welcome everybody to the August 2nd
special meeting of the Board of Trustees at Long Beach Community College District
I like to call the meeting to order first item on the agenda we have also
trustee in tuck joining us by phone from Karnataka Republic of India so what can
you hear us trustee and tuck okay great great
okay first order is pledge of allegiance vice president mallalieu can you lead us
in the Pledge of Allegiance everyone stand please Madam Secretary
can you please call the roll virginia baxter here vivianne malulu
here ooh do of joe in tuck Doug Otto any Zia here okay item 1.4 public
comments on agenda items I don’t think we have any public comments okay we’re
going to move on to 1.5 I don’t want point-five budget plan 2018 2019 plans
for operation operating deficit reduction superintendent president Regan
or Molly and vice president of the business services Marlene Dunn will
provide information on the current planning and implementation of budget
rejections for lbcc superintendent president to raleigh if you could please
take this item on it appreciate it welcome trustee and took from india and
thank you so much to the IT team who made that possible thank you so much you
guys are wonders we want to start out by looking at the
budget plan for 2018 2019 we will be adopting our budget in
September and as you know approximately a year and a half ago we were faced with
an operating deficit of approximately ten point seven million we’ve been very
successful in being able to reduce that operating deficit by about fifty five
percent and we’ve been very fortunate to avoid layoffs and programmatic cuts in
the process I’m very grateful and I know that the staff are very grateful to the
board for making an excellent decision with offering the SERP so now the
question remains with our rising stirrers and pers rates that are not
within our control what is that going to do to our budget in the future what kind
of deficit still remains and what kind of plans have we put in place to reduce
it on a permanent basis and also to bring our pattern of spending
approximately eighty nine to ninety percent on salaries what can we do
aggressively to start moving that in the correct direction and so tonight you’re
going to see a presentation by CBO Marlene Dunn that’s going to talk about
everything we’ve done so far it’s going to be a phased in approach and we’re
gonna talk about that phased in approach tonight and you’re going to be very
pleased to see that is dramatically heading us in the right direction and
keeping that 90 percent figure in a downward trajectory so I’d like to
introduce Marlene Dunn thank you great thank you so much before we talk about
the plan we’ve developed so far I want to set the stage a little bit and talk
about the budget challenges were facing we’re facing them from a number of
avenues we have historical deficit spending we have as dr. O’Malley
mentioned a salaries and benefits ratio that is at an uncomfortably high level
we have enrollment history and that has not provided us with additional revenues
and we are also facing challenges from the state budget
so when we look at our past budgets and beginning in 2016-17 you can see that we
had a surplus of only 2.2 million dollars and I say only because that is a
very small percentage of our total revenue and that means that we spent
almost all of our revenue on expenditures in 2016-17 so as far back
as then we were having a very tight budget and in that year the tentative
budget actually did project a deficit when we look at our 2017-18 budget as
dr. O’Malley mentioned the tentative budget did project ten point seven
million dollars in deficit spending and as a reminder deficit spending is when
you spend more than you receive in any one year and we are focusing on general
unrestricted funds only at this point in time with the tentative budget that you
adopted last month it included a projection of those
2017-18 dollars as being only 4.8 million dollars of a deficit so we’ve
reduced the deficit over the course of the 2017-18 year and that’s critical I
like to share that a budget is a living document that it changes over the
courses of fiscal year as our factors and other situations change and so what
we have an opportunity to do is first identify the size of a problem and then
work on the solution that was successful in 2017-18 and it’s going to be
successful again in 2018 19 so with the gentle budget the projected deficit is
six point seven million dollars and for 1920 it’s always important to look out
more than one year the projected deficit is fourteen point nine million dollars critical component of our budget is our
salaries and benefits we are in the service industry and so it is
for the majority of our expenditures to be on people that’s what we do
unfortunately our ratio salaries and benefits to our total expenditures is at
a high level which makes it very difficult to manage
