMATES
Links to Planning and Standards:
SP Goal 3 Fiscal and Operational Sustainability
Standard D. The institution plans and manages its financial affairs with integrity and in a manner that ensures financial stability. The level of
financial resources provides a reasonable expectation of both short-term and long-term financial solvency.
Standard D. 4 Financial resource planning is integrated with intitutional planning.
1
Student Technology Fee
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
2
Parcel Tax
Measure Q funds have recently been used to upgrade student labs. However, there is
Annual Revenue a need for additional computer lab and the need to keep the machines up-to-date.
- There is very limited funding available in the general fund. This $10/term optional fee
could augment those general fund dollars and allow for a student help desk to provide
additional service to students. Would not directly bring bgt savings, but will relieve the
pressure to increase the general fund bgt, so proactively will help the budget. Requires
70,000 CR Board of Trustees (BOT) approval.
2013-14
2013-14
Annual Revenue
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
3
CO Deficit Factor Policy Change
-
2013-14
Annual Revenue
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
4
CO Deficit Factor Hold Harmless
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
5
CO HEPI inflation Factor Policy Change
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
3/15/2013 12:04 PM
-
Could generate $400K in 2014-15 and $800K thereatter. Requires BOT approval and
voter approval. Parcel tax example: "To provide stable funding the State cannot take
away; make health and safety improvements; fund school nursing programs to promote
good health; maintain small class sizes; retain teachers; and protect and expand music,
art, and dance programs; shall the Arcata Elementary School District collect a $49
yearly education tax for five years, providing an exemption for senior citizens, no money
for administration, with citizen oversight and all money benefiting local Arcata
Elementary schools?" Arcata's parcel tax covers 5,200 parcels and is estimated to
generate $1MM over 5 years.
Currently, the Chancellor's Office Deficit Factor occurs as a mid-year cut, but the CO
reduces the funding per FTES instead of reducing the FTES targets on a pro-rata basis.
With a reduction to the FTES target, local districts would maintain some local control by
being able to adjust course section offerings. However, when the CO cuts the funding
per FTES, district cannot exercise their local control to reduce course sections.
Requires State Board of Governors action.
2013-14
Annual Revenue
-
Requires Legislative action. Same as above, except that the State would need to
provide backfill to hold colleges harmless when the State's revenue estimates are too
high. Therefore, there would be no mid-year deficit factor budget cuts. The K-12
system already enjoys this level of hold harmless. CR has taken defict factor cuts
totalling over $1 million between 2007-08 and 2012-13. Defict factor was $510K in
2011-12 and esitmated at $410K for 2012-13.
Requires State Board of Governors action. This change would be that the State
funding per FTES would be adjusted each year by the greater of the funding increase
2013-14
from the State or the Higher Education Price Index (HEPI) rate. Then, the CO would
Annual Revenue adjust enrollment targets down, if necessary, to balance the State funding model. This
policy change would help partially address a structural problem where CR's costs
- increase each year, but the State does not provide an inflation adjustment each year.
An alternative would be to use the Consumer Price Index (CPI).
http://www.commonfund.org/CommonfundInstitute/HEPI/Pages/default.aspx For 201213, 2.3% inflation or $575K not funded, for 2013-14, inflation at 1.6%, but HEPI at
24,963 1.7%, so .1% not funded.
1
2013-14 CR Bgt Forecast4 @ Revised P-1.xlsx Bgt Options
College of the Redwoods - Budget Planning Committee (BPC) PRELIMINARY DRAFT - For Discussion Only
2013-14 BPC Budget Balancing Options
ESTIMATES
6
High demand or high cost program fee
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
7
Close and/or lease remote campuses
and unused buildings
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
8
Purchasing card
2013-14
Annual Revenue
-
50,000
Require direct deposit for all payroll
Annual Revenue
-
130,000
2013-14
Permanent svgs
Increase class size limits or faculty
teach an extra class
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
11
Develop a Foundation alumni program
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
3/15/2013 12:04 PM
Mandate use of the purchasing card program for all purchases under $1,000. Would
increase efficiency but minimal budget impact.
