BUDGET PLANNING COMMITTEE (BPC)
Wednesday, February 20, 2013
3:00 p.m.
LRC 107
Agenda
1. Call Meeting to Order – 3:00 p.m.
2. Approve Meeting notes from February 12, 2013.
DISCUSSION
3. Three Year Budget Forecast – Last meeting, we reviewed some preliminary enrollment
and revenue estimates. We are waiting for the Chancellor’ Office to release a 2012-13 P1 report. This P-1 will be the first report of this year that will show CR’s enrollment cap
and funding. We are currently using an estimate provided this summer by the CO based
on last year’s P-2, so more accurate numbers from the CO would be helpful. The budget
forecast shows a low and a high case with a significant budget gap in both cases.
o Structural Deficit Discussion: For the 2013-14 Low estimate, revenues grow by
2.0%, but expenditures grow by 2.4% -- Completely unsustainable over multiple
years. One problem here is that the Governor’s Budget proposes a 1.6% inflation
factor in the Funding per FTES. (Of course, that’s better than 0% inflation
factor.) The High estimate is better with 5.4% revenue growth over 4.0%
expenditure growth. However, the higher revenue growth is predicated on
increased enrollments. Without increased funding level per student each year,
CR would need to increase its growth percent to cover the cost increases. Like a
“Ponzi” scheme, at some point, the enrollment growth becomes unsustainable.
Therefore, enrollment growth alone cannot be viewed as a sustainable solution.
It’s part of the answer, but not a complete answer. The sustainable solution is to
augment enrollment growth with the State also providing an inflation factor
reflecting a reasonable cost increase and with CR slowing/controlling the growth
in its budget gap.
o The Budget Solutions tab is where the BPC will need to identify budget savings to
balance the budget over three years. A potential transfer from the Employee
Benefit Fund is already penciled in, and it is noted that this transfer will be moved
back in 2014-15 and 2015-16. Also, the transfer from auxiliaries was to be
reduced by half, but the $150K is put back in as a proposed budget solution that
will be turned off in 2014-15. Remember that the auxiliaries have a significant
amount of deferred maintenance that must be addressed soon.
o The BPC should consider scheduling a committee workshop to focus on
developing a list of proposed budget solutions to close the budget gap – Maybe a
Saturday workshop?
4. Budget Options – Given the budget forecast, it is important for the BPC to review and
update the list of budget savings options. This is the report from last year. Please make
note of any additional ideas that might be added. Then, the dollar amounts on this list
can be updated. Updating the numbers may change the figures slightly, but the overall
magnitude of the items won’t change significantly.
5. A District Wide open forum on the budget and accreditation is in the works
CR Accreditation website: http://www.redwoods.edu/accreditation/
CCC confer is available for those unable to attend in person.
PARTICIPANT DETAILS
> Dial your telephone conference line: (888) 450-4821
> Enter your passcode: 565058
BUDGET PLANNING COMMITTEE
Tuesday, February 12, 2013
10 a.m.
SS 104
Draft
Summary Notes
MEMBERS
PRESENT
Bob Brown, Jeff Cummings, Solomon DeCamp, Paul DeMark (phone), Doug
Edgmon, David Gonsalves (phone), Utpal Goswami, Anita Janis (phone), Lee
Lindsey, MaryGrace McGovern, Keith Snow-Flamer, Carla Spalding and Steve
Stratton.
ALSO PRESENT
Joe Hash
CALL TO ORDER
ACTION
APPROVE
SUMMARY
NOTES
The meeting was called to order by committee co-chair Bob Brown.
DISCUSSION
2012-13
CHANCELLOR’S
OFFICE DEFICIT
FACTOR
The summary notes from January 23, 2013 were approved as presented.
Vice President Lindsey provided an update regarding a midyear budget cut. He
noted that that a report will be coming from the Chancellor’s office within the next
week or so. The mid-year cut will be dependent on the deficit factor which is
based on property taxes and tuition. If we don’t meet our targeted number of 4860
FTES our funding will be decreased.
Mr. Lindsey stated that we may need to look to our auxiliary programs (parking,
bookstore, dining services, lease space and housing) to make up for a loss of
funding. However, there may not be sufficient funding available in those accounts.
If not we have already acquired approval from the Board to borrow from the
Employee Benefits Funds. He noted that borrowing from the Employee Benefit
Fund would raise a red flag with the accrediting commission and the funds would
have to be repaid within a couple of years.
ACCJC
BALANCED
BUDGET REPORT
Mr. Lindsey reported that ACCJC might require the district to respond by this
spring on how we have balanced the budget for 2013-14. He noted that it will be
very difficult to close a budget shortfall without concessions from faculty and
staff.
Bob Brown, Co-chair stated that what really sticks out to him is that we need to
stimulate enrollment and not only take the strategy that balancing the budget is all
about concessions.
REVIEW 2013-14
PRELIMINARY
DRAFT REVENUE
FORECAST
Vice President Lindsey stated that the preliminary draft revenue forecast is likely
to change once the notice comes out from the chancellor’s office. He noted that
there will be very little change in revenue from this year to next but there will be
increasing costs. If we don’t do anything (i.e., increase enrollment, make
concessions) the budget will be $1.2-$1.6 M out of balance for 13/14.
EMC 2013-14
ENROLLMENT
FORECAST
There was discussion regarding the EMC enrollment forecast for 13/14 and some
committee members expressed concern regarding the 2 percent projected growth
in enrollment. However, several committee members stated that the 2 percent
growth can be attained especially if the district gets a good report from ACCJC. It
was noted that for EMC’s purpose these numbers are used to drive the schedule for
summer and fall. Dr. Snow-Flamer requested that Mr. Lindsey send an email to
EMC in support of the 2013/14 forecast.
MEASURE Q
PROJECT UPDATE
Mr. Lindsey reported that it’s at a point in time when we need to sell the last of the
bonds so that the funds can be authorized for the remaining projects. He reminded
everyone that the remaining projects were placed on hold last fall because we
couldn’t get a good bond rating. Now we’re hoping to get a better rating and to be
able to move forward with the projects but some re-balancing will need to be done.
