Planning for Success, Preparing for Shortfalls

By Piedad F. Robertson
Superintendent/President Santa Monica College

For an institution that has only known success for each of the last eight years, 2003-04 arrives as a cold and cruel wind from the north, bringing worry and uncertainty.

Santa Monica College has enjoyed a glorious recent history:

* We have added over 160 new full-time faculty, the largest such hiring ever.
* We have supported our faculty with unprecedented new program support, including significant new resources in student guidance, new and upgraded specialized labs and studios, and new facilities.
* We have increased average faculty salary levels to the second highest in the State among all community colleges.
* We have improved our standing in the community through public programs and new partnerships.
* We have acquired unprecedented levels of funds for programs and facilities, with new resources from local, state, federal, and private sources.
* Our students are succeeding at record levels, in transfer, certificate and degree completion; and acceptance as interns.

2003-04 offers much less:

* The national unemployment rate is at a nine-year high, according to last week's U.S. Labor Department report. There has been no job growth since February 2001, the longest sustained period without job growth since before World War II.
* California's budget revenue shortfall is considered to be the worst since World War II.
* The Governor's budget of February 2003 reduced revenue to California's community colleges by a shocking 10.5%-the single largest revenue reduction in our history. The Governor's May Revise budget proposed to reduce our revenue by a still shocking 5.6%-the largest reduction ever in dollar terms and the second largest ever in percentage terms. The legislative proposal for our budget-the "best case" budget outcome-proposes an immediate budget loss of about 2.2% and borrowing another 4% of our budget from our future.

Santa Monica College is uniquely successful among California community colleges in terms of our transfer numbers. No other community college is remotely close to us in numbers of transfers to the University of California.

We are also unique in terms of our financial structure. We receive the second lowest support from the State for each student we serve, because of historical reasons dating back to 1978 and the passage of Proposition 13. We earn the largest amount of revenue among community colleges from our non-resident program. We have one of the lowest reserves in the State due to our commitment to attract and retain highly qualified faculty and staff.

Our unique situation will lead to four consequences in 2003-04, independent of whether the State ultimately passes the Governor's budget or the "best case" legislative budget:

* In 2003-04, we will receive less revenue for each student we serve.

* In 2003-04, we will receive no new revenue for growth or basic skills. (We received revenue for these in each of the last eight years.)

* In 2003-04, we will earn less revenue from non-resident tuition, due to the reduced availability of classes and international restrictions.

* In 2003-04, we will pay significantly more for employee benefits.

We have prepared for 2003-04 in several ways:

* We have increased fees in areas that are within our authority, including parking and non-resident tuition.

* We have reduced institutional expenses by over $4 million.

* We reduced our course offerings by 7.5% and reduced counseling and student services in 2002-03 to begin 2003-04 with a slightly improved reserve of $2.4 million.

* We have prepared a reduction of course offerings of about 17% and of student services to further control costs in 2003-04.

* We have eliminated 11 administrative positions, and assigned administrators to the classroom where possible.

*We have eliminated five programs.

Even with these reductions, the gap between revenues and expenditures for 2003-04 is $9.5 million.

* We will need to make choices over the next few weeks regarding how to address this gap. During this time, the administration will continue to meet with College bargaining units, College governance bodies, and the ongoing College Budget Committee.

* We will also support the Board of Trustees as it convenes a College Summit for the same purpose.

* We will also continue to provide communications regarding the budget to the College community and to the public.

For those of you who have been affected or may yet be affected by these tragic events, I am deeply sorry. 2003-04 will bring disruptions and loss that a better world would not allow. Our actions are intended to safeguard the College. It is the sad experience of other Colleges and other school districts in California that failure to take action, however painful, leads to a dismal and unpredictable future.

The actions the College has taken to date and others that will be required will qualify Santa Monica College for a type of State assistance termed "stabilization." This will hold harmless the District for declines in FTES in 2003-04. Our priorities for restoration with improvements in revenue will be to increase course offerings and to restore jobs.