-
This would increase efficiency, but probably minimal budget impact.
2013-14
Permanent svgs
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
10
Estimate space rental including Eureka academic buildings: $130K.
2013-14
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
9
Requires Legislative action. Currently, the State sets the enrollment fees for all
colleges at a single rate. This would allow individual districts to set a separate, locally
controlled and locally retained program fee for certain programs that are either high
demand or high cost. To alleviate concerns about needy students, an alternative would
be to allow BOG students to be exempted or partially exempted from this fee.
-
Increased class sizes will generate more FTES per course section.
2013-14
Annual Revenue
Also, faculty might agree to teach an extra class without overload or some similar
option. There are 84 FTEF in the permanent postion inventory. If each faculty taught
one extra course, that could generate $935K in additional revenue from the state
funding model, less potential adjunct cost of $359K, yields $576K revenue. Requires
576,000 negotiation.
-
Avoid the myth that community college alumni don't donate. Monroe Community
Annual Revenue College (N.Y.) received generous donations, including a $1 million stock gift, by building
an alumni database and keeping personal connections with graduates. The school
- used research firm Harris Connect to track down various types of alumni and to gather
information on them. The decision helped to boost Monroe's alumni database from
28,000 to more than 110,000 people. 2013-14 figure is a first year estimate, would grow
20,000 from there.
2013-14
2
2013-14 CR Bgt Forecast4 @ Revised P-1.xlsx Bgt Options
College of the Redwoods - Budget Planning Committee (BPC) PRELIMINARY DRAFT - For Discussion Only
2013-14 BPC Budget Balancing Options
ESTIMATES
12
Use Google for campus email
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
13
Mandatory meal plan for all students
-
Sell surplus goods on ebay
2013-14
Annual Revenue
Make the campus smoke free
2013-14
Annual Revenue
Move student course evaluations to an
online form
2013-14
Permanent svgs
Use bond funds to install solar or wind
generator
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
3/15/2013 12:04 PM
Savings would be that staff don't have to pick up butts all over and the tents could be
removed.
-
Savings would be in printing, scantron and the like.
2013-14
Permanent svgs
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
17
Would require change to Administrative procedures. Might bring in a small amount of
revenue from surplus sales.
-
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
16
Require all students to purchase a certain amount on a meal plan each term depending
on the number of credits taken. Violates Ed Code
-
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
15
http://www.google.com/enterprise/apps/education/benefits.html
-
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
14
Google apps for education
2013-14
Permanent svgs
-
2013-14
Permanent svgs
-
Savings would be in reduced utility costs over time. A $600K solar investment or $350K
wind turbine investment might net $30K to $50K in annual savings. The CO has energy
efficiency funds available that might leverage this project's funding.
30,000
3
2013-14 CR Bgt Forecast4 @ Revised P-1.xlsx Bgt Options
College of the Redwoods - Budget Planning Committee (BPC) PRELIMINARY DRAFT - For Discussion Only
2013-14 BPC Budget Balancing Options
ESTIMATES
18
Qualified administrators teach a course
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
19
Offer an employee focused non-credit
development course
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
20
Reduce starting salaries for new hires
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
21
Close most campus services on
Fridays
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
22
Non-credit enrollments
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
23
Lease space for highway billboards,
allow advertising on campus property
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
3/15/2013 12:04 PM
2013-14
Annual Revenue
-
There are 26 FTE managers in the position inventory. If half are able to teach an extra
class, that could generate $147,206 in revenue, less potential adjunct cost of $57K,
yields $91K potential new revenue. Requires negotiation.
91,000
2013-14
Annual Revenue
-
While anyone could attend, offer a non-credit course geared toward CR employees who
could sign up and get professional development training while also getting some
apportionment funding. There are 282 employee FTE in the position inventory. If only
one third take a one unit non-credit course per term that could generate $17K in state
funding.
