Campus Budget

Campus Budget

Meeting Notes - October 31, 2017

 

 Welcome & Introduction

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

Noted that some positions still need filling.

Check on the status of the MSA position. Multicultural Association

 

Charge, Goals, Ground Rules, Principles, and Training Members

 

Is there any value to be added to the Campus Budget team.

Suggestions to request PBTs report out from their respective areas.

Repository for budget processes.

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

 

2017/18 Board Of Trustees Adopted Budget Presentation

Cheu noted that the 2017/18 Board Of Trustees Adopted Budget Presentation is posted to the webs site. The Vice Chancellor’s Budget Presentation to the Board of Trustees 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 & Reduction Presentation

Cheu presented the 2017/18 Budget Reduction Presentation that included an  overview of the District and De Anza College financial situation. 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.

The ongoing decline in enrollment has impacted general fund revenue leading to the present $10M structural deficit.

The colleges and enrollment management team continue to carefully monitor student enrollment, analyze course offerings, marketing and recruitment efforts to maximize access for students. Sunnyvale campus essentially replaced the Middlefield campus. Foothill's enrollment is stronger than De Anza's this Fall.

De Anza’s basic “B” budget is $1.8M and the College’s cut is $5M. This 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.

The Board of Trustees approved a districtwide $10M budget reduction target to be implemented over a three- year period.  De Anza’s share of the budget reduction target is 50% or $5M.

Cheu summarized the proposed budget reduction percentage targets for each division. 

President

1%

Communications

1%

VP Finance & College Operations

9%

VP Instruction

45%

VP Student Services

32%

AVP, Student Outreach Services

12%

 

These reduction targets were then compared to the corresponding percentages of the overall De Anza general fund budget. 

President

1%

Communications

2%

VP Finance & College Operations

5%

VP Instruction

81%

VP Student Services

7%

AVP, Student Outreach Services

4%


The proposed budget reduction and timeline plan is:

$1.0M in FY17/18 – identify by June 30, 2018 and implement by July 1, 2019

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

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

The proposed plan is to avoid layoffs in FY17/18 although vacant positions may not be filled; use ending fund balance to cover the FY17/18 $1M pending identification and implementation of permanent costs; and PBTs identify permanent reductions and cost savings by June 1, 2018.

Cheu explained the proposed timeline from October, 2017 through end May, 2018 for identifying the budget reductions, to meet deadlines for the Board of Trustees. This information will most likely be presented in the August 2018 Board Study Session.

Cheu is discussing the amount of savings the district will give us for proposed eliminations to clarify the actual savings rather than approximations.

Note that the numbers are always fluctuating as budget forecasts are based on assumptions not finalized figures.

Reminder that the campus budget stabilization plan included 5.5 new positions that were funded from one-time funds. The PBTs would be responsibly for deciding which areas to cut.

These numbers are general fund only and do not include categorical funds.

Campus Budget members discussed the reduction plan and recommended that the timeline be amended to include a review by Campus Budget at the April 2018 meeting.

 

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

Cheu thanked the team and last year's team for their hard work on the accreditation report. President Murphy wrote a summary of the exit report, which reflected the positive initial report from the team. The final report will be issued by the ACCJC later in the year.

Quick News Item

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

 

Boo! Happy Halloween



Governance
Building: Administration
Contact: Pippa Gibson
Phone: 408.864.8936
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Last Updated: 11/6/17