BUDGET TASK FORCE

Minutes

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October 13, 2009
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10:30am – 11:30am
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president’s board room
Attendees / Jerry Patton, Rey Ortiz, Linda Emerson, Chuck Decker, Kelly Hall, Cathy Levitt, Carol O’Keefe, Misti Carrillo, Lauro Jimenez, Adrian Gonzales, Farley Herzek, Diane Ramirez, Edwin Deas, Wade Ellis
Recorder: Linda Costagliola
Minutes Approved: 11/23/09
J. Patton called the meeting to order at 10:30 a.m. He welcomed and thanked everyone for attending this meeting. Jerry is chairing the meeting today because Dr. Deas is serving on an accreditation team at another college. Dr. Ramirez is not here today because she is also serving on an accreditation team at another college.

Agenda topics

1. Meeting plans
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jerry patton
Discussion / The task force reviewed the membership and meeting dates from the handout they received. There were a couple of corrections to be made to the membership: 1) Take the “e” off Carol’s name; and 2) Add Non-Voting Member next to Wade Ellis’ name. The task force reviewed the meeting dates too.
Conclusions / The members reached a consensus to approve the membership with the two corrections and the meeting dates for the Budget Task Force.
Action items / Person responsible / Deadline
1. Make corrections tothe membership list. / Linda Costagliola / ASAP
2. election of co-chair
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jERRY PATTON
discussion
conclusions / It was decided to table this item for the next meeting.
action items / person responsible / deadline
1. Add item to the agenda for the next meeting. / Linda Costagliola / ASAP
3. REVIEW OF PURPOSE
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jERRY PATTON
discussion / 1. Understand the FY09/10 budget and five year projections; 2. Create a revised five year projection which maintains an ongoing 5% reserve by exploring, developing and ultimately recommending a series of actions involving revenue generation and/or expenditures reductions; and 3. Develop and recommend the FY10/11 budget, consistent with the strategies developed in #2 above. This may also entail addressing an emergent shortfall in the current FY09/10 budget resulting from mid-year state funding cuts, if any.
The College has been notified that budget cuts are coming but do not know the magnitude of what they are going to be yet. In only two months, the State was 9 billion dollars below the projections that the college uses to develop the 09/10 budget.
When looking at the budget, there are categories, expenditures, major object codes, salaries, benefits, operating expenses and transfers. When looking at the composition and the percentage of the whole budget and what each of those represents, it’s obviously that the College is a labor intensive organization; salaries and benefits make up a large part of that. Understanding that those are handled ultimatelyin negotiations. Because there are representatives from those groups here, they have a significant charge to try to understand the magnitude of what’s here. The fact is that the members on this task force and charged with getting the College to the point where it will remain solvent. The task force’s acknowledgement, whether they get into the details or not, they somehow need to address the major areas; salaries, benefits and operating expenses. Understanding that if the members are going to function as a task force and come up with recommendations for the 10/11 budget that has to part of the dialog. Maybe some ideas that would come out of here would go through the process of bargaining. There are other employees in the task force that are not part of the bargaining group that may havedifferent aspects of looking at ways to achieve savings there.
R. Ortiz asked if the State minimum requirement for the ongoing reserve was 3%. J. Patton said that the recommended amount that state requires is 5% and what the board of trustees requires and that is 5%. W. Ellis said that the 5% balance provides the College cash flow.
conclusions
action items / person responsible / deadline
1. Provide task force with the five year projections handout / Wade Ellis / ASAP
4. REVENUE GENERATION
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jerry patton
discussion / What are ways to generate revenue? Below are some suggestions that were discussed:
1. Community Education – There may be some opportunities with the country clubs in the Coachella Valley. There also has to be an investment up front in having a sells staff out there and then putting together the marketing materials.That would have to be talked about in how much the College would want to invest in that and how much it would pay the College back. Pam LiCalsi is working on a plan that would bring somebody on board at no cost that would work on a commission. It was suggested to use our faculty to teach these classes.
2. Partnering with CSUs and UCs – They are moving heavily toward community education. Both institutions are struggling with their enrollments. All three educational institutions (CSUs, UCs and community colleges) will be in competition with each other. UCR is willing to partner with College of the Desert.
3. Grants – Funds automatically go into categoricals. The savings that might be picked up may be able to be moved over to the general fund. Other grants the College would have to return the unused funds.
4. Foundation – Have the foundation help with fund raisers. They are willing to help but there are struggling financially too. There was a suggestion to invite a staff member from the foundation office to one or more of the budget task force meetings.
5. High Schools – The college’s outreach program is one of our strongest components the College’s has.
6. SummerBridge Programs – They have these enhancements that are the costs essentially. The actual delivery of the service is not that expensive. It’s the materials, food and transportation expenses that start to add up for the program.
