BATF Report to Chancellors Cabinet

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BATF Report to Chancellors Cabinet

• Research on KCCD
• Systemic Changes
• Cumulative Site-specific Budget Reduction Reports
• April 1, 2003

2
Our Situation

• Potential 9 million unrestricted budget
  reduction 03-04
• Current budget model does not allocate reductions
  
• Percent across the board reduction could create
  adverse impacts
• Two reduction models percent across the board
  and global model
• Potential ripple effect of reductions
  development of BATF reporting format

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Our Situation

• BATF recognized the lack of a budget reduction
  process that included compiling systemic ideas
• Chancellor charged BATF to solicit input from
  each entity executive council
• BATF categorized/grouped suggestions
• BATF formed subcommittees to research budget
  reduction implications

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Principles for Budget Reductions

• To ensure that all District and College services,
  programs, and operations are equitably assessed
  for comprehensive budget reductions, an open
  review and discussion of district-wide services,
  programs, and operations will be conducted using
  the following principles
• Any decision to reduce or eliminate services,
  programs, or operations .
•  
•  

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Principles for Budget Reductions

• should minimize impact on students.
• should minimize impact on operational support
  systems
• should respect the uniqueness of each
  district-wide entity striving for equity
• must respect both district-wide and campus
  participatory governance processes.
• may not impair the Districts ability to meet
  legal,regulatory, compliance requirements.

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Subcommittee Assignments
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Subcommittee Assignments
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Organizational Issues Subcommittee Report

• Single College / Single District
• Examples
• Curriculum
• Accreditation
• Large obstacles identified
• Three Separate College Districts
• District debt obligations e.g. Measure G
• Benefit for multi-college district facilities
  planning
• Ed Code Process for splitting district
• Some legal mandates waived
• Autonomous campuses

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Organizational Recommendations

• Move to single college district operationally
  functionally centralized
• KH recommendations modify/revisit
• Legally required personnel

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Organizational Recommendations

• The status quo will NOT WORK
• Develop a Blue Ribbon Taskforce
• - Redefine LSC positions and functions
• - Review and update KH
• - Benchmark with other districts/non-
• educational entities
• Hire a change-agent interim chancellor

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CDO Subcommittee Report

• Centralization
• - Potential immediate
• accounting/business functions
• E-Procurement (net-based purchasing)
• - Areas requiring future study
• assessment, grant writing, school catalogues,
  class schedule, AR, IR, curriculum, distance ed,
  voc. ed, financial aid, marketing, PIO, childcare
  admin, program mgt. of categorical/grants

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CDO Recommendations

• Implement immediate items
• Accounting/business functions
• E-Procurement (net-based purchasing)
• time entry on payroll,
• financial accountability centers
• Incorporate future study on centralize/
  decentralize items with Organizational
  recommendations

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Semi-Paperless Subcommittee Report

• Pilot imaging project at BC
• Modify subcommittee to follow district-wide
  processes (DWITC)
• Develop recommendation for workflow/paperless
  system

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CDO Subcommittee Report

• Decentralization
• Potential immediate
• time entry on payroll, financial accountability
  centers (KH FAC)
• Areas requiring future study
• IT, HR, IR, certain financial functions
• Outsourcing
• - extreme limitations contract and ed code

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Paperless Recommendation

• In progress

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Pay Issues Subcommittee Report

• OVERVIEW
• 1. Early retirement incentive
• 2. Compensation
• 3. Reduce/eliminate overload, extra pay,
  stipends, or overtime
• 4. Faculty or unit loads

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Pay Issues Subcommittee Report

• 1. Early retirement incentive all
• employee groups
• - percent of salary
• - annuity approach
• - service credit (PERS STRS)
• Implications
• - needs to be well defined thought out
• - 50 FTFO hiring implications
• - possibly alleviate lay-off list of
  non-categoricals
• Identify internal source of financing (potential
  - COP cash balances)

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Pay Issues Subcommittee Report