NEXT MEETING
10:00 a.m. March 12, 2013
ADJOURNED
The meeting was adjourned at 11:00 a.m.
SUBMITTED
lw
BGT WILL BE ADJUSTED
WHEN P-1 RELEASED BY CHANC OFC
PRELIMINARY DRAFT
FOR DISCUSSION ONLY
Redwoods Community College District
The budget shows a net deficit and a projected fund equity reserve of less than 5.00%. The District must increase revenues and reduce expenditures
on a temporary and permanent basis to close the budget gap, to remain fiscally solvent, and to meet Accreditation standard IIID, The level of financial
resources provides a reasonable expectation of both short-term and long-term fiscal solvency.
Unrestricted General Fund Bgt Forecast 2011-12
Ending Bgt
Estimates
2012-13
Budget
Student FTES
Resident (funded)
Forecast
BOT 6-2012
4,535
4,364
Percent Change
-3.8%
2013-14
Low Est
4,364
0.0%
2013-14
High Est
4,509
1.0%
2014-15
Estimate
4,554
1.0%
2015-16
Estimate
4,599
1.0%
Non-Resident
Subtotal for Credit
Non-Credit
Grand Total FTES
198
4,733
7
4,740
198
4,562
7
4,569
198
4,562
7
4,569
218
4,726
30
4,756
220
4,774
33
4,807
222
4,821
36
4,858
Funding Per FTES
Credit (net of deficit factor in 2011-12)
4,434
4,565
4,638
4,638
4,712
4,787
Percent Change
3.0%
Non-Credit CDCP (71% of Credit)
Non-Credit (60%)
1.6%
1.6%
1.6%
1.6%
3,232
2,745
3,232
2,745
3,284
2,789
3,284
2,789
3,284
2,789
158,705
158,705
158,705
158,705
158,705
158,705
4,705,522
11,508,159
4,705,522
9,016,148
4,780,810
9,752,491
4,780,810
10,307,876
4,780,810
10,878,407
13,721,670
577,304
137,348
14,436,322
14,533,302
577,304
137,348
15,247,954
15,088,686
583,077
138,721
15,810,485
15,659,218
588,908
140,109
16,388,234
1,243,765
9,997,884
798,707
475,000
12,515,356
27,110,383
1,243,765
9,997,884
878,578
475,000
12,595,227
28,001,885
1,243,765
9,997,884
887,363
479,750
12,608,762
28,577,952
1,243,765
9,997,884
896,237
484,548
12,622,434
29,169,373
CDCP: Career Development and College Prep
Revenue
Federal Sources
State Sources
Basic Allocation
FTES Funding (deficit factor in 2011-12)
FTES funding (deficit factor)
FTES funding (missed FTES target)
SB 361 State Support
CA State Lottery
Other Revenue
Subtotal State Sources
16,213,681
587,089
449,357
17,250,127
4,705,522
9,137,130
(200,000)
(456,483)
13,186,169
577,304
137,348
13,900,821
Local Sources
SB 361 Enrollment Fees
SB 361 Property Taxes
Non-Resident Tuition
Other Revenue
Subtotal Local Sources
Grand Total Revenue
1,191,818
8,629,234
793,206
443,915
11,058,173
28,467,005
1,243,765
9,997,884
798,707
475,000
12,515,356
26,574,882
Percent Change
MEMO: Total SB 361 (AKA Apportionment)
2/20/2013 8:15 AM
26,034,733
-6.6%
24,427,818
1
2.0%
24,963,319
5.4%
25,774,951
2.1%
26,330,335
2.1%
26,900,867
Copy of 2013-14 CR Bgt Forecast3 2 20 13.xlsx Budget Summary
BGT WILL BE ADJUSTED
WHEN P-1 RELEASED BY CHANC OFC
PRELIMINARY DRAFT
FOR DISCUSSION ONLY
Redwoods Community College District
The budget shows a net deficit and a projected fund equity reserve of less than 5.00%. The District must increase revenues and reduce expenditures
on a temporary and permanent basis to close the budget gap, to remain fiscally solvent, and to meet Accreditation standard IIID, The level of financial
resources provides a reasonable expectation of both short-term and long-term fiscal solvency.