17,000
Requires negotiation.
2013-14
Permanent svgs
5,000
5,000
5,000
15,000
2013-14
Permanent svgs
Savings might be realized from reduced staffing contracts, less temp staff, and less
staff required to cover duties. Requires negotiation.
21,440
1,750
23,190
2013-14
Annual Revenue
-
Non-credit FTES are reimbursed at 60% of the For-credit rate, so this non-credit
represents a stop-gap measure until for-credit enrollments can grow. A plus is that noncredit courses can be offered with no enrollment fee, so may be easier to attract noncredit students. Will require swift approval by curriculum committee to get classes
offered. May require negotiations on faculty reimbursements due to lower funding level.
Estimate is the net revenue after faculty costs.
20,000
2013-14
Annual Revenue
-
Current policy only addresses advertising in Athletic facilities. This would allow the
District to lease space near highways to signage companies for billboards. It would
also allow firms to advertise on campus, for example beverage ads incorporated into
the College marquee, ads on exam papers, etc.
After investigating this option, CR does not have good right of way at Hwy 101 in
Eureka. Checking on other sites.
-
4
2013-14 CR Bgt Forecast4 @ Revised P-1.xlsx Bgt Options
College of the Redwoods - Budget Planning Committee (BPC) PRELIMINARY DRAFT - For Discussion Only
2013-14 BPC Budget Balancing Options
ESTIMATES
24
Merge with another college
2013-14
Permanent svgs
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
25
Rollback 2012-13 COLA
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
26
Rollback 2012-13 Step
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
27
Eliminate 2013-14 Step
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
28
Employees Pay Monthly for Health
Benefits Plus Inflation
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
29
Switch Medical Plans from Oak to
Spruce
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
3/15/2013 12:04 PM
-
This would be a long term option that would take several years and possibly require
legislative action to allow CR and another community college district to merge. This is
long term idea for consideration, not a near term solution.
2013-14
Permanent svgs
113,340
36,389
149,729
A 1.5 % COLA for 2012-13 began in July paychecks. COLA would be rollbacked for
the second six months of 2012-13 and in future years. Will require successful
negotiations to implement. BPC ranked a similar proposal as 2 out of 11.
2012-13 Steps began in July paychecks. The 2012-13 Steps would be rolledback for
the second six months of 2012-13 and in future years. Will require successful
121,854 negotiations to implement. BPC ranked a similar proposal as 5 out of 11.
2013-14
Permanent svgs
178,316
74,113
374,283
Assuming that current contract terms would continue into 2013-14, 2013-14 Steps will
begin in next July's paychecks. The 2013-14 Steps would be rolledback permanently.
121,854 Will require successful negotiations to implement. BPC ranked a similar proposal for
2012-13, but this is a new proposal.
2013-14
Permanent svgs
178,316
74,113
374,283
Employees would pay a monthly premium for health and welfare benefits. CR pays a
flat rate per covered employee, regardless of number of dependents, of $1,198/mo or
Permanent Svgs $14,376/yr per covered employee. Each year, monthly premiums would increase by
$106/month
the benefit cost increase percent. Estimate is only employees who receive health
benefits, NOT all employees: 130 Classified, 61 Admin/Mgr/Conf, 83 Instr & Non96,672 instructional Faculty, 274 Total Benefitted Employees. In general fund: 76 Classified,
77,592 42 Admin/Mgr/Conf, and 61 Faculty. BPC ranked a similar proposal as 5 out of 11.
53,424 These headcounts are for all funds, will research the general fund employees receiving
benefits. Requires negotiations.
2013-14
227,688
District employees receive Blue Shield's Oak plan for health benefits. CR pays a flat
rate per covered employee, regardless of number of dependents, of $1,198/mo or
2013-14
$14,376/yr per covered employee. Based on current rates, the District could opt for the
Permanent Svgs
less costly plan to save $1,018 annually per covered employee. Estimate is only
employees who receive health benefits, NOT all employees: 130 Classified, 61
77,347 Admin/Mgr/Conf, 83 Instr & Non-instructional Faculty, 274 Total Benefitted Employees.
