MEETING OF THE
BUDGET COMMITTEE
OF THE BOARD OF TRUSTEES
HOUSTON COMMUNITY COLLEGE
February 10, 2011
Minutes
The Budget Committee of the Board of Trustees of Houston Community College held a
meeting on Thursday, February 10, 2011, at the HCC Administration Building, 3100 Main,
2nd Floor, Seminar Room A, Houston, Texas.
COMMITTEE MEMBERS PRESENT
Richard Schechter, Committee Chair
Mary Ann Perez, Committee Member
Bruce A. Austin, Alternate Committee Member
Yolanda Navarro Flores
Eva Loredo
Sandie Mullins
Neeta Sane
ADMINISTRATION
Mary S. Spangler, Chancellor
Art Tyler, Deputy Chancellor/COO
Renee Byas, General Counsel
Doretha Eason, Executive Assistant to the Chancellor
William Carter, Vice Chancellor, Information Technology
Charles Cook, Vice Chancellor, Instruction
Diana Pino, Vice Chancellor, Student Services
Daniel Seymour, Vice Chancellor, Planning and Institutional Effectiveness
Fena Garza, President, Southwest College
Margret Ford Fisher, President, Northeast College
Zachary Hodges, President, Northwest College
Irene Porcarello, President, Southeast College
Betty Young, President, Coleman College
Remmele Young, Executive Director Government Relations
Willie Williams, Chief Human Resource Officer
OTHERS PRESENT
Kimberly James, System Counsel, Bracewell & Giuliani
Alan Ainsworth, President, Faculty Senate
Other administrators, citizens and representatives from the news media
CALL TO ORDER
Mr. Schechter called the meeting to order at 2:45 p.m. and declared the Committee
convened to consider matters pertaining to Houston Community College as listed on the
duly posted Meeting Notice.
Houston Community College
Budget Committee – February 11, 2011 - Page 2
Operating Budgets (Unrestricted Funds) for 2011-2012 and 2012-2013
Dr. Spangler apprised that several discussions will take place over the course of the next
couple months with the Board.
(Ms. Loredo stepped out at 2:49 p.m.)
Dr. Spangler provided a draft of the recommendations from the Budget Task Force as
follows:
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Review the department chair structure
Review 12-month contracts and summer extensions
(Mrs. Sane arrived at 2:55 p.m.)
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Consider a shift from 16-week classes to more 8-week classes
Reduce energy consumption
Review all contracts
Freeze the hiring of unfilled positions and evaluate the need
Analyze administrative overhead
Expand Distance Education and Ready When You Are classes
Active program viability procedures
Review travel and mileage reimbursements
Analyze marketing expenditures
Selling advertising on HCCTV
Consider a broad range of new usage fees and differential tuition
Targeted staffing study: counselors and academic advisors
Targeted staffing study: IT versus Campus-based services
Other: supplies, institutional/training, contract services, part-time salaries, overtime, and
faculty overload
(Mrs. Sane stepped out at 3:11 p.m.)
Dr. Spangler informed that the effort of the Budget Task Force is a work in progress.
Mr. Austin commended the administration on the efforts to identify optional areas for
savings to make up the potential $2.8 million shortfall.
Mr. Schechter informed that he discussed the issue with administration and informed that
the desire was to make good faith efforts to improve the quality of services to the students
and at the same time reduce the costs.
(Mrs. Sane returned at 3:16 p.m.)
(Ms. Loredo arrived at 3:16 p.m.)
Mr. Schechter encouraged the Board to provide input regarding the budget process.
Houston Community College
Budget Committee – February 11, 2011 - Page 3
Dr. Tyler provided a budget development presentation for fiscal years 2011-2012 and 20122013 with the following notes:
82nd Legislative Proposal: House Bill 1(HB1)/Senate Bill 1(SB1)
• Community colleges have already been cut 5% (2009), 2.5% (2010) equaling
approximately $8 million
• HB1 proposes 21% of state funding cuts (over $498 million)
• SB1 proposes 17.1% of state funding cuts (over $405 million)
• No enrollment growth funding is anticipated in either bill (Statewide community
growth of 18.2%)
Mr. Schechter asked of the estimated affect regarding the Texas grants. Dr. Pino noted that
this refers to first year students and noted that last year 1,028 students would have been
impacted in the amount of $1.6 million dollars.
Dr. Tyler apprised that the college has taken an $8.2 million reduction in revenues this year
in addition to the reductions in 2009 and 2010. He apprised that the growth process
requires that the expenditures take place prior to receiving reimbursement for growth.