we’ve been hovering around the 90 percent level since 2012-13 the one
anomaly in 2013-14 was from there as a result of some drastic staffing
reductions made in that year one of the reasons it’s difficult to control at
this level is that it tells us that only 10 percent of our budget is in
operations and so our solution to a budget problem mathematically has to
involve salaries and benefits one of the driving forces behind that ratio our
pers and sters increases as a reminder at the state level the sterzin purse
fund was projected to be 30 billion dollars upside-down in 30 years part of
the solution from governor brown’s administration was to solve the problem
by increasing all three rates involved in stirs and purrs that is the employee
contribution rate the state’s contribution and the employer
contribution the primary increase is on the employer contribution side and
that’s us and so you can see that the rates continue to increase over the
course of several years in 1718 they increase a little more than one and a
half million dollars we project for 1819 about a two million dollar increase and
you can see in 1920 slightly more than two million dollars so that definitely
impairs our ability to control the payroll and benefits cost and this is
completely out of a control and when we look at our enrollment pattern again
this is not abnormal when we look at our region that most community colleges are
having flat or declining enrollment but it does mean that this is
not an opportunity for us to increase our revenues particularly as we look at
a new funding formula that I’ll discuss a little bit more in a moment
but this means that we’ve had relatively flat enrollment over the past several
years and talking about the state’s new student centered funding formula this is
critical because this does determine the majority of our unrestricted funding
beginning in 1819 we bring begin a transition to an entirely new funding
formula that in prior years our apportionment was based solely on
enrollment with this new funding formula beginning in 1819 we are going to be
transitioning to a formula it’s based only sixty percent on enrollment twenty
percent on low-income enrolled students and twenty percent on completion rates
there is a three-year transition period but it is a brave new world for us luckily we are in a hold harmless
position meaning we are going to be receiving the same amount of funding as
we received in 1718 now one of the differences between what we adopted in
our tentative budget and what you’re going to see in the final budget is that
the tentative budget was based on the governor’s may revision proposal since
then we’ve had an enacted state budget with significant changes for the better
that we move from a two-year transition to a three-year transition meaning will
be funded at a hold harmless level for three years most importantly we move
from a one-time Cola in 1819 to an ongoing Cola meaning we’ll receive the
benefit of the Cola in 1819 and 1920 and then an increase in Cola in 1920 and
again in 2021 at a future board meeting we’ll be presenting to you
very in-depth analysis of the funding formula and its impact on us but what’s
most important to know is that for now in the next two years we are in a hold
harmless level the impact of the ongoing Cola to our revenue is six million
dollars in 2019 20 so that was a fantastic success for us in influencing
the way the formula was interpreted and enacted at the point of the state
enactment I’m gonna add to that just congratulations to everyone who lobbied
very hard at the state and local level to get that not only was it successful
for Long Beach but it was very successful for the 51 other districts
sitting in a stabilization mode we were anticipating getting you the detail on
the funding formula tonight however we delayed it to the August 21st meeting
because we want to add some complexity in there and run some what-if scenarios
for you we want to run what if we don’t up completions what does that mean what
if we don’t restore our enrollment what does it mean and run a variety of
different scenarios for you so you can see exactly what we do need to do to
make up for things if we are unsuccessful in one area or another so
it’s going to be a much more in-depth presentation that I think will be very
helpful to you in a couple of weeks Thank You Marlene thank you and so
having set the stage for where we are currently I’d like to talk a little bit
about the approach we had as we developed the deficit reduction plan the
primary purpose is of course to reduce the deficit so that we can have a
balanced budget and be physically healthy but it’s critical that we
preserve those effective programs and services that focusing just on the
bottom line on a budget and does not necessarily mean we’re operating
effectively and we wanted to make sure that we as an organization still had our
