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April 14, 2024

District budgeting: walking a tightrope while blindfolded

Editor’s Note: Following is a letter sent by Chancellor Miles to faculty concerning the Grossmont-Cuyamaca Community College District’s financial condition.

GROSSMONT COLLEGE — For the past few years, putting together our District’s budget has been as precarious as walking a tightrope. We’ve had to balance serving the needs of our students, faculty and staff while trying to stretch a diminishing number of dollars from the state.

For the past three years, the District has had a safety net as part of the budgeting process by factoring in a 4% deficit between our expenses and revenues, allowing us to prepare for midyear budget cuts from the state. That’s why we didn’t have to make further cutbacks this year when the state reduced our funding by $6.3 million in December. However, we didn’t anticipate the state’s February surprise: another cut of $2.8 million. That gobbled up the money we had hoped to set aside for the uncertainties of the 2012-13 budget year.

Putting together the District’s 2012-13 budget is like trying to walk on a tightrope while blindfolded. The state budget is based on the passage of Governor Jerry Brown’s tax initiative in November, but we must plan conservatively and base our financial projections on the assumption the measure doesn’t pass.

We’ve explored many, many money-saving options, but I can tell you that we will not be asking for givebacks from our employees at this time. We have sent information to all eligible employees about the prospective early retirement incentive, and many of you with this option are carefully considering whether early retirement is a good decision for you and your family.

We are also cutting — yet again — everywhere else we can — most notably, eliminating more than 450 class sections on top of the 1,600 sections we’ve had to cut in the past three years. We’re also cutting even more deeply on operating and supply purchases, and limiting the number of new hires and hourly employees. For a full list of the budget solutions, check out the District Strategic Budget and Planning Council page on our District intranet.

I must underscore that by making the decision not to impact our employees, we won’t have our usual safety net built into our budget – the 4% deficit that would equal about $3.4 million. This will make us very vulnerable should we get another midyear budget cut from the state as we did this year.

Governor Brown’s revised 2012-13 budget is due out in mid-May, and we worry that it may mean even more bad news for community colleges. We’re monitoring this, and we’ll find solutions if needed. Above all, we’re keeping our fingers crossed that voters approve the tax measure this fall and the state’s budget situation stabilizes a bit.

Nevertheless, we received a bit of sobering reality from California Controller John Chiang at a recent state CEO meeting. Chiang said he expects it will take another four to six years for the state budget to recover and stabilize. In the meantime, we’ll remain tightrope walkers taking precarious but hopeful steps to safely reach the other side.

The budget reductions to California’s community colleges in the past three years are the largest ever, remaking the ways we provide education to our students. Beyond the tragic slashing of funds for courses, our institutions have received no cost-of-living increases for four years. Considering that our District’s fixed costs increase at approximately $2 million each year, it’s easy to see how our structural deficit is widening.

No doubt we all share the sense of tragedy in no longer being able to provide the level of open access that has been a hallmark of our colleges. We are pained to see our students stalled in their paths to completing their goals. We are deeply concerned about the future of our workforce and society if too many remain undereducated and underprepared for the middle class.

However, I know that despite our budgetary limitations, our employees remain staunchly dedicated to putting our students’ learning needs first and to making the best use of our available resources. For this I remain humbly grateful.

*
Miles in the chancellor of the Grossmont-Cuyamaca Community College District

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District budgeting: walking a tightrope while blindfolded