2022-23 Budget Process for the Upcoming Fiscal Year 2023-24

Dear Colleagues,

This year's legislative session came to a close last weekend with some significant wins for Oregon's community colleges. Our legislators passed bills that will help our bottom lines, increase funding assistance to students, and create better pathways for nursing degrees.

Community College Support Fund

The Legislature passed a Community College Support Fund of $800 million (House Bill 5025). While this is below our request of $855 million, it is a substantial increase of $97 million over what was allocated in 2021-23.

Oregon Opportunity Grant

The passage of HB 5025 also increased the Oregon Opportunity Grant by $100 million, bringing that budget to $308.4 million. The Oregon Opportunity Grant is the state's need-based financial aid program that provides funding to more than 30,000 students a year.

Bachelor of Science in Nursing

The Legislature also passed Senate Bill 523, which allows community colleges to offer Bachelor of Science Nursing (BSN) degrees. This will increase access to four-year nursing degrees and help the state of Oregon start addressing the shortage of nurses.

CCC Budget

Last night, the CCC Board of Education adopted the colleges 2023-24 budget of $143,644,237. This budget was also approved by the CCC Budget Committee in May.

Student tuition

If you recall, back in April the Board of Education raised tuition $6/credit for next year. However, they had a stipulation that if the Community College Support Fund was increased, we would reduce the tuition increase to $4/credit. We will work on adjusting the tuition and sending refunds to those who have already paid the higher tuition for summer and fall terms.

Thank you

If you served on the Budget Advisory Group, helped advocate at the capitol, participated in a forum, or in any other way participated in the budget process this year, thank you. I've said this before, but it is worth saying again, this is hard work and these decisions are not easy. I appreciate everyone who helped with this effort. I hope everyone has opportunities to spend time with family and friends and recharge this Summer.

Sincerely,

Tim

Dear Colleagues,

This year's legislative session has been a roller coaster ride, and it doesn't appear to be ending any time soon. A group of Senators continue to participate in a "walk-out" at the capitol that is preventing bills and budgets from being passed, leaving colleges, schools, and other public institutions at risk.

Last week, the Ways and Means Higher Education Subcommittee recommended funding community colleges at $800 million, which is higher than the governor's and the Ways and Means' proposed budgets but is still well below the HECC's recommended $855 million community colleges need to fully maintain our programs and services.

However, it is likely the session will end on June 25 without a passed state budget. This could lead to a special summer session, resulting in a significant delay in passing the budget. Because of the timing of how community colleges receive our funding, this could create a gap in receiving our next funding installment from the state.

Due to continued responsible fiscal stewardship at CCC, a healthy reserves balance, and our incoming employee retention credit funding, CCC will be solvent until the legislature can approve a budget and we receive state funding. However, smaller colleges and K-12 districts may not in the same position.

When passed, the increase in the Community College Support Fund (CCSF) to $800 million will also positively impact our students. At its April meeting, the Board of Education voted to approve a $6/credit tuition increase (from $117/credit to $123/credit) with a clause that the increase will be adjusted to a $4/credit increase if we see an increase in the state's CCSF above its current amount. Students who have paid the higher tuition for summer and fall terms will receive a reimbursement for what they overpaid.

So, while state funding for community colleges looks promising, it is uncertain when we will receive it. To keep our current budgeting cycle on track, the Board of Education is expected to adopt our 2023-24 budget at its June 28 meeting and then we will assess where our funding lands once the state passes its budget.

I will continue to keep the college community informed as we learn more from the state.

Sincerely,

Tim

Dear Colleagues,

As we near the end of this year's budget cycle, I want to share a few highlights of the 2023-24 budget that will be going to the Budget Committee next week for a first reading.

At the last Board of Education meeting, the Board approved a $6/credit tuition increase (from $117/credit to $123/credit) with a clause that the increase will be adjusted to a $4/credit increase if we see an increase in the state's Community College Support Fund (CCSF) above its current amount. This potential increase in tuition generates a few hundred thousand dollars of savings to our current forecast deficit.