7. Teachers Night - “A fun way to raise funds for a school” with McDonalds. They have specific nights from 5pm to 7pm where teachers take over the front counter of their neighbor McDonalds. They work along side of the other workers there. 25% of sales gathered during that period comes back to their school. This program goes through April 2010. This would get our presence out to the public, but we could use this publicity to show how much we are in dire straits to have to do something like this. This would be positive all the way around. This may not generate a lot of funds but it would get the word out that we are in dire straits.
8. Raise Student Fees – Parking, lab, and student council fees. The College did raise parking fees recently. J. Patton said to be careful trying to generate funds from the students. Keep in mind that paying for books is a problem that students are having.
9. Off-set costs for High-end Programs (athletics and nursing). J. Patton said that student fees are regulated by legislature and the Chancellor’s Office puts restrictions on what the college can charge. So what it costs the College is all the College can charge a student. Athletics has the ability to raise funds to off-set some of the costs.Nursing receives grants to off-set some of their costs.
10. No Summer School – A savings of approximately $360,000.00. There is a lot of pressure from the community to open up summer school. There will be about 6 to 8 sections of classes that must run (PSA, child development, and nursing) next summer.
11. Interim Positions – May want to look at not renewing these positions.
12. Early Retirement – There have been discussions about what the College can do. There are different rules on who you can offer it to. It would involve PERS and the negotiation group. Where the college would save money; for example, is if an administrator retires and that position is not filled. The College cannot do that with faculty because the College has a full-time faculty obligation number that the College has to maintain and beside that, the College hasthe 50% rule to comply with.
The College needs to find 22 million dollars in general fundsovera five year period. As we look atways to generate revenue or reduce spending, there needs to be substantial efforts to get to 22 million dollars in a five year period. Separate from the General Fund are the Categoricials. They are suffering huge losses on their own which amount to millionsof dollars too. Categoricals are: DSPS, CalWorks, Matriculation, Financial Aid, EOPS, CARE and Economic Development.
conclusions / There was a suggestion to form sub task forces to look at ways to generate revenue.
action items / person responsible / deadline
1. Provide a list of categoricals. / Adrian Gonzales / Next Meeting
5. measures announced in president’s email of october 9
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jERRY PATTON
discussion / Reviewed the email J. Patton sent out on October 9th to the campus. The College needsto work together as much as possible as a team. The Colleges needs to embrace the concept to holding the 2010/2011 costs at the 09/10 level, that’s a big issue. It looks like the College may have to go into salaries and benefits. J. Patton read paragraph 6th,“How do we achieve these? 1) I am asking the Health and Welfare committee to maintain the health and benefits FY09-10 budget at $7,362,755 by creative and innovative thinking. 2. I am asking the budget task force to determine how to keep instructional supplies and other operating expenses at FY09-10 budget levels of $5,514,976. Possible other alternatives would be to look at 4/40 work weeks, going “dark” at appropriate times during the year, reduce landscaping/watering, address the bond required building projects and creative ways to offer an early retirement plan, etc. And, 3) I am asking that all employees suspend their salary step “one-year-at-a-time” starting July, 2010.”
Health & Welfare Committee is looking at a whole new structure. There is a meeting in Novemberof the Health & Welfare Committee and they are talking with the College’s broker and other brokers too. In December, W. Ellis may have some information to share with this task force what a plan mayof look like. Note: CalPERS is going to increase to 4% more and STRS is also talking about an increase. The college is paying 9.5% now for CalPERS.
conclusions
action items / person responsible / deadline
1. None.
6. administrative reorganizations
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jERRY PATTON
discussion / C. Decker suggested that the task force review College of the Desert’s Organization Study (October 2009).
conclusions / This item was tabled for the next meeting.
action items / person responsible / deadline
1. Add this item to the next meeting’s agenda.
2. Email COD’s Organizational Study to task force members. / Linda Costagliola
Chuck Decker & Linda C. / ASAP
ASAP
7. savings to be obtained through collective bargaining
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wade ellis
discussion /
  • The District has been meeting with CTA and CSEA. The CODDA contract has already been negotiated and has a three year contract.
  • Leadership is being asked to do something different, taking a pay cut and taking it this year.
  • There are approximately 25% to 55% of all groups that have reached the top of the salary steps.

conclusions / This item was tabled for the next meeting.
action items / person responsible / deadline
1. None.
8. APPROACH TO IDENTIFYING OTHER OPERATIONAL SAVINGS
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Wade Ellis
discussion / Items of discussion were on the lottery funds, items on priority list, liability funds (self insured and GASB), technology, furniture, alternative energy, utilities and bond funds.
conclusions / This item was tabled for the next meeting.
action items / person responsible / deadline
1. Add this item to the next meeting’s agenda / Linda Costagliola / ASAP
9. DATA
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wade ellis
discussion
conclusions / This item was tabled for the next meeting.
action items / person responsible / deadline
1. Add item to the agenda for the next meeting. / Linda Costagliola / ASAP
Meeting adjourned at12:00 p.m. The next meeting is scheduled on Thursday, October 22, 2009, at 3:30 p.m. in the Foundation Board Room.