2.11.15 CPC Minutes
Committee Name: CPC
Date: 2/11/2015
Time: 1:00pm – 3:00pm
Facilitators/Location/Chair: SAC 225E
Attendees:
Guests:
Topic,
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CPC Members
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Topic
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Introduction of new members:
 Colton Willey, VP Student Senate
 Sarah Doub, CCEU rep
 Ian Haslam, Dean HAWK, Administrator Rep
 Robin McFarland, Faculty Senate Rep
Budget and
Integrated Planning
Info
Victoria/
Terrence
2 hrs
Action
Items and
Timeline
Discussion
Laurel opened the meeting reminding members of the three focus
areas in February:
 2/4: Enrollment education
 2/11: Budget and Integrated Planning
 2/18: Strategic Plan update
All meetings will be taped and uploaded to the website. These
minutes are meant to capture salient topic points only.
Integrated Planning:
Terrence presented a power point presentation on Integrated
planning: What it is? Why do it? Opportunities, Challenges and
Process. All planning is data driven.

Highlighted the new Resource Request form 2015. Link to
website:
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Primary
Effectiveness
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Institutional
Effectiveness
2.11.15 CPC Minutes
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http://www.cabrillo.edu/services/pro/request/index.html
Budget Planning:
Graciano Mendoza presented a slide presentation on budget
planning.
Topic points:
Unrestricted general fund:
 14-15: We are close to a balanced budget
 15-16 thru 17-18, projected: Trend is declining due to our
declining enrollment
Questions/Comments:
 When were we in a structural deficit?
07-08 state budget began declining; we had to plan for that.
 We planned for structural deficit in last few years, but it didn’t
occur. We are projecting a deficit in later years, but we don’t
know if that will really occur.
Need to plan for what we know now so we don’t experience any
gaps in the future.
SSSP & Student Equity:
 11-12: actual revenue was 4%
 15-16 is projected to be 8%
 Categorical one time funds are increasing – but a large majority
is going to instruction, not all the money is staying in student
services.
 Money is restricted; limits our flexibility.
 Some money comes with a required match; don’t have the
specifics yet – no final decisions have been made.
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If we have 2-1 matching requirement, we would need to pull
money from general fund to cover.
 We do have a choice to accept or not accept the funds.
Risk Tolerance Survey:
Victoria asked members to complete a risk tolerance survey, based
on their own personal situation.
Based on responses most members were in the 23-28 risk category,
which is moderate risk taking.
How would the answers change if people were looking at the
College’s money?
2015-18 Budget Planning:
 14-15: Will reach 10887 ftes (enrollment cap) and deficit
reduced from $1M to $.5M
 15-16: State budget is very good including a 1.58% cola and
increased allocation in base revenue.
 Project increases in expenses
 FON is linked to our enrollment
 We are typically over our FON number by 2-4 positions.
 15-16 we are projecting a decrease in 6 positions.
 Counseling positions have shifted from general fund to SSSP.
 STRS & PERS increases are dramatic. Only projected at this
time, we don’t have the final percentage increase yet.
 15-16: Projecting a balanced budget
 15-16: Allotted one time money to help with PERS/STRS
 16-17: Enrollment is declining on a permanent basis.
 Ftes is going from 10887 to a projected 10500: We will need to
learn to live with a smaller college.
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Permanent loss of revenue is approx $2M
Although we have had valiant efforts, we haven’t been able to
increase enrollment
Questions/Comments:
 Can we find a way to show how shifting spending from General
Funds to Categorical funds are reflected in the GF budget
categories. (e.g., Counseling positions that have shifted to SSSP
and Equity funding.) Shouldn’t those GF savings appear in the
2015-16 budget data?
When faculty contract positions are taken off General fund, that is
reflected in the line item that show savings compared with adjunct
backfill of eliminated contract positions.
 Are there any updates on the growth formula?
New parameters haven’t been defined yet.
 What changes can we expect in the May revise?
Nothing has been determined yet.
 If we go over 10887 would be receive more money?
Yes.
 Is 10500 a reachable target?
We believe 10500 is attainable but will be hard. We need to
identify programs that are successful and promote those. Have cut
reserve funds in 15-16. We will not schedule sessions that are not
full. Need to put our efforts on where we know the students will
enroll.
 What is the return on our efforts of putting one time money to
the problem?
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It’s a spiral that is almost impossible to get out of. Our growth
money will eventually come back. 10500 is based on balanced
summers.
 Do we know which programs are potential targets? Can we get
that info?
PRO website has data available; data is very detailed however. Will
share at next CPC meeting.
 Is there a planned target for each division?
Will need to develop a reduction plan based on the decreased
trends.
Victoria posed a question for each CPC member:
 How much money should we keep in our reserves?
 What is the best use of our operating reserves?
Answers:
 Barbara: Can’t answer right now – need time to think about it.
 Ian: $6M in reserves – what do we do with reserves? Can we
buy ftes to get us back?
 Sarah: Important to keep reserves, otherwise the college is in
jeopardy.
 Dennis: Equal to 2months worth of salaries. Use operating
reserves for one time needs or deficits.
 Tatiana: Align with Dennis.
 Alta: Our reserves should cover more than salaries. Need to
have money set aside for unforeseen circumstances.
 Conrad: Wouldn’t look at payroll as a marker for reserves.
Think about 2 things: (1) what is past practice, (2) look at
projected enrollment. Need a consensus and commitment to
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reductions that need to be made. Operating reserves should be
in place to cover deficit.
From the audience:
 Carl: What kind of answer are you looking for? Numerical? What
is our uncertainty?
Questions/Comments:
Payroll is around $5M per month. Even when we had an $11M
balance, we still were borrowing $4.5M. State only pays us about
99% of what they say they will.
 What does the state say we need to have in reserves?
5%
 What happens if our reserves go below 5%?
Our bond rating will change as outside agencies look at our balance
sheet. Could make borrowing money more difficult.
If we go below a 5% reserve this raises red flags with the League and
the state. If we go below 10500, we could be in trouble.
 Do we use our reserve on an ongoing basis to balance the
budget?
At times we have dipped below on our cash balance, but our fund
balance did not. A lot of our fund balance is committed.
Laurel: Have talked with leadership about this. It would be nice to
have a consensus, but not everyone will agree on how to spend our
money. If we could have an agreement on how to spend the dollars
that would be helpful. Need to have open and honest
conversations. If we can get to 10500, the next step is how to
innovate and capture more dollars. Our formula funding is in
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question. Speculation that this will change from the way we were
funded in the past.
Have asked cabinet to put together a restructuring plan that will be
brought to CPC for review. You will have an opportunity to review
and discuss next steps.
One time Operating Reserves:
 Final 14-15 is $1.7M
Victoria will be recommending to the board that we increase our
reserves by 2%: One percent this year and 1% next year. As well as
an increase our retiree benefit fund.
Agenda Building &
Summary Takeaway
Info
Laurel
5 Min
Parking Lot:
Information Requested
1.
To be added during the meeting
2.
3.
4.
 Reminder of board study session on 3/2/15 from 4:00-5:00 in
Hort. All are welcome to attend.

None
2.11.15 CPC Minutes
Meeting Summary or Take Away:
1.
To be added during the meeting
2.
3.
4.
Effectiveness Links
1.
Mission Statement and Core 4 Competencies (Communication, Critical Thinking, Global Awareness, Personal and Professional Responsibility)
2.
6.
Student Success
Enhance Institutional Effectiveness
Board Goals
Education Master Plan
Facilities Plan
7.
Technology Plan
8.
Program Plans
Student Equity Plan
3.
4.
5.
9.