• 2. Compensation all employee groups
• - reductions
• 1 269,748 faculty 168,655 classified,
• 48,729 administrators
• - furlough of days ( days/month)
• Currently proposed faculty 966,523 (day
  reductions)
• Classified 63,709/day
• Administrators - 18,407/day
• - closures (plus utility savings)
• e.g., spring break (4 days) winter break
• Classified 254,837 382,255
• Administrators 73,628 110,442
• - defer wage increases (Faculty increase
  column step 2,464,000 Classified column
  step only 455,000 Administration column step
  only 80,000)

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Pay Issues Subcommittee Report

• Implications
• - collective bargaining/negotiations
• - loss of morale e.g., same work/less pay
• - 50 law /-
• - Across the board reductions may have
• significant inequitable consequences
• - PERS /STRS
• - financing deferrals
• - impact on payroll department

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Pay Issues Subcommittee Report

• 3. Reduce/eliminate overload, extra pay,
  stipends, or overtime
• - not cost effective
• - 50 law /-
• 4. Faculty or unit loads
• increase faculty unit loads
• - collective bargaining
• - low morale
• - quality of education
• decrease faculty percent of full load
• collective bargaining
• - STRS

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Pay Issues Recommendations

• No multiple hits
• Attempt to alleviate lay off list
• Immediately pursue retirement incentives
  evaluation underway
• Consider compensation options

22
Property Subcommittee Report

• KCCD properties
• Weill Center, Campuses, Delano Center, Mt.
  Vernon, Sharkstooth Mt., Corner of Panorama and
  Mt. Vernon, Bishop, Mammoth, Williams Wildlife
  Preserve, 22nd L, 22nd M

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Property Subcommittee Report

• Maximize rental ability (Weill)
• Sell or rent unused properties
• Relocate all district operations currently housed
  in the Weill
• Sell or rent used properties
• - Drawbacks to sale of properties

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Property Committee Recommendation

• Complete real property analysis of all KCCD
  properties as part of the Measure G Master
  Facilities Plan by Maas Co.
• Examine borrowing potential against all
  properties
• Investigate any constraints to selling properties
• Maximize income from properties
• Field trip to the Williams Wildlife Preserve

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Other Fund Sources Report

• Utilization of cash reserves in restricted funds
• Investigate utilization of interest from COP
  funds
• Utilize Mammoth/Bishop bond interest earnings to
  offset operating costs for Bishop/Mammoth

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Other Savings Suggestions

• Economize
• Freeze Certain Spending
• See sheet

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BATF Conclusions and Recommendation

• BATF is not a decision-making body
• Solicit Chancellors cabinet input on BATF
  information
• The Chancellor needs to make final decisions on
  issues and initiate budget development
  incorporating changes
• Create final recommendations today

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Overview of Budget Reductions Districtwide
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Principles for Budget Reductions

• To ensure that all District and College services,
  programs, and operations are equitably assessed
  for comprehensive budget reductions, an open
  review and discussion of district-wide services,
  programs, and operations will be conducted using
  the following principles
• Any decision to reduce or eliminate services,
  programs, or operations
•  
•  

30
Principles for Budget Reductions

• should minimize impact on students, in particular
  students who are successfully using the colleges
  for transfer, vocational and basic skills
  development.
• should minimize impact on operational support
  systems that demonstrably support student success
  in transfer, vocational and basic skills
  development.
• should respect the uniqueness of each
  district-wide entity striving for equity among
  the entities and employee groups
• must respect both district-wide and campus
  participatory governance processes.
• may not impair the Districts ability to meet
  legal, regulatory, and compliance requirements.

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Your Assignment

• Examine the suggestions from the BATF
• Examine the global sheet ideas from the LSC
• Look at the cuts that have been proposed
• Cross out the ideas which seem unlikely to you
• Make a list of your top 20 choices
• Write down any questions or reasoning
• Prepare to share those top 20
• Group discussion and questions
• Prepare your top 10 in a prioritized list
• Create a suggested plan for implementation