EL CAMINO COLLEGE
Planning & Budgeting Committee
August 21, 2003
MEMBERS AND ALTERNATES PRESENT:
Miriam Alario-Wolski
Bernie Rang
Michael D’Amico
Cheryl Shenefield
Susan Dever
David Vakil
Thomas Jackson – Acting Chair
Bo Morton
ALSO ATTENDING: Patricia Caldwell, Pam Fees, Victor Hanson, Alex Kelley,
Julia Stewart, Susan Taylor, Carolee Casper
Handouts: a)
b)
c)
d)
e)
f)
g)
h)
Educational Master Planning Timeline 2003-2004
Planning Summit Executive Summary – August 2003
Planning Summit Appendices – August 2003
Planning Process Timeline – 2003-2004
Planning Definitions
Academic Planning Outline (Maas Company)
Support Services Unit Planning Outline (Maas Company)
Budgeting Information
Tom Jackson, Acting Chair, called the meeting to order at 1:05pm. Tom Jackson
announced that Bobbi Villalobos is out ill for a few weeks.
Approval of Minutes
It was moved by Bernie Rang, seconded by Miriam Alario-Wolski that the Minutes of
August 7, 2003 be approved with necessary corrections. Motion carried.
Planning Update
Pat Caldwell distributed revised copies of the 1) Planning Summit Executive Summary,
2) Planning Summit Appendices, 3) Planning Process Timeline, 4) Planning Definitions,
and copies of the 1) Academic Planning Outline, and 2) Support Services Unit Planning
Outline for the committee’s review. These documents were shared with the deans and
division-level directors during a planning training session. Discussions are still being
held in divisions and at College Council and a workshop will be presented during Flex
Day, August 28. Additional open forum workshops will be held in the fall. Action plans
for goals will be developed, which will culminate in the development of a master plan.
During spring 2004, unit-planning guides will be updated. It is hoped there will be no
duplication of effort. Although the unit planning guides are similar to program review,
divisions are encouraged to have a program review report on file. Pat Caldwell provided
a complete review of the sample unit planning reports for Academic Planning and
Support Services Planning provided by Maas Company.
1
All departments in Academic Affairs will use the Academic Planning Outline and all
departments in Administrative Services and Student and Community Advancement will
use Support Services Unit Planning Outline. A consultant from the Maas Company will
provide consulting services and write the chapters in the narrative. After this has been
done, divisions will then have an opportunity to look over the materials to make sure they
accurately reflect what has been said.
The Committee reviewed the Planning Definitions and noted that a correction should be
made in the definition for Budget Enhancement and Budget Augmentation. Revised
copies will be provided to the Committee.
It was moved and seconded by the PBC to approve the Planning Summit report in
concept. Motion carried with two abstentions.
Linking Planning with Budgeting
Pat Caldwell reported the vice presidents have reviewed the planning timeline and have
provided recommendations to President Fallo. The vice presidents have recommended
that a separate baseline funding level be established for each vice president’s area, which
will be managed by the respective vice president. They would be able to shift resources
within the respective area in order to implement strategic goals and educational master
plan recommendations. Divisions will be required to submit their budget requests to their
vice presidents. This was not done when we had rollover budgets. Vice presidents will
have dialogue with each division manager and/or representatives to determine where
needs are located. The respective vice president would then make the decision as to
whether funds should be allocated to that area. Each division would compete for these
funds and PBC would review applications and make recommendations to Cabinet. She
indicated that the President liked the concept of the 1% pool, but there are still details,
which will need to be worked out before the proposal is approved.
In addition to the vice presidents’ baseline funding levels for each of their areas, Cabinet
is considering setting aside 1% of the General Fund for a pool of money to fund division
plans. One percent would equal approximately $800,000 in 2003-2004.
Vic Hanson explained that significant reductions in expenditures in the budget would
allow the establishment of a 1% pool. Bernie Rang expressed concern that this may be a
problem with employee unions and further discussions with the vice presidents would be
needed before final approval. David Vakil also questioned how P4E would fit into the
process. Pat Caldwell will provide an update to PBC regarding this proposal at a future
PBC meeting.
2
Budget Update and Other Comments
President Fallo discussed and provided information to the PBC regarding the following:
Budget (State and College):
 Prior to establishing the 2003-2004 budget, the state had a $38 billion
deficit.
 $17 billion in cuts resulted in service reductions or savings.
 $585 million General Fund reduction. This includes abolishment of 16,000
permanent jobs that will not be filled or eliminated. Discussions with
unions to be held before implementation. Proposed reductions in salaries or
hours of services through layoffs or budget reductions.
 $10.7 billion bond that covers five years.
 $1.9 billion borrowed from CalPERS. This is for cash flow. This does not
mean they will take the funds and not give them back.
 Reduction in General Fund payment to STRS by $500 million.
 The borrowing of funds affects ECC employees.
 The state should receive $4.3 billion in vehicle license fees. Very difficult
to implement. The vehicle licensing fee is political.
 Student tuition increased from $11 to $18 per unit.
 Decrease of 1.7% ($86.8 million) in community college funding across the
board.
 Reduction in Partnership for Excellence to fund Financial Aid. This
amounts to about $500,000 for El Camino College.
 $25 million in reductions for concurrent enrollment. El Camino College
has not as yet been cited for non-compliance. $2 million has been set aside
for any potential liability.
