Budget Reductions

From: Sanford Shugart
To: All Faculty and Staff
Date: 10/30/01  9:35 AM
Subject: Budget Reductions

I am sure you are all reading and hearing abut the emergency session of the Florida legislature to reduce the state budget as required by the constitution. We have been planning for our adjustments for some weeks, but have held back from taking action as we awaited a firm figure from the session. It appears now that we are unlikely to get one. The House may well pass the Senate budget reduction bill today; if they do, there will be further reductions later in the year. In another scenario, the Governor may be required to reduce spending by as much as $120 million in addition to the legislative cuts. Or the House and Senate may agree on a new budget reduction bill later today. At any rate, a clear signal is not likely.

Therefore, I believe the prudent action for Valencia is to assume a 7% cut in state funding for this year (until we know something different) and act now to make the reductions. We have thoughtful input from the College Planning Council and a working committee of faculty and staff they put together. Based on this input, the reductions will be made as follows and will take effect on November 1.

We will reduce the budget by $3,279,474.

Overtime reduction by 20% (90,000)
Half the SPD contingency funds (100,000)
Travel reduced by 50% (300,000)
Supplies reduced by 10% (100,000)
One time equipment and technology contingency (400,000)
College Contingency funds (200,000)
Advertising (25,000)
Various areas of overbudgeted services (300,000)
College Fund Balance (1,164,474)
Unfilled positions (600,000)

This action will require close support from staff throughout the college to exercise our best stewardship and protect the quality of our learning mission.

Bob Austin, our Chief Financial Officer, will communicate further details throughout the college and work with provosts, vice-presidents, deans, and directors to effect these adjustments.

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