Unrestricted General Fund Bgt Forecast 2011-12
Ending Bgt
Estimates
Expenditures
Academic Salaries
Other Staff Salaries
Employee Benefits
Subtotal Payroll Base
Steps, COLAs, Other Cost Increases
Academic Salaries - Step
Academic Salaries - 1.5% COLA
Academic Salaries - FTES Growth
Other Staff Salaries
Employee Benefits
Additional permanent reorg svgs
Add back one-time furlough svgs
Subtotal Payroll Increases
Subtotal Payroll
12,438,269
6,113,957
6,496,624
25,048,850
25,048,850
2012-13
Budget
2013-14
Low Est
2013-14
High Est
2014-15
Estimate
2015-16
Estimate
11,707,447
5,822,821
6,367,882
23,898,150
11,707,447
5,822,821
6,367,882
23,898,150
11,707,447
5,822,821
6,367,882
23,898,150
12,351,335
5,954,821
6,632,882
24,939,038
12,738,940
6,086,821
6,897,882
25,723,643
273,000
273,000
273,000
273,000
132,000
265,000
(1,139,552)
1,044,278
574,726
24,472,876
370,888
132,000
265,000
(1,139,552)
1,044,278
945,614
24,843,764
114,605
132,000
265,000
(1,139,552)
1,044,278
689,331
25,628,369
118,693
132,000
265,000
(1,139,552)
1,044,278
693,419
26,417,062
2.4%
4.0%
3.2%
3.1%
23,898,150
Percent Change
All Services and Supplies
Base
Increase - Inflation
Special Trustee, Recovery, Negotiations
Subtotal All Services and Supplies
Total Expenditures
-4.6%
3,763,995
4,198,914
3,763,995
28,812,845
4,198,914
28,097,064
Percent Change
Other Financing Sources(Uses)
Transfers In
Transfers Out
Increase Transfer to Empl benefit Trust
Student Fin Aid (HS concurrent enrollment)
Other Sources(Uses)
Total Sources(Uses)
Additional anticipated bgt savings
Grand Total Expenditures & Other
2/20/2013 8:15 AM
4,198,914
83,978
100,000
4,382,892
29,226,656
4,282,892
64,243
100,000
4,447,136
30,075,504
4,347,136
65,207
(300,000)
4,112,343
30,529,404
-2.5%
2.7%
4.0%
2.9%
1.5%
(443,507)
306,959
(356,431)
(103,024)
(546,531)
(20,000)
156,959
(356,431)
(25,000)
(20,000)
(244,472)
156,959
(356,431)
(25,000)
(20,000)
(244,472)
6,959
(356,431)
(50,000)
(20,000)
(419,472)
6,959
(356,431)
(75,000)
(20,000)
(444,472)
29,100,240
29,471,128
30,494,976
30,973,876
29,359,376
(69,472)
(914,053)
27,252,483
Percent Change
Net Revenue(Loss)
4,198,914
83,978
100,000
4,382,892
28,855,768
(892,371)
-7.2%
6.8%
8.1%
3.5%
1.6%
(677,601)
(1,989,858)
(1,469,243)
(1,917,024)
(1,804,504)
2
Copy of 2013-14 CR Bgt Forecast3 2 20 13.xlsx Budget Summary
BGT WILL BE ADJUSTED
WHEN P-1 RELEASED BY CHANC OFC
PRELIMINARY DRAFT
FOR DISCUSSION ONLY
Redwoods Community College District
The budget shows a net deficit and a projected fund equity reserve of less than 5.00%. The District must increase revenues and reduce expenditures
on a temporary and permanent basis to close the budget gap, to remain fiscally solvent, and to meet Accreditation standard IIID, The level of financial
resources provides a reasonable expectation of both short-term and long-term fiscal solvency.
Unrestricted General Fund Bgt Forecast 2011-12
Ending Bgt
Estimates
2012-13
Budget
2013-14
Low Est
2013-14
High Est
2014-15
Estimate
2015-16
Estimate
Fund Equity Reserves
Beginning Fund Equity
Net Revenue(Loss)
Ending Fund Balance
Fund Balance Percent
2,389,219
(892,371)
1,496,848
5.10%
1,362,897
(677,601)
685,296
2.51%
685,296
(1,989,858)
(1,304,562)
-4.48%
685,296
(1,469,243)
(783,947)
-2.66%
685,296
(1,917,024)
(1,231,728)
-4.04%
685,296
(1,804,504)
(1,119,208)
-3.61%
28,879
(677,328)
(2,759,574)
(2,257,504)
(2,756,477)
(2,667,901)
Fund Balance Shortfall to 5.0%
2/20/2013 8:15 AM
3
Copy of 2013-14 CR Bgt Forecast3 2 20 13.xlsx Budget Summary
BGT WILL BE ADJUSTED
WHEN P-1 RELEASED BY CHANC OFC
PRELIMINARY DRAFT
FOR DISCUSSION ONLY
Redwoods Community College District
The budget shows a net deficit and a projected fund equity reserve of less than 5.00%. The District must increase revenues and reduce expenditures
on a temporary and permanent basis to close the budget gap, to remain fiscally solvent, and to meet Accreditation standard IIID, The level of financial
resources provides a reasonable expectation of both short-term and long-term fiscal solvency.
Unrestricted General Fund Bgt Forecast 2011-12
Ending Bgt
Estimates
2012-13
Budget
Student FTES
Resident (funded)
Forecast
BOT 6-2012
4,535
4,364
Percent Change
-3.8%
2013-14
Low Est
4,364
0.0%
2013-14
High Est
4,509
1.0%
2014-15
Estimate
4,554
1.0%
2015-16
Estimate
4,599
1.0%
Non-Resident
Subtotal for Credit
Non-Credit
Grand Total FTES
198
4,733
7
4,740
198
4,562
7
4,569
198
4,562
7
4,569
218
4,726
30
4,756
220
4,774
33
4,807
222
4,821
36
4,858
Funding Per FTES
Credit (net of deficit factor in 2011-12)
4,434
4,565
4,638
4,638
4,712
4,787
Percent Change
3.0%
Non-Credit CDCP (71% of Credit)
Non-Credit (60%)
1.6%
1.6%
1.6%
1.6%
3,232
2,745
3,232
2,745
3,284
2,789
3,284
2,789
3,284
2,789
158,705
158,705
158,705
158,705
158,705
158,705
4,705,522
11,508,159
4,705,522
9,016,148
4,780,810
9,752,491
4,780,810
10,307,876
4,780,810
10,878,407
16,213,681
587,089
449,357
17,250,127
4,705,522
9,137,130
(200,000)
(456,483)
13,186,169
577,304
137,348
13,900,821
13,721,670
577,304
137,348
14,436,322
14,533,302
577,304
137,348
15,247,954
15,088,686
583,077
138,721
15,810,485
15,659,218
588,908
140,109
16,388,234
1,191,818
8,629,234
793,206
443,915
11,058,173
28,467,005
1,243,765
9,997,884
798,707
475,000
12,515,356
26,574,882
1,243,765
9,997,884
798,707
475,000
12,515,356
27,110,383
1,243,765
9,997,884
878,578
475,000
12,595,227
28,001,885
1,243,765
9,997,884
887,363
479,750
12,608,762
28,577,952
1,243,765
9,997,884
896,237
484,548
12,622,434
29,169,373
CDCP: Career Development and College Prep
Revenue
Federal Sources
State Sources
Basic Allocation
FTES Funding (deficit factor in 2011-12)
FTES funding (deficit factor)
FTES funding (missed FTES target)
SB 361 State Support
CA State Lottery
Other Revenue
Subtotal State Sources
Local Sources
SB 361 Enrollment Fees
SB 361 Property Taxes
Non-Resident Tuition
Other Revenue
Subtotal Local Sources
Grand Total Revenue
Percent Change
MEMO: Total SB 361 (AKA Apportionment)
2/19/2013 3:27 PM
26,034,733
-6.6%
24,427,818
1
2.0%
24,963,319
5.4%
25,774,951
2.1%
26,330,335
2.1%
26,900,867
2013-14 CR Bgt Forecast3.xlsx Budget Summary
BGT WILL BE ADJUSTED
WHEN P-1 RELEASED BY CHANC OFC
PRELIMINARY DRAFT
FOR DISCUSSION ONLY
Redwoods Community College District
The budget shows a net deficit and a projected fund equity reserve of less than 5.00%. The District must increase revenues and reduce expenditures
on a temporary and permanent basis to close the budget gap, to remain fiscally solvent, and to meet Accreditation standard IIID, The level of financial
resources provides a reasonable expectation of both short-term and long-term fiscal solvency.
