Southwestern College should prepare for still more budget pain Superintendent Dr. Raj K. Chopra told a pensive governing board at its April meeting. With expenses on the rise and state finances uncertain, Chopra warned that more cuts and layoffs were possible.
Chopra presented a grim outlook on the state's finances and told board members that his reorganization, including the layoff of five non-faculty employees, was essential to balancing the college's 2009-10 budget. But even with the layoffs, Chopra warned the board of an ominous future if California Propositions 1A-1F did not pass in the May 19 special election. Some of the propositions include funding for community colleges.
"I would like to go on record, prepare the board," Chopra said. "What we are proposing to do, this reorganization, is practically nothing. You haven't seen what extent it will go. So I'm hoping that we don't have to face that."
Chopra delivered more glum news to the campus community in an e-mail. California's May revise reported an additional revenue shortfall of $1.8 billion, wrote Chopra.
Chopra said the college will spend $3.2 million more next year. More than half that will go to cover the college's booming enrollment, faculty sabbaticals and "banked hours," which allow professors to save hours worked teaching extra classes rather than be paid cash for them. Banked hours are most often used by faculty to augment sabbatical pay.
Another $1 million will go to cover annual step-in-column raises for faculty and staff, and the hiring of five full-time faculty members in order to stay in compliance with state education code. Chopra and the board have also set a goal to raise its reserves from five percent to six percent in 2009-10, with the eventual goal of reaching seven percent.
Last year the state's housing market collapsed and with it one of SWC's primary sources of revenue, property taxes. Governing Board Member Yolanda Salcido said the college could have been $998,863 short by the end of June, but instead should tentatively have about $800,000 extra. She attributed this to Chopra's foresight.
Chopra told the board at an October 2007 budget workshop he wanted to leave vacant positions unfilled to save money. Three months later he reorganized the college's staff and departments for another savings. He filled in for vacant vice president positions, at yet another savings to the college, he said. Chopra also said he implemented oversight plans to reduce waste. In the end, he said, his actions saved the college $1.6 million.
Andy MacNeill, residing chair, said Chopra's presentation on the budget omitted important sources of revenue and made the college's financial situation seem more dire than it really is. He said Chopra failed to state that the five new faculty members would begin their jobs at the college at the lowest pay scale, replacing faculty who were retiring at the highest.
Chopra's budget numbers also failed to take into account SWC's retirements, said MacNeill, along with three percent growth revenue from the state and SWC class cuts that have resulted in increased efficiency.
Chopra delayed interview requests for three weeks. Interviews were requested in person, by phone and by e-mail. He referred questions on layoffs to Vice President for Human Resources Michael Kerns and board-related questions to Board President Dr. Jean Roesch, who also did not reply to two interview requests.
Phil Lopez, faculty union president, said it is good to prepare for the worst, but he also said that SWC's finances are not yet a crisis. Community colleges have faired better than the K-12 and universities during recent budget cuts, he said, citing though, how important the passing of propositions 1A-1F would be in the upcoming election.
"It is way too early to tell," he said. "It's not going to be a good year, but we don't know whether it is going to be a disaster."
For the past two years faculty union heads have spoken against reactionary decisions concerning the budget. In 2007 community colleges skirted what looked to be a $40 million mid-year cut. State officials warned of deep cuts in the following 2008-09 fiscal year. During that time, Chopra had come back from Sacramento where he had heard a state official describe the budget as "very, very ugly." Neither crisis came to pass.
Former faculty union president Janet Mazzarella urged level-headedness.
"Be cautious. Be prudent," she said. "We don't want to overreact because it can have long-range implications."
Governing Board Member Nick Aguilar said the state has put community colleges as a top priority and that education has had success at mitigating cuts in the past. During the April board meeting he asked Chopra what was different this time?
Chopra said that in the past K-12 has taken the brunt of education cuts while community colleges escaped unscathed. This time may be different, he said.
"Now they are telling us, be prepared, because you may not escape cuts anymore," Chopra said. "I think our cut, if this ever happens, this time is going to be much greater than we escaped the last time."
Chopra ended his presentation with a bar graph made by California's nonpartisan Legislative Analyst's Office. It showed the state's shortfall reaching as high as $26 billion by 2013-14.
"If that doesn't draw our attention," he said, "then I don't think anything will."
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