62,081 In general fund: 76 Classified, 42 Admin/Mgr/Conf, and 61 Faculty. Will require
42,744 successful negotiations to implement. These headcounts are for all funds, will research
the general fund employees receiving benefits.
182,172
5
2013-14 CR Bgt Forecast4 @ Revised P-1.xlsx Bgt Options
College of the Redwoods - Budget Planning Committee (BPC) PRELIMINARY DRAFT - For Discussion Only
2013-14 BPC Budget Balancing Options
ESTIMATES
30
Switch Medical Plans from Oak to
HDHP plan
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
31
Switch Dental Plans from plan 12 to 3
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
32
Switch Vision Plans from C7 to A1
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
33
Reduce Faculty Non-Instructional
Release Time
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
34
Layoffs, Reorganization, RIF
Permanent Svgs
Not a practical option in the short run, due to the high deductible and potential need to
168,547 start a health savings account.
135,281
93,144
396,972
District employees receive Guardian's plan 12. CR pays a flat rate per covered
employee, regardless of number of dependents, of $1,198/mo or $14,376/yr per
2013-14
covered employee. Based on current rates, the District could opt for the less costly
Permanent Svgs
dental plan to save $88 annually per covered employee. Estimate is only employees
who receive health benefits, NOT all employees: 130 Classified, 61 Admin/Mgr/Conf, 83
17,811 Instr & Non-instructional Faculty, 274 Total Benefitted Employees. In general fund: 76
14,296 Classified, 42 Admin/Mgr/Conf, and 61 Faculty. Will require successful negotiations to
implement. These headcounts are for all funds, will research the general fund
9,843
employees receiving benefits.
41,950
2013-14
Permanent Svgs
5,682
4,560
3,140
13,382
2013-14
Permanent svgs
Furlough
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
3/15/2013 12:04 PM
District employees receive plan C7 vision coverage. CR pays a flat rate per covered
employee, regardless of number of dependents, of $1,198/mo or $14,376/yr per
covered employee. Based on current rates, the District could opt for the less costly
vision plan to save $75 annually per covered employee. Estimate is only employees
who receive health benefits, NOT all employees: 130 Classified, 61 Admin/Mgr/Conf, 83
Instr & Non-instructional Faculty, 274 Total Benefitted Employees. In general fund: 76
Classified, 42 Admin/Mgr/Conf, and 61 Faculty. Will require successful negotiations to
implement. These headcounts are for all funds, will research the general fund
employees receiving benefits.
Approximately $700K in faculty non-instructional release time is included in the
collective bargaining agreement. The $200K is a placeholder estimate. Will require
successful negotiations to implement. BPC ranked a similar proposal as 2 out of 11.
200,000
200,000
2013-14
Permanent svgs
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
35
Based on current rates, the District could opt for the less costly plan to save $2,218
annually per covered employee. Will require successful negotiations to implement.
2013-14
Faculty layoff would require multiple annual advance notices and would be effective
July 1. Administrative layoffs require March 15 advance notice and would be effective
July 1. Manager, classified and confidential would require 45 days advance notice.
Savings will depend on the magnitude of reductions. BPC ranked a similar proposal as
10 out of 11, and 11 out of 11.
Employee's would take a certain number of workdays off as unpaid furlough days.
24 furlough days Furloughs do not provide ongoing savings, but do help the budget in the year that the
467,424 furlough is in place. Will require successful negotiations to implement. BPC ranked a
similar proposal as 7 out of 11.
2013-14
718,512
357,120
1,543,056
6
2013-14 CR Bgt Forecast4 @ Revised P-1.xlsx Bgt Options
College of the Redwoods - Budget Planning Committee (BPC) PRELIMINARY DRAFT - For Discussion Only
2013-14 BPC Budget Balancing Options
ESTIMATES
36
Eliminate temporary staff
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
37
Suspend Overtime
This would reduce temporary staff in the general fund. To make this budget cut work,
we will need to reduce the respective department budgets, so that the funds are not
50,000 spent on other items. BPC ranked a similar proposal as 6 out of 11.
