During a scheduled Board of Education meeting at
Southwestern Oregon Community College on Monday
night, members of the board unanimously passed a resolution
adopting the proposed budget for the 2009-10 fiscal
year. The resolution also included adoption of the college
district's permanent 2009-2010 tax rate at $.7017 per $1,000
and the adoption of appropriation levels by object classification
for each fund.
The adopted budget includes a temporary $15 Distance
Education surcharge fee per class. A $7 tuition increase and
fee increases for Housing, Nursing, and OCCI were passed
earlier this year. The increased fees cover, for example,
higher utility, food, and program costs for programs/departments
that have not raised their fees in three or more years.
Similar increases are occurring at other colleges around
Oregon.
The budget represents a 15% cut in funding from the
State of Oregon. State funding generally represents about
half of the college’s budget. The college’s budget is primarily
made up of personnel (about 85%). During November
2008, 16 people were laid off, including one instructor of a
program that was being discontinued. There were also an
additional 15 positions listed in the recommended budget
that were unfilled/unfunded during 2008-09. None of those
positions will be filled in the recommended budget for the
new fiscal year. The recommended budget lists an additional
13 layoffs for 2009-10, including 8 faculty, as well as 2
positions that will be unfilled/unfunded.
Employees did not receive any raises, other than some contractual
adjustments. Employees were not forced to take a
pay cut, as administrators were able to identify additional
revenue sources and cuts in other areas to offset a potential
payroll cut.
Many programs and services will be eliminated or suspended
to balance the budget, while every area continues to
cut materials and supplies to the bare minimum. Eliminated
programs and services include the English Language
Institute, Resource Development and Grant Writing assistance,
Theater Art classes, and the Vista Service Learning
position. Suspended or reduced programs and services
include International Student Services, Human Services AS
and AAS degrees, Golf (50%), Computer Science offerings,
Information Technology Services budget (down 60%),
Human Resources Department hours, Library hours, Rec
Center hours, and grounds maintenance. Athletic programs
will be asked to supplement their budgets through fundraising.
The college focused its cuts with the intention of looking
“to the future and positioning itself to sustain core programs
and services as well as to grow to meet the educational
needs of our communities,” according to the proposed
budget.
Public hearings concerning the budget here held prior to
its adoption, as provided by Oregon statute. The Board is
required to adopt the budget, make appropriations, and to
determine, categorize, make or establish the ad valorem tax
levy or tax rate for each fund prior to July 1 of each fiscal
year (ORS 294.435). The amounts and detail in which the
Board adopts the budget are legally binding. The college
must stay within those limits or it is in violation of Oregon
Local Budget Law.
In other action, the Board also revised their reducing
term revolving line-of-credit borrowing agreement. The
Board passed a line-of-credit resolution in November 2008
due to the expectation the college would need to borrow by
March 2009. However, as a result of the campus-wide cut
backs, borrowing was not needed as early as anticipated.
Due to deferral of the fourth quarter state payment (due
April 15) until July 15, a limited cash-on-hand problem
remains. The revolving line-of-credit allows the college to
meet its obligations through the next two biennia, should
the need arise. Revising the borrowing agreement to include
the second biennium will save the college $15,000 and
related attorney fees in 2011-12.
2009-10 Fiscal Year Adopted Budget
GENERAL FUND:
Personal Services $12,203,968
Materials and Services $3,590,022
Capital Outlay $0
Debt Service $6,050,000
Transfers $1,584,602
Contingency $0
General Fund Total $23,428,592
FINANCIAL AID FUND:
Personal Services $94,000
Materials and Services $3,842,000
Financial Aid Fund Total $3,936,000
TRUST & AGENCY FUND:
Personal Services $20,000
Materials and Services $244,000
Capital Outlay $10,000
Transfers $30,000
Trust & Agency Fund Total $304,000
SPECIAL PROJECTS FUND:
Personal Services $3,591,745
Materials and Services $2,114,022
Capital Outlay $1,020,000
Debt Service $0
Transfers $125,000
Contingency $50,000
Special Projects Fund Total $6,900,767
PLANT FUND:
Personal Services $13,950
Materials and Services $2,879,277
Capital Outlay $8,354,000
Transfers $62,896
Plant Fund Total $11,310,123
ENTERPRISE FUND:
Personal Services $1,634,679
Materials and Services $3,667,227
Capital Outlay $0
Debt Service $1,432,991
Transfers $944,931
Enterprise Fund Total $7,679,828
INSURANCE RESERVE FUND:
Personal Services $15,000
Materials and Services $574,424
Capital Outlay $435,364
Transfers $0
Insurance Reserve Fund Total $1,024,788
DEBT SERVICE FUND:
Debt Service $1,685,000
Debt Service Fund Total $1,685,000
INTERNAL SERVICE FUND:
Personal Services $228,893
Materials & Services $345,150
Internal Service Fund Total $574,043
TOTAL 2009-2010 BUDGET APPROPRIATIONS
$56,843,141
UNAPPROPRIATED - GENERAL FUND $800,000
TOTAL 2009-2010 BUDGET $57,643,141