SEATTLE COMMUNITY COLLEGES District Budget Public Hearing Fiscal

SEATTLE COMMUNITY COLLEGES District Budget Public Hearing Fiscal Year 2011 -12 Presented Wednesday, June 8, 2011 South Seattle Community College

SEATTLE COMMUNITY COLLEGES District Budget Public Hearing Fiscal Year 2011 -12 Opening Remarks Dr. Jill Wakefield, Chancellor

Seattle Community College District Mission Seattle Community Colleges will provide excellent, accessible educational opportunities to prepare our students for a challenging future.

District-wide Strategic Plan 2010 -2015 GOAL 1 – STUDENT SUCCESS Increase Student Learning and Achievement: • • • Improve student achievement in pre-college math & college level math for all students Increase the number of students completing degrees and certificates Increase academic success of students transferring to four-year institutions

District-wide Strategic Plan 2010 -2015 GOAL 2 - PARTNERSHIPS Build Community, Business, & Educational Partnerships: • • • Increase awareness of the significant economic impact of the Seattle Community Colleges Increase professional-technical program graduates to respond to local industry workforce needs Increase private, foundation and local funding

District-wide Strategic Plan 2010 -2015 GOAL 3 - INNOVATION Increase innovation & improve organizational effectiveness: • • • Increase innovative instructional options for students Improve effectiveness, efficiency and responsiveness of administrative systems Increase recognition of the Seattle Community Colleges as an outstanding place to work

SEATTLE COMMUNITY COLLEGES District Budget Public Hearing Fiscal Year 2011 -12 The Numbers Alan Ward Interim, Acting, Temporary Chief Financial Officer

District-wide Budget Committee Recommendations • Process Efficiencies • Centralization • Revenue Generation • Examination of part-time/full-time faculty • Collaboration

District-wide Budget Committee Recommendations PROCESS EFFICIENCIES • Further restructuring of management positions and departments across the district and within colleges • Streamlining, centralizing and/or automating enrollment processes to give students greater ability to enroll at more than one of our campuses • Examine the effectiveness of the use of S&A fees and the transparency of the process for the allocation of these funds at all campuses

District-wide Budget Committee Recommendations PROCESS EFFICIENCIES (previous recommendations) • More efficient use of space and buildings; continuation of the goal to increase sustainable practices • Minimize the use of outside consultants and contractors • Increase the use of electronic forms

District-wide Budget Committee Recommendations CENTRALIZATION (previous recommendation) Increased centralization of “back office” functions

District-wide Budget Committee Recommendations REVENUE GENERATING • Examine the reliance on soft money (i. e. , international students) while keeping mindful of the district’s mission • Local taxing authority, competing for levy funds

District-wide Budget Committee Recommendations REVENUE GENERATING (previous recommendations) • Pursue more grants & charge indirect costs • Explore differential tuition & fees, and flexibility in utilizing fees for state-support classes

District-wide Budget Committee Recommendations PART-TIME/FULL-TIME FACULTY RATIO ANALYSIS (previous recommendation) Investigate the pros and cons of replacing some part-time faculty with full-time faculty positions

District-wide Budget Committee Recommendations COLLABORATION (previous recommendation) Move to common placement testing standards

SEATTLE COMMUNITY COLLEGES District Budget Public Hearing Fiscal Year 2011 -12 Now for the “Real” Numbers Alan Ward Interim, Acting, Temporary Chief Financial Officer

How We Started FY 2010 -11 • July 1, 2010 General Budget Cut • Compensation Cut • Total Cut • Tuition Increase -7% • Net Reduction for FY 10 -11 $4, 007, 146 $720, 025 $4, 727, 171 $4, 350, 083 $377, 088

Things Were OK THEN! • Revenue Forecasts were lowered • Sales/Business taxes generate over 50% of State revenue- revenues missed forecasts • Governor implemented a 3. 8% supplemental budget reduction in December • This was another $2, 688, 021 budget cut for the District

Budget for 2011 -13 Biennium Legislature dealt with $ 5 bil revenue shortfall Couldn’t raise taxes-initiative I-960 State appropriations were cut Legislature reduced CTC funding by $76. 8 mil or 11. 5% for FY 2011 -12 • $84. 3 mil or 12. 6% for FY 12 -13 (1. 1% more) • CTC current State funding drops from $669 mil to $585 mil in FY 12 -13 • •