ability to meet our goals to be aligned with a district strategic plan because
it is so wide-ranging we also recognize that all area
of the district had to be included in both identification of solutions and
participation in the implementation of the solutions so all areas were all
vice-presidents worked closely together they worked with their teams to help
identify solutions we disclosed our actions with all stakeholders and really
wanted to make sure that what we were proposing was going to be achievable and
really we also wanted to focus on the future how are we going to maximize
those future revenues by having a focus of a dedication of resources to support
student enrollment and completion the SERP provided us an incredible
opportunity to really reorganize to have recognized that our beep ers are giving
us efficiencies in process to recognize that many of those positions had been in
existence for a long time and we don’t do business the same way we did 20 years
ago or 30 years ago and to really take a good look at what we need to achieve and
to make sure that we are organized in a way to achieve those goals we wanted to
identify savings for the use of best practices as it relates to areas of
travel supplies purchases food purchases we want to review all of our contracts
for opportunities for savings and we really want to leverage our restricter
programs in grants to make sure that everything we do is aligned with the
district’s priorities as we went through the process we determined that we can’t
do everything at once we needed to have a very thoughtful process that provided
an opportunity for assessment for evaluation of success and to correct any
issues that arise so we developed the three phases phase one which we’ll be
focusing on tonight will be implemented immediately phase 2 will be implemented
in a six month period in January and Phase three
july 2019 as we go through implementation of the
phases we will be evaluating each one’s of those steps based on the processes
whether we have improvement or degradation on student enrollment and
completions and those will be assessed at key points throughout the year
depending on the metric that we’re using so when we look at phase one I’m happy
to share that we were able to identify two point three seven million dollars in
savings through reorganization these savings are detailed for you in a
spreadsheet that is entitled proposed reorganization phase one and is achieved
with absolutely no layoffs or program cuts each of the areas listed in the
spreadsheet has identified ways they can improve their efficiencies with less
salaries they’ve done this through a number of areas in some cases they’ve
identified that a positions purpose no longer aligned and so those ongoing
tasks were able to be absorbed by other positions with capacity in other areas
we’ve actually identified management including director positions that we
could eliminate and shift some of those responsibilities to other director level
and increase lower positions to absorb some of those responsibilities as well
for a net savings so not all these are very straightforward some were
complicated but all reflect how we currently do business and need to
perform business I wanted to jump in and say that we when we work this through
with the AFT Union the classified Union they were very excited that what we’ve
done is eliminate some vacant management positions increase the number of
membership in the classified ranks and create a career ladder up some positions
for classified provide them with higher-level opportunity so there is a
true career ladder for classified personnel who want to gain opportunities
for management and when we we flush this out with the Union they were
be excited about the career letter opportunities that this brings also in
Phase when we identified savings for best practices a total of one hundred
and seventy three thousand dollars we looked at travel and we identified that
we could save across the board 25% in unrestricted funded travel totaling
about sixty eight thousand dollars we looked at our regulations and identify
that our regulations really cover travel well we are just providing some
guidelines to some areas the first is really asking folks to describe how
their travel serves the goals of the districts they provide us with that
narrative second to limit out-of-state travel to only those events that are not
available within the state and we are requiring that all out-of-state travel
be approved through cabinets so we can have a robust conversation so that if
you have an opportunity a conference an event out of state we’re asking you to
make sure that a similar opportunity doesn’t first be available within the
state at a lower cost there are some opportunities that are only available
out of state some significant conferences for instance or perhaps if
