I hope this issue of Chancellor's Chat finds you doing well. I am very grateful for the many letters and emails of support and congratulations that I've received since I was named Chancellor by the Board of Trustees on April 21st. I cannot tell you how much I appreciate the support and enthusiastic response I've received.
There is much work to do and I am happy that our Board of Trustees share my vision for the future and gave me their unanimous support to move our District forward towards becoming the "best" community college in the state. These difficult economic times present us with unlimited opportunity to reinvent ourselves with innovative programs and funding strategies.
I know we can take SBCCD to the next level by working together, staying focused on the students and keeping a sense of humor.
As the school year draws to a close, I want you to know how much I appreciate all that you do for our students.
There is not too much news to report at this time on the budget. The next milestone will be the Governor's May Revise next week.
State reports additional revenues It is reported that state revenues are higher than projected by up to $4 billion. The state Director of Finance has quickly stepped in to say that any increased funds will not ease our budget problems since there are other areas of the budget that would take priority.
Governor's Plan to cut redevelopment agencies hits snag The Governor's Budget, released in January 2011, proposed almost $2 billion in budget savings by eliminating redevelopment agencies. The state legislature has issued an opinion that the Governor's plan is unconstitutional because the state cannot reimburse itself with local property tax revenues. This is likely to be a battle taken to the courts.
So, what's happening with the SBCCD budget? Currently, both colleges and the district office have submitted a first draft budget plan for next year. The challenge was to meet the needs of an "all cuts" budget (a budget without relief from tax extensions). This means a reduction of over $6.5 million for our district.
Based on projections from the state, our funded full-time equivalent students will drop to12,644 from the current year's 14,194. This will potentially mean a reduction of up to six hundred sections and access denied to more than 7,000 students. I believe this is a social injustice! Education is an investment in our community's future!
District and campus staff are working on the developmental budget. A first look shows that we are only halfway to a balanced budget and more than $3million needs to be addressed. We are working on refining revenue projections and reviewing line items to obtain the most accurate numbers.
Are there plans to transfer positions from CHC to SBVC to balance the budget?
While this remains a Board approved option we are not planning to use this option for 2011-2012.
Why can't we just use the reserve fund? Our District has the third highest reserve in the Community College System at $18 million (over 20%). Many have said that the reserve is for a rainy day and today it's pouring. This is true. But if we build an annual operating budget based on the use of reserve funds we will deplete the reserve and then be forced into a position of laying off staff to balance the budget.
Additionally, we must have this reserve to meet the cash flow needs of the district due to increasing deferrals of our revenue from the state. We are over $12 million in revenue deferrals and in order to meet our payrolls and pay our vendors we must use our cash reserve. We also have Board approval to borrow up to $10 million from the County treasury on a short-term basis, if necessary.
I will continue to keep you posted about the budget as new developments occur. Let me know if you have any questions.
Short Notes
District wins grant for Alternative Text Production Center SBCCD will be the state-wide resource for alternative text production including braille translations for the next five years. The Alternative Text Production Center, housed in Ventura, will be officially affiliated with SBCCD beginning July 1, 2011. The Center also sells its services to other agencies and will produce a new revenue stream for the District. The Center will report to Dr. Glen Kuck, Executive Director of Distributed Education and Technology (x4317).
Thanks to Tumaini Program I was so pleased to be the keynote speaker at the Tumaini end of year celebration. I enjoyed meeting the students, and the wonderful faculty and staff who have inspired these highly motivated students to succeed.
Sabbatical Leaves Congratulations to Tom Bryant, (Theater Arts CHC) and Sharon Chapman, (English SBVC), for being Board approved for sabbatical leaves during the 2011-2012 academic year. I strongly support faculty sabbaticals as a great opportunity for scholarly research and advancement of knowledge.
Advocacy The District has taken a position on three assembly bills. We are supporting AB 91 to establish a voluntary pilot program to increase student participation in state and federal financial aid. We are supporting AB 285 that would provide a general fund backfill for property tax revenue shortfalls to ensure that community colleges receive the funds allocated annually. We are supporting AB 743 which would establish a common assessment system to create a centrally delivered system of student assessment for placement and advisement.
Please let me know how I can help you in the performance of your important work on behalf of our great District.
