Butte College Budget Forum

1. February 14, 2012 Butte College Budget Forum

2. Introduction– Kenneth Bearden • Whopping Big Change – Kim Perry • Planning Initiatives – Les Jauron • Budget Overview – Andy Suleski • 2012/2013 Scheduling – Samia Yaqub • Enrollment Management – Clinton Slaughter • Student Success Act of 2012 – Al Renville Agenda

3. The Case for Continued Whopping big change

4. TOP ISSUES • The Fiscal Crisis: State Support, Tuition Increases, Education Protection Act (Nov. 2012) • Student Access & Success: Enrollment Capacity, CalWORKS, Financial Aid Reform • Educational Improvement: Student Success Task Force Report, College Readiness, AA/S-T Degrees • Accountability: ARCC/Scorecard, Completion Agenda, Graduation Initiative The Case for Change

5. Know thyself - data and evidence as basis for change. Be willing to adapt rapidly – tradition is our enemy. Take reasonable risk & expect some failure. Eliminate what can’t be done well enough. Be genius – borrow generously. Reward success and champions of success. Make this work fun - We work to live, not live to work. Don’t have too many tenets. Tenets of Embracing Change

7. Refined the Planning, Budgeting and Assessment process. • Automating the Unit Planning Process for use next year. • Focus of planning effort: • 2011-2012: Conduct planning for off-campus programming, submit Accreditation Mid-term Report • 2012-2013: Complete the Strategic Plan, begin developing a new Educational Master Plan, organize Accreditation Self-study • 2013-2014: Complete the new Educational Master Plan, complete supporting plans (Technologies, Facilities, Human Resources, Student Equity), write Accreditation Self-study • 2014-2015: Finalize Accreditation Self-study, undergo Accreditation Site Visit Planning Initiatives

8. 2. Unit Planning 3. Faculty Hiring Jan 4. Strategic Direction Refinement Dec Feb Unit Planning Guidance provides general criteria for prioritizing resource requests Unit Plans must be aligned with Mission, Values, Strategic Direction, Program Review, and Student Learning Outcomes Nov Mar Key inputs include institutional data, review of previous Strategic Direction Program Reviews, and Student Learning Outcomes Process ensures that budget decisions are driven by planning and that planning is based on assessment Oct Apr 5. Prioritizing 1. Process Review and Refinement May Sep 6. Communicate Prioritization Results to Departments Aug Items considered must be in a Unit Plan. These are then prioritized based on general priorities established in Unit Planning Guidance, Strategic Direction, Program Reviews, Student Learning Outcomes Jun Butte CollegePlanning, Budgeting, and Assessment (PBA) Process Jul 7. Budget Development 8. Final Budget Approval Approved: November, 2011 The Board updates its Budget Criteria annually and reviews student success data at its winter and summer retreats

9. Provides internal and external factors that must be considered during planning. In Strengths, Weaknesses, Opportunities, Threats (SWOT) format. Based on college environmental scan but only includes budget-related items. Complete SWOT may be found on PBA planning page at http://www.butte.edu/pba/planning.html Environmental Scan

10. Strong and stable Board of Trustees. Alignment with Chico State. Grants to improve and expand programs and services. Increasing efficiency. Ability to leverage information technology. Fiscal stability relative to other colleges. Flexible economic development programs. Improved performance as reflected in ARCC and CCSSE. Proven ability to successfully scale CTE programs. Outstanding support to help students stay in school. Strengths

11. Structural ongoing deficit of $1.2 million. Significant state-mandated budget reductions. State funding has resulted in a reduced schedule. Perceived access and political issues in Glenn County and Oroville/South Butte County. Perception of inadequate support for outlying centers. Impacted Career and Technical Education programs. Weaknesses

12. Approximately 40% of 18-24 year old students come from outside the service area. National and state completion agendas. Increasing number of Hispanics, Asians, African Americans, Native Americans, and veterans in our service area. Potentially high growth rates in Oroville, south Butte County and Glenn County. Ability to leverage alignment with Chico State. Increasing number of transfers to in-state private and out-of-state institutions. Opportunities

13. State fiscal instability - $2.6 million reduction if initiative fails. Unfunded FTES. Service area demographics. Distance-learning from competitors. Centers in Red Bluff and Yuba College. Competition for students from private and out of state institutions. Financial challenges at CSU, Chico and other four year universities. Focus on the core (Transfer, CTE, Basic Skills) has limited community education offerings. Student fee increases from $26 to $46 per unit in one year. Threats

14. Unfunded Pensions Unfunded Retiree Medical Wall of Debt/Deferrals Unpaid Mandates Unpaid Bond Debt Underfunded Prop. 98 Navigating the Budget Process Forecasting Revenue STATE CHALLENGES

15. STATE CHALLENGES

16. …and no fear without hope.” Baruch Spinoza “THERE CAN BE NO HOPE WITHOUT FEAR…

17. Overly Optimistic Revenues trigger mid-year reductions • $102 million more cut to community colleges • $30 million one-time deficit • $72 million ongoing workload reduction • $1 million Impact to Butte College • Already included in 2011-12 budget • No action required 2011-12 MID-YEAR CUTS?

