From those of us who come from Irish decent, may the luck of the Irish be with us all today.
Today’s letter offers more detail on the budget writing accomplished over the past couple months. However, much of this is still being wrapped up and more details will be available next quarter. We’ll break this down by Revenues, Reserves, and Expenses.
Revenues:
Estimated revenues for 23-24 are still being determined.
- We have not yet heard from the legislature or SBCTC about how much our allocation will be for 23-24. This number could go up or down by $200,000 or more. For example, the legislature has not yet determined if they will fully fund next year’s COLAs. In the worst-case scenario, we would have to come up with an extra $165,000 to cover what they underfund.
- We need to know our Spring Quarter final enrollment. This number is available on April 10 and will help us plan our enrollment-based revenue for next year.
Reserves:
Jashdoa Bothra and the finance team have spent a lot of time this month determining just how much cash we have available to us. It’s not as simple as it might seem. Our initial estimates, when coupled with expense reductions, show that our Reserves can help us through this next period of enrollment growth for about 3-4 years.
- We have money invested with the state and in local bonds. This amounts to over $8M, but is only available to us when the bonds come “due” in 2024 and 2025.
- We have cash in our “savings account”, about $2.75M. Technically, we are always supposed to have at least $2.5M in our account as determined by one of our College Policies.
- We have money in “restricted accounts”, about $6M. Some of this money is truly restricted, like the $1.6M we are holding onto for the Student Government. We are working to see if we can release any of the remaining restricted accounts into available cash. This is still being wrapped up.
Overall, we have enough in reserves to cover the college in a “deficit” spending modality for a few years. However, we have to closely monitor that deficit and bring down expenses while we invest in all the strategies to increase enrollment. As well, reductions in expenses must go hand-in-hand with the use of reserves so that we can count on the reserves to last during this period of regrowth.
Expenses:
Last week’s Friday Letter outlined a number of ways we are working to increase enrollment. This is the only revenue we can influence to reduce the strain on reserves. At this point, we are conservatively estimating a $4M operating deficit for next year which includes investments needed for salaries, Innovation Hall, repair & replacement, etc. This is too much strain on the reserves. Our deficit can be no larger than $2.3M if we are to have enough reserves for the next 4 years. Over the last few months, the executive team has therefore worked with their various departments to see where we could reduce spending.
- Of the 25% of our budget that is considered “goods and services”, we have been able to identify significant savings. UWB and the Library have been helpful in identifying ways we could cut costs. Laura Hedal and Shawna Pitts have worked carefully to reduce our repair & replacement budgets. Multiple divisions have worked to identify programmatic savings or to be creative in how we find the money necessary to do our work.
- The deans and division chairs are working hard to maximize the class schedule to meet student needs, minimize under-filled classes, and meet contractual obligations we have with the faculty union.
- We are asking Student Government if we can tap into their $1.6M reserve to cover some extra costs next year.
- The Foundation is successfully raising funds to cover the start-up of the Redmond classroom.
- A number of employee vacancies are not being filled across the college. This is not a complete salary savings because some of the work performed by these positions will need to be accomplished through other means. Constituents impacted by not filling the vacancies have already been informed.
- While we settle all of the revenue, reserve, and expense calculations, we are being cautious about employee reductions. I am not able to share today where we have landed on this issue. By April 17, we hope to share final staffing decisions when our other variables have solidified.
Reductions considered so far bring our 23-24 deficit down to the needed $2.3M. Knowing that there are still many variables at play that might not be resolved until the summer (like the legislative determinations or closing out our expenses for 22-23), we must be mindful not to exceed this deficit amount. This may mean further reductions in October when fall enrollment is determined.
This has been a difficult process for all involved. We will be able to successfully fulfill our mission even with these implications and I encourage each employee to continue thinking about creative ways to further reduce our spending.
SHOUT OUTS
Thanks to Erin Richards. Every year she takes students to Olympia to meet with legislators to not only learn about our state governance system, but to also allow the students to talk with legislators about the needs of the community colleges. This year, our students not only got time with each of our District 1 legislators, but also got to spend time with the Secretary of State Steve Hobbs. Thanks to Erin for continuing this effort and collaborating to educate students on our college.
Don’t forget, those same District 1 legislators will be here on campus this Sunday for their annual Town Hall. I will host the event which begins at 1:00 in Mobius. It is open to the public.
From the IN Box:
I wanted to give a massive thank you to the staff, faculty, and students who signed up to support the Northshore School District Student of Justice Conference (SJC23). Your valuable time is recognized tenfold, and will be important to the 300 students visiting campus next Friday, March 24.
Sara Gomez Taylor
Here is the list of individuals supporting the event, and their respective areas:
E&I Scholars (students)
Ananya Mishra
Jenivee Saramiento
Shannon Suarez
Taesub Kang
E&I Interns (graduate students)
Frank Jiang
Maia Wood
Student Life EAB (student)
Kim Singh
Faculty
Sadie Rosenthal
SSS & SLS
Erin Blakeney
Ketra Embleton
Marshanell Ferguson
Rachel Druck
Stephan Classen
Foundation
Brittany Caldwell
President’s Office
Larissa Tikhonova
E&I
Chari Davenport (event co-lead)
Alia Mahdi
Hao Cheng
Kim Jones
Facilities
Shawna Pitts
Allen Flaa
Outreach
Nina Jouval
Satarupa Joardar
Jaspreet Kaur Grewal
Bong Mangaser (photos)
Kevin Ta (pre-work folder building)
Please remember that you can submit a shout out for a colleague at FLShoutout@cascadia.edu.