Unresolved Budget Issues for 11 -13 Biennium • Tuition Increase-will SBCTC approve full 12% Legislatively authorized increase? • Tuition re-direct for ERP project 2 or 3%? • 3% compensation reductions- Chancellor & Presidents decided not to cut salaries this year • Will use other compensation reductions to make cuts • 6% CAP on TIAA-CREF contribution

Budget Issues • • • Funding for supplemental retirement fund $5. 5 mil in mandated efficiencies for system Allocation for Worker Retraining Lost $2. 8 mil in one-time Worker Retraining Legislature added back $4. 5 mil & 970 WRT FTE for entire CTC system (district will receive a portion)

We are exhausted, but the race isn’t over

How Did District Plan for this? • Colleges/District Planned for 10% cut beginning in January • Anticipated cuts of up to $8. 2 mil for District • College/District also needed to account for the 3. 8% supplemental cut

Projected Tuition Revenue FY 2011 -2012 FY 2010 -2011 Enrollment FY 2011 -2012 100%* Projected Tuition Collected $32, 478, 159 $34, 102, 066 Current Tuition Allocation $30, 598, 643 $1, 879, 516 $3, 503, 423 Projected Additional Tuition *Assumes SCCD generates similar FTES as FY 2010 -2011 (approx 15, 600) despite having less projected funding for WRT FTES in FY 2011 -2012 (500 -600 less)

SEATTLE COMMUNITY COLLEGES District Budget Public Hearing Fiscal Year 2011 -12 District Office & District-wide Budgets Alan Ward, Interim Chief Financial Officer

District Office (Siegal Service Center) Chancellor’s Office – District Leadership, PIO, Advancement, Government and External Relations & Partnerships Vice Chancellor’s Office – Planning, Research, Workforce Education, Strategic Initiatives & Projects, Grants Human Resources – Hiring, Professional Development Budget & Finance – Accounting, Budgeting, Payroll & Benefits, Purchasing, Library Technical Services

District Office (Siegal Service Center) Budget Planning FY 2011 -2012 One perspective – budget reduction planning mode (yes, we have planned for 10% cut) but… Another perspective – opportunity to structure, position, and staff ourselves to be more effective and efficient now and for the future Key Planning Question – Is the District Office (Siegal Service Center) configured and staffed to effectively and efficiently serve our colleges, our community, and our students?

District Office (Siegal Service Center) Budget Planning FY 2011 -2012 Plan and Implement Now to Be Prepared for the Future Prepare for and Proactively Participate in ERP (Enterprise Resource Planning) Need a leader for Project We want the right people with the right skill sets in the right positions with the right professional development training to be successful More strategically use indirect and non-state funding

District Office Budget Reductions FY 2011 -2012 • • • Target reduction for Siegal Center $540, 000 Eliminating 5 to 6 positions ü Vacant positions eliminated ü Reduce FT positions to PT (voluntary) ü Retirements-staff reorganized for efficiency ü Sharing position with Central-we both save Reduce goods and services in most departments Reduce PT hourly in several departments Move costs to soft funds (Indirect Charges) Reduce OT budgets

District-wide Accounts Budget Planning FY 2011 -2012 District-wide accounts are primarily services purchased on behalf of the campuses (i. e. , internet cost, armored car service, HR recruiting costs, legal services, exempt professional development, etc. ) Budget Planning Rationale – *what is essential *review historic expenditure levels *is expenditure/service truly district wide

District-wide Budget Reductions FY 2011 -2012 Reduction in District-wide Accounts: Target 10% reduction in DW $260, 146 • • • Eliminate 1. 25 positions in distance learning Reduce printed position advertisements in HR Eliminate payments to music licensing organizations Transfer student medical malpractice insurance costs to college fee budgets Reduce goods and services for Internet costs/antivirus software Reduce personal services contract for district-wide services

SEATTLE COMMUNITY COLLEGES District Budget Public Hearing Fiscal Year 2011 -12 Seattle Central Community College & Seattle Vocational Institute Michael Pham, Interim Vice President, Administrative Services

Seattle Central Community College Budget Planning FY 2012 Budget Planning Process • Campus budget forums • Budget Advisory Committee • College Council • Departments/Divisions/Units • President’s Cabinet (SVI = Executive Cabinet) Budget Planning Principles • • • Transparent Collaborative Data-informed

Seattle Central Community College Budget Reduction Planning Budget Planning Objectives • To have a BALANCED BUDGET • To foster CREATIVE & INNOVATIVE IDEAS • To increase REVENUE GENERATION

