Budget Update 2.29.2016

Colleagues:

At the close of business today, the Voluntary Separation Program concludes.

The combined volume of retirements and resignations, voluntary separations, expense controls offered by employee groups, and other cost-savings or revenue enhancements have done the job. We are within $10,000 of a balanced budget for the next fiscal year and will not need to consider any reductions-in-force or non-renewal of contracts at this time.

However, the way we go about accomplishing our mission is still severely impaired.

We are fewer in number (or will be by July 2016) by some 46 employees.  In addition, there remain 14 vacant “mission-critical” positions that must be refilled and that process will proceed very slowly. All of our spending constraints that were in place this past year will continue, including restricted travel, delays in refilling vacancies, elimination of overtime, and less reliance on student and hourly work.  

The state budget impasse is still unresolved and we have no reliable information as to when it might be resolved.  Our fiscal status will be monitored carefully through the summer and into the fall semester as the state situation evolves, enrollment trends become apparent, and health-care costs are better understood. In other words, this may be a temporary reprieve.

What follows are updated numbers that I shared with you last week:

Retirement/Resignations	$1,740,865
Voluntary Separations	$1,278,029
Vacancies to be Refilled	-$747,820
Cost savings/revenue enhancements	$1,249,800
RIF & Non-Renewal of contracts	$0
Total	$3,520,874.00
Budget Goal	-$3,530,562.00
Balance	-$9,688.00

Many people worked very hard to get to this outcome. I would like to thank Union Leadership as well as faculty, staff, and administration that participated in getting us to this point.

I continue to be proud to be a part of this College.

Illinois Higher Ed Coalition - Media Updates

You will find a news feed developed by the Illinois Higher Education Coalition that is updated automatically. If you want the latest information from around the State of Illinois, this is and excellent resource.

https://ilhigheredcoalition.wordpress.com

Budget Update

Colleagues:

I have been talking with several groups (PCA, Faculty Forum, etc.) about the status of the State budget as well as our own since the Board of Trustees met last week. 

Trustees approved (4 yes, 1 no, and 1 “present”) increasing in-district tuition and fees by 11.7% over last year. This is twice the amount we typically see in a normal year. We have projected a budget for the next fiscal year that assumes we will receive only 50% in projected state funding; credit hour grants and equalization. We have factored in tuition increases that assume flat enrollment. There remains a $3,530,562 projected deficit.

To date, there is $1,740,865 in salary and benefit savings due to retirements and resignations.

The salary and benefit savings realized through the Voluntary Separation Program is $1,091,561 as of this morning.

There is an additional $923,000.00 in expense reductions and revenue enhancements projected and expected.

The combined $2,832,426 in retirements, resignations, and voluntary separations is offset by the fact that we will need to refill $790,909 in salaries and benefits to fund positions that must be refilled as they are critical to the ongoing operation of the College.

R/R	$1,740,865
VSP	$1,091,561
Other	$923,000
Refill	-$790,909
RIF	$566,989
Total	$3,531,506
Budget Goal	-$3,530,562
Balance	$944

The work that remains is an additional $566,989 in personnel reductions (reductions in force or non-renewal of contracts) that will begin shortly after the VSP program concludes on February 29^th in order to balance next year’s budget.

This represents approximately 9 positions across the College that must be eliminated in order to balance the budget next year and beyond. I would caution that these numbers are subject to change; however, this is where we are as of 10 a.m. on 2.25.2016.

I regret that it has come to this. We began this fiscal year with 492 full-time employees and will begin the next with 445. This budget impasse has cost us 47 valued positions and colleagues despite the fact that we all have worked very hard to reduce expenditures over the past few years. There is nothing happening in the political process that leads me to believe that a solution is imminent.

Despite all of the bad news, Parkland College has cut no program nor any services that affect our students. This is a remarkable accomplishment. I anticipate continuing to work toward zero expectations in state funding over the next few years as to avoid this sort of disruption to our mission.

I will continue to communicate as much information as I can over the next few weeks as this process unfolds. Please do not hesitate to contact me directly with questions.

Fiscal Year	FT Employees
FY2017	441
FY2016	486
FY2015	492
FY2014	?
FY2013	488
FY2012	492
FY2011	486
FY2010	480
FY2009	473
FY2008	474
FY2007	476
FY2006	477
FY2005	485
FY2004	497
FY2003	496

	FY2017	FY2016	Difference	Percentage
Admin	32	43	-11	-26%
Confidential	22	23	-1	-4%
PAE	183	189	-6	-3%
PSS	192	219	-27	-12%
Public Safety	12	12	0	0%
			-45

30898

WIU Budget Cuts

Western Illinois University to Cut $20 Million

February 26, 2016

MACOMB, IL -- As a result of the budget impasse and probable reductions to state appropriated funding for higher education, Western Illinois University President Jack Thomas announced today (Friday, Feb. 26) the University plans to cut $20 million over the next two fiscal years (Fiscal Year 2017 and 2018).

Various strategies to conserve resources will be implemented in Fiscal Year 2017 including reducing contracts from 12 to 11 or 10 months for select administrative positions; closing and/or combining select offices/units; reducing 100 personnel (faculty and staff) across divisions; implementing a hiring freeze (effective immediately); and reducing the hours of various offices/units.

"We are making decisions that will preserve the educational enterprise," Thomas said.

To date, for Fiscal Year 2016, the University has made appropriated budget reductions of approximately $5 million. However, in an effort to meet operational expenditures for July and August, the institution plans to further reduce its FY'16 expenses by an additional $4 million by June 30. Without a state budget and additional reductions across divisions, payroll obligations will be difficult to meet for July and August.

As part of the immediate cost-saving reductions for FY'16, the University will limit spending to essential needs only and travel is restricted. In addition, mandatory furloughs will be implemented for all non-negotiated personnel (both administrative/non-academic and civil service personnel not covered by unions) beginning April 1. Full details regarding the furlough program will be released next week.

"Because there is not a present path toward ending the budget impasse, we must move forward with plans to put furloughs into place for non-negotiated personnel. Additionally, we have upcoming contractual salary increases scheduled with collective bargaining units, and thus, we must move forward with further FY'17 reductions to protect our ability to implement these increases," Thomas said. "We must brace for the difficult times ahead. We must protect the cash resources of the University in order to continue to provide services to our students and prepare for Fall 2016.

"Without these reductions, we risk jeopardizing the entire enterprise. Furloughs and reductions in personnel and programs are necessary to protect the overall University and this community. We are committed to protecting as many jobs as possible," he explained. "We will continue to do what is best for this institution to ensure a strong and viable university that exists to serve students and its host communities for decades to come. Our hope is our governmental leaders will end this unprecedented impasse and recognize that our public universities need our state funds to operate and continue to support our students."

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