Unrestricted General Fund Bgt Forecast 2011-12
Ending Bgt
Estimates
Expenditures
Academic Salaries
Other Staff Salaries
Employee Benefits
Subtotal Payroll Base
Steps, COLAs, Other Cost Increases
Academic Salaries - Step
Academic Salaries - 1.5% COLA
Academic Salaries - FTES Growth
Other Staff Salaries
Employee Benefits
Additional permanent reorg svgs
Add back one-time furlough svgs
Subtotal Payroll Increases
Subtotal Payroll
12,438,269
6,113,957
6,496,624
25,048,850
25,048,850
2012-13
Budget
2013-14
Low Est
2013-14
High Est
2014-15
Estimate
2015-16
Estimate
11,707,447
5,822,821
6,367,882
23,898,150
11,707,447
5,822,821
6,367,882
23,898,150
11,707,447
5,822,821
6,367,882
23,898,150
12,351,335
5,954,821
6,632,882
24,939,038
12,738,940
6,086,821
6,897,882
25,723,643
273,000
273,000
273,000
273,000
132,000
265,000
(1,139,552)
1,044,278
574,726
24,472,876
370,888
132,000
265,000
(1,139,552)
1,044,278
945,614
24,843,764
114,605
132,000
265,000
(1,139,552)
1,044,278
689,331
25,628,369
118,693
132,000
265,000
(1,139,552)
1,044,278
693,419
26,417,062
2.4%
4.0%
3.2%
3.1%
23,898,150
Percent Change
All Services and Supplies
Base
Increase - Inflation
Special Trustee, Recovery, Negotiations
Subtotal All Services and Supplies
Total Expenditures
-4.6%
3,763,995
4,198,914
3,763,995
28,812,845
4,198,914
28,097,064
Percent Change
Other Financing Sources(Uses)
Transfers In
Transfers Out
Increase Transfer to Empl benefit Trust
Student Fin Aid (HS concurrent enrollment)
Other Sources(Uses)
Total Sources(Uses)
Additional anticipated bgt savings
Grand Total Expenditures & Other
2/19/2013 3:27 PM
4,198,914
83,978
100,000
4,382,892
29,226,656
4,282,892
64,243
100,000
4,447,136
30,075,504
4,347,136
65,207
(300,000)
4,112,343
30,529,404
-2.5%
2.7%
4.0%
2.9%
1.5%
(443,507)
306,959
(356,431)
(103,024)
(546,531)
(20,000)
156,959
(356,431)
(25,000)
(20,000)
(244,472)
156,959
(356,431)
(25,000)
(20,000)
(244,472)
6,959
(356,431)
(50,000)
(20,000)
(419,472)
6,959
(356,431)
(75,000)
(20,000)
(444,472)
29,100,240
29,471,128
30,494,976
30,973,876
29,359,376
(69,472)
(914,053)
27,252,483
Percent Change
Net Revenue(Loss)
4,198,914
83,978
100,000
4,382,892
28,855,768
(892,371)
-7.2%
6.8%
8.1%
3.5%
1.6%
(677,601)
(1,989,858)
(1,469,243)
(1,917,024)
(1,804,504)
2
2013-14 CR Bgt Forecast3.xlsx Budget Summary
BGT WILL BE ADJUSTED
WHEN P-1 RELEASED BY CHANC OFC
PRELIMINARY DRAFT
FOR DISCUSSION ONLY
Redwoods Community College District
The budget shows a net deficit and a projected fund equity reserve of less than 5.00%. The District must increase revenues and reduce expenditures
on a temporary and permanent basis to close the budget gap, to remain fiscally solvent, and to meet Accreditation standard IIID, The level of financial
resources provides a reasonable expectation of both short-term and long-term fiscal solvency.
