Financial Information Subcommittee
Financial Information Subcommittee Minutes|
Hartnell College - L232
January 20, 2011 at 3:30PM
* THESE MINUTES WERE APPROVED AT THE 2/17/2011 FIS MEETING *
Joanne Trevino, Classified Senate
Melissa Stave, HCFA
Ann Wright, HCFA
Kent Stephens, Admin
Nancy Schur, Academic Senate
|Summary of Agenda Item:||Kent stated that at the last meeting FIS had a quorum and the quorum elected co-chairs. He and Joanne Trevino were elected. Kent stated that the committee hesitated to do that because in the past a faculty member has acted as co-chair. Kent asked if anyone wanted to discuss the matter further. All were in agreement with the election of Kent Stephens and Joanne Trevino as co-chairs.|
|Topic:||New Business - District Budget Impact and State Budget Webinar|
|Summary of Agenda Item:||Kent reminded everyone that he attended the official budget workshop given by the Chancellorís Office on Friday, January 14, 2011 to review the Governorís budget which was presented on Monday, January 10th. Kent also informed everyone of his attendance at a webinar offered by the California Community Colleges System. Committee members were offered a copy of the presentation materials which are available in his office. Kent further provided committee members with his notes from the budget workshop and asked if the committee would appreciate his impressions. The committee agreed that his impressions would be valuable.|
Kent explained that the Governor has proposed to solve the $28 billion shortfall in three different components: System-wide cuts, voter approval of an extension of tax increases, and borrowing from different funds and deferrals. There is an aggressive timeline for the budget: Hearings are expected as early as February with Committee reports in as early as March. The aggressive timeline is necessary in preparation for a June election. The Governor wants a temporary budget in place in March.
The Governor has proposed a $400 million (6.4%) reduction in the state Community College apportionment; this seems to be the best case scenario. The Governor has also proposed an increase in student fees from $26 to $36 per unit beginning next fall (38% increase). The Legislative Analystís office suggests that fees should eventually rise to $60 per unit; they support a rapid transition. The Governorís fee proposal would raise approximately $110 million annually.
Chancellor Scott believes this is the best case scenario; ultimately the Governor needs to reduce Community College funding by $290 million. If the voters do not approve the extension of temporary taxes, the reduction could be much higher.
Kent further explained that Hartnell is scheduled to receive 2.2% growth this year. The Governor has not proposed cuts to the current budget. During the current yearís budget process, Hartnell did not budget for growth funds, but made the commitment to strategically allocate potential growth funds in the coming year.
Melissa Stave requested that the committee move away from what the state might do to what kinds of tangible things Hartnell has to do. Kent pointed out that the college had already made significant budget reductions. Melissa mentioned that it seems like the college will have to work on enrollment management. Ann Wright expressed that Hartnell has inadequate enrollment management and that enrollment policy is a problem. Melissa agreed and went on to say that Hartnell will have to look at enrollment, the drop policy, and perhaps a payment plan for students. Discussion ensued.
|Topic:|| New Business: Faculty Hiring|
|Summary of Agenda Item:||Nancy Schur brought up a question about faculty hiring. Kent explained that the budget will include funds necessary to hire additional faculty approved by the Board. Kent briefly explained FON (faculty obligation number) and went on to restate that Hartnell budgets for all existing faculty plus the positions that are approved.|
Ann then changed the subject to the cost of the Alisal campus and whether or not anyone believed it is going to make any money. The fixed costs are $1 million, however much of those costs are simply shifts from current operations on the main campus. Additional costs are estimated to be between $200,000 and $300,000 a year; additional security being a major cost. Nancy asked if there would be a penalty to just hold off on opening the campus. Kent explained that it could be a public relations concern. He went on to say that Hartnell doesnít receive any base funding for Alisal being a Center; Hartnell receives about $280,000 in base funding each year for the King City Center
Ann shifted the conversation back to enrollment management and stated that she would be bringing that issue, as well as financial aid, to the next RAC meeting.