2013-14
Permanent svgs
50,000
2013-14
Permanent svgs
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
38
Eliminate general fund support to other
funds & categoricals
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
39
Reduce General Fund Support to DSPS
to a Minimum Level
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
40
Suspend General Fund Capital Outlay
Already Done
2013-14
Permanent svgs
118,000
2013-14
Permanent svgs
Eliminate High School Concurrent
Enrollment Fee Waiver
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
3/15/2013 12:04 PM
General fund provides support to non-general fund operations and categorical
programs as follows:
Shively Farm: $28,000
Child Development: $90,000
General fund provides support to DSPS. Mandated services will need to be provided,
even if cost is above minimum, need to find low cost services.
67,938
2013-14
Permanent svgs
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
41
Managers would be advised to not approve overtime work, except in cases involving
immediate health and safety. BPC did not rank this proposal as overtime approval is a
manager's decision. 2011-12 comp time earned was $53,642, paid out was $15,865.
2013-14
Permanent svgs
20,000
Already reduced capital outlay to meet previous budget savings target. Suspend the
capital outlay budget. Budget is $135,335, but may be unrealistic to suspend entire
budget, so half is noted as savings.
High School concurrent fee waiver was reduced to $20,000 in 2011-12 to provide a
partial fee waiver for early college high school programs at Eureka main and Del Norte
campuses. This would eliminate the $20K remaining fee waiver. Unlike the Board of
Governor's (BOG) fee waiver, this is a local fee waiver, so it reduces District revenue.
BPC didn't rank this proposal, but supported the 2011-12 fee waiver reduction.
7
2013-14 CR Bgt Forecast4 @ Revised P-1.xlsx Bgt Options
College of the Redwoods - Budget Planning Committee (BPC) PRELIMINARY DRAFT - For Discussion Only
2013-14 BPC Budget Balancing Options
ESTIMATES
42
Eliminate Summer Term and/or Use 11
Month Contracts NOT AN OPTION FOR
2013-14
2013-14
Permanent svgs
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
43
Campus Shut Down
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
44
Reorganize Deans, division chairs, area
coordinators, etc
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
45
Suspend Full Sabbaticals
-
Shut down campus during breaks.
Permanent svgs Shut down a building.
5,000 Reduce the times when the college is open.
Probably can't close a bldg, since no duplication of facilities at other bldgs. Less svgs in
out years as enrollments pick up.
2013-14
5,000
2013-14
Permanent svgs
Hold Open Vacant Positions Planned to
be Filled
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
47
Program Discontinuance - Eliminate
Academic Programs &/or Reduce Athletics
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
3/15/2013 12:04 PM
Efficiencies and cost savings might be realized by reorganizing these adminstrative
functions. However, a portion of these non-instructional administrative costs are
included in the collective bargaining agreement. The $80K is a placeholder estimate.
Will require successful negotiations to implement. BPC ranked a similar proposal as 3
out of 11. Will require negotiations.
80,000
2013-14
Permanent svgs
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
46
The District would offer no summer term classes or very limited classes, for example
only online classes. Note that the $600K BPC savings estimate is more conservative
assuming that instructional & certain other employees would not be reduced. If we
move forward, then more detailed savings estimates will need to be developed. Will
require successful negotiations to implement. BPC ranked a similar proposal as 8 out
of 11.
Staff: $422,000 (11 months or 8.3% savings)
Instructional and non-instructional faculty: $649,000 (only the non-instructional portion
could be reduced)
Managers, confidential, etc: $208,000
Total: $1,278,000
ACCJC probation report cites the need tor continued progress on professional
development, so this option could harm accreditation requirements. Suspend full
sabbaticals. Will require successful negotiations to implement.