18. Trigger 1 Enrollment Fee Shortfall - $30 M Underestimated BOG Fee Waivers - $106 M Property Tax Shortfall - $40 M $179 million cut to Community Colleges Impact to Butte College Reserves - $1.7 million ANOTHER HURDLE2011-12 Deficit Factor

19. Governor’s 2012-13 P.B. PROPOSED BUDGET or PANDORA’S BOX

20. $9.2 Billion Budget Deficit Close deficit with deep program cuts and temporary revenue increase No reductions to community colleges No new program revenue for CCs $218 million to buy back deferrals Categorical Flexibility Annual “funding increases” beginning 2013/14 Governor’s 2012-13 P.B.(Proposed Budget)

21. The Evils and Hope Within the Box State Mandate Cuts Cal Works Cuts Cal Grants Cuts In-Home Support Service Cuts Medi-Cal Cuts November Tax Initiative P.B.

22. Automatic reductions should the November ballot fail ($5.4 billion) • Public Safety ($200 million) • Trigger cuts to education ($5.2 billion) • K-12 ($4.3 billion) • Community colleges ($500 million) • UC and CSU ($400 million) Automatic Budget Triggers

23. Courts & DOJ $126M Forestry and Fire $15 million Prop. 98 $4.837B (CCs share = $482 million) UC and CSU $400M Fish & Game and Parks $5.5M Mid-Year Trigger Cuts $5.4 billion

24. No offset to apportionment deferrals ($218 million) • Additional cut of $264 million • For Butte College: • $2.637 million cut • $1 million fixed costs • Replace faculty from lost grant funding - $600K 2012-13 Worst Case

25. A lot WILL CHANGE by May • Cannot get too alarmed by what might happen • Must continue to plan strategically Despite not knowing what might happen • Make decisions that make positive changes in our student’s lives • Plan for the worst and hope for the best Early in the Budget Process

26. Unrestricted Revenue $56.9M Transfer In (Retiree Fund) .5M Total Revenue $57.4M Unrestricted Expenses $57.0M S/C/L Salary Increases.5M Medical Premium Increases .5M Replace Grant Funded FON .6M Total Expenditures $58.6M Structural Budget Gap $1.2M BY THE NUMBERS

27. Layoffs and Staff Reductions Schedule Reductions Managing the FON Investment in Solar Investment in Non-resident Students Use of Reserves Use of Retiree Medical Benefit Fund ACTIONS TAKEN

28. No New Revenue in 2012-13 • Cuts to Close $1.2 million Structural GAP • Reserves to Cover Deficit Factor • Reserves to Cover $2.6 million Mid-yr Cuts • District Reserves: • $14.9 million • Less $1.7 million 2011-12 deficit • Less $2.6 million 2012-13 mid-year cuts • Possible Ending Reserve =< $10.6 million CLOSING THE BUDGET GAP

32. Many districts have drastically reduced or eliminated summer session Some districts have begun to eliminate some athletic and instructional programs Reserves at dangerously low levels Resorting to costly borrowing Smaller districts looking to form consortiums to help provide services No one-year exemption for small districts HOW DO WE COMPARE?

33. Strive to be resourceful, patient and understanding Through Doubt and Uncertainty, anything is possible Maintain Hope

34. Goal: A schedule that is 300 FTES smaller than this year’s schedule. • We did it: • Fall/Summer 2012 will have approximately 328 fewer FTES: • 99 fewer sections, approx. 247 FTES • TRABAJO ESL courses: 81 FTES • Spring 2013 will stay the same size. The 2012-2013 Schedule

35. Maintain diversity of course offerings throughout the day and evening. • Protect basic skills progression in Math and English.  • Protect courses that meet AA-T/AS-T degrees. • Balance GE offerings to meet student need.  • Reduce physical education and fine arts courses with repeatability factors to more closely match the needs of degree-seeking students. • Reduce nursing courses to reflect the smaller cohorts. • Limit the number and frequency of electives offered for degree and certificate programs. • Maintain offerings in Glenn County. • Maintain summer-bridge type programs. • Maintain a ratio of basic skills, career tech, and transfer courses that is similar to the present. Criteria

36. Lowest level basic skills and ESL Foreign language conversation Studio art and music PE activity Nursing Ag leadership Some GE courses in areas D and E and US History/American Ideals What’s been cut?

37. Enrollment at P-1

38. Spring FTES

39. Enrollment Today

40. A Bit of History Student Success Act of 2012

41. Rationing access will be the norm. Community Colleges can no longer be all things to all people. Students need to be held accountable for their lack of progress or success. Professional students will no longer be tolerated. Proposed Sweeping Reforms are Characterized by 4 Themes

42. Alignment of high school and community college courses. Condense/compress basic skills courses. Re-prioritizing registration – (continuing/new) provide higher priority for students with declared majors or doing above average work – deprioritize high unit low achieving students. Common statewide assessment tests. Early declaration of goals – first semester education plan. Creation of student service transcript to track progress toward goals. On-line degree audit. Summary of Key Elements in PROPOSED Bill Language

43. Required comprehensive orientation. 1st year experience classes required. Streamline class schedule to better fit student needs. Allow remedial students to start classes first semester. Provide adequate professional development for teachers On-line advising. Mandatory sit out time for first time disqualified students showing no progress towards goals. Mandatory assessment and placement for all classes. Focus on completion of degrees, certificates, and transfer. Reinforces need to harness new technologies to assist in delivering support services. Institutional scorecard. Key Elements continued

44. Delineates the student’s and the institution’s responsibility for the purpose of achieving the student’s educational goals and completing the student’s program of study. • Defines role of BOG in developing policies for requiring student participation in activities and appeals processes. • Places conditions on eligibility for BOG Fee Waiver. Students must: • Identify a goal • Meet academic and progress standards • A maximum unit cap THESE KEY ELEMENTS WILL BE PHASED IN OVER A REASONABLE PERIOD OF TIME AS DETERMINED BY THE BOG. Key Elements continued

45. And after all of that…….. Dare to be audacious