Unrestricted General Fund Bgt Forecast 2011-12
Ending Bgt
Estimates
2012-13
Budget
2013-14
Low Est
2013-14
High Est
2014-15
Estimate
2015-16
Estimate
Fund Equity Reserves
Beginning Fund Equity
Net Revenue(Loss)
Ending Fund Balance
Fund Balance Percent
2,389,219
(892,371)
1,496,848
5.10%
1,362,897
(677,601)
685,296
2.51%
685,296
(1,989,858)
(1,304,562)
-4.48%
685,296
(1,469,243)
(783,947)
-2.66%
685,296
(1,917,024)
(1,231,728)
-4.04%
685,296
(1,804,504)
(1,119,208)
-3.61%
28,879
(677,328)
(2,759,574)
(2,257,504)
(2,756,477)
(2,667,901)
Fund Balance Shortfall to 5.0%
2/19/2013 3:27 PM
3
2013-14 CR Bgt Forecast3.xlsx Budget Summary
College of the Redwoods
2012-13 Budget Balancing Options
DRAFT - For Discussion Only
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 financia
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
Rollback 2012-13 COLA
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
2
2013-14
Permanent svgs
56,670
18,195
74,865
Rollback 2012-13 Step
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
2/19/2013 3:26 PM
2012-13
6 months svgs
2012-13
2013-14
6 months svgs
Permanent svgs
60,927
89,158
37,057
187,142
1
113,340
36,389
149,729
121,854
178,316
74,113
374,283
2013-14 CR Bgt Forecast3.xlsx Bgt Options
College of the Redwoods
2012-13 Budget Balancing Options
3
Rollback 2013-14 Step
2012-13
2013-14
6 months svgs
Permanent svgs
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
4
-
Furlough - 6 furlough days
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
5
2012-13
2013-14
6 months svgs
Permanent svgs
Eliminate temporary staff
2012-13
2013-14
Permanent svgs
62,500
62,500
Suspend Overtime
Eliminate general fund support to other
funds & categoricals
2012-13
2013-14
Permanent svgs
-
-
2012-13
2013-14
6 months svgs
Permanent svgs
-
Reduce General Fund Support to DSPS
to Minimum Required Match
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
2/19/2013 3:26 PM
118,000
2012-13
2013-14
6 months svgs
Permanent svgs
33,969
2
-
6 months svgs
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
8
-
6 months svgs
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
7
121,854
178,316
74,113
374,283
116,856
179,628
89,280
385,764
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
6
DRAFT - For Discussion Only
ESTIMATES
67,938
2013-14 CR Bgt Forecast3.xlsx Bgt Options
College of the Redwoods
2012-13 Budget Balancing Options
9
Suspend General Fund Capital Outlay
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
10
2012-13
2013-14
6 months svgs
Permanent svgs
33,834
Eliminate High School Concurrent
Enrollment Fee Waiver
2012-13
2013-14
Permanent svgs
-
Eliminate Summer Term and/or Use 11
Month Contracts
2012-13
2013-14
Permanent svgs
-
Reorganize Deans, division chairs, area
coordinators, etc
2012-13
2013-14
Permanent svgs
-
-
2012-13
2013-14
6 months svgs
Permanent svgs
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
14
-
Reduce Non-Instructional Faculty
Release Time
337,600
116,820
145,600
600,020
6 months svgs
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
13
20,000
6 months svgs
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
12 Campus Shut Down
67,668
6 months svgs
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
11
DRAFT - For Discussion Only
ESTIMATES
80,000
2012-13
2013-14
6 months svgs
Permanent svgs
Classified
2/19/2013 3:26 PM
3
2013-14 CR Bgt Forecast3.xlsx Bgt Options
College of the Redwoods
2012-13 Budget Balancing Options
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
200,000
-
15 Suspend Full Sabbaticals
Hold Open Vacant Positions Planned to
be Filled
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
17
200,000
2012-13
2013-14
6 months svgs
Permanent svgs
-
-
2012-13
2013-14
6 months svgs
Permanent Svgs
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
16
DRAFT - For Discussion Only
ESTIMATES
126,000
Program Discontinuance - Eliminate
Academic Programs &/or Reduce Athletics
2012-13
2013-14
6 months svgs
Permanent svgs
-
-
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
Contract Out Graphics, IT, Custodial,
18 Groundskeeping, Warehouse, Payroll,
Security, or other department
2012-13
2013-14
6 months svgs
Permanent Svgs
-
-
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
19 Reorganize confidential staff
2012-13
2013-14
6 months svgs
Permanent Svgs
Classified
Instr & Non-instructional Faculty
2/19/2013 3:26 PM
4
2013-14 CR Bgt Forecast3.xlsx Bgt Options
College of the Redwoods
2012-13 Budget Balancing Options
Admin/Mgr/Conf
Subtotal
20
Employees Pay Monthly for Health
Benefits Plus Inflation
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
21
Switch Medical Plans from Oak to
Spruce
-
2012-13
2013-14
6 months svgs
$100/month
Permanent Svgs
$106/month
Switch Medical Plans from Oak to HDHP
plan
2012-13
2013-14
Permanent Svgs
77,347
62,081
42,744
182,172
2012-13
2013-14
6 months svgs
Permanent Svgs
84,273
67,640
46,572
198,486
5
96,672
77,592
53,424
227,688
6 months svgs
38,673
31,040
21,372
91,086
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
2/19/2013 3:26 PM
-
45,600
36,600
25,200
107,400
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
22
DRAFT - For Discussion Only
ESTIMATES
168,547
135,281
93,144
396,972
2013-14 CR Bgt Forecast3.xlsx Bgt Options
College of the Redwoods
2012-13 Budget Balancing Options
23 Switch Dental Plans from plan 12 to 3
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
Associated Students Fund Clerical
Support
Consolidate Admissions, Financial Aid,
Records
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
2/19/2013 3:26 PM
2013-14
6 months svgs
Permanent Svgs
2012-13
2013-14
Permanent Svgs
10,000
10,000
2012-13
2013-14
6 months svgs
Permanent Svgs
100,000
2012-13
2013-14
6 months svgs
Permanent Svgs
4,500
4,500
6
5,682
4,560
3,140
13,382
6 months svgs
50,000
Reduce Campus Public Safety to less
than 24/7 coverage
17,811
14,296
9,843
41,950
2012-13
5,000
5,000
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
27
2013-14
Permanent Svgs
2,841
2,280
1,570
6,691
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
26
2012-13
6 months svgs
8,906
7,148
4,922
20,975
24 Switch Vision Plans from C7 to A1
25
DRAFT - For Discussion Only
ESTIMATES
9,000
9,000
2013-14 CR Bgt Forecast3.xlsx Bgt Options
College of the Redwoods
2012-13 Budget Balancing Options
28
Suspend Board of Trustees Stipends
(one-time)
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
2012-13
2013-14
6 months svgs
Permanent Svgs
13,000
13,000
29 Revenue generating initiatives
30 Centralize AOA staff
2012-13
2013-14
Permanent Svgs
-
-
2012-13
2013-14
6 months svgs
Permanent Svgs
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
-
Eliminate printing of all catalogs and
schedules
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
2/19/2013 3:26 PM
7
12,500
12,500
2012-13
2013-14
6 months svgs
Permanent Svgs