We continue to have a large structural deficit with enrollment down 28% since 2019, but fortunately we do not need to make larger cuts this year due to the Employee Retention Credit of $9.75 million we are receiving and plan to spread out over the next three years.

Last week, the Executive Team reviewed the feedback from the Budget Advisory Group, the online budget form, and the feedback from the all-staff budget forum. The Executive Team is moving forward with some of the budget reductions and a few strategic unit plan requests.

Items that were already identified as reductions or savings prior the the budget forum were:

• Savings in utilities, printing, supplies, and part-time staff due to lower enrollment and increased hybrid work and instruction.
• Shifting Moodle to a new, less expensive, hosted site.
• Reduced sections due to common course numbering (going from five-credit courses to four credits).
• Eliminating an administrative position in Customized Training.
• Eliminating full-time faculty Clinical Lab Assistant position with the elimination of that program.

Additionally, the Executive Team took the following budget reductions from the list previously shared during the all-staff budget forum:

• AFAC Department-wide - Reductions in materials and services.
• President and Vice President Offices - Reductions in materials and services.
• Board of Education - Reduced travel and conference budgets.
• SBDC - Recognize increases in annual program income and shift to General Fund.
• Custodial Services - Eliminate graveyard supervisor position.
• Transportation Department - Eliminate shuttle services and full-time transportation analyst position.
• College-wide - Reduce annual cash transfers from General Fund to Reserve Funds.
• Mailroom - Shift mailroom coordinator to part-time and eliminate mail delivery to the central Oregon City campus buildings.
• Financial Aid - Eliminate vacant scholarship coordinator position.
• Health/PE Department - Reduce section offerings.
• Information Technology - Eliminate vacant manager position.

The Executive Team also felt it was important to strategically invest in the following positions:

• Academic and career coach with a focus on undecided students.
• Administrative support officer for College Safety to help coordinate emergency management drills, manage access control requests, and provide back-up coverage.
• Fund half of the request for the Office of Diversity, Equity and Inclusion, including a position, along with materials and services budget.
• Conversion of a videographer position from part-time to full-time as demand has exponentially grown, and the funding is largely covered by increased fees paying for this service.

Lastly, the Executive Team is committed to finding funds for priority non-position requests, either through the Employee Retention Credit funds, extra ending fund balance that comes in from additional year-end savings, or unused funds from other sources (Innovation Fund, Technology Fund, etc.). These one-time funds would allow us to pilot a few unit plan requests and prioritize any ongoing cost commitments in a future budget process. Once we know what our state funding level is, we will provide an update on other items moving forward after the budget is adopted in July.

I would like to thank the members of the Budget Advisory Group for their work. Every year, the budgeting process gets better and better, and that is due to the commitment of the BAG and their intention to be student-centered as well as developing and implementing the DEI BAG Guiding Principles.

These are not easy decisions to make. We are already lean, and every position is valued. As we proceed with budget reductions, we will keep our objective of doing the least amount of harm to our students, our services, and our faculty and staff while remaining fiscally sustainable.

Important upcoming dates:

• May 10 - CCC Budget Committee reviews proposed budget
• May 17 - CCC Budget Committee provides feedback and approves budget
• Late May to early June - CCSF Budget should be announced by the state
• June 28 - CCC budget hearing and Board of Education action to adopt budget

For more information regarding the budget reduction process, go to our Budget Webpage.

Warmly,

Tim

Dear Colleagues,

Balancing the college budget each year is a complex process with many moving parts. It is even more challenging with an unknown level of state funding and the responsibility to resolve our ongoing budget deficit.

Based on the numbers we currently have from the governor’s office and the Legislative Ways and Means Co-Chairs, we may need to trim our budget as much as $1.4 million in ongoing reductions, beyond the $1.2 million we had already identified as ongoing reductions last fall related to low enrollment and cost savings from increased hybrid/online learning. 