Dr. Tyler noted that the largest impact on the College is the reduction relating to health and
retirement benefits, which would be approximately 83% (HB1) and 35% (SB1). He noted
that the total impact relating to HB1 is $17.5 million and $14.8 million for SB1.
Mr. Austin asked if there has been any conversation to use cost through economies of
scales and noted that this is the time to have constructive engagement to establish
partnerships and develop white papers on the issue. Dr. Seymour informed that there is a
white paper under development regarding national studies, workforce trends, and local
partnerships that is very comprehensive.
Mr. Austin noted that there could now be a discussion with Houston ISD regarding strategic
alliance. Dr. Spangler informed that there has been conversation with the Superintendent
and noted that both Dr. Tyler and Dr. Cook are holding discussions with their counterparts
as well. Dr. Spangler noted that the issue does not surround just K-12 and noted that the
idea provided by Mr. Austin could possibly be better addressed with area community
colleges partnerships.
Mr. Austin noted that there are political extremities and noted that it needs to be presented
so that a discussion resonates as to how to recalibrate the educational system. He
recommended reviewing Michigan and Kentucky who have implemented realigned K-12
programs.
Mrs. Sane apprised that the recommendation provided by Dr. Spangler regarding area
institutions sharing expenses is a good idea.
Mr. Schechter noted that Mr. Austin is asking for an analysis to engage an alliance with
HISD for possible buy-in and possibly alleviate the community colleges from certain
Houston Community College
Budget Committee – February 11, 2011 - Page 4
responsibilities. He noted that the analysis must take place immediately. Mrs. Sane noted
that all ISDs should be included in the analysis.
Dr. Tyler noted that the following strategies and actions are available to off-set the state
reduction if only one of the options is utilized:
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Raise Taxes
Raise Tuition
Raise Fees
Cut Classes
Reduce Operations
Furloughs
Reduction of Employees
Compression
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2.5 cents to .01175
37.5% increase
25% increase
21%
35%
21%
200
21%
Mr. Schechter inquired if the graph regarding full and part-time employees is still included in
the financial statement. Dr. Tyler noted that the graph is included in the statement.
Dr. Tyler noted that some combination of all available strategies may be the best solution.
He noted that the Board must decide the mix. Dr. Tyler provided the following information
as an example:
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Raise Taxes
Raise Tuition
Raise Fees
Cut Classes
Reduce Operations
Furloughs
Reduction of Employees
Compression
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.0075 cents to .0997
7.5% increase
10% increase
5%
10%
0%
0%
15% of Schedule
Mr. Schechter asked if the recommendations provided by Dr. Spangler are from the Budget
Task Force. Dr. Tyler informed that he has discussed the matters with the Chancellor and
noted that the development of the analysis is not far enough along to determine.
Ms. Mullins inquired why there could not be a dollar figure to furloughs and employee
reduction. Dr. Tyler noted that the previously mentioned strategy is only an example.
Mr. Austin asked for the amount in furloughs. Dr. Tyler apprised that the amount would be
approximately $300,000 per day if furloughs are implemented and approximately $14 for
homeowners if taxes are raised.
Ms. Mullins asked why employees are not allowed to contribute to their healthcare benefits.
Mr. Willie Williams informed that to his knowledge contribution is not allowed. Ms. Mullins
requested the statue in writing regarding the issue of employees contributions.
Houston Community College
Budget Committee – February 11, 2011 - Page 5
Mr. Schechter asked if there is a raise pending that is not inclusive of the step process. Dr.
Tyler noted that there is the proposed one-time allocation that has not been presented for
consideration.
Mr. Schechter requested that the allocation for bonus be on the agenda for the April
meeting since the Board is not scheduled to meet in March.
Mr. Schechter asked if consideration has been given to discussing with local universities to
partner in an effort for universities to be able to address the recommendation from the
Governor requiring universities to provide students an education for $10,000 including
books. Dr. Spangler noted that Arizona State University (ASU) has identified the pathway
for the $10,000 bachelor’s degree, which does not provide a lot of choices or elaborate
student services and buildings. She noted that a couple articulation programs have been
initiated with ASU; however, the challenge is that HCC students could not be sent to ASU
at their costs.
(Mrs. Flores arrived at 4:09 p.m.)
Dr. Tyler apprised that the budget discussion is a continuous process. Mr. Schechter noted
that all Budget Committee meetings will be held prior to the COTW meeting so that
everyone can attend.
ADJOURNMENT
With no further business, the meeting adjourned at 4:10 p.m.
Recorded, transcribed and submitted by:
Sharon R. Wright, Manager, Board Services
Minutes Approved: _________________________________