2013-14
Permanent Svgs
This would not apply to instructional faculty vacancies. This option would require that
all vacant positions only be filled internally by a general fund employee and will require
transfers to fill key postions. BPC ranked a similar proposal as 3 out of 11.
63,000
2013-14
Permanent svgs
Potential savings from suspending academic programs or reducing the athletic budget.
For academic programs, review cost data to identify high cost programs, inefficient
programs, unsustainable programs to suspend due to lack of State funding. Savings
will depend on the magnitude of reductions. BPC ranked a similar proposal 7 out of 11.
-
8
2013-14 CR Bgt Forecast4 @ Revised P-1.xlsx Bgt Options
College of the Redwoods - Budget Planning Committee (BPC) PRELIMINARY DRAFT - For Discussion Only
2013-14 BPC Budget Balancing Options
ESTIMATES
48
Contract Out Graphics, IT, Custodial,
Groundskeeping, Warehouse, Payroll,
Security, or other department
2013-14
Permanent Svgs
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
49
Reorganize confidential staff
-
Associated Students Fund Clerical
Support
2013-14
Permanent Svgs
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
51
Consolidate Admissions, Financial Aid,
Records Done
Reduce Campus Public Safety to less
than 24/7 coverage
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
53
Suspend Board of Trustees Stipends
(one-time)
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
3/15/2013 12:04 PM
Associated Students could provide some funds to help offset costs related to the
clerical support provided by the District. BPC ranked a s imilar proposal as 9 out of 11.
2013-14
Permanent Svgs
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
52
Reorganize the 6 confidential staff for overall savings.
2013-14
Permanent Svgs
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
50
Savings from contracting out for services through an RFP process. ECS 88003.1
requirements. 2011-12 cost center budgets are as follows:
Graphics/Mrkting: $490,000
IT: $1,102,000
Custodial: $690,000
Groundskeeping: $279,000
Warehouse/Logistics: $209,000
Payroll: $186,000
Security: $175,000
Will require successful negotiations to implement.
This has already been done to meet previous budget savings target. Efficiencies from
combining services and staffing. BPC ranked a similar proposal as 1 out of 11.
2013-14
Permanent Svgs
9,000
9,000
2013-14
Permanent Svgs
Certain shifts would not be covered, so County Sheriff would be first responder. Night
shifts when school is not in session might be an example. Savings estimate is based on
90 days with one shift not covered. BPC ranked a similar proposal as 11 out of 11.
These stipends would be held back during the year. BPC ranked a similar proposal as
8 out of 11.
26,000
26,000
9
2013-14 CR Bgt Forecast4 @ Revised P-1.xlsx Bgt Options
College of the Redwoods - Budget Planning Committee (BPC) PRELIMINARY DRAFT - For Discussion Only
2013-14 BPC Budget Balancing Options
ESTIMATES
54
Reduce from 9 Trustees to 5
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
55
Revenue generating initiatives
This would reduce the number of trustees from the current level of 9 seats down ot 5
seats. Savings from:
- Benefits: $42,349
Stipends: $13,383
Travel: $8,888
- Election costs: $30,000 <<Only if election is contested
64,620 Total: 94,620. Only $64,620 included since most elections not contested.
2013-14
Permanent Svgs
2013-14
Annual Revenue
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
56
Centralize AOA staff
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
57
Eliminate printing of all catalogs and
schedules
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
58
Reduce Software Costs
-
By centrally locating AOA support staff for the instructional areas to one location,
efficiencies and savings might be realized. Savings is about .25 FTE at about $30K
12,500 salary. BPC ranked a similar proposal as 6 out of 11.
2013-14
Permanent Svgs
12,500
2013-14
Permanent Svgs
Reduce Travel & Supplies Costs
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
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Place catalogs and schedules on CR website. Eureka main schedules are online only.
Mendocino and Del Norte centers are online and paper.
5,000
2013-14
Permanent Svgs
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
59
Move forward on some of the revenue generating initiatives previously identified by the
BPC, such as locating cell phone or communications towers on District property.
