DISTRICT PREPARES FOR FISCAL SHORTFALL | ||
A continuing decline in enrollment and a possible economic downturn may leave Santa Ana College underfunded by 2020 , officials said . Combined with a sharp increase in Rancho Santiago Community College District ’ s required contributions to employee retirement systems , it ’ s a dramatic hit , Trustee
Phillip Yarborough said .
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the governor is proposing , however , those pale in comparison to the much needed $ 4 million increase in base funding .”
Despite the May revision supplying about $ 2.5 billion more for the state overall , Gov . Brown predicts the next economic downturn is just around the
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“ There has been a sense of urgency but not a sense of panic ,” Chancellor Raul Rodriguez said during last week ’ s RSCCD board meeting .
Yarbrough , who taught economics at both SAC and Santiago Canyon College , is vocal about the problems the school will face especially if it ’ s unable to increase enrollment .
Enrollment at SAC has declined over the last two years .
“ If there ’ s no enrollment growth , whether we have an expansionary economy or a recession doesn ’ t matter ,” Yarborough said . “ If there ’ s no growth in enrollment and we have the [ retirement contributions ] that we ’ re expecting , we ’ ll be upside down $ 20 million in the next four years .”
Despite the projected shortfall , Vice President of Administrative Services Michael Collins said no classes are being cut for fall 2017 . The college will utilize
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a portion of its contingency reserve to cover half of the deficit , with ongoing budget reductions covering the remaining $ 1.1 million . It is unclear if classes will need to be cut for future fiscal years . “ It ’ s very bottom line ,” said Yarborough . “ We have to run these colleges like a business and there are some courses that cost a lot of money and don ’ t bring nothing in and there ’ s other courses that bring a ton of money and don ’ t cost us a lot .
Gov . Jerry Brown ’ s May revision to the state budget will give the district an additional $ 4 million in unrestricted base funding for the 2017-2018 fiscal year .
“ This will help the district with the ever-increasing costs of retirement benefits the district pays on behalf of our employees ,” said Peter Hardash , vice chancellor for business operations and fiscal services . “ There are several other more minor adjustments to our budget
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corner .
“ If there ’ s no more money coming in from the state government , then by this time next year Peter [ Hardash ] says we will know when things are going to start getting bad ,” Yarborough said .
According to Community College Review , a website providing free , detailed profiles of community colleges across the country , there will be a series of reductions in services , larger class sizes and longer wait lists for the most in-demand courses . The primary loser in this situation will be the students , although numerous faculty members will find themselves without their jobs as well . “ My biggest worry is that we will be insolvent in 18 months , approximately . We won ’ t have enough for their expenses and then we ’ ll have to make snap judgments on what we ’ re going to cut ,” said Yarborough . “ And I have to make sure that if that happens it impacts students as little as possible .”
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