May Revise Budget Update Impact on Academic Year

May Revise Budget Update & Impact on Academic Year 2020 -21 Class Schedule and Services Board of Trustees May 28, 2020

2020 Project Overview FY 20 Budget 2020 Bond Project. Summary Pre-COVID-19 the College was facing challenges maintaining a balanced budget. • College has relied on deficit spending from reserves and unplanned transfers of expenses to categorical funds and other restricted funds o Lack of integrated planning • Checks and balances were not in place o Contracts and other items MUST receive prior budget review and approval o All program managers, not just Budget Office, monitor spending • Mid-year cuts causing disruption and lack of confidence in budget and schedule development • 345 classes were removed from Spring 2020 schedule as part of closing the FY 20 deficit • Revenue based on “hold harmless” provision, not actual enrollment May Revise Update BOT May 28, 2020 2

2020 Summary Overview FY 21 Budget: State 2020 Bond. Project Summary Budget Current conditions – recession may be deeper that “great recession” of 2009/10 • Nation’s unemployment rate highest since the Great Depression • California’s unemployment rate 5. 3% as of end of March • Total 2. 7 million unemployment claims March’s record 99, 500 nonfarm payroll jobs loss was the fourth-largest on record, driven by declines in six of California’s eleven industry sectors. • Leisure & Hospitality (-67, 200) • Other Services (-15, 500) • Construction (-11, 600) Source: CA EDD May Revise Update BOT May 28, 2020 3

2020 Project Summary Overview Budget: State 2020 Bond. FY 21 Project Summary & Local • California’s projected deficit: • California’s “rainy day” reserve: • Impact on college community system: • City and County of San Francisco $54 billion $16 billion $2 billion • Projected $2 billion deficit • SFUSD - $40 M projected deficit, likely to grow to $82 M May Revise Update BOT May 28, 2020 4

Worsening Budget Scenario for FY 21 • Governor published May Revise on May 14 th: • Reductions in general funding for all community colleges • Reductions in categorical programs, e. g. , Strong Workforce, Adult Ed • Estimated impact to City College: $27 M reduction in revenue • Also reduced estimates for local revenues o Sales tax revenues received from City and County of San Francisco • Overall, estimated expenditures exceed revenues by $35 M • To achieve balanced budget AND maintain 5% reserve for 2020 -21: • • Reductions in non-personnel spending, and Concessions/reductions in personnel expenses for ALL employees, and Further schedule reductions from 1, 200 FTEF to 1, 100 FTEF or worse, and Advocate for funding May Revise Update BOT May 28, 2020 5

Impact of Budget Reductions on Schedule of Classes • Initial PGC Budget Committee recommendation was total instructional budget of 1, 200 FTEF (Full-time equivalent faculty) for Academic Year 2020 -21. • Approximately 800 classes were removed from the annual schedule • Over 200 part-time faculty have been advised they will not have assignments in Fall 2020 • With May Revise, reduction of instructional budget to 1, 100 FTEF is a component of balancing budget, even with personnel cost reductions • An additional ~450 class reduction from annual schedule May Revise Update BOT May 28, 2020 6

Process for Additional Schedule Reductions • Magnitude of budget reduction necessitates schedule reductions in both Fall 2020 and Spring 2021. • Act quickly to mitigate impact to students that have already registered for Fall, while leaving room for consultation with Department Chairs and community partners • Impact on every element of class schedule: • Credit and noncredit classes • General Education, Career Education, lifelong learning • Cohorted programs, such as Aircraft Maintenance May Revise Update BOT May 28, 2020 7

Budget Process Timeline • Continued meetings through June: Negotiations with labor groups o Further review of impact of May revise o Recommendations on the balance of expenditure reductions o ØRegistration for Fall 2020 is in progress and will continue o Decisions regarding concessions vs. further schedule reductions must be made by mid-June • Board adoption of tentative FY 21 budget on June 25 • Fall: • August revise from Governor • Board adoption of final FY 21 budget May Revise Update BOT May 28, 2020 8

2020 Summary The Way Forward 2020 Bond. Project Summary Together, with a lens of social justice and equity, building for the future framework for a renewed City College of San Francisco • Continuing work of Ri. SE group o Degree and transfer focused on our equity populations o Non-credit offerings • Economic recovery (e. g. , CTE programs) • Programs that contribute to a vibrant, diverse community o Arts o ESL o Professional and personal enrichment Building a renewed City College will take years and we must start now May Revise Update BOT May 28, 2020 9

2020 Bond. Project. Summary May Revise Update BOT May 28, 2020 10