Additional revenue is already included in the budget, so conservatism requires that the
estimate not be increased until some of the new money starts to materialize. BPC
ranked a similar proposal as 4 out of 11.
2013-14
Permanent Svgs
-
Review our software expenses for lower cost alternatives.
Tutor.com and Parature
Convert from Turn It In to Safe Assign
There will be transition costs to go to new software. Also software prices increase, so
savings is net of inflation.
Need IT Dept & Technology Planning Committee review.
Eliminate or reduce the travel budget. Use more online professional development and
training.
Total travel budget is about $200K. We must pay for travel between Mendocino, KT,
Del Norte, etc. We have already limited travel, so cannot realistically budget for a
substantial cut.
Can't cut utility, insurance, and other "fixed cost" services and supplies budgets.
Already took $200K cut in 2012-13.
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ESTIMATES
60
Use More Web-Based Services
2013-14
Permanent Svgs
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
61
Sell Property
2013-14
Annual Revenue
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
62
Use ASCR Student Cards or Higher One
Card for Student ID
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
63
Reduce Faculty Overload Assignments
2013-14
Annual Revenue
15,000
64
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
Extra Mendocino property. Extra Del Norte property. Extra Eureka main property &
bldgs.
Garberville budget is minimal (utilities), so recommendation is to not add staffing.
Will require staff research, legal review and time to market property. No return in the
near term. Proceeds from property sale cannot go to operating expenses. Repeat of
number 7
Savings from using an ASCR sponsored card instead of a District ID card. Alternative
would be to use Higher One card for the ID card. Savings is estimated on ID card stock
and printers, would still need to take pictures.
2013-14
Permanent Svgs
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
One-time draw from Employee Benefit
Trust (one-time)
Use more automated or web based services for routine interactions, registration,
financial aid, payments, parking permit purchase. Students may appreciate not having
to stand in line for routine transactions. Will take time to implement.
-
2013-14
Permanent Svgs
-
$3 million fund balance in the employee benefit trust may be drawn upon by the general
fund. The balance was built up in earlier years when about $1.6 million of the general
fund's excess fund balance was transferred to the employee benefit trust. However,
the trust is currently drawing against those balances because annual payments into the
trust are less than the payments out to beneficiaries. Since this is a one-time solution,
we must identify a permanent savings for 2013-14 for any amounts noted here. BPC
ranked a similar proposal as 8 out of 11.
SAVINGS ESTIMATE SUMMARY - Includes some "duplicates" and some items that require negotiations
Classified
1,153,691
Instr & Non-instructional Faculty
1,682,294
Admin/Mgr/Conf
770,031
Other
433,558
GRAND TOTAL
4,039,573
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ESTIMATES
Summary of Evidence
Health and Welfare Benefits Programs Options:
3/15/2013 12:04 PM
This is a summary of available plans and fees. More detailed plan information can be
obtained directly from Human Resources, the North Coast Medical Insurance Group,
and the vendors. Note that North Coast Schools Medical Insurance Group requires at
least 45 days advance notice if CR chooses to switch plans.
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ESTIMATES
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ESTIMATES
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ESTIMATES
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ESTIMATES
Education Code Section 88003.1
(a)Notwithstanding any other provision of this chapter, personal services contracting for all services currently or customarily performed by classified school
employees to achieve cost savings is permissible, unless otherwise prohibited, when all the following conditions are met:
(1)The governing board or contracting agency clearly demonstrates that the proposed contract will result in actual overall cost savings to the community
college district, provided that:
(A)In comparing costs, there shall be included the community college district's additional cost of providing the same service as proposed by a contractor.
These additional costs shall include the salaries and benefits of additional staff that would be needed and the cost of additional space, equipment, and
materials needed to perform the function.
(B)In comparing costs, there shall not be included the community college district's indirect overhead costs unless these costs can be attributed solely to
the function in question and would not exist if that function was not performed by the community college district. Indirect overhead costs shall mean the
pro rata share of existing administrative salaries and benefits, rent, equipment costs, utilities, and materials.
