Los Angeles Community College District
District Budget Committee Meeting Minutes
Wednesday, January 7, 2009
1:30-3:30 p.m., District Office, Board Room
Roll Call
Committee members present as indicated (X).
Academic Senate
David Beaulieu*
Lina Chen
Dana Cohen
Jeff Hernandez
Lauren McKenzie
Rod Patterson
Unions/Association
Violet Amrikhas
Leticia Barajas
Leila Menzies
Ted Strinz
Dorothy Rowe
or Velma Butler
X
X
X
X
X
X
L.A. Faculty Guild
Paul Doose
Carl Friedlander
John McDowell
Gary Prostak
Olga Shewfelt
Don Sparks
X
X
X
X
X
X
College Presidents
Roland Chapdelaine
Jack E. Daniels III
X
Robert Garber
X
X
Judith Valles
X
X
Jamillah Moore
X
Ernest Moreno
X
Mark Rocha*
X
ASU
Linda Spink
X
Allison Reid
Sue Carleo
X
______________________________________________________________________________
X
X
Also Present
Resource Persons
Adriana Barrera
Vinh Nguyen
Mark Drummond
Jeanette Gordon
District Office
Cathy Iyemura
Gary Colombo
Marvin Martinez
1. Call to Order
DB called the meeting to order at 1:30.
Other Guests
Karen Hoefel
Mary Gallagher
Kathleen Burke-Kelly
John R. Oester
Ann Tomlinson
Bob Isomoto
Isabella Chung
Bob Isomoto
Joanne Wadell
Allison P. Moore
Tom Jacobsmeyer
2. Approval of agenda
Agenda was approved.
3. Approval of minutes for Dec. 10, 2008
The minutes were approved with a slight change from what was sent out earlier. Section
#6, with an enrollment update, is now included. Also. small changes were made by
Jeanette Gordon and Vinh Nguyen to various lines. Note that Violet Amrikhas is not
longer a union representative. No one has been named yet to replace her.
4. State Budget Update
Chancellor Drummond reported on the budget negotiations in Sacramento. He predicted a
deal within days, though the Governor is threatening a veto. Our mid-year cut would be
limited to the COLA, which they seem to be fixated on. We may need to borrow money,
given the deferral of apportionment payments in January and February. Given that we've
restricted our spending for over a year now, we're in relatively strong position. With an
Obama stimulus, the economy may begin to turn around. The 09-10 budget looks to be
fairly generous. The Governor's office may be interested in addressing the property tax
shortfall on a more permanent basis. But first we have to get 08-09 straight. There's no
point in spending too much time talking about next year, till this one gets sorted out.
Gordon noted that there was still no word on whether we're facing a cut for 09-10, but we
will hopefully know something by Jan. 15.
The Chancellor discussed the need for a district ADA auditor, given the $1 million
deductible on our policy, and the strong likelihood of future suits, given the cottage
industry that's built up around ADA compliance issues. A settlement at Pierce cost us $1
million just a few years ago. One additional option is to buy even more insurance.
Leila Menzies cited the need to have proper equipment and furnishings to avoid
compliance issues.
David Beaulieu noted that there had been recent discussion with the Chancellor and
others as to the possibility of reconstituting the DBC somewhat, in order to serve as a
shared governance committee, analogously to those on each campus. We currently do not
have such a committee at the district level, and there are topics--ADA compliance being
one of them, enrollment management certainly another--that are currently handled in a
more scattered, unorganized way in terms of consultation. The Chancellor added that for
many topics, we have an adequate system: the DAS handles academic and professional
matters, the unions employer-employee relations, and we now have a Bond Steering
Committee that will serve in a more shared governance manner, with increased faculty
participation. What we don't have is a committee for district policy issues. Perhaps we
could spend an hour on policy matters, and then time on the budget. He added that he
would feel more comfortable with this than with the current system.
Beaulieu noted the recent article by Nobel Laureate Paul Krugman, which suggested that
we may be on the verge of a depression. Given the fact that California is worse off in
terms of employment than the rest of the state…
Gordon reported on a recent conference call with the Governor's office. Besides offering
help on a permanent property tax backfill, they suggested we reduce our reserves by half
for two years. This is not necessarily what ACCJC says, however.
5. Mid-Year Budget Reduction Plans
Gordon passed out the plans by the colleges to reduce expenditures by a total of $20
million. Even if our mid-year cut does not require all of these reductions, it's good to
reduce now, in preparation for 09-10.
6. Lobbying for Federal Grants
Marvin Martinez reviewed the changed political circumstances in Washington, with the
new administration, the increased influence of California officials, and the likelihood of a
major stimulus bill soon. He noted President Obama's strong support for community
colleges. He argued that we need, nonetheless, to have a lobbyist presence in DC to be
sure that our voice was heard. The firm he is suggesting we hire, Cassidy and Associates,
represented Santa Monica College successfully for many years, along with many other
higher education institutions in the country. They will come out and do a reseource
inventory as a first step.
