Exhibit B
REVENUES, EXPENDITURES
AND CHANGE IN FUND BALANCE
REVENUES:
Federal Sources
State Sources
Local Sources
2012-13 Final Bgt
Unrestricted
Restricted
Object
Code
8100-8199
8600-8699
8800-8899
$
Total Revenue
EXPENDITURES:
Academic Salaries
Other Staff Salaries
Employee Benefits
Supplies & Materials
Services & Other Operating
Capital Outlay
1000-1999
2000-2999
3000-3999
4000-4999
5000-5999
6000-6999
Total Expenditures
EXCESS REVENUES (EXPENDITURES)
OTHER FINANCING SOURCES/(USES):
Interfund Transfers In
Intrafund Transfers In
Debt Service
Intrafund Transfers Out
Interfund Transfers Out
Student Financial Aid
Other Sources (Uses)
Total Other Sources (Uses)
FUND BALANCE INCREASE (DECREASE)
BEGINNING FUND BALANCE:
Beginning Balance
Prior Year Adjustments
9790
9791-9792
Adjusted Beginning Balance
1,264,109 $
2,521,542
700,668
1,422,814
17,078,846
13,216,024
27,231,365
4,486,319
31,717,685
12,195,434
6,266,959
6,541,135
378,010
3,773,818
47,086
646,425
1,616,111
811,783
153,450
560,275
274,608
12,841,859
7,883,070
7,352,918
531,460
4,334,093
321,694
29,202,442
4,062,652
33,265,094
423,667
$
Fund Balance Percent
0
0
0
20,799
0
(353,667)
0
0
306,959
(80,000)
0
(255,632)
(373,667)
0
(69,472)
(332,868)
(402,340)
(2,040,549)
0
0
706,848
0
90,799
0
0
(64,947)
0
(1,949,750)
0
0
641,901
0
1,425,000
Net Fund Balance
Net Fund Balance Percent
91,299
0.32%
FY 2012-13 Potential Budget Cuts
Ending Fund Balance Without Additional Cuts
2,000,000
(1,333,701)
Net Fund Balance
666,299
Net Fund Balance Percent
2.25%
1
(64,947)
(1,333,701) $
-4.56%
Emergency Transfer from Employee Benefit Trust
(1,547,410)
0
306,959
(80,000)
(20,799)
(255,632)
(20,000)
0
706,848
ENDING FUND BALANCE
9/6/2012 8:26 AM
158,705 $
14,557,304
12,515,356
(1,971,077)
8980-8988
8989
7100-7199
7200-7299
7300-7399
7500-7699
8999
General Fund
2012-13
25,852 $
641,901
(1,307,849)
Note: Title V requires the adoption of a final
budget that provides a positive ending fund
balance. Therefore, a transfer of funds will
be made from the Employee Benefit Trust
Fund in the amount necessary to eliminate the
deficit Unrestricted General Fund Ending
Balance. These funds must be transferred
back to the Employee Benefit Trust Fund as
soon as sufficient Unrestricted General Fund
Balance exists. To address the deficit in
future years, the District must realize an
increase in revenue and a reduction in
expenditures.
2012-13 CR Final Bgt4a BOT Aug 2012.xlsx GenFd
College of the Redwoods
2012-13 Budget Balancing Options
Salary and Benefits Budgets
Salaries
DRAFT - For Discussion Only
ESTIMATES
Amount
This section recaps major cost increase drivers in the payroll
14,014,360 budget.
Benefits
5,910,207
19,924,567
Subtotal Beginning Payroll
Health & Welfare Benefits
Instr & Non-instructional Faculty 1.5% COLA
188,513 DRAFT - ESTIMATES
113,340
Instr & Non-instructional Faculty Step
Classified 2011-12 Step
Classified 2012-13 Step
Admin/Mgr/Conf COLA
Admin/Mgr/Conf Step
178,316 budgets for preliminary budget development.
102,867
121,854
36,389
74,113
Other Misc Changes
(60,806)
2012-13 Net Payroll Rate Increases
754,586
These amounts include rate increases applied to payroll
2012-13 Payroll W/Rate Increases
20,679,153
Percent Change
3.8%
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.
