The Washington state Legislature is far from determining exactly how colleges across the state will have to cut their expenses, but that hasn’t stopped Centralia College officials from working feverishly on a plan to trim $1.6 million from their overall budget.
Over 60 staff members met in the Minnie Lingreen Auditorium Monday afternoon to listen to Steve Ward, Centralia College vice president of finance and administration, outline a plan for cutting most of that money using data provided from a proposed budget by Gov. Chris Gregoire. Ward and the college’s budget committee detailed a way the college would slash $1.3 million of the proposed $1.6 million, using a variety of methods from voluntary separations to not filling vacant faculty positions and possibly instituting a cap on the percentage of retirement money staff can draw.
Ward’s hourlong presentation detailed a plan that would involve the following, estimated to the nearest thousand dollars:
• An automatic mid-year cut of $472,000 through the end of this academic year alone;
• An additional $523,000 cut for the 2011-13 academic years combined;
• Placing a cap of 6 percent on the college’s retirement plans, effectively slashing $257,000; and
• Trimming salaries by 3 percent for a cut of $241,000.
Ward also noted the state would give $161,000 back to the college’s general fund under the governor’s proposed budget.
“Every campus in the state has a similar cut to make, but this is how we’re looking at dealing with it locally,” Ward said. “Each monetary situation is unique to each college because there are varying numbers of classes, staff, students, and so forth. It’s not pretty but it has to be done.”
The college has also looked into other money-saving methods that would bring money back into the general fund, Ward said. Attrition of non-faculty positions, voluntary separations and vacant faculty positions not being refilled would save the college a combined $219,000. Three staff members voluntarily separated — two full-time staff positions that were cut completely — saving the college $95,000 alone.
Students may feel the heat more than they do now, Ward cautioned. The governor’s plan calls for a 7.5 percent increase in tuition across state colleges in 2011-12 and another 10 percent in 2012-13 should the State Board of Community and Technical Colleges approve. As it stands, tuition alone makes up 27 percent of the college’s education budget, but would increase to 30 percent should the tuition hike be approved, according to the college.
“The middle class is going to get hit the hardest if this goes through,” Ward said. “The rich can afford it, financial aid is available for those whose economic situations are dire, but for those who don’t fall into either of those categories it’s going to be more difficult.”
Those excess tuition collections, coupled with record enrollment of Running Start students — the college conservatively planned for 260, Ward said — would bring in an additional $650,000, putting Centralia College just $363,000 short of its goal.
Questions Raised
The proposed cut was met with a mixed reaction from faculty and staff attending the meeting. Most said they understood the cuts, but questions were raised particularly when the retirement issue was brought up. Under the college’s plan, those 50 and above would see a 4 percentage point cut from the college’s current retirement contributions of 10 percent.
“The retirement reduction essentially places more of a burden on the older staff members,” said psychology professor Atara MacNamara during a question and answer session.
One statistic brought up by Chris Bailey, the college’s vice president of human resources, mentioned that employment headcount went down nearly 10 percent from 402 to 366 mainly through attrition, in effect putting a human element to a series of numbers the administration had crunched.
“You really see how this hurts, and it hurts bad,” one staff member said directly after Bailey shared the numbers. “Numbers are one thing, dollars are one thing, but people are another.”
Ward said he knows the college has its work cut out for it when it comes time to slash their budget. Their final proposal, including input from staff and faculty, must be submitted within six weeks, including a plan on how to slash the final $363,000 from the school’s budget.
“The way we did business five years ago is history, and this is going to be painful for many of us,” Ward said. “But all told, this is still easier than if the Legislature were to tell us exactly where to cut. At least they’re giving us some power to make a local decision on where to cut to reach $1.6 million.”
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Christopher Brewer: (360) 807-8235
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Proposed Reductions to Centralia College, Based on Governor’s Proposed Budget
By The Chronicle
Under Centralia College’s plan in response to Gov. Chris Gregoire’s proposed reductions, the college would lose just shy of $1 million in its operating budget alone. An estimated 3 percent salary cut would affect all staff members, but the college noted that could come in the form of furloughs, according to Vice President of Finance and Administration Steve Ward. Ward also said the only pay increases staff members could see would be a “very small” number of staff whose contracts dictate a merit raise.
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CUTS
Mid-Year Operating Budget
Reduction for Fiscal Year 2010-11 $472,000
Operating Budget Reduction
for Fiscal Year 2011-12 $523,000
3 Percent Salary Reduction $241,000
6 Percent Retirement Cap $257,000
TOTAL $1,493,000
MONEY GAINED
Non-Faculty Attrition $144,000
Voluntary Separations $95,000
Vacant Faculty Positions $80,000
State Restoration of General Fund $161,000
Excess Tuition Collections $400,000
Additional Running Start Students $250,000
TOTAL $1,130,000
FUNDS LEFT TO CUT $363,000
