May Revise Budget Update & Impact on Academic Year 2020-21

May Revise Budget Update & Impact on Academic Year 2020-21 Class Schedule and Services Board of Trustees May 28, 2020

2020 Project Overview FY20 Budget 2020Bond Bond ProjectSummary Summary Pre-COVID-19 the College was facing challenges maintaining a balanced budget. College has relied on deficit spending from reserves and unplanned transfers of expenses to categorical funds and other restricted funds o Lack of integrated planning Checks and balances were not in place o Contracts and other items MUST receive prior budget review and approval o All program managers, not just Budget Office, monitor spending Mid-year cuts causing disruption and lack of confidence in budget and schedule development 345 classes were removed from Spring 2020 schedule as part of closing the FY20 deficit Revenue based on “hold harmless” provision, not actual enrollment May Revise Update BOT May 28, 2020 2

2020 Summary Overview FY21 Budget: State 2020Bond BondProject Project Summary Budget Current conditions – recession may be deeper that “great recession” of 2009/10 Nation’s unemployment rate highest since the Great Depression California’s unemployment rate 5.3% as of end of March Total 2.7 million unemployment claims March’s record 99,500 nonfarm payroll jobs loss was the fourth-largest on record, driven by declines in six of California’s eleven industry sectors. Leisure & Hospitality (-67,200) Other Services (-15,500) Construction (-11,600) Source: CA EDD 3 May Revise Update BOT May 28, 2020

2020 Summary Overview FY21 Budget: State 2020Bond BondProject Project Summary & Local California’s projected deficit: 54 billion California’s “rainy day” reserve: 16 billion Impact on college community system: 2 billion City and County of San Francisco Projected 2 billion deficit SFUSD - 40M projected deficit, likely to grow to 82M May Revise Update BOT May 28, 2020 4

Worsening Budget Scenario for FY21 Governor published May Revise on May 14th: Reductions in general funding for all community colleges Reductions in categorical programs, e.g., Strong Workforce, Adult Ed Estimated impact to City College: 27M reduction in revenue Also reduced estimates for local revenues o Sales tax revenues received from City and County of San Francisco Overall, estimated expenditures exceed revenues by 35M To achieve balanced budget AND maintain 5% reserve for 2020-21: Reductions in non-personnel spending, and Concessions/reductions in personnel expenses for ALL employees, and Further schedule reductions from 1,200 FTEF to 1,100 FTEF or worse, and Advocate for funding May Revise Update BOT May 28, 2020 5

Impact of Budget Reductions on Schedule of Classes Initial PGC Budget Committee recommendation was total instructional budget of 1,200 FTEF (Full-time equivalent faculty) for Academic Year 2020-21. Approximately 800 classes were removed from the annual schedule Over 200 part-time faculty have been advised they will not have assignments in Fall 2020 With May Revise, reduction of instructional budget to 1,100 FTEF is a component of balancing budget, even with personnel cost reductions An additional 450 class reduction from annual schedule May Revise Update BOT May 28, 2020 6

Process for Additional Schedule Reductions Magnitude of budget reduction necessitates schedule reductions in both Fall 2020 and Spring 2021. Act quickly to mitigate impact to students that have already registered for Fall, while leaving room for consultation with Department Chairs and community partners Impact on every element of class schedule: Credit and noncredit classes General Education, Career Education, lifelong learning Cohorted programs, such as Aircraft Maintenance May Revise Update BOT May 28, 2020 7

Budget Process Timeline Continued meetings through June: o o o Negotiations with labor groups Further review of impact of May revise Recommendations on the balance of expenditure reductions Registration for Fall 2020 is in progress and will continue o Decisions regarding concessions vs. further schedule reductions must be made by mid-June Board adoption of tentative FY21 budget on June 25 Fall: August revise from Governor Board adoption of final FY21 budget May Revise Update BOT May 28, 2020 8

2020 Summary The Way Forward 2020Bond BondProject Project Summary Together, with a lens of social justice and equity, building for the future framework for a renewed City College of San Francisco Continuing work of RiSE group o Degree and transfer focused on our equity populations o Non-credit offerings Economic recovery (e.g., CTE programs) Programs that contribute to a vibrant, diverse community o Arts o ESL o Professional and personal enrichment Building a renewed City College will take years and we must start now May Revise Update BOT May 28, 2020 9

2020 2020Bond BondProject ProjectSummary Summary May Revise Update BOT May 28, 2020 10