you’re in a grant-funded program you might have a requirement to attend them
but we really wanted to have a robust conversation in exam and those
out-of-state travel and we’re also looking at multi person travel or asking
folks to determine if perhaps they can do a train-the-trainer model and send
just a limited number of folks can bring the information back rather than sending
several or if you have several people who need to have professional
development perhaps instead of sending them to that opportunity bring that
opportunity here perhaps at a lower cost that might be more accessible to more
folks to really just examine how we’re approaching travel we also looked at our
supplies and discovered that doing something as simple as changing the
online supplies that are available to the lowest cost option and being able to
do that our vendor will give us great savings I
think we can all agree that a cheap post-it note works just as well as an
expensive one this does not remove the flexibility however if the unit needs a
specific supply they can still order that just through the rep process but
just simply by asking folks to take a look and loose lower use lower-cost
options we believe we can really get some efficiencies there and we really
did try to preserve in all these best practices flexibility to allow people to
still do their jobs the way they need to do their jobs but just a little bit more
thoughtfulness and then we also looked at the provision of food with our
hospitality or what we call the end service that when we are supplying food
for events and we determined we can save about $10,000 by reducing that by 15%
we’re asking folks to look at modest refreshments buffets versus plated meals
to look at how many people were ordering for we want to reduce the amount of
leftovers we don’t want an overabundance of food and to look at when are we
providing them it makes sense when you have folks for for our professional
development because it goes over a meal period to provide a meal but if you’re
having a three-hour event you can certainly schedule that around meal
periods and where it’s appropriate for people to provide their own meal so
really again to take a look at how we’re using our funds in ways that don’t
directly serve our students through phase one through these two actions with
our organization and with the best practices we identified a total of two
and a half million dollars in deficit reduction in 1819 and the impact on 1920
with both ongoing savings as well as the change in the funding formula reducing
the deficit by six point three million dollars what I’m really excited to share
is that the ratio salaries and benefits drops from above 90 to eighty seven
point nine percent that will continue to drop as we identify other solutions
the remaining deficit in 1819 is just over four million and is now under nine
million for 1920 looking at phase two implementation for
Phase two really begins now through January 19 phase 2 actions would include
those things that we could not implement now maybe they’re dependent upon an
implementation of a BPR to create an efficiency Student Support Services plan
is not included in phase 1 it will be included in phase 2 but we anticipate
quickly implementing portions of that once it’s completely developed and best
practices will include that full review of our contracts that as appropriate we
may be looking at going out for a bid or doing RFPs for some areas for services
that still are needed in some cases we might identify areas where we can shift
work to existing staff and in other areas we might discover that we no
longer need that contracted services so we plan to having a full and robust
review of all contracted services by December 2018 and then moving forward in
the remaining of the year with those actions phase 3 would be implemented
july 2019 this would take advantage of natural attrition continuing
opportunities for reorganization as well as those VPR’s
whose implementation will take slightly longer we do have a priority list we are
focusing on student enrollment so admissions financial aid first those are
the first points we want to get through and then as we move forward and
implement other efficiencies we’ll have more opportunities we also want to begin
work looking at position control which is a system that allows us to track or
employee assignments differently and have more control over them and to start
examining that as a possible solution for our district to further their
control costs I know this is a lot of information for
you but I think that we’ve really developed a process that is thoughtful
that allows for correction and that really aligns with the district’s
priorities and goals while supporting student enrollment and student success
what questions can I answer for you Thank You Marlene that was a fantastic
presentation I want to commend you and of course superintendent president dr.