BPC reviewed all options below at August 29, 2012 Meeting
1
Rollback 2012-13 COLA
2012-13
2013-14
6 months svgs
Permanent svgs
Classified
2
-
-
Instr & Non-instructional Faculty
56,670
113,340
Admin/Mgr/Conf
18,195
36,389
Subtotal
74,865
149,729
Rollback 2012-13 Step
2012-13
6 months svgs
2012-13 Steps began in July paychecks. The 2012-13 Steps
Permanent svgs would be rolledback for the second six months of 2012-13 and
121,854 in future years. Will require successful negotiations to
implement. BPC ranked a similar proposal as 5 out of 11.
2013-14
Classified
Instr & Non-instructional Faculty
60,927
89,158
Admin/Mgr/Conf
37,057
74,113
187,142
374,283
Subtotal
9/6/2012 8:30 AM
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.
178,316
1
2012-13 CR Final Bgt4a BOT Aug 2012.xlsx Bgt Options
College of the Redwoods
2012-13 Budget Balancing Options
3
Rollback 2013-14 Step
2012-13
6 months svgs
74,113
Subtotal
5
Furlough - 6 furlough days
2012-13
2013-14
6 months svgs
Permanent svgs
116,856
179,628
89,280
-
Subtotal
385,764
-
Eliminate temporary staff
2012-13
2013-14
6 months svgs
Permanent svgs
62,500
-
-
-
62,500
-
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
7
8
374,283
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Classified
6
Assuming that current contract terms would continue into 2013Permanent svgs 14, 2013-14 Steps will begin in next July's paychecks. The
121,854 2013-14 Steps would be rolledback permanently. Will require
successful negotiations to implement. BPC ranked a similar
178,316 proposal for 2012-13, but this is a new proposal.
2013-14
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
4
Suspend Overtime
2012-13
2013-14
6 months svgs
Permanent svgs
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
-
-
Subtotal
-
-
Eliminate general fund support to
other funds & categoricals
2012-13
2013-14
6 months svgs
Permanent svgs
Classified
-
-
Instr & Non-instructional Faculty
Admin/Mgr/Conf
-
-
Subtotal
-
Reduce General Fund Support to
DSPS
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
9/6/2012 8:30 AM
DRAFT - For Discussion Only
ESTIMATES
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.
118,000
2012-13
2013-14
6 months svgs
Permanent svgs
-
-
33,969
67,938
2
The District has been optionally providing additional support in
excess of the required DSPS revenue. Mandated services will
need to be provided, even if cost is above revenue, need to
find low cost services. BPC will review this proposal.
2012-13 CR Final Bgt4a BOT Aug 2012.xlsx Bgt Options
College of the Redwoods
2012-13 Budget Balancing Options
9
Suspend General Fund Capital
Outlay
2012-13
2013-14
6 months svgs
Permanent svgs
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
10
11
Eliminate High School Concurrent
Enrollment Fee Waiver
-
33,834
67,668
2012-13
6 months svgs
-
Instr & Non-instructional Faculty
Admin/Mgr/Conf
-
Subtotal
-
Eliminate Summer Term and/or Use
11 Month Contracts
High School concurrent fee waiver was reduced to $20,000 in
2011-12 to provide a partial fee waiver for early college high
Permanent svgs
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.
20,000 BPC will review this proposal.
2012-13
2013-14
6 months svgs
Permanent svgs
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
-
337,600
116,820
145,600
Subtotal
-
600,020
2012-13
2013-14
6 months svgs
Permanent svgs
Classified
Instr & Non-instructional Faculty
-
-
Admin/Mgr/Conf
-
-
Subtotal
-
-
Reorganize Deans, division chairs,
area coordinators, etc
2012-13
2013-14
6 months svgs
Permanent svgs
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
9/6/2012 8:30 AM
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.
2013-14
Classified
12 Campus Shut Down
13
-
DRAFT - For Discussion Only
ESTIMATES
-
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
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
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.
80,000
3
2012-13 CR Final Bgt4a BOT Aug 2012.xlsx Bgt Options
College of the Redwoods
2012-13 Budget Balancing Options
14
Reduce Non-Instructional Faculty
Release Time
2012-13
2013-14
6 months svgs
Permanent svgs
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
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.
200,000
Subtotal
15 Suspend Full Sabbaticals
DRAFT - For Discussion Only
ESTIMATES
-
200,000
2012-13
2013-14
6 months svgs
Permanent svgs
Suspend full sabbaticals. Will require successful negotiations
to implement. BPC will review this proposal.
