Budget Update

1
Budget Update

• February 17, 2009

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The Context Causes

• Declining state revenue
• Stagnating consumer spending
• Rising national unemployment rate
• Personal income growth
• Deflation

3
The Context Variables

• Assumptions in the carry-forward budget
• Forecast of revenue shortfall
• Questions about new revenue sources
• Federal stimulus How much and for what?
• Competing political interests

4
The Context Where the money goes
5
Guidelines for Budget Development Process

• Communicate frequently and frankly about the
  state of budget changes
• Create opportunities for meaningful input into
  budget decisions
• Promote collaboration in creating budget savings
  ideas and
• Create an environment that will allow for
  respectful discussions of changes to how we do
  our work.

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Budget Process
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Budget Process
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What is the budget reduction planning target?

• 15- based on what we understand as of now

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Why a 15 target?

• Based on current analysis, it represents what we
  think and hope is the worst case scenario.
• It will be hard to reach any target, and we do
  not want to put people through the process twice
  by underestimating.
• It needs to be big enough to give the College
  Council an opportunity for real input into the
  process.
• There is also a downside to this approach.

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Questions that proposals must answer

• Does the proposal conflict with compliance?
• How many dollars does it save?
• What is the impact on student FTE?
• What is the impact on employee FTE?
• How will this proposal reduce costs for the
  college?

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Questions that proposals must answer

• What will the college give up if the proposal is
  adopted?
• What benefits will the college gain from adopting
  the proposal?
• How does this proposal address the guiding
  principles?

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Guiding Principles for Prioritization

• Impacts students and the curriculum
• Impacts revenue generation
• Impacts strategic priorities
• Impacts essential functions of the college
• Impacts the long term health of the college

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SPSCC Operating Budget
(1,616,808)
(808,404)
14
General Fund Budget For Higher Education Spending
0
4
13
1
42
3
13
3
21
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How will we evaluate and prioritize ideas to help
us reach our budget target?
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Dates to Remember

• March 9 College Council receives ideas for
  budget reductions. Person in positions proposed
  for reduction will be notified in advance of
  March 9
• April 1 Date by which all Exempt/Admin
  employees must be notified if their position may
  be eliminated to reduce costs. Any notifications
  of actual reductions will be made afterwards and
  as soon in the budget development process as
  possible.
• June 30, 2009 Last date of employment for
  persons in positions eliminated for reason of
  budget reduction.

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How can I stay informed?

• Visit the website at www.spscc.ctc.edu/about/budge
  t-development.html
• Read the Legislative News distributed by SBCTC on
  Friday afternoons.
• Monitor periodic All Staff and Faculty emails
  from the Presidents Office

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Two final things to remember

• No matter how safe you believe your position to
  be, please be respectful of all members of the
  campus community. No one who feels at risk wants
  to hear how safe you might believe yourself to
  be.
• All of us are here as employees of the State of
  Washington and its taxpaying public for one
  primary purpose to serve our students the very
  best we can each and every day.