O’Malley three efforts in really taking a deep dive in assessing the areas where
we can make some enhancements and seeing how we can really propel in savings so I
really appreciate that with that I want to open it up to the board to see if
anybody has questions comments trustee baxter thank you I have three questions
comments we’re the number of memberships that the college belongs to reviewed or
is that not a significant enough savings I don’t believe that there is any area
that is insignificant okay that I think it’s by the accumulation of every
opportunity to reduce our expenditures that we will achieve true balanced
budget having said that we have not looked at all the memberships I know
that you have already approved your memberships for this fiscal year but we
are carefully reviewing any additional memberships that come up and that will
be part of the contract review process on page 17 who is reviewing the
contracts and I don’t mean Suzy Jones I mean is it someone within the contract
office is it the the different departments the effort for the contract
review is very similar for the effort for reorganization that it starts at
cabinet and trickles down within each area to get input amongst the staff and
the users and then trickles back up so the first review of the contracts is are
actually myself and dr. O’Malley so we can identify first
those heavy outliers and then drill deeper we want to get the
most bang for our buck initially and then delve a little deeper the reason I
ask this is it seems like just a few years ago we were spending money on
branding spending money on procedures and not that those aren’t wonderful
things but I just wonder at this time because of a fiscal situation that that
we need to review those kinds of expenditures we absolutely will and with
changing enrollment trends and students coming from different locations rather
than our traditional LAUSD our methodology of using our branding and
marketing will change and we may want to up it or decrease it depending on
changing enrollment patterns and how effective we’ve been with our conversion
rates and converting applicant to enrollee we’re just pulling some data
now on some of the effectiveness of our of our marketing and we’re going to be
looking at the effectiveness of it whether we need it whether we need it to
some extent whether we need it more what those levels are to be able to determine
whether cuts can be made yes okay thank you and that leads me into my third and
final question have we looked at additional marketing to international
students who pay you know three times the tuition more than that to go to
school here at one time we had a ceiling then we opened the ceiling but I haven’t
heard a lot about the international student program recently yes we have
looked at it there is interest on the part of the faculty and staff and myself
and the senior team to look at international students it’s something we
want to look into a little bit further because it requires a large startup cost
which is something we do not have right I’m sorry a large a large startup cost
it’s an expensive program to run hoster but we already have an international
program so it would be increasing what we already have correct to expand upon
it would be pricey however i’ve had conversations with folks at other
institutions where we might be able to partner with them in some way so there
are some interesting options available to us it will cost money to make money
which I’m absolutely not averse to I just want to balance that with the
budget deficit and kind of project what that would look like so what we want to
do is take a look at do a deeper dive on that before we decide that we’re gonna
go after that direction there is interest it’s whether it’s gonna be
financially feasible in terms of the startup okay Thank You trustee pasture great
questions and comments anybody else on the board would like to ask any
questions trustee otto is it possible to quantify at this time the savings in the
end and when would the end be give us a date I my reading of the document was
that of course at the beginning certainly in the first year when you’re
paying the SERP money out it cost you money but eventually you’re saving money
and I just want to have some understanding of how much over what
period of time that’s absolutely definable and let me
come back to you with that number I don’t have it in front of me but the
time period we’re looking at is a five-year period because we do pay for
the SERP with five annual payments that pays for the annuities to provide the
syrup to the participants and it is over that five-year period that we
experienced the savings because that’s when the new hires if you had a
one-to-one rehire is really lower than the folks who left us but I will share
that that’s almost an academic number because as we in start this
reorganization process we are not rehiring for every position and so our
savings from the serpent actually exceed just the simple substitution of a lower
salary with a greater salary that’s a little bit more difficult to define but
I can certainly provide you with those projections if we had had a 1 to 1
rehire so so I know it’s it’s an imperfect science in that what you’re
doing is making decisions as you go along based on where it is that you are
because you want to reduce the deficits as much as possible but is there any
sense at all of you know in five years whether where we will be in terms of
eliminated positions or is that just has to be worked out on a year-to-year basis
I believe that we have to continue to evolve that that five years from now
