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September, 2003 Volume 14, Issue 1 - Where's the Money |
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By Mitra Moassessi
When Governor Davis released his proposed 2003-04 budget on January 10, 2003, it included a $530 million or 10.5% reduction (compared to the signed 2002-2003 Budget Act) to the California Community College system. At that time the District claimed that SMC would face a deficit of $12-15 million. The big items that contributed to our projected $12-15 million deficit were a decrease in revenue from the state, a projected $2 million reduction in non-resident tuition fees, a projected $4.98 million increase in the total cost of benefits and PERS retirement contributions (a 19.2% increase in benefits and an increase from 2.894% to 10.24% for PERS retirement contributions).
What follows are some of the events which have taken place on campus since January 10.
¨ Thirteen faculty have filed for retirement. The approximate saving is:
13 x $ 70,000 (Salary + benefits + district STRS contribution - $30,000 incentive) = $ 910,000.
¨ Three vocational programs have been cut permanently while seven programs have been reduced and merged into other departments.
¨ Eight full-time faculty have been laid off as a result of programs cut, five of whom have filed for retirement, the approximate saving is: 3 x $100,000 = $ 300,000.
¨ The program cuts have also resulted in the termination of five permanent classified positions. The approximate saving is: $210,000.
¨ Three full-time faculty have resigned and one probationary faculty has not been given tenure. The approximate saving is: 4x $100,000 = $400,000.
¨ The number of sections offered for Fall semester has been cut about 20%.
¨ 180 Part-time faculty lost their job last spring and about 220 more have lost their jobs this fall. None are likely to return soon. The approximate saving: $5,000,000.
¨ Hourly counseling has been reduced with an approximate saving of $1,700,000.
¨ Two administrators have been laid off, the approximate saving: 2x $110,000 = 220,000.
¨ Our health benefits did not go up 19.2%. There was no increase in the PPO plan and over 60% of our health benefit cost is from the PPO. The PERS retirement contribution did not jump to 10.24%. According to the District’s latest budget figures, the projected increase in the cost of benefits and PERS retirement contribution is approximately $2.1 million, which is $2.88 million less then what was projected originally.
Total savings: approximately $11.6 million. Another $1.1 million was saved after the mid-year cut by freezing discretionary funds, which includes temporary classified positions. This saving will continue for 03-04. Then came the good news: on August 2, Governor Davis signed the 2003-04 state budget. Overall funding for community colleges has been reduced by 1.7% (about $86.8 million) which is $443.2 million less in reductions than the January proposal. Unfortunately this good news was not enough to convince the District to bring any of the programs back, and worse, the District is claiming that with all the academic and non-academic cuts and after all possible savings, we still have a deficit of $3 million.
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