Meeting Notes - June 10, 2009
1) Approval of Notes May 13, 2009
2) Changes to 09-10 Projections, Projected Fund Balances as of end March 09, Categorical Funding Update
Jeanpierre shared a handout from Andy Dunn and Bernata Slater that was presented to the Board on June 1, 2009. The document showed the changes to 2009-10 projections and the projected fund balances (est. as of 3rd quarter end) FHDA has a total projected ending fund balance of $18M. De Anza College has a projected ending fund balance of $5.2M. Fund 61 has a fund balance from savings in medical benefits from vacant positions. Therefore, at the present time the District has a projected $18M problem and a projected $18M fund balance.The District and Colleges are trying to stretch the funds as far as possible.
The situation with the categorical funding keeps changing. There is approx. $8M in categorical staffing costs at De Anza College.The latest information available from Bret Watson is reflected in the document Categorical Funding Update. More information is also available from notes of the May 26, 2009 Campus Budget meeting which are posted at: http://www.deanza.edu/gov/campus_budget/notes/CBTNotes05_26_09.html
The District has requested the categorical program managers prepare two scenarios:1) a 50% reduction and 2) a 15% reduction.
Child Development could be deeply impacted and are looking at other partnerships e.g. Head Start. OTI's funding has been in flux over the last weeks but there is a chance they may receive Fed Stimulus funds.
The District is looking for a two-year plan. The deans are reviewing low productivity and low enrolled courses; trends; shifting FTEF to areas of greatest need; enrollment figures before the quarter commences; etc. FHDA is currently looking at cutting 500 sections next year; 300 at De Anza College and 200 at Foothill College. This is approx 5% and would equal approx. $1-2M dollars in savings.
President Murphy sent the following information to the College via an email on 6/10/09. "In anticipation of the budget we are likely to get, we have made the following preliminary moves:
As there is not a final budget at this time, we are in somewhat of a 'wait and see' pattern and will use one-time resources to cover FHDA until we have a clearer picture. However, the District must still work on a plan to close the projected deficit and has asked the Colleges to look at a further 5% reduction.
Challenging to keep employees motivated and positive while we are going through these reductions. By comparison FHDA is in fairly good shape as we have excellent budgeters and have been proactive in anticipating declining budgets. FHDA has a healthy ending fund balance which many other colleges do not have. Some colleges are struggling to make the 5% reserves. FHDA in a unique position in having fund balance to assist in budget planning. There is a possibility that some community colleges might go bankrupt over the next years. FHDA also has dedicated and experienced Deans, faculty, staff and management at the Colleges and District working on solving our problem collectively.
Jeanpierre will send out the dollar amount of our area's 5% reductions later this week and will include the monetary value of the proposed reductions.
4) Burning Issues
None were presented.
FER PBT - Governance
Contact: Pippa Gibson