it’s difficult to project out that far because it’s largely dependent upon our
state’s economy more than anything else and I know I shared with you at the
budget presentation that we are reaching the record for economic recovery in our
state and so we’re all expecting that cliff to happen with an economic
downturn we’re just not sure when that will be but our commitment is to
eliminate our deficit spending and have a balanced budget and and I noticed that
the that our projections into the future based on what we’re going to have to do
the stirs and purrs increases and all that will put us back over the 90%
salary and benefit is is our goal to overtime reduce that even further based
on what our opportunities are or or is that pretty much are we pretty much
wedded to that the ever-increasing costs of stirs and purrs puts us as well as
every other k14 agency in the state in a very difficult position because the
combination of Stephan column in stirs in person increases has exceeded the
annual Cola there is a burgeoning effort statewide to lobby against putting the
entire solution for the stirs and purrs funds on the backs of the educational
agencies but barring success there and some kind of legislative relief we do
have to make gradual reductions and our salaries cost to make up for the
unavoidable increase in the retirement costs
okay and and just to make a point or about how we don’t know what it is it’s
going to happen we are in a very definitely changing political landscape
the the party in power now seems to be focusing on cost accountability outcomes
much more than previous administrations have been and I’m talking not only
nationally but but even at a statewide level at the national level the
for-profits are back there in the tent that means that they provide more
competition to us for the same students and we’ve not always fared so well in
that competition because of their marketing and what it is that they what
they offer there seems to be more of an emphasis on workforce jobs continuing
CTE education and that’s billed as we’ve got to rebuild the middle class and
that’s how we’re gonna do it so we’re going to focus on that and the there’s
been a 20-year decline in state funding for community colleges although that’s
not true right now in California but that seems to be a trend that we’re
going through 32 states have adopted performance funding that includes
California now and what that means is and one other point and that’s that I
think millions of workers are feeling disconnected to their economy the social
and political institutions and our challenges are to align our the things
we offer with what it is that they feel that they need not just the ones that
are disenfranchised or or disillusioned but it’s we’re doing things a lot
differently education is proceeding my wife and I are taking a class up at Cal
State Long Beach right now in entrepreneurship and I can just see that
coming to Community College in ways that it hasn’t before and so in
a very short time a lot of things are are different and it’s it’s going to be
necessary for us to change the way that we do things and we have not we have
opportunities here to do that I think we’re thinking about those things and
it’s very very important that as we look at these numbers we realize that they’re
tethered to a implicit plan but not a spelled out plan completely about where
we are where it is that we’re going and I think it will be important to to
recognize and stay out loud what did it where it is that we are aware it is that
we’re going and why it is that we’re going to serve those needs that we’ve
been talking about and and so so I I’m not looking at this and saying this
defines where we’re gonna be in five years it’s just where we are right now
and what we’re thinking about thank you trustee otto I just wanted to thank you
as staff for putting so much rigor into this one of the things that I am
particularly I have been particularly concerned about and I really appreciate
our superintendent president dr. Molly being attentive and responsive to it is
the amount of contracting what we do and my opinion in the past it has been a lot
of access and in some cases fad if I may say so and I’m glad we’re looking at
that I also appreciate the travel aspect I mean it’s this is travel to boards and
institutions public institutions is like social security to senior citizens I
think it’s a very very sensitive topic and I would agree with the public
opinion so I would like us to look at reducing our travel as board members not
just a solidarity with the 25 percent cut that I’m seeing with our staff that
you know we be a little bit more strategic and frugal with our travel and
perhaps brain instructors and professionals here in
the institutions much like we’re looking at for professional development for our
staff through some of my comments that I wanted to bring to your attention as
something as point of information and something to look at and if it’s okay
with my colleagues so we assess that just so we also look at ourselves and
lead by example for our institution and how to be frugal and curb our travel
costs with that I wanna recognize trustee and six million in the coming
year projected increase series numbers looks like you know 1920 budget and it looks like team of the
Devane creases about six million of that gonna be retirement increased what
whatever projecting increases or that other sixty percent of that piece the
projected deficit in nineteen twenty so I just want to make sure that it was
that coherent enough we have a little bit of an audio at least for me maybe
