RIVERSIDE COMMUNITY COLLEGE DISTRICT

Budget Allocation Model Development Task Force Friday – November 21, 2008

9:00 - 11:00 a.m.

AGENDA

I. Welcome and Call to Order

- Review minutes of November 7, 2008 meeting

II. Budget Allocation Model

- Analysis of Norm’s BAM proposal presented on November 7, 2008

- FY 2008-2009 and FY 2009-2010 Budget Projections

� Strategies for potential Budget Reductions

- New and Vacant Position Funding Allocation Methodology

- Treatment of Budget Savings and Base Budget Adjustments

III. Other

- Strategic Enrollment Management

IV. Next Meetings (all from 9:00 – 11:00 a.m.)

� Friday, December 5, 2008 – DL 409

� Friday, December 19, 2008 – Citrus Room

� Friday, January 9, 2009 – Citrus Room

� Friday, January 23, 2009 – Citrus Room

V. Adjournment

RIVERSIDE COMMUNITY COLLEGE DISTRICT

Budget Allocation Model Development Task Force Meeting of November 21, 2008

MINUTES

Task Force Members

PresentPeter Boelman, Associate Professor, Economics, Social & Behavioral Sciences (Norco) Aaron Brown, Associate Vice Chancellor, Finance Patti Braymer, Interim Vice President, Business Services (Moreno Valley) Jim Buysse, Vice Chancellor, Administration and Finance Becky Elam, Vice President, Business Services (Riverside) Norm Godin, Vice President, Business Services (Norco) Beth Gomez, District Budget Manager Cindy Taylor, Outreach/Passport to College Coordinator (Riverside) Tom Wagner, Associate Professor, Business Administration (Norco) – Arrived at 9:30 a.m. Ajene Wilcoxson, Associate Professor, Business Administration (Riverside) Meghan Skaggs, Treasurer, ASRCC (Norco) Kristen Van Hala – (Recorder) AbsentMichael McQuead, Associate Professor, CIS (Moreno Valley) Meshay Brown, President, ASRCC (Riverside)

I. Meeting was called to order

II. Minutes of November 7, 2008

The minutes of the November 7, 2008 meeting were reviewed and approved without change.

III. Budget Allocation Model

� Review of Norm’s BAM proposal (attached)

o Everything in blue was taken from the BAM summary report that was presented to the

Board of Trustees in May. The yellow line was created to set-aside additional reserve

funds. The intent was to fund as many aspects of the model as possible, before

reducing for the additional reserve set-aside.

1 of 4

o The BAM Task Force will need to decide on the importance and priority of the BAM

component - 1% Reserve for Economic Uncertainty.

o Moreno Valley and Norco appear to be impacted the most by the way the additional

set-aside reserve was handled in the adopted budget. This impact was mitigated by the

additional budget augmentations subsequent to budget adoption, The augmentations

are shown as the “Small College Factor.”

o Budget savings treatment still needs to be resolved. Can unused funds be retained at

the site level and roll into the next year, for use on a one-time basis?

o Dr. Buysse cited DeAnza College as a budget example. Their budget was divided into

three groups: the “A” budget for personnel and utilities; the “B” budget (salaries); and

the “C” budget for capital outlay. By consensus of the BAM Task Force, this

methodology will be explored further.

o Historically, the P/T faculty and overload budgets have been over-spent. If this

occurs, how would shortages be handled? Right now they are handled primarily by

salary savings.

o Should it be the responsibility of the site to operate within the budget allocation model

and handle any shortfalls themselves, including in P/T faculty and overload

categories?

o We need to keep in mind that we are transitioning to a three-college system and that

some budget solutions and treatment may need to be phased in over time.

� Budget Reduction Strategies

o The state’s “Big 5” are meeting today. Aaron distributed a handout of a budget

scenario modeling what is expected to be worst-case showing mid-year cuts for 2008-

2 of 4

o The projected adjustments and mid-year cuts result in an estimated shortfall of $5

million for 2008-09. Moving into 2009-10, the deficit is projected at $10 million after

the 5% contingency.

o Becky Elam distributed the Budget Allocation Model Principles sheet that was

presented to the Board in May. It has been updated by RCC to show Student Services

as a high priority. Student access, student programs, and stand-alone college status are

all priorities. Prioritizing in-house recruiting for positions instead of outside recruiting

will save money.

o Aaron distributed a revised version of the 2008-09 Budget Allocation Model that has

been updated for the budget augmentations provided to Moreno Valley and Norco

(shown as the Small College Factor.)

o There is approximately $2.1 million left of the Remaining Allocation Increment for

FY 2008-09 after factoring in the growth funding relocation, Lottery reduction, and

Moreno Valley and Norco augmentations.

o Possible consideration of a Golden Handshake.

o Scrutinize expenditures. Look at prior years to see how budget savings were achieved.

o Some budgets cannot be reduced without reducing student services.

o Some budgets have already been cut to fund new positions.

o Maintaining student access should be the primary goal.

3 of 4

4 of 4

o Cutting P/T faculty may impact student accessibility. Would it be better to cut online

courses or in-class sections?

o Dr. Buysse will discuss Budget Reduction Strategies with Executive Cabinet on

Monday, November 24th. Communication has to be very clear.

o In the 1990’s, the District did not have any instructional equipment money or

scheduled maintenance money.

o When enrollment fees were increased to $26/unit, demand for classes died. We ought

to assume a similar scenario if the enrollment fees go up to $30/unit.

� Proposal Consensus

o Each Campus and each Vice Chancellor area should develop their own reduction

strategy. Departments can help advise on where cuts can be made. The goal will be to

achieve a 5% cut (approx. $7 million) over an 18-month period.

o It should be emphasized that these are planning strategies only at this point, so we can

be prepared in the event actual reductions become a reality.

IV. Next Meeting

� Next BAM Meeting is scheduled for Friday, December 5, 2008 in the Digital Library 4th floor

conference room, DL 409, 9:00 a.m. to 11:00 a.m.

o Discuss the BAM proposals.

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