Update from CCFT President Paul Harvell
2008-09 and 2009-10 Budget Cuts
All faculty email from Paul Harvell on November 17, 2008
This is to update you on the conversations administration, faculty leadership, and staff leadership is having about this year’s and next year’s budget. You’ve heard about the growing financial crisis with the state and coming to local governments soon. Here are some questions and answers to try to keep you informed. The following is my current assessment which may not exactly match others’. All comments, positions, and errors are my own.
Midyear (this year) cuts in revenue: the college is preparing for around $4 million in cuts.
Next year: the college is preparing for $5 million in budget cuts.
How much is $5 million? About 7% of our revenue. That’s about 1 out of every 15 dollars.
How will the college deal with a $5 million drop in revenue? By cutting spending by about $5 million. How will the college cut spending by $5 million? There is no easy, painless way to do it. 90% of our budget is personnel. There will have to be a reduction in the cost of employees. There will have to be fewer of them or cheaper ones.
Will this really happen? I don’t know. In the past, the state has managed to find ways to lessen the severity of cuts like this, so I will not use language that implies it is certain until the state passes the budget.
So it won’t happen? I won’t say that either. Lack of certainty does not imply zero probability. The state is seeing a huge decrease in revenue. This recession may be the worst we’ve seen in two decades.
Personally, I think the issue for next year will be how big of cuts, not whether we’ll have them, and $5 million is not an optimistic or pessimistic number to begin with. Finally, even if the state eventually does find a way to save education from severe cuts, it would be imprudent now not to prepare for them.
Is $5 million the worst case scenario? No. It assumes there are increases in state taxes to mitigate some of the loss in revenues.
You mentioned fewer employees. Will programs be eliminated? It’s possible. $5 million is a big piece of the college. I have no clue whether it will happen, or which it might happen to.
Will contract faculty be pink slipped before March 15th? I don’t know, but cutting spending by $5 million makes all kinds of things possible I would have thought near impossible a year ago. I think the most truthful thing to say is that ANYTHING is possible, and the district will be looking at EVERYTHING.
I’ve heard this before. And it’s never as bad as the district thinks. I hope you’re right, but the district is acting on a reasonable reading of what is happening in Sacramento. Even CFT is suggesting that next year’s budget is tens of billions out of balance. Again, I won’t use language that says severe cuts are a certainty until the state passes a budget. Nor will I use language that says no cuts are a certainty until the state passes a budget. Either way, preparation is not a bad thing.
What about reserves? Our reserves are not large enough to carry the college through $5 million. Reserves can buy time, and it’s possible much of them will be wiped out by this year’s midyear cuts.
Aren’t we cutting back already? Classes are being cut from spring semester and next year. Over a hundred sections will be eliminated next year with possibly more to come, though cutting too much and reducing students by too many will be counterproductive. Those cuts don’t amount to a million dollars. We’ve got a long way to go to reach five million (if that’s the number we have to reach).
What is CCFT doing? Staying informed. The state has not taken any actions, so it’s nearly impossible to react at this moment. As events unfold, the council will be guiding the actions of CCFT. There are open seats on the council, and if you’re interested in helping to steer the union consider joining the council.
To learn more, a town hall meeting is planned for Wednesday, November 19 at 3pm in the Sesnon House to talk about the possible coming budget ordeal.