it’s operator error on my part maybe I’m not hearing correct but is okay it’s hot
yeah I think if I’m understanding him correctly he’s wondering what that
projected deficit of fourteen point nine million is made up of stirs purrs and
what else great so first let me talk about the sterzin
purse that the impact to nineteen twenty is actually not just the nineteen twenty
increase of 2.2 million but also the increase of two million in 1819 that’s a
total of 4.2 million in nineteen twenty over the two-year period
we also have a step and column so step and column happens here over a year on
the natural and so that leads to that increase in nineteen twenty also the
negotiated increases are within there as well on the nonce salaries and benefits
part of the budget we do anticipate applying in the CPI the California price
index to most of those goods and services so we anticipate inflation but
when we’re looking at a multiple year increase I like to put it in a positive
spin that if we saved one dollar today three years from now that’s three
dollars we say for an ongoing expense the opposite is true spending one dollar
today to increase an ongoing expense means you’re spending three dollars from
today and so that’s why we see the progressive increase in the deficit
that the revenue has changed only by the cola but the expenses have increased at
a faster pace I hope that answers your question from the students in public and
how we looked at thank you we have not and first let me restate the question I
want to make sure they heard it clearly that you are asking whether we received
input from students or other agencies on their approach to reducing the deficit
since many of us are in the same position I regularly meet fantastic I
regularly meet with other CBO’s of community colleges in this area and
we’ve had a lot of conversations about what they individually at their
districts are doing to manage their budgets we are all unique however we
serve different populations of students while we perform the same jobs and some
things are universally applicable certainly the increase in retirement
costs are we’re all suffering through but how we can adjust within each agency
varies it varies on our past actions and what’s led up to this point and for our
agency we do have a higher than normal percentage of salaries and benefits and
it was important for us to focus on managing that cost Center first that is
not true for other agencies in our area and I am certainly envious of those
community college districts that are basic aid and are not facing the same
problems we are or those districts that are not in a hold harmless and I’ve had
other increases in their enrollment that have put them at a much higher funding
level under the new funding formula than we are in some case
the variance on a per-student basis is triple so the impact of the funding
formula and the conditions that each district faces themselves and are very
unique yes to that as well just one item note of interest trusting and took a
Cerritos next door did do a SERP and they had 70 employees retire I as we
looked at these one thing that I noticed was that there needs to be some sort of
coalition to look at the person stirs statewide so I talked to and I still
need to call Chancellor oakley but I’ve talked to other community college
presidents and they are in on board with a coalition I’ve talked to cities and
their men and their City Council’s and they are on board with coalition I
talked yesterday with a superintendent Steinhauser and he believes the k-12 and
the CSU’s would be on board with coalition to talk to the legislature
about legislative relief for this person stores increase whether it is all or a
percentage of of course any relief would have to come with other cuts associated
that so it’s a matter of what you would get and then what you wouldn’t get
everything as you know as it trade-off but there is increasing interest
statewide to talk about legislative solutions to this whether that will you
know happen or not of course remains to be seen but I wanted to let you know
that in terms of what Marlene was saying about the inequities in this proposed
funding formula I’ll give you an example Santa Clarita college of the canyons
minority-serving institution 6195 per student palo verde 18,000 786 per
student triple what you will find in the proposed funding formula is that 50% of
my Latino students and 20% of my black students are left out districts with the
high cost of living housing affordability problems and more older
students are concentrated at the bottom of the funding scale so when we look at
our projections for the future we are at a strong disadvantage in this funding
formula we have been working fast and furiously
behind the scenes to figure out a variety of what-if scenarios how can we
work this if this is the formula we have how can we best work it to our advantage
if we can’t grow enrollment what else can we do
there’s completions how could we grow completions how do we do that what if we
can’t what if how do we get more Pell students how can we take the formula and
best position it to the advantage of Long Beach City College and its students
and you’re gonna see a lot of those computations that I think you’ll find
very exciting at the next meeting but that’s the disadvantage that we’re
walking into trustee untuk what was that just Yenta ok ok Thank You trustee and I
could trust you Malibu but vice-president Malibu I have one quick
question I don’t know if it’s for superintendent role Molly or for Vice
President done with regard to the part-time faculty ratio I don’t remember