Thankfully, we do not need to make much larger cuts due to the Employee Retention Credit of $9.75 million we are receiving and plan to spread out over the next three years. I would like to thank Jeff Shaffer and the Business Office for their work on this opportunity and ongoing ways they actively look for dollars and savings.

This year, we asked leadership to generate $2 million in ongoing reductions. Our Budget Advisory Group (BAG) was then tasked to review and rate proposed budget reductions and review and weigh in on proposed budget requests from unit plans. I’m especially appreciative of this year’s budget process and the diligent work of the Budget Advisory Group, the BAG Agenda Planning Group, and the Diversity, Equity, and Inclusion (DEI) BAG Subcommittee.

The DEI BAG Subcommittee developed a budget prioritization rubric centered on operations, equity, data, and student impact. After rich conversations about the proposals, each budget reduction and request were ranked within the rubric. The BAG reviewed more than $2.282 million of proposed budget reductions and $1.71 million of budget requests. For the most current list of the proposed budget reductions and requests that are moving forward, as well as the budget timeline, visit the Budget Process webpage.

To learn more about the budget process and next steps, please join us for an All-Staff Budget Forum on Thursday, April 6, at 3 p.m., via Zoom. You should have an invite on your calendar.

If you have questions or need clarification on the budget process, the proposed budget reductions, or the budget requests, please fill out the form on the Budget Process webpage.

Warmly,

Tim

Dear Colleagues,

I would like to give you an update on where we are with the budget process and share some noteworthy budget-related news.

If you recall, last year we were able to keep a status quo budget despite our structural deficit thanks to $3 million in federal stimulus funding to backfill our loss of tuition revenue. However, our structural deficit continues to grow larger and still needs to be addressed.

2022-23 $2-million reduction

In May, the Board of Education and Budget Committee approved a budget that requires a $2-million reduction this fiscal year (2022-23). The college has been working since July to address this reduction.

The Budget Office, with input from the Budget Advisory Group, identified $2 million in one-time savings. Some of these savings are because enrollment has not yet climbed back and some are savings due to planned reductions. These savings have already been realized and no new reductions are anticipated for 2022-23 These reductions and savings include:

• Savings due to low enrollment and environmental changes:
  • $250,000: Utility savings due to lower utility usage 
  • $800,000: Personnel savings due to reduced costs for part-time staffing/associate faculty
  • $150,000: Supplies and printing savings from decreased spending
• Savings related to one-time planned reductions:
  • $150,000: Paused CCC shuttle service
  • $150,000: Holding open some administrative positions for 3-6 months 
  • $500,000: Sweep leftover funds from completed projects (e.g., leftover Innovation and Equipment funds) 

The noteworthy news - Employee retention tax credit

Earlier this fall we learned CCC may qualify for an employee retention tax credit through the federal CARES Act legislation. Working with a Certified Public Accounting firm, we submitted our application and are eligible to receive up to $9.75 million, which we will likely receive next summer (2023). We plan to phase in that funding over the next three fiscal years to smooth out the budget reductions while we address our structural deficit.

State funding

This summer, the Higher Education Coordinating Commission (HECC) released its budget request to the state for 2023-25, which included an additional $155 million for the community college support fund (CCSF). This is a historic increase of 22%. They also recommended one-time funding of $50 million to enable community colleges to transition and adapt to emerging enrollment trends by 2025. 

However, this level of funding is not guaranteed. The legislature needs to approve the community college support fund during its 2023 session. With a new governor and many new legislators just elected, we will need to do a lot of education about how community colleges are funded and how we serve the community.