(C)In comparing costs, there shall be included in the cost of a contractor providing a service any continuing community college district costs that would be
directly associated with the contracted function. These continuing community college district costs shall include, but not be limited to, those for inspection,
supervision, and monitoring.
(2)Proposals to contract out work shall not be approved solely on the basis that savings will result from lower contractor pay rates or benefits. Proposals to
contract out work shall be eligible for approval if the contractors wages are at the industry's level and do not undercut community college district pay rates.
(3)The contract does not cause the displacement of community college district employees. The term "displacement" includes layoff, demotion, involuntary
transfer to a new classification, involuntary transfer to a new location requiring a change of residence, and time base reductions. Displacement does not
include changes in shifts or days off, nor does it include reassignment to other positions within the same classification and general location or employment
with the contractor, so long as wages and benefits are comparable to those paid by the school district.
(4)The savings shall be large enough to ensure that they will not be eliminated by private sector and community college district cost fluctuations that could
normally be expected during the contracting period.
(5)The amount of savings clearly justify the size and duration of the contracting agreement.
(6)The contract is awarded through a publicized, competitive bidding process.
(7)The contract includes specific provisions pertaining to the qualifications of the staff that will perform the work under the contract, as well as assurance
that the contractor's hiring practices meet applicable nondiscrimination standards.
(8)The potential for future economic risk to the community college district from potential contractor rate increases is minimal.
(9)The contract is with a firm. A "firm" means a corporation, limited liability corporation, partnership, nonprofit organization, or sole proprietorship.
(10)The potential economic advantage of contracting is not outweighed by the public's interest in having a particular function performed directly by the
community college district.
(b)Notwithstanding any other provision of this chapter, personal services contracting shall also be permissible when any of the following conditions can be
met:
(1)The contract is for new community college district functions and the Legislature has specifically mandated or authorized the performance of the work by
independent contractors.
(2)The services contracted are not available within community college districts, cannot be performed satisfactorily by community college district employees,
or are of such a highly specialized or technical nature that the necessary expert knowledge, experience, and ability are not available through the community
college district.
(3)The services are incidental to a contract for the purchase or lease of real or personal property. Contracts under this criterion, known as "service
agreements," shall include, but not be limited to, agreements to service or maintain office equipment or computers that are leased or rented.
(4)The policy, administrative, or legal goals and purposes of the community college district cannot be accomplished through the utilization of persons
selected pursuant to the regular or ordinary hiring process. Contracts are permissible under this criterion to protect against a conflict of interest or to ensure
independent and unbiased findings in cases where there is a clear need for a different, outside perspective. These contracts shall include, but not be limited
to, obtaining expert witnesses in litigation.
(5)The nature of the work is such that the criteria for emergency appointments apply. "Emergency appointment" means an appointment made for a period
not to exceed 60 working days either during an actual emergency to prevent the stoppage of public business or because of the limited duration of the work.
The method of selection and the qualification standards for an emergency employee shall be determined by the community college district. The frequency of
appointment, length of employment, and the circumstances appropriate for the appointment of firms or individuals under emergency
(6)The contractor will provide equipment, materials, facilities, or support services that could not feasibly be provided by the community college district in the
location where the services are to be performed.
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ESTIMATES
(7)The services are of such an urgent, temporary, or occasional nature that the delay incumbent in their implementation under the community college
district's regular or ordinary hiring process would frustrate their very purpose.
(c)This section shall apply to all community colleges, including community college districts that have adopted the merit system.
(d)This section shall apply to personal service contracts entered into after January 1, 2003. This section shall not apply to the renewal of personal services
contracts subsequent to January 1, 2003, where the contract was entered into before January 1, 2003, irrespective of whether the contract is renewed or
rebid with the existing contractor or with a new contractor.
Also reference: http://sclscal.org/files/clientupdates/12-03(CC).pdf
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