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
16
Hold Open Vacant Positions Planned
to be Filled
-
-
2012-13
2013-14
6 months svgs
Permanent Svgs
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
Program Discontinuance - Eliminate
17 Academic Programs &/or Reduce
Athletics
126,000
2012-13
2013-14
6 months svgs
Permanent svgs
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
18
Contract Out departments for
savings
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.
-
2012-13
2013-14
6 months svgs
Permanent Svgs
Savings from contracting out for services through an RFP
process. ECS 88003.1 requirements.
Will require successful negotiations to implement. BPC will
review this proposal.
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
9/6/2012 8:30 AM
-
-
4
2012-13 CR Final Bgt4a BOT Aug 2012.xlsx Bgt Options
College of the Redwoods
2012-13 Budget Balancing Options
19 Reorganize confidential staff
2012-13
2013-14
6 months svgs
Permanent Svgs
DRAFT - For Discussion Only
ESTIMATES
Reorganize confidential staff for overall savings. BPC will
review this proposal.
Classified
Instr & Non-instructional Faculty
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
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
22
Switch Medical Plans from Oak to
HDHP plan
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
9/6/2012 8:30 AM
-
-
2012-13
2013-14
6 months svgs
$100/month
Permanent Svgs
$106/month
78,000
49,800
36,600
165,360
105,576
77,592
164,400
348,528
2012-13
2013-14
6 months svgs
Permanent Svgs
66,152
42,235
31,040
132,304
84,471
62,081
139,428
278,855
2012-13
2013-14
6 months svgs
Permanent Svgs
144,152
92,035
288,304
184,071
67,640
135,281
303,828
607,655
5
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.
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 & Non-instructional
Faculty, 274 Total Benefitted Employees. 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 & Non-instructional
Faculty, 274 Total Benefitted Employees. 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.
2012-13 CR Final Bgt4a BOT Aug 2012.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
24 Switch Vision Plans from C7 to A1
26
15,233
9,726
30,467
19,452
7,148
14,296
32,107
64,215
2012-13
2013-14
6 months svgs
Permanent Svgs
4,859
9,719
Instr & Non-instructional Faculty
Admin/Mgr/Conf
3,103
2,280
6,205
4,560
10,242
20,484
Associated Students Fund Clerical
Support
2012-13
2013-14
6 months svgs
Permanent Svgs
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
-
-
Subtotal
-
-
Consolidate Admissions, Financial
Aid, Records
2012-13
2013-14
6 months svgs
Permanent Svgs
Classified
-
-
Instr & Non-instructional Faculty
-
-
Admin/Mgr/Conf
-
-
Subtotal
27
2013-14
Permanent Svgs
Classified
Subtotal
25
2012-13
6 months svgs
Reduce Campus Public Safety to
less than 24/7 coverage
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
9/6/2012 8:30 AM
50,000
2012-13
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. 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. 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.
100,000
Certain shifts would not be covered, so County Sheriff would
Permanent Svgs be first responder. Night shifts when school is not in session
might be an example. Savings estimate is based on 90 days
9,000 with one shift not covered. BPC ranked a similar proposal as
11 out of 11.
2013-14
6 months svgs
4,500
-
-
4,500
9,000
6
2012-13 CR Final Bgt4a BOT Aug 2012.xlsx Bgt Options
College of the Redwoods
2012-13 Budget Balancing Options
28
Suspend Board of Trustees Stipends
(one-time)
2013-14
6 months svgs
Permanent Svgs
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
13,000
-
Subtotal
13,000
-
29 Revenue generating initiatives
2012-13
2013-14
6 months svgs
Permanent Svgs
Classified
Instr & Non-instructional Faculty
-
-
Admin/Mgr/Conf
-
-
Subtotal
-
-
30 Centralize AOA staff
31
2012-13
2012-13
6 months svgs
-
Subtotal
-
-
12,500
2012-13
2013-14
6 months svgs
Permanent Svgs
-
-
Admin/Mgr/Conf
-
-
Subtotal
-
-
2012-13
2013-14
6 months svgs
Permanent Svgs
Classified
Instr & Non-instructional Faculty
-
-
Admin/Mgr/Conf
-
-
Subtotal
-
-
9/6/2012 8:30 AM
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
Permanent Svgs areas to one location, efficiencies and savings might be
12,500 realized. Savings is about .25 FTE at about $30K salary. BPC
ranked a similar proposal as 6 out of 11.