-
-
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
32 Reduce Software Costs
-
6 months svgs
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
31
DRAFT - For Discussion Only
ESTIMATES
2012-13
2013-14
6 months svgs
Permanent Svgs
-
-
2013-14 CR Bgt Forecast3.xlsx Bgt Options
College of the Redwoods
2012-13 Budget Balancing Options
33 Reduce Travel & Supplies Costs
2012-13
2013-14
6 months svgs
Permanent Svgs
-
-
2012-13
2013-14
6 months svgs
Permanent Svgs
-
-
2012-13
2013-14
6 months svgs
Permanent Svgs
-
-
2012-13
2013-14
6 months svgs
Permanent Svgs
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
34 Use More Web-Based Services
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
35 Sell or Lease Property
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
36 Use Higher One Card for Student ID
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
-
37 Reduce Faculty Overload Assignments
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
2/19/2013 3:26 PM
DRAFT - For Discussion Only
ESTIMATES
8
10,000
2012-13
2013-14
6 months svgs
Permanent Svgs
-
-
2013-14 CR Bgt Forecast3.xlsx Bgt Options
College of the Redwoods
2012-13 Budget Balancing Options
38
One-time draw from Employee Benefit
Trust (one-time)
2012-13
2013-14
6 months svgs
Permanent Svgs
-
-
2012-13
2013-14
6 months svgs
Permanent svgs
-
-
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
39 Layoffs
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
DRAFT - For Discussion Only
ESTIMATES
SAVINGS ESTIMATE SUMMARY - Includes some "duplicates"
Classified
430,076
Instr & Non-instructional Faculty
470,165
Admin/Mgr/Conf
257,167
Other
243,803
GRAND TOTAL
1,401,211
978,867
1,080,602
532,511
463,606
3,055,585
Summary of Evidence
Health and Welfare Benefits Programs Options:
2/19/2013 3:26 PM
9
2013-14 CR Bgt Forecast3.xlsx Bgt Options
College of the Redwoods
2012-13 Budget Balancing Options
2/19/2013 3:26 PM
10
DRAFT - For Discussion Only
ESTIMATES
2013-14 CR Bgt Forecast3.xlsx Bgt Options
College of the Redwoods
2012-13 Budget Balancing Options
2/19/2013 3:26 PM
11
DRAFT - For Discussion Only
ESTIMATES
2013-14 CR Bgt Forecast3.xlsx Bgt Options
College of the Redwoods
2012-13 Budget Balancing Options
2/19/2013 3:26 PM
12
DRAFT - For Discussion Only
ESTIMATES
2013-14 CR Bgt Forecast3.xlsx Bgt Options
College of the Redwoods
2012-13 Budget Balancing Options
2/19/2013 3:26 PM
13
DRAFT - For Discussion Only
ESTIMATES
2013-14 CR Bgt Forecast3.xlsx Bgt Options
College of the Redwoods
2012-13 Budget Balancing Options
DRAFT - For Discussion Only
ESTIMATES
Education Code Section 88003.1
(a)Notwithstanding any other provision of this chapter, personal services contracting for all services currently or customarily perfor
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 sa
district, provided that:
(A)In comparing costs, there shall be included the community college district's additional cost of providing the same service as
additional costs shall include the salaries and benefits of additional staff that would be needed and the cost of additional space
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 c
function in question and would not exist if that function was not performed by the community college district. Indirect overhead
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
directly associated with the contracted function. These continuing community college district costs shall include, but not be lim
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 rate
out work shall be eligible for approval if the contractors wages are at the industry's level and do not undercut community college
(3)The contract does not cause the displacement of community college district employees. The term "displacement" includes lay
to a new classification, involuntary transfer to a new location requiring a change of residence, and time base reductions. Displac
shifts or days off, nor does it include reassignment to other positions within the same classification and general location or emplo
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 c
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 contra
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 so
(10)The potential economic advantage of contracting is not outweighed by the public's interest in having a particular function per
college district.
(b)Notwithstanding any other provision of this chapter, personal services contracting shall also be permissible when any of the follo
(1)The contract is for new community college district functions and the Legislature has specifically mandated or authorized the p
independent contractors.
(2)The services contracted are not available within community college districts, cannot be performed satisfactorily by community
of such a highly specialized or technical nature that the necessary expert knowledge, experience, and ability are not available th
district.
(3)The services are incidental to a contract for the purchase or lease of real or personal property. Contracts under this criterion,
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
pursuant to the regular or ordinary hiring process. Contracts are permissible under this criterion to protect against a conflict of int
and unbiased findings in cases where there is a clear need for a different, outside perspective. These contracts shall include, bu
witnesses in litigation.
2/19/2013 3:26 PM
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2013-14 CR Bgt Forecast3.xlsx Bgt Options
College of the Redwoods
2012-13 Budget Balancing Options
DRAFT - For Discussion Only
ESTIMATES
(5)The nature of the work is such that the criteria for emergency appointments apply. "Emergency appointment" means an appo
exceed 60 working days either during an actual emergency to prevent the stoppage of public business or because of the limited
of selection and the qualification standards for an emergency employee shall be determined by the community college district. T
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 comm
location where the services are to be performed.
(7)The services are of such an urgent, temporary, or occasional nature that the delay incumbent in their implementation under th
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 rene
subsequent to January 1, 2003, where the contract was entered into before January 1, 2003, irrespective of whether the contract i
existing contractor or with a new contractor.
Also reference: http://sclscal.org/files/clientupdates/12-03(CC).pdf
2/19/2013 3:26 PM
15
2013-14 CR Bgt Forecast3.xlsx Bgt Options
College of the Redwoods
2012-13 Budget Balancing Options
DRAFT - For Discussion Only
ESTIMATES
nages its financial affairs with integrity and in a manner that ensures financial stability. The level of financial
tion of both short-term and long-term financial solvency.