2023-24 budget - $2 million ongoing reductions

Due to the uncertainty of state funding and enrollment, there could be a number of budget forecast scenarios, including:

• Assuming a 9.3% increase in state funding, we need $3.8 million in ongoing reductions (in addition to this year’s $2 million one-time reductions) in the three-year forecast (2022-25) if the college uses the employee retention credit for other investments rather than balancing the budget.
• Assuming a 9.3% increase in state funding, we need $835,000 in ongoing reductions in the three-year forecast if we use the employee retention credit phased in over three years.
• Assuming a 9.3% increase in state funding, we need $1.8 million in ongoing reductions in the three-year forecast if we use the employee retention credit phased in over three years and change our assumption on enrollment to flat (0%), instead of a +5% increase.
• A balanced budget for the three-year forecast if we get full funding from the state and use the employee retention credit phased in over three years.

With guidance from the Leadership Cabinet and our Budget Advisory Group, the Executive Team is requesting leadership to identify $2 million in additional ongoing reductions in the 2023-24 budget process and strategically use some of the employee retention credit funds for priorities to move the college forward. The Budget Advisory Group will review and make recommendations on proposed budget reductions as well as unit planning requests.

More info

For a deeper dive into the budget forecast, please see the Board of Education presentation (linked above in Budget Documents and Links) or attend tonight’s (Nov. 16) Board of Education meeting where the forecast will be presented.

Warmly,

Tim

Dear Colleagues,

I want to give you a quick update on where we are with state funding, our budget, and the Budget Advisory Group work being accomplished.

HECC update

In good news, the Higher Education Coordinating Commission (HECC) put forth its budget request to the state for 2023-25, which included an additional $155 million for the community college support fund (CCSF). This is a historic increase of 22%. They also recommended one-time funding of $50 million to enable community colleges to transition and adapt to emerging enrollment trends by 2025.

These recommendations will be considered in the governor’s recommended budget, which will come out around January. That budget will then move to the Ways and Means Committee in the state legislature for consideration. We have a long road ahead of us for state funding, but we are starting in a positive place. 

Stimulus funding

During the pandemic, CCC received federal stimulus funding to help us cover lost revenue and directly assist our students. That funding has been spent, and this graphic demonstrates what we received and how we used it. Thank you to everyone who worked to distribute these dollars.

Budget Advisory Group

The Budget Advisory Group (BAG) has already met twice this summer to start talking about the process for addressing our ongoing structural deficit. As a reminder, BAG makes recommendations on budget decisions, including reductions and areas of investment/opportunity. This is difficult - and at times emotional - work, and I want to thank the dedicated members of this group.

BAG members include:

• Associated Student Government position (still seeking participation)
• Kevin Aguilar
• Jessi Alley-Snell
• Jennifer Anderson
• Felicia Arce
• Dustin Bare
• Katrina Boone
• Kelly Brennan
• Nora Brodnicki
• Armetta Burney
• Bob Cochran
• Melissa Deyoe
• Sara Dier
• Becky Everett
• Bev Forney
• Sue Goff
• Lori Hall
• Jason Kovac
• Casey Layton
• Kathryn Long
• Derek Lougee
• Jim Martineau
• Debra Mason
• David Plotkin
• Michael Price
• Lisa Reynolds
• Melissa Richardson
• Jeff Shaffer
• Tom Sonoff
• Maria Sorrentino
• Tara Sprehe
• Chris Sweet
• Saby Waraich
• Kelly White
• Mary Jean Williams
• Kelly Wilshire
• Mark Yannotta
• Christopher Zimmerly-Beck

I will continue to share regular budget updates with the college community. Please take the time to read these messages, participate in the process where you can, and feel free to ask questions. 

Sincerely,

Tim

Finance Council serves as a venue for participatory decision-making recommendations related to policies, procedures, and the strategic issues related to organizational finance. Learn more on the Finance Council webpage.

The Budget Advisory Subgroup (formerly the Budget Advisory Group) is now part of the Finance Council, with additional members. Information about the Budget Advisory Subgroup and membership can be found on the Finance Council page.