 The 2003-2004 state budget contains no COLA.
 1.5% enrollment growth factor ($57.9 million), which funds 15,500 FTES.
 Deferment of $200 million in college appropriation to 2004. Community
colleges will be able to borrow against this amount for 2003-2004. ECC
may need to borrow.
 Reduction in Proposition 98 funds for community colleges.
 The state budget is $100 billion of which the General Fund has been
reduced from $78 billion to $71 billion.
 Proposed appropriation mid-year cut is not expected to exceed 10%. The
community college share would be $320 million.
President Fallo explained that all tuition fees are sent to the State. The State then pays
the District a portion of the fees back in Apportionment. President Fallo discussed the
2003-2004 Final Budget, which is to be approved by the Board at its meeting of
September 4, 2003.
3
He referred to pages 3 and 4, General Fund Unrestricted – Income and Expenditures.
The following areas were addressed:
 The ending balance remains basically the same although there have been
tremendous cuts.
 Expenditures were cut $3.4 million.
 Partnership for Excellence is understated
 Enrollment fees have increased from $3,697,741 to $5,700,000. Approximately
10,000 ECC students were enrolled at El Camino before the tuition increase was
implemented, of which 2,000 students had already paid their fees. Students will
be informed that they are required to pay the additional seven dollars. A
receivable account has been set up for those students who were charged $11.
Letters will be mailed to them to start the collection process of the additional $7
per student. Some colleges continue to charge $11; some colleges have deenrolled their students only to have them re-enroll again.
 Academic Salaries: Did not replace any instructors, but have remained in
compliance with AB 1725 to maintain 75/25 ratio.
 Most of the cuts were in part-time hourly
 Increase by participation of COLA for 2004/2005.
 There is a change in the fees for the affiliate programs (paramedics, fire, police).
This forces us to keep a $700,000 lid on those programs. Expenses will be
budgeted for those programs.
President Fallo stated there is talk about an $8 billion budget shortfall for 2003-2004,
which means there will probably be mid-year budget cuts in 2004. The Vice
Presidents and staff have been informed of this possibility. The first goal is to
optimize FTES. (FTES – UC – 202,000 students, CSU – 338,000 students,
community colleges – 1,089,000. The average is 4,400 FTES for community
colleges). El Camino College has 13,000 students that are financial aid eligible. We
must provide access to the students and balance services. On July 1, two classified
employees were released from employment. One specially funded program did not
meet its goals and the classified positions were eliminated. We cannot continue to
balance the budget with Reserves.
The Vice Presidents submitted a list of positions to be exempted from the freeze. The
goal is to have no more than one outside hiring from each Area through January 2004.
Another option is to move people from various offices to fill vacant positions. There
are no savings in doing this. A list will be put together of all vacant full-time faculty
positions. A determination will be made in November whether or not to recruit to fill
any of these positions. Cheryl Shenefield questioned the need for a Director of
Institutional Research since there is no Research Department. Pat Caldwell explained
that the department has not been abolished; only the position has not been funded.
There is still a need for coordination of research on campus. President Fallo
commended staff for doing a good job given the current budget situation.
4
Measure E – Approximately $4.1 million of bond monies has been released to
purchase equipment. Three hundred fifty-five (355) computers have been purchased
for the new semester. Alex Kelley will work with the Instructional Technology
Committee to facilitate the process. There are concerns about security, theft of
equipment, restricting use of equipment and logistics.
Facilities Steering Committee - This committee met on August 20 to review the
proposed recommended changes on campus. Programming meetings have been held
throughout the college to discuss and provide input regarding the proposals.
Construction of the Humanities Building will begin in 2005. Further information will
be forthcoming regarding the proposed changes. PBC committee members were
encouraged to attend the workshops during Flex Day.
Winter Session – A decision regarding the Winter Session will be made October 1.
Flex Day – There is a need to focus on planning. The Flex Day Presentation will
focus on planning and the planning process. El Camino College has been cited
numerous times during the accreditation process regarding long range planning,
program review and linking the budget. It is important that the District have a good
planning process. Pat Caldwell and several members of the Planning Summit will
provide a presentation on where we are going regarding planning on campus during
Flex Day presentations.
President Fallo addressed PBC’s Recommendations:
 President Fallo stated that with maintaining authorized frozen positions, we
might need to look at different ways to cover various jobs. This may mean
combining or changing some job descriptions. Vacant frozen positions will be
included in the budget book for 2003-2004 as unfunded positions.
 Board Policy 1600 - Full Inclusion of People with Disabilities – The policy
was pulled from the August Board agenda for further review. The policy is
scheduled to be placed on the October Board Agenda.
President Fallo discussed the “Linking Planning with Budgeting” Memo from the Vice
Presidents. He will continue to review this concept with the VPs.
Evaluation of Planning & Budgeting Committee – This item will be placed on PBC
Agenda for September 4.
Adjournment –It was moved by Bernie Rang; seconded by Susie Dever that the meeting
be adjourned at 2:45 p.m. Motion carried.
Next Scheduled meeting – The next meeting of the Planning & Budgeting Committee is
scheduled September 4, 2003, 1-2:30 p.m. in the Stadium Room.
Approved by Planning & Budgeting Committee – September 4, 2003
5