The proposal is to pay Cassidy $120,000/year, with half the funds coming from the
district, and half out of Martinez's and the Workforce Development office's budgets.
John McDowell asked that Cassidy and/or Martinez provide us with regualar reports on
what they are accomplishing. Martinez replied that he would make the reports himself, in
order to save money.
Paul Doose cited the need for a free flow of information from the colleges to Cassidy and
Martinez's office. Martinez said he'd be sure that Cassidy meets with a team of leaders
from each college when they come out to do their inventory. Techonology, professional
development, and economic development were three areas that he cited as especially
likely to be fruitful.
Beaulieu noted that the total stimuls package was for around $775 billion over two years,
with up to 40% going to tax cuts, at last word.
There was a motion, a second, and a unanimous vote to recommend to the Chancellor
that we hire Cassidy for one year at $120,000. Any additional travel expenses, et al, will
be paid for out of Martinez's office.
7. Fiscal Policy and Review Committee Report
Gordon reported that the committee met in the morning and has almost completed work
on four of the colleges that ran a deficit last year. Their requests for debt reduction can be
handled with the new debt reduction growth mechanism. Valley still needs to report back
on its enrollment management plans. In the case of Trade, after extensive discussion, the
FPRC is recommending that it be given an additional $500,000 allocation, given the large
percentage of their classes that are high cost CTE. The recommendation is to give them
an augmentation for this year, and then for this to become part of their regular budget in
09-10.
Beaulieu reviewed the two-year history of discussion in DBC and in the old Budget
Allocation Task Force, as well as in the FPRC. The basic argument has been that while
other colleges also had high-cost CTE, Trade has a significantly greater amount. Around
60% of its courses are CTE, of which a large number are high cost. The $500,000 was not
chosen arbitrarily, but is the same amount of augmentation given to the four small
colleges when we adopted our implementation plan for SB 361. Looking at the exact
percentage of high cost CTE across the district and then making adjustments seemed to
be overly complicated. He added that the committee stipulated that this augmentation be
reconsidered every three years (as with the smaller colleges), and that there be an annual
check as to how Trade's "general college productivity."
Erlinda DeOcampo suggested that the review by every semester, rather than annually.
Jeff Hernandez suggested that the vote be delayed till the next meeting, given that
nothing was being presented to the DBC in writing. He and Judith Valles also asked
about looking at CTE programs district-wide, asking whether that would not have been a
better way to go about this adjustment. Beaulieu answered that there had been discussion
about this in committee, but it hadn't been reported back to DBC.
Carl Friedlander summarized the consensus of the FPRC that something ought to be done
minimally for Trade, given the reasons cited above.
After further discussion, the proposal to review Trade's productivity every six months
was defeated. The motion to accept the FPRC's original proposal, as stated above, was
passed, with three opposed and one abstention.
Chip Chapdelaine thanked the DBC for giving due consideration to this issue over the
last two years.
8. FTON Update
Greg Mazarella reviewed the reasons why the recent calculations of our FTON show us
to be 26 short of the number required to avoid a penalty. We are currently down to 56.4%
from 59.6% last year. A penalty of $1.7 million has been assigned, but payment has been
deferred for a year. No waiver was granted for this, however. Gordon reported that
further conversations with state officials will take place, as we believe they made
miscalculations. The Board of Governors has waived the Fall 2009 FTON, so the number
for Fall 2008 (1461) remains operative.
Carl Friedlander stressed the importance of avoiding a state fine.
Meanwhile, colleges are being encouraged to continue hiring, though prudently, in spite
of a general hiring freeze, given the need to improve our ratio. This elicited some
puzzlment, however, given the apparent mixed message. McDowell
Hernandez pointed out the need to start our hiring processes earlier, planning this year,
for example, for Fall 2010 hiring.
Bob Garber stressed the work involved in evaluating new faculty, given the large number
of them at Pierce and East.
There was discussion about having the Cabinet determine the number of faculty needed
to be hired this year and next and to then report back to the DBC. A motion was made,
seconded, and passed to this effect.
9. Announcements and Indications of Future Proposed Actions
Gordon said that a written report will be presented to the DBC at an upcoming meeting of
the recommendations of the ad hoc committee looking into ways to reduce our
Centralized Accounts (formerly District-wide Accounts) expenditures. They have come
up with some $8 million in cuts or reassignments of accounts into either college operating
budgets or District Office budgets. Facilities and Info Tech are more appropriately
District Office accounts. The net effect will be to increase the DO budget by $6 million.
10. Adjournment
The meeting adjourned at 3:00. The next meeting is Jan. 21.