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 negotiations to implement. BPC
ranked a similar proposal as 5 out of 11.
2/19/2013 3:26 PM
16
2013-14 CR Bgt Forecast3.xlsx Bgt Options
College of the Redwoods
2012-13 Budget Balancing Options
DRAFT - For Discussion Only
ESTIMATES
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. Will require successful
negotiations to implement. BPC ranked a similar proposal for 201213, but this is a new proposal.
Employee's would be required to take a certain number of workdays
off as unpaid furlough days. Potenital budget savings are noted for
6 furlough days between January and June for all employees by
class. Furloughs do not provide ongoing savings, so no savings for
2013-14. Will require successful negotiations to implement. BPC
ranked a similar proposal as 7 out of 11.
This would eliminate many, but not all, temporary staff in the general
fund. The total temp costs are in the $250,000 range. The 2012-13
savings estimate is based on reducing temp staff by 50% for the
second half of the year. To make this budget cut work, we will need
to reduce the respective department budgets, so that the funds are
not spent on other items. BPC ranked a similar proposal as 6 out of
11.
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.
General fund provides support to non-general fund operations and
categorical programs as follows:
Shively Farm: $28,000
Child Development: $90,000
BPC ranked a similar proposal a year ago, and will review this
proposal.
General fund provides support to DSPS as part of a required match.
However, the District has been optionally providing additional suport
in excess of the required match. Mandated services will need to be
provided, even if cost is above minimum match, need to find low
cost services.
BPC will review this proposal.
2/19/2013 3:26 PM
17
2013-14 CR Bgt Forecast3.xlsx Bgt Options
College of the Redwoods
2012-13 Budget Balancing Options
DRAFT - For Discussion Only
ESTIMATES
Suspend the capital outlay budget. Budget is $135,335, but may be
unrealistic to suspend entire budget, so half is noted as savings.
BPC will review this proposal.
High School concurrent fee waiver was reduced to $20,000 in 201112 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. BPC will review this proposal.
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 noninstructional portion could be reduced)
Managers, confidential, etc: $208,000
Total: $1,278,000
Shut down campus during breaks.
Shut down a building.
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.
Efficiencies and cost savings might be realized by reorganizing
these adminstrative functions. However, a portion of these noninstructional 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.
Approximately $700K in non-instructional faculty 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.
2/19/2013 3:26 PM
18
2013-14 CR Bgt Forecast3.xlsx Bgt Options
Approximately $700K in non-instructional faculty release time is
included in the collective
bargaining
College
of the agreement.
Redwoods The $200K is a
placeholder estimate.
Will
require
successful
negotiations to
2012-13 Budget Balancing Options
implement. BPC ranked a similar proposal as 2 out of 11.
DRAFT - For Discussion Only
ESTIMATES
Suspend full sabbaticals. Will require successful negotiations to
implement. BPC will review this proposal.
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.
2012-13 savings is for 7 staff positions and 2 corridor positions for 6
months. Savings is net of estimated lumpouts and SERP costs.
These positions are currently planned to be filled or may have
already been filled. BPC ranked a similar proposal as 3 out of 11.
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.
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. BPC will review
this proposal.
Reorganize confidential staff for overall savings. BPC will review
this proposal.
2/19/2013 3:26 PM
19
2013-14 CR Bgt Forecast3.xlsx Bgt Options
this proposal.
College of the Redwoods
2012-13 Budget Balancing Options
DRAFT - For Discussion Only
ESTIMATES
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 $14,376/yr per covered
employee. Each year, monthly premiums would increase by the
benefit cost increase percent. 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. BPC ranked a similar proposal as
5 out of 11. These headcounts are for all funds, will research the
general fund employees receiving benefits.
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 $14,376/yr per covered
employee. Based on current rates, the District could opt for the 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 Admin/Mgr/Conf, 83 Instr & Noninstructional Faculty, 274 Total Benefitted Employees. In general
fund: 76 Classified, 42 Admin/Mgr/Conf, and 61 Faculty. Will require
successful negotiations to implement. BPC will review this proposal.
These headcounts are for all funds, will research the general fund
employees receiving benefits.
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 $14,376/yr per covered
employee. Based on current rates, the District could opt for the less
costly plan to save $2,218 annually per covered employee.
Estimate is only employees who receive health benefits, NOT all
employees: 130 Classified, 61 Admin/Mgr/Conf, 83 Instr & Noninstructional Faculty, 274 Total Benefitted Employees. In general
fund: 76 Classified, 42 Admin/Mgr/Conf, and 61 Faculty. Will require
successful negotiations to implement. BPC will review this proposal.
These headcounts are for all funds, will research the general fund
employees receiving benefits.
2/19/2013 3:26 PM
20
2013-14 CR Bgt Forecast3.xlsx Bgt Options
College of the Redwoods
2012-13 Budget Balancing Options
DRAFT - For Discussion Only
ESTIMATES
District employees receive Delta Dental'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 covered employee. Based on current
rates, the District could opt for the less costly 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 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. BPC will review this proposal. These
headcounts are for all funds, will research the general fund
employees receiving benefits.
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. BPC will review this proposal. These
headcounts are for all funds, will research the general fund
employees receiving benefits.
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.
Efficiencies from combining services and staffing. BPC ranked a
similar proposal as 1 out of 11.
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.
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College of the Redwoods
2012-13 Budget Balancing Options
DRAFT - For Discussion Only
ESTIMATES
These stipends would be held back during 2012-13. Savings is for 6
months. BPC ranked a similar proposal as 8 out of 11.
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.
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 salary. BPC ranked a similar proposal
as 6 out of 11.
Place catalogs and schedules on CR website. Eureka main
schedules are online only. Mendocino and Del Norte centers are
online and paper. BPC will review this proposal.
