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

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 Fidler
• 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

• Kevin Aguilar, Human Resources Business Partner and Admin/Admin Professionals President
• Jessi Alley-Snell, Business Services/College Safety Coordinator
• Jennifer Anderson, Associate Dean, Academic Foundations and Connections
• Felicia Arce, Disabilities Coordinator
• Dustin Bare, Director, Student and Academic Support Services
• Katrina Boone, Associate Dean, Institutional Effectiveness and Planning
• Nora Brodnicki, Full-time Faculty, Art 
• Armetta Burney, Dean, Technology, Applied Science and Public Services
• Bob Cochran, Dean, Campus Services
• Tim Cook, President
• Melissa Deyoe, Foundation Coordinator
• Becky Fidler, Administrative Assistant
• Bev Forney, Interim Associate Dean, Arts and Sciences
• Sue Goff, Dean, Arts and Sciences
• Lori Hall, Executive Director, College Relations and Marketing
• Jason Kovac, Dean, Institutional Effectiveness and Planning
• Casey Layton, Chief Diversity, Equity and Inclusion Officer
• Kathryn Long, Full-Time Faculty, ESOL and Full-Time Faculty President
• Derek Lougee, Full-Time Faculty, Economics
• Jim Martineau, Director, Health, PE, Athletics
• Debra Mason, Executive Director, Foundation
• Ben Melles, Associated Student Government
• David Plotkin, Vice President, Instruction and Student Services
• Michael Price, Associate Faculty, Math
• Lisa Reynolds,  Associate Dean, Arts and Sciences
• Melissa Richardson, Chief Human Resources Officer
• Jeff Shaffer, Interim Vice President, College Services
• Tom Sonoff, Director, College Safety
• Maria Julia Sorrentino, Associate Faculty, Computer Science
• Tara Sprehe, Dean, Academic Foundations and Connections
• Chris Sweet, Registrar
• Saby Waraich, Chief Information Officer
• Kelly White, Administrative Assistant and Classified President
• Kelly Wilshire, Administrative Coordinator
• Mary Jean Williams, Associate Faculty, Communications
• Christopher Zimmerly-Beck, Associate Faculty, English and Associate Faculty President

• Jeff Shaffer
• Coraggio Group as facilitators
• Casey Layton
• Kelly White
• Nora Brodnicki
• Michael Price

• Casey Layton
• David Plotkin
• Dustin Bare
• Felicia Arce
• Jennifer Anderson
• Kathryn Long
• Kelly White
• Maria Julia Sorrentino
• Mary Jean Williams
• Virginia Chambers