Sunken Garden Fountain

Finance  & College Operations
Planning & Budget Team

Meeting Notes - October 13, 2017

 

Welcome & Introductions

Cheu welcomed the members to the first meeting of the academic year. The team introduced themselves.

Charge, Goals, Ground Rules, Principles

The group reviewed and approved the Charge, Goals, Ground Rules, Principles

 

2017/18 Adopted Budget

Cheu informed the team that the 2017/18 Adopted Budget is posted to the web site.  As it is approx. 120 pages she invited the team to review it at their leisure.

 

2017/18 Board Of Trustees Adopted Budget Presentation

The team reviewed the 2017/18 Board Of Trustees Adopted Budget Presentation which provided a concise overview of the main points of the 2017/8 adopted budget.

Cheu summarized the Vice Chancellor’s Budget Presentation to the Board of Trustees, which highlights the main points of the FY 2017/18 budget.  Continuing decline in enrollment presents major budget challenges. Projected districtwide ending fund balance for 2017/18 is negative $10.4M. The Board of Trustees asked the district to implement a districtwide $10m structural budget reduction over 3-years.

Percentages of the total reduction target of $10M:

De Anza = 50%

Foothill = 35%

Central Services = 15%

Risk factors

  • Enrollment uncertainty
  • Operating expenses
  • STRS/PERS increased employer contributions
  • Unfunded state mandates
  • Managing structural deficit

 

 2017/18 De Anza Budget Summary

Ongoing declining enrollment means less revenue for General Fund. General Fund comprises the majority of funding for Instruction, Student Services and Finance & College Operations.  The Board of Trustees, concerned about ongoing structural deficit, requested the district take action to reduce costs.  In August 2017, Board of Trustees approved $10M districtwide budget reduction target. The district has 3 years to implement plans

Cheu presented a summary on the De Anza budget forecast for FY2017/18. The scenario is based on ‘flat’ enrollment with a 1% COLA which would go toward offsetting expenses not salary increases.  However, De Anza is approx. 5% down for Fall 2017 and COLA is usually a negotiated item.

De Anza’s “B” budget is $1.8M and the College’s cut is $5M. The means the “B” budget is not sufficient to cover the College’s portion of the reductions. The College is therefore forced to look at other on-going reduction scenarios.

Summary of De Anza’s reduction plan.

De Anza College’s reduction amount is 50% ($5M) over 3 years

$1M in FY17/18 – identify reductions by June 30, 2018 and implement by July 1, 2019

$1.5M in FY18/19 - identify reductions by June 30, 2018 and implement by July 1, 2019

$2.5M in FY19/20 - (dependent on enrollment trends)

 

FY17/18

  • No layoffs will take place although vacant positions may not be filled
  • Ending-fund balance will cover the FY17/18 $1M pending the identification and implementation of permanent cost reduction by July 1, 2019
  • Shared governance process (PBTs) will identify permanent ongoing reductions
  • Identify cost-savings (e.g. software contracts)

 

Budget Reduction Planning FCO PBT

Pending approval by College Council.

Preliminary FCO were allocated 9% of the De Anza reductions.

Years 1&2 $225k

Year 3 = $225k

Approximately $200,000 of alternative funding has been identified to cover the reduction target. The FCOPBT will need to identify at minimum another $250,000 to meet its 3-year budget cut target.

  • PBT to work on criteria for identifying and prioritizing cuts and timeline
  • Essential core services in relation to the College Mission Statement
  • Essential core positions in relation to the College Mission Statement
  • Identify funding source for positions to be potentially eliminated
  • Determine the impact of position vs. the dollar savings
  • Present consequences and reductions to other PBTs & College Council

Bring in department specialists to speak to the services provided and the impact of potential reductions.

Suggestion for determining criteria.

  • Provide an academically rich multicultural learning environment
  • Physical wellness
  • Information literacy & Communication – provides timely information to managers to plan.

Enrollment planning group has a presentation is posted here

 

Accreditation - Summary of Site Visit Oct 9-12, 2017

Woohoo! Thank you all for showing up to the site visit team meetings.

 

Following is an excerpt from President Murphy's accreditation message to De Anza:

"At the exit report, the chair noted several areas of commendation, including the college’s:

• commitment to equity and student civic engagement as being core elements of our identity and informing all programs and planning;

• “heart” for underrepresented students;

• welcome and support for online students;

• support for a vibrant student life through programs and facilities design; and

• avid commitment to professional development.

De Anza College, she said, should be proud.

It is worth noting that the chair, while delivering her report, wore a De Anza College T-shirt she had purchased at the Bookstore.

Evaluation teams also identify areas in which they have “recommendations.” There were two recommendations related to ACCJC Standards, including a technical issue in which some SLO course outlines may not have matched or were inconsistent on syllabi. In addition, after reviewing a percentage of online courses, there was a sense that they did not demonstrate sufficient interaction. It must be noted that we were only three weeks into the quarter, using a new course management system. In addition, not all aspects of online interaction were apparent to the visitors, including student and instructor emails and grade book comments.

The final comments – which do not pertain directly to the Standards – were the recognition that we have a continuing decline in enrollment, making even more difficult how to handle the structural budget deficit the college and district are managing, and second, support for taking a long-term view of our enrollment and budget planning, communicating the mission and values in doing so. The team recognizes that the college is fully aware of our enrollment decline, and wanted to support us in our planning for a long-term approach, as opposed to a short-term “fix.” Both of these comments align with our own plans to develop both a three-year budget reduction scenario and, significantly, initiate a long-term strategic planning process, as I had announced on Opening Day."

 

Quick News Item

Feedback from Accreditation team member suggests renaming the Finance & College Operations VP area to be in line with other community colleges VP areas i.e. Administrative Services.

 

 

Present: Cheu, Fritz, Gerard, Gore, Grey, Varela, Fritz. Notes: Gibson



FER PBT - Governance
Building: Administration
Contact: Pippa Gibson
Phone: 408.864.8936
sizeplaceholder


Last Updated: 10/20/17