which slide it was but it was early in your report is there a magic number that
we need to have X number of full-time faculty versus part-time faculty to even
out and also in years past have we met that magic number and how close are we
now and the reason I’m asking is because I know institutions tend to be more
class part-time certificated instructor heavy to offset cost of the benefits and
all that full-time faculty entails but if there’s a magic number that we could
reach so that we are not taking advantage of part-time faculty members
and at the same time honoring their experience their expertise intro it and
then pass it off to Marlene there is a faculty obligation number called a phone
number that we do have to reach in past we have reached it we have not reached
it and paid The Associated penalties we’ve done a mix
based on the decisions at that period in time one thing that makes me very proud
is in fact we have a wonderful Dean sitting in the audience Jennifer rod and
we have promoted from our faculty ranks into Dean ships and associate dean ships
and so what that provides a tremendous growth opportunity for our faculty to
influence administrative decisions at the same time it works to the opposite
for the fund so you will see we’ve vice president Dunn and I have already
discussed that you will see a Fon analysis in this what-if scenario that
we’re gonna present on August 21st so you can see what if we do this what does
that mean for the font what if we do this what is that and and there’ll be a
variety of resulting consequences including the fun that come out of these
what-if scenarios so I’ll pass it off to you it’s absolutely correct that the Fon
number is determined on our FTEs and so there is a penalty if we do not fully
staff it but it is a strategic analysis on an annual basis that’s a combination
of both budgetary savings as well as the programmatic needs and I think
throughout this process and I think trustee otto mentioned it that we need
to be a nimble and a flexible organization in this time of intense
change and so that is one of those areas that as we have flexibility we need to
exercise it in a very thoughtful way that tomorrow is going to look very
different than today with the funding formula and its incredible dynamism that
the factors involved really shift how we look at our revenue structure that as we
move forward and as that evolves at the state level we’re going to have to be
reactive and that is one of those areas of a slight flexibility that we have to
exercise okay so I just want to make sure for my edification and it is
someone asked me this question so we’re all clear the reserves as far as the
dollar figures is that codified on page to be or elsewhere in this presentation
I know we have the percentage forgive me when I get back oh no there’s no problem so the reserves is presented here are
simply the division of our ending fund balance by our expenditures okay so when
we say in 1819 that will have 13.5 percent reserves that means that our
ending fund balance is 13.5 percent of our total expenditures you can see that
projected for 1920 the deep decline that’s as a result of the deficit
spending that essentially when you’re deficit spending you’re spending your
savings or your ending fund balance 2.8 percent is not considered to be
sufficient reserves it’s not enough to even pay one month of salaries and
benefits and it’s really critical as we enter into this period of uncertainty to
maintain reserves that allow us to be flexible and to respond to changes in
our economy or changes internally okay Marlene sorry I’m just trying to
understand the math so it’s the ending balance that the surplus and deficit but
I divided by the expenses is that what you mentioned correct and and forgive me
I did not reflect the ending fund balance on this slide just so I know I
can’t see very well anymore and I wanted to make the font a little bit bigger
that it so that it would be easier to read so you do not see the ending fund
balance but I can tell you that the reserve is simply ending fund balance
divided by total expenditures okay all right great if there are no questions or
comments this was an information eyelet item we’re going to go ahead and go to
class closed session come come in okay let’s make it quick
treci Otto thank you and just to be clear and I’m not advocating anything
advocating anything one way or the other but if we were to wind up with reserves
of 2.8 percent that would be not only a violation of our board policy which of
course we are in control of but also put us on a list at the chancellor’s office
and separately visit consequences on us or potentially visit consequences on us
so we’re acutely aware that that it’s an issue and then we’ve got time to address
it we have three years of hold harmless thanks to everybody’s efforts up and
down the state and that will give us what they used to call room to move yes
absolutely thank you trustee otto just as a reminder for colleagues and the
board if we could at a courtesy and tourists staff to make sure they’re
better prepared if we can send our questions ahead of time that would be
wonderful that way our staff can get back to us at
the board meeting in a very effective not that they’re not but just as a
courtesy to them I’d appreciate it okay we’re going to now adjourn the meeting
to closed session and we’ll be coming back to the item is 2.1 personnel
pursuant to government code section 54957 and public employee performance
evaluation of superintendent president it is a discussion there will be no
action and sprint information okay we’re going to go to closed session now