Seattle Central Community College Budget Reduction Planning for a Balanced Budget BAC recommendations: • 5% minimum reduction planning for noninstruction units • Remaining reduction (~10%) for instruction

Seattle Central Community College Budget Reduction Planning Summary of Planning Proposals as of 5/31/11: • Layoff up to 7 classified positions • Eliminate 2 vacant classified positions • Eliminate up to 4 vacant exempt positions • Eliminate or keep vacant up to 5 FT faculty positions, as result of buyout or retirement • Transfer 3 classified positions to local & other funds • Restructure within President’s Unit • Reduce Instructional Equipment budget • Reduce Part-time Faculty budget • Reduce Hourly Employee budget • Reduce Campus-wide budgets • Teach-out/sun-set selected Programs

Seattle Central Community College Budget Reduction Planning Programs Requiring Additional Analysis • Apparel Design • Film & Video • Publishing Arts • Opticianry • Interpreter Training • Basic Skills • Parent Ed • Information Center • Distance Learning

Seattle Central Community College Budget Reduction Planning Programs Requiring Additional Analysis • • All are under going further review Not all programs are targeted for elimination President’s Cabinet is: • Reviewing complimentary data • Evaluating alternative options • Meeting with employees, students, & community Final decisions to be announced by June 15, 2011

Seattle Vocational Institute Budget Reduction Planning Summary of Planning Proposals as of May 2011 Reduce eight instructional program cohort hours by 10% Reduce number of starts per year in two instructional programs Eliminate 2 vacant positions Re-structure Student Services Re-structure Network Technician and Dental Assistant programs Re-structure Information Technology Department Re-structure Executive Dean Office

SEATTLE COMMUNITY COLLEGES District Budget Public Hearing Fiscal Year 2011 -12 North Seattle Community College Orestes Monterecy, Interim Vice President, Administrative Services

North Seattle Community College FY 2011 -2012 NSCC Core Themes • Advancing Student Success • Building Community • Excelling in Teaching and Learning Budget Focus: • Fiscal Responsibility • Efficiency • Performance

North Seattle Community College FY 2011 -2012 College Council Principles • Alignment with mission, core themes & strategic plan. • Comprehensive offerings in: Transfers, professional-technical and basic skills • Vertical, not horizontal cuts: No across the board but select strategically • Privatization: When circumstances are in best interest of College

North Seattle Community College FY 2011 -2012 • • • Budget Balancing Strategies for FY 12 Reductions- positions eliminated Cost Shifts- Transfer expenses to fees, self support, grants, etc. Efficiencies- Consolidating functions, etc. Salary Savings-Vacancies, etc. New Revenue-Additional International, Running Start, etc. Reserves-Use portion of reserves

North Seattle Community College FY 2011 -2012 Significant Budget Changes for FY 12 • Reduce sections through surgical selections. • Increase in Student/Faculty Ratio from 23. 7 to 24. 34 to achieve FTE target. • Reductions in G&S; travel; transfer FT position to Food Services; FT staff voluntary reduction to 80%; FT staff voluntary reduction to 50%. • 2 VPs doing double duties. • Voluntary faculty by-outs. • Shifting staff to fee budgets and rental budget. • Providing portion of operating reserve.

SEATTLE COMMUNITY COLLEGES District Budget Public Hearing Fiscal Year 2011 -12 South Seattle Community College Gary Oertli, President

South Seattle Community College FY 2011 -2012 College Core Themes Student Achievement Teaching and Learning College Culture and Climate Community Engagement and Partnership Budget Focus Meet FTE Target Preserve Quality of Education Save Jobs

South Seattle Community College FY 2011 -2012 College Council Recommendations Student Achievement Limit the amount of cuts to front line support and resources Teaching and Learning Preserve class offerings and tutoring Campus Climate and Culture Focus on communication with students, faculty and staff Limit cuts for IT and technology resources Community Engagement and Partnerships Promote innovative resource development

South Seattle Community College FY 2011 -2012 College Council Recommendations (cont. ) Other considerations • Increase utilization of classroom and lab space • Increase online instruction • Increase collaboration among campuses to coordinate class offerings • Increase collaboration among campuses to optimize services • Increase orientation for students and faculty/staff • Increase information promotion and support

South Seattle Community College FY 2011 -2012 Significant budget changes for FY 2012 • CDL Program Closure • Reduce Apprenticeship Program Contracts • Combining Positions • Efficiency Measures in Food Services • Increase Reliance on Tuition & Local Revenue