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. BPC
previously reviewed a similar proposal.
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College of the Redwoods
2012-13 Budget Balancing Options
DRAFT - For Discussion Only
ESTIMATES
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. BPC
previously reviewed a similar proposal.
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. BPC previously reviewed
a similar proposal.
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. BPC previously reviewed a simliar proposal.
Savings is estimated on ID card stock and printers, would still need
to take pictures for Higher One. Will need to negotiate with Higher
One. BPC previously reviewed a similar proposal.
BPC will review this proposal.
2/19/2013 3:26 PM
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College of the Redwoods
2012-13 Budget Balancing Options
DRAFT - For Discussion Only
ESTIMATES
$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.
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.
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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College of the Redwoods
2012-13 Budget Balancing Options
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ESTIMATES
2013-14 CR Bgt Forecast3.xlsx Bgt Options
College of the Redwoods
2012-13 Budget Balancing Options
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ESTIMATES
2013-14 CR Bgt Forecast3.xlsx Bgt Options
College of the Redwoods
2012-13 Budget Balancing Options
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ESTIMATES
2013-14 CR Bgt Forecast3.xlsx Bgt Options
College of the Redwoods
2012-13 Budget Balancing Options
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ESTIMATES
2013-14 CR Bgt Forecast3.xlsx Bgt Options
College of the Redwoods
2012-13 Budget Balancing Options
DRAFT - For Discussion Only
ESTIMATES
chapter, personal services contracting for all services currently or customarily performed by classified school
ible, unless otherwise prohibited, when all the following conditions are met:
cy clearly demonstrates that the proposed contract will result in actual overall cost savings to the community college
uded the community college district's additional cost of providing the same service as proposed by a contractor. These
and benefits of additional staff that would be needed and the cost of additional space, equipment, and materials
ncluded the community college district's indirect overhead costs unless these costs can be attributed solely to the
that function was not performed by the community college district. Indirect overhead costs shall mean the pro rata
nd benefits, rent, equipment costs, utilities, and materials.
uded in the cost of a contractor providing a service any continuing community college district costs that would be
nction. These continuing community college district costs shall include, but not be limited to, those for inspection,
be approved solely on the basis that savings will result from lower contractor pay rates or benefits. Proposals to contract
contractors wages are at the industry's level and do not undercut community college district pay rates.
ement of community college district employees. The term "displacement" includes layoff, demotion, involuntary transfer
o a new location requiring a change of residence, and time base reductions. Displacement does not include changes in
gnment to other positions within the same classification and general location or employment with the contractor, so long
ose paid by the school district.
sure that they will not be eliminated by private sector and community college district cost fluctuations that could normally
size and duration of the contracting agreement.
ized, competitive bidding process.
pertaining to the qualifications of the staff that will perform the work under the contract, as well as assurance that the
nondiscrimination standards.
he community college district from potential contractor rate increases is minimal.
s a corporation, limited liability corporation, partnership, nonprofit organization, or sole proprietorship.
ontracting is not outweighed by the public's interest in having a particular function performed directly by the community
chapter, personal services contracting shall also be permissible when any of the following conditions can be met:
e district functions and the Legislature has specifically mandated or authorized the performance of the work by
e within community college districts, cannot be performed satisfactorily by community college district employees, or are
ure that the necessary expert knowledge, experience, and ability are not available through the community college
for the purchase or lease of real or personal property. Contracts under this criterion, known as "service agreements,"
nts to service or maintain office equipment or computers that are leased or rented.
and purposes of the community college district cannot be accomplished through the utilization of persons selected
ocess. Contracts are permissible under this criterion to protect against a conflict of interest or to ensure independent
is a clear need for a different, outside perspective. These contracts shall include, but not be limited to, obtaining expert
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College of the Redwoods
2012-13 Budget Balancing Options
DRAFT - For Discussion Only
ESTIMATES
iteria for emergency appointments apply. "Emergency appointment" means an appointment made for a period not to
tual emergency to prevent the stoppage of public business or because of the limited duration of the work. The method
for an emergency employee shall be determined by the community college district. The frequency of appointment,
es appropriate for the appointment of firms or individuals under emergency
aterials, facilities, or support services that could not feasibly be provided by the community college district in the
med.
orary, or occasional nature that the delay incumbent in their implementation under the community college district's
strate their very purpose.
lleges, including community college districts that have adopted the merit system.
contracts entered into after January 1, 2003. This section shall not apply to the renewal of personal services contracts
ntract was entered into before January 1, 2003, irrespective of whether the contract is renewed or rebid with the
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PRELIMINARY DRAFT
FOR DISCUSSION ONLY
Redwoods Community College District
The budget shows a net deficit and a projected fund equity reserve of less than 5.00%. The District must increase revenues and reduce expenditures on a
temporary and permanent basis to close the budget gap, to remain fiscally solvent, and to meet Accreditation standard IIID, The level of financial resources
provides a reasonable expectation of both short-term and long-term fiscal solvency.
Unrestricted General Fund Bgt Forecast
Estimates
Fund Balance Cushion (Shortfall) to 5.0%
2011-12
Ending Bgt
28,879
2012-13
Budget
(677,328)
Proposed Budget Solutions
Transfer from Empl Benefits Fund
Increase Aux transfer back to $300K/annual
2013-14
Low Est
(2,081,574)
2013-14
High Est
(1,579,504)
2014-15
Estimate
(1,928,477)
2015-16
Estimate
(2,439,901)
(378,000)
150,000
150,000
(300,000)
(300,000)
150,000
(1,931,574)
150,000
(1,429,504)
(600,000)
(2,528,477)
(378,000)
(2,817,901)
678,000
CSEA
CRFO
Unrepresented
Other Revenue Sources
Leases
Round 2 Reorganization/RIFs
Total Budget Savings
Net Cushion (Shortfall) Remaining
2/19/2013 3:28 PM
28,879
678,000
672
1
2013-14 CR Bgt Forecast3.xlsx Bgt Solutions