Budget Update January 29, 2009

Thanks to the approximately 100 people that participated in faculty budget discussions and the 150-200 people that participated in the campus-wide budget information session, both held Wednesday, January 28.  The discussions generated and questions raised were valuable to the budget framing process. 

In response to campus requests, we will be posting draft divisional budget scenarios for review and feedback.  No decisions have been made, so now is the time for feedback. 

January 28 Campus-wide Budget Information Session
(magnitude, principles, questions and answers, timeline)
Handout
PowerPoint slides
Video

Where We Stand Today

Based on the Governor’s proposed budget released December 18, Evergreen is currently estimating a net budget cut of 10 percent (about $10 million over the 2009-11 biennium). The Governor’s budget for Evergreen assumed a tuition increase of 7 percent. Evergreen’s actual budget shortfall could be even larger, depending on the state of the economy and choices made in the upcoming legislative session.  There are still many unknowns.

Short Term Actions

For the current biennium that ends June 30, 2009, Evergreen is required to reduce its spending by approximately $1.4 million.  To achieve that, we have scaled back on spending since last summer – including reductions in travel, equipment purchases and personal service contracts, and a freeze on filling many vacant positions – and dipped into our institutional reserves.

Looking Ahead to the 2009-2011 Biennium

The college can make up budget shortfalls by reducing expenses on positions, reducing expenses on “goods and services,” increasing revenues (from tuition, fees, self-supporting services, etc.) or, most likely, some combination of the above.

In a general sense, we are looking for ways to reduce costs by reorganizing our work, eliminating some work we do and services we provide and/or increasing revenue.

Budget Process at Evergreen

Your Voice in the Process

The president and vice presidents will seek input from the campus community (faculty, staff, and students) on a consultative basis.  They will solicit ideas directly within the divisions and through the campus Web site.  There will also be campus-wide information and feedback sessions on the budget.  The first of those – an informational forum - was held November 3.  The next round will be in January or early February.

Who Decides? What’s the Timeline?

• In an effort to get a head start on planning and ensure that we make decisions with adequate care and deliberation, we started looking at the entire operating budget in October to begin to quantify and prioritize possible budget actions.  Each division was asked develop an initial list of actions (reductions in programs and services, revenue enhancements, changes in work processes) to address possible cuts of 5 to 15 percent.
• Each division is reviewing its budget to determine the types of budget actions necessary to address the anticipated shortfalls.
• Members of the campus community are encouraged to provide information, ideas and recommendations to their respective vice presidents on a consultative basis. Ideas can also be submitted online.
• The vice presidents and budget coordinators will then look at the options at an institutional level to assess the impacts changes in one area may have on another and prioritize across divisions.  The vice presidents are responsible for formulating an overall budget and implementation strategy.  They will prepare options to respond to the eventual budget and/or directives determined by the legislature.
• The vice presidents will share their work and recommendations with the campus community and ask for feedback.  They will consider that feedback as they work to finalize their budget recommendations for the president and Board of Trustees.
• The vice presidents and their budget coordinators will finalize institutional budget recommendations, which they will make to the president on a consultative basis.
• The president will make the final budget decisions and forward his recommendations to the Board of Trustees.
• Final approval of the budget rests with the Board.

Budget Principles

• The anticipated budget situation will require a comprehensive and thoughtful consideration of programs, services, positions, and investments.  We will consider a wide range of options.
• We intend to provide information on budget items and/or positions most likely to be cut as soon as is reasonably possible.  The goal is to allow transition time for divisions, programs and individuals to prepare for the budget reductions.
• The budget situation will change over time, so we will not have firm information during much of our planning process.  In addition, some factors are beyond our control.  We will work to anticipate potential scenarios as best we can, plan accordingly – including preparation for significant cuts, and adjust from there if the legislature gives us more money.

Important Dates/Events

• November 2008 – Divisions begin initial planning for 2009-2011 budget cuts
• November 3, 2008 – Initial campus information session on the budget
• November 5, 2008 – Election of the Governor
• November 19, 2008 – General fund state revenue forecast update
• December 18, 2008 – Governor delivers her proposed budget, including her proposal for Evergreen’s state funding.
• January 12, 2009 – Legislature convenes
• January/February 2009 – Vice presidents seek campus input on budget priorities
• January/February 2009 – Divisions will develop their recommendations for prioritized reductions in services and programs, work reorganization and revenue enhancements
• March 2009 – General fund state revenue forecast update
• March 2009 – Vice presidents and budget coordinators review cuts to meet whatever target the state has set at that point and forward preliminary recommendations to the president
• March 2009 – President finalizes budget proposal and presents to the Board of Trustees
• April 2009 – Scheduled end of the 2009 legislative session, including finalized state budget
• June 2009 – General fund state revenue forecast update
• June 30, 2009 – Last possible date for the legislature to approve a budget, including required cuts for higher education