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Proposed by Joint Academic Senate/Faculty Association Ad Hoc Committee Acted on by Budget Committee, May 2, 2003 Background – Ad Hoc Committee The Executive Committees of the Academic Senate and the Faculty Association formed the Joint Academic Senate/Faculty Association Ad Hoc Committee on the Budget Crisis. The Ad Hoc Committee developed a proposal of three budget scenarios – a best case, middle case and worst case. The plans below were developed using cost savings calculated by the Business Services Office. If, as anticipated, the 2003-2004 budget calls for cuts, the Ad Hoc Committee recommends that the cuts be made along the lines presented below. Budget Committee Discussion Extensive discussion was entered into about the merits of the Budget Committee planning budget reductions prior to knowing the full extent of the impact of the State 03-04 budget upon SMC’s 03-04 budget. The majority of the committee does not want to discuss any full-time employee reduction that results in a full-time employee being laid off. This principle has less support if the person was employed in a position funded by a grant that disclosed the release of the employee if funding was discontinued, or if employed as an academic manager. However, discontinuance of programs should not be discussed until all other ways included in the faculty proposal to cut the budget have been pursued and further reductions are still necessary. Another objective of the faculty is to plan a 3% reserve into the District’s 2003-04 budget. The Budget Committee will meet again after the Governor’s May Revise of the State 03-04 budget proposal to determine of further reductions not included in the plan will be needed. Budget Committee Action At its meeting on May 2, 2003, the Budget Committee approved the following motion: The Budget Committee recommends to the College President that the Ad Hoc Committee on the Budget Crisis’ three budget reduction scenarios as amended by the Budget Committee be used as a basis for continued discussions between the faculty, classified staff, Associated Students, college administration and Board of Trustees and that this recommendation be transmitted to the Board of Trustees. The Budget Committee recommends three budget scenarios – best, mid, and worst cases. Three Budget Scenarios Proposed by Joint Academic Senate/Faculty Association Ad Hoc Committee Acted on by Budget Committee, May 2, 2003 Budget Scenarios for FY 2003-04: Premises: FY ’03 reserves $2,574,000 Freeze on discretionary 1,114,000 Sublet 2020 Santa Monica Blvd. 360,000 FY ’04 reserves $4,048,000 Best Case Scenario * Faculty retirement incentives $1,283,000 Limited faculty workload 200,000 Classified EDD work share ** 2,000,000 Classified early retirement w/reemployment 1,031,000 Managers EDD work share 344,000 Admn. Teaching & furloughs 115,000 Total savings – best case $4,973,000 * All sections back to Fall 2002 levels except for FT faculty retirements & reduced workload ** Subject to review after six months Mid Case Scenario Cut 300 sections fall and spring (10%) * $2,500,000 Counseling at Spring 2003 levels * 1,097,000 No weekend classes (utilities & balance of classes) 750,000 Reduce winter session (15%) 365,000 Lease BAE 360,000 Subtotal savings $5,072,000 * No additional PT faculty lay-offs beyond Spring 2003 Total savings mid case $10,045,000 Worst Case Scenario Cut additional 300 sections (20% cut) $2,500,000 Additional counseling cuts 1,096,000 Defer five (5) sabbaticals 78,000 Reduce shuttle 75,000 Close campus for one (1) week 105,000 Subtotal savings $3,854,000 Total savings worst case $13,899,000
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