February 25, 2010
BUDGET - COMMENTS
At the President’s Cabinet Plus meeting Wednesday, 2/24, we previewed the most current college budget information. At the end of the meeting, one of the members commented that while the information wasn’t great, it was important that someone was talking about it. “It” being the elephant in the room, “how extensive is the deficit for DVC.”
The District is moving to a new allocation model at the same time the State has made drastic cuts to Community College budgets, placed a cap on our enrollment, and raised the fees for UC, CSU, and CCC students. This is all happening while we are also experiencing high student demands. Some people have called this the “Perfect Budget Storm.”
So, what does this mean for DVC? While we have not received final numbers from the District, here are the numbers as we know them at this time. We have approximately a $70 million dollar budget for 2010-11 with a $5.2 million dollar gap in expenses over revenues. This gap is due to a number of things – cuts in revenue from the State as well as an increase in the budget areas the College is responsible for under the new allocation model. For instance, DVC must build into its budget a number of assessments including all costs for step, column, and employee benefit increases.
We have reduced the schedule by 5% for a $1.2 million dollar savings and we are now facing finding a little over $4 million more. Since our budget is 94% personnel, this means that we will be reducing our services and restructuring our institution, which will affect people. We will be doing that within the union contracts and based upon our values in the DVC Strategic Plan. We also solicited values and creative ideas at an all-college focus group meeting on January 20, and we have received values information from the Academic Senate.
The DVC Budget Committee will be working on Friday February 26th beginning at 10:00am in the BFL Community Conference room. This meeting will provide the College President with input on the tentative allocation of the projected $4 million dollar deficit for 2010-2011 into the following major expenditure categories:
Since we have already accounted for the savings from the course schedule reduction, our ability to allocate a significant portion of this deficit to full or part time faculty is limited to ensure we offer the classes needed for our students and to ensure that we maximize the revenue from the State.
We will continue to provide information in as transparent and timely a manner as possible. However we will not be discussing personnel, those decisions will be made by the President and staff.