Minutes of May 10, 2018
3:00 – 5:00 pm
Present: Susan Cheu, Christina Espinosa-Pieb, Moaty Fayek, Precious Gerardo, Pam Grey, Khaled Haq, Karen Hunter, Elias Kamal, Michele Lebleu-Burns, Lorna Maynard, Rob Mieso, Brian Murphy, Mallory Newell, Carolyn Nguyen, Jim Nguyen, Newsha Nikfarjam, Edmundo Norte, Toño Ramirez, Lorrie Ranck, George Robles, Tim Shively, Marisa Spatafore, Danielle Wells (notes)
Murphy opened with a review of the day’s agenda.
Approval of Minutes
There were no corrections or objections. The minutes were approved.
Update of Tier 1/2- Budget Reductions for Implementation on July 1, 2018
Murphy explained the loss of enrollment, the budget reductions, and the different tiers of reduction. Kevin McElroy is hoping the budget and enrollment will stabilize over the next two years. In recent years the Foothill-De Anza district has been operating at $20 million over budget. The District Board has decided that the $5 million cut will be tier one of the budget cuts. The PBTs will present the first half of the first $5 million cut.
Cheu thanked Laura Watson for preparing the format of the PBT presentations. The PBTs requested approval on the displayed spreadsheet as step one of two for the tier one $5 million budget cut. The APBT budget was given a cut of $275k. APBT decided to transfer 1.80 FTE expense to the facility rental revenue. The bookstore also had a vacant position; Cheu and Grey decided to split the postal service position with the vacant Bookstore position to cover 0.50 FTE. These two positions total $225k of the tier one $2.5 million.
The SSPBT total of the first $5 million budget reduction was $2.2 million. SSPBT will absorb 40% of the initial budget cut. Mieso explained that SSPBT attempted to cut areas that will not affect current employees. SSPBT was able to meet the tier one target of $1.1 million without impacting any current positions in Student Services. Murphy commented on how the categorical areas of Student Services are not eligible for elimination; tier one reductions can only come from the general fund. Protecting the positions of those currently employed is priority, but there is a direct impact on the employees in the Student Services are. All nine Student Services positions, that would normally be filled and that are needed, were eliminated during the tier one budget cuts. The loss of those nine positions will directly affect the way our students are serviced.
James Nguyen presented on IPBT’s tier one budget cuts. IPBT is responsible for a total of $2.25 million of the initial $5 million budget reduction. IPBT is expanding their eliminations from ten empty positions to include an additional two empty positions, with a total of twelve empty positions being eliminated. IPBT decided to eliminate empty positions in order to avoid eliminating classified positions. As displayed in the presentation, IPBT vacant position eliminations will include CIS, Math, Business, English, and ESL. Espinosa-Pieb affirmed the PBT’s desire to maintain every instructional classified position.
There is an additional 1320, Part-Time and Overload Assignments, being cut from the budget. Shively asked for clarification on the FTE’s of part-time faculty that will be losing their positions and what are reflects and are credited for those losses. Murphy clarified that the District’s view is that the 1320 reductions will be divided 60/40 between De Anza and Foothill Colleges, and it will either drop to the bottom line or crisis management. There is a cost per unit based on different spending patterns. De Anza’s cost is higher as there are instructors with greater longevity than at Foothill. Murphy continued to muse about strategies that may be used to capture the 1320 reductions. Espinosa-Pieb clarified that the 1320 budget has been reduced from $21.3 million to $18.1 million for De Anza, not including benefits. Cheu also clarified that De Anza has consistently over spent the 1320 budget, and there is debate on whether it will be considered a savings if the reductions are able to control spending to fit in the green of the current budget. Newell inquired whether there is accountability toward productivity goals, and whether it will factor into the budget reduction allocations. Murphy clarified that the District will take productivity goals into consideration. Cheu further clarified that if De Anza spends more than allotted, the institution will now be held accountable by the District.
Espinosa-Pieb gave kudos to the deans, department chairs, and outreach teams that work to reach the desired FTEs. Murphy pointed out that De Anza’s budget is 81% Instruction expense, but Senior Staff decided they should not take 81% of the first round of budget reductions. Espinosa-Pieb mentioned that instruction will absorb a greater percentage in the second round of budget reductions. Murphy explained that there are instructional programs that will be reviewed by a viability team to decide on whether the cost of maintaining these programs is justified. Jim Nguyen stated that De Anza’s viability team is currently being assembled. The viability team reviews programs and recommends either discontinuance, reduction and change, and/or combining with De Anza’s sister college Foothill. Murphy explained that while these programs are signature De Anza programs and part of the identity of the establishment, their viability still needs to be reviewed. Gerard listed the programs with viability issues: massage therapy, music, paralegal programs, dance, photography, red wheel barrel, and a number of athletic teams. Espinosa-Pieb explained that IPBT will begin to look at program eliminations as it is not an option fiscally to continue all of De Anza’s current programs. Murphy stated that the district board does not want De Anza to decrease as an institution; the district board wants De Anza to acknowledge that the current population is reduced. The district board would like De Anza to reduce programs to reflect the current population and not overspend profits.
More information is available in the PBT budget reduction presentation found in the May 10, 2018 College Council Agenda.
Murphy called for a motion to accept the proposed tier one reductions, with a caveat that the Learning Management Systems in IPBT will be replaced by vacant faculty positions. Moaty Fayek motioned, Karen Hunter seconded. No nays or abstentions. The proposed De Anza tier one budget reductions passed unanimously and will be submitted for approval at the next district board meeting.
Budget Reduction Update
Murphy discussed the new funding formula, or lack of, and how it is making budget projections near impossible, along with the possibility of greater budget reductions due to further loss of enrollment. Cheu displayed McElroy’s presentation and explained the current budget projections. Murphy clarified that De Anza’s $9 million cash reserve, as mandated by law, is reserved for disasters or emergencies. The Foothill-De Anza District chooses to reserve 5% of the budget, while the law mandates 3%. There will soon be a resolution to the funding formula, and the District will soon know what the state budget is allocating to education, yet this will not change the need for drastic budget reductions. The “B” budget is not going to be taken away, and it will only be reduced if necessary. More information is available in the budget reductions presentation found in the May 10, 2018 College Council Agenda.
Open Items & Quick News
- During the month of June there are multiple commencement and graduation ceremonies. Commencement is the evening of Friday, June 29.
- Yesterday we were voted for the 11th year in a row as the Coast Conference All Athletics Champions.
- Classified Professionals have their Professional Development Day on Friday, May 18. Registration and breakfast begin at 7:30am until 4:30pm.
- The Student Athlete Recognition Ceremony is Thursday, March 24 in Conference Room A&B.
- New Student Representatives were introduced: Khalid, DASB President, Newsha, DASB Rep, Carolyn, DASB Vice President.
- Black Student Graduation on June 19, Latinx Graduation June 22, first Lavender Graduation June 21. All ceremonies will be added to the website Graduation page.
Meeting adjourned at 4:30pm.