Classified
Instr & Non-instructional Faculty
32 Reduce Software Costs
These stipends would be held back during 2012-13. Savings is
for 6 months. BPC ranked a similar proposal as 8 out of 11.
2013-14
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Eliminate printing of all catalogs and
schedules
DRAFT - For Discussion Only
ESTIMATES
7
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.
2012-13 CR Final Bgt4a BOT Aug 2012.xlsx Bgt Options
College of the Redwoods
2012-13 Budget Balancing Options
33 Reduce Travel & Supplies Costs
2013-14
6 months svgs
Permanent Svgs
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
-
-
Subtotal
-
-
34 Use More Web-Based Services
2012-13
2013-14
6 months svgs
Permanent Svgs
Classified
-
-
Instr & Non-instructional Faculty
Admin/Mgr/Conf
-
-
Subtotal
-
-
35 Sell or Lease Property
2012-13
2013-14
6 months svgs
Permanent Svgs
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
-
-
Subtotal
-
-
36 Use Higher One Card for Student ID
37
2012-13
2012-13
2013-14
6 months svgs
Permanent Svgs
Classified
-
-
Instr & Non-instructional Faculty
Admin/Mgr/Conf
-
-
Subtotal
-
10,000
Reduce Faculty Overload
Assignments
2013-14
6 months svgs
Permanent Svgs
-
-
Admin/Mgr/Conf
-
-
Subtotal
-
-
8
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.
2012-13
Classified
Instr & Non-instructional Faculty
9/6/2012 8:30 AM
DRAFT - For Discussion Only
ESTIMATES
2012-13 CR Final Bgt4a BOT Aug 2012.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
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
-
-
Subtotal
-
-
39 Layoffs
2012-13
2013-14
6 months svgs
Permanent svgs
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
-
-
SAVINGS ESTIMATE SUMMARY - Includes some "duplicates"
Classified
553,179
Instr & Non-instructional Faculty
522,355
Admin/Mgr/Conf
302,240
Other
GRAND TOTAL
$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 Feb 1 annual advance notice to
CRFO and Mar 15 notice to employee for July 1 RIF/layoff.
Administrative layoffs require March 15 advance notice and
would be effective July 1. Classified manager, classified staff,
and confidential would require 45 days advance notice. (See
Ed Code 87740, 87743, CBAs) Savings will depend on the
magnitude of reductions. BPC ranked a similar proposal as 10
out of 11, and 11 out of 11.
1,228,961
1,186,566
624,025
243,803
463,606
1,621,577
3,503,158
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.
Summary of Evidence
Health and Welfare Benefits Programs Options:
9/6/2012 8:30 AM
DRAFT - For Discussion Only
ESTIMATES
9
2012-13 CR Final Bgt4a BOT Aug 2012.xlsx Bgt Options
College of the Redwoods
2012-13 Budget Balancing Options
9/6/2012 8:30 AM
10
DRAFT - For Discussion Only
ESTIMATES
2012-13 CR Final Bgt4a BOT Aug 2012.xlsx Bgt Options
College of the Redwoods
2012-13 Budget Balancing Options
9/6/2012 8:30 AM
11
DRAFT - For Discussion Only
ESTIMATES
2012-13 CR Final Bgt4a BOT Aug 2012.xlsx Bgt Options
College of the Redwoods
2012-13 Budget Balancing Options
9/6/2012 8:30 AM
12
DRAFT - For Discussion Only
ESTIMATES
2012-13 CR Final Bgt4a BOT Aug 2012.xlsx Bgt Options
College of the Redwoods
2012-13 Budget Balancing Options
9/6/2012 8:30 AM
13
DRAFT - For Discussion Only
ESTIMATES
2012-13 CR Final Bgt4a BOT Aug 2012.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 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.
9/6/2012 8:30 AM
14
2012-13 CR Final Bgt4a BOT Aug 2012.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 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.
(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
9/6/2012 8:30 AM
15
2012-13 CR Final Bgt4a BOT Aug 2012.xlsx Bgt Options