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Budget Information

Coast Community College District is in an enviable position, looked to as a leader within California and beyond. Coast’s reputation is a direct result of great faculty, staff, and managers who are all dedicated to student success. The continued support of Coast District voters provides the Colleges with state-of-the-art centers for teaching and learning.

In the last few years, however, long-term demographic trends in our communities and a strong economy have resulted in a district-wide enrollment decline. This challenge is furthered by state underfunding of its Student Centered Funding Formula, instituted in 2018-19. 

This year, Coast will need to make progress toward reducing deficit spending of up to $11 million. The District and Colleges will look to identify ways to get spending in line with revenues over the long term, while sustaining excellent student success outcomes.

This page will be updated as more information is available. Please also take this opportunity to share your suggestions on cost saving or revenue generating strategies.

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All submissions are anonymous unless you choose to share your name.


Links to Additional Information

Coast District Budget Update | June 24, 2020

There is a tendency in budgeting to point fingers. It would be easy to say that this latest California budget, passed by the legislature and likely to be signed by the governor, provides so little certainty that it forces us to plan for the worst. Yet, in this case uncertainty is understandable.

Will California income tax revenues drop as steeply as millions unemployed would suggest? Will other revenue sources suffer as much or will they be spared? Will the federal government provide a massive relief to provide for a massive investment in public health and economic recovery?

Faced with unanswered questions, the state looks poised to move into the next year with a budget full of hopeful funding and more pessimistic “trigger” cuts. This budget design defers many statewide decisions, which leaves many of today’s hard choices to us.

In many ways, we must still proceed as though a $10 million to $20 million reduction in state support is likely, even if it is not a guarantee. If we do not act early, and the pessimistic future does arrive, we will be making cuts in the middle of an academic year that would need to be even deeper than today’s choices—simply to make up for lost time.

The trustees, presidents, vice chancellors, and chancellor have all taken compensation reductions. These provide relatively small relief for the total budget, but they are meaningful in recognizing that our expenditures on people drive some 90 percent of District expenditures. We have very few places to go in the case of steep cuts that do not directly affect faculty, staff, and managers.

Difficult conversations will be had at the collective bargaining table, at the District Office, and at our Colleges. These are needed. We must have these conversations now and begin taking some steps now. Doing so will help us avoid the worst as a District, should the worst materialize for California.

Earlier, we provided a budget website for your budget suggestions. I have reviewed those comments alongside the chancellor, presidents, fellow vice chancellors, and others—often without names for those who choose not to provide one. I ask that you continue to provide suggestions and comments.

It is impossible to make the choices we will need to make, when there is so much uncertainty, without some hurt and regret. Dialogue is how we ensure that our Colleges and District continue to do all we can for our students and communities—and for our faculty, staff, and managers.

Sincerely,
Andy

W. Andrew Dunn, Ed.D.
Vice Chancellor, Finance and Administrative Services

Message from Chancellor Weispfenning | June 15, 2020

Coast District Colleagues,

It's come to my attention that there's a rumor circulating that says the District is bankrupt and won't be able to meet its July payroll.

This is not true.

What is true, is that we are working with our unions and executive teams to prepare for financial challenges in the next academic year, 2020-21, which starts July 1.

The coming year has larger-than-normal budget uncertainty, caused by the COVID-19 shutdowns and re-openings and the ongoing underfunding of the Student Centered Funding Formula (SCFF).  The Governor has proposed a cut of approximately 8% for the community colleges for 2020-21, which would be reduced if there is new federal legislation to provide relief to the states.  The state Legislature's approach is the opposite: they propose no cuts, but would institute cuts if the federal relief doesn't come.  The approach that will be taken ultimately will be hashed out in Sacramento over the next couple of months.

This matters because the Governor's plan would force us to make immediate reductions in our planned spending.  The Legislative plan would put off any reductions, but carries the risk that the state may not be able to fully give us what they promised, leaving us short next spring.  As such, we have to be careful to not assume automatically that the approved state budget somehow "guarantees" us a certain level of funding.  We will need to monitor state tax receipts and other factors through the year to be aware of how those trends might affect Coast.

Due to the high level of uncertainty, the Vice Chancellors, Presidents, and I met in early June to discuss the actions we can take.   Until we are certain the state will provide sufficient funding, the Vice Chancellors and Presidents have agreed to not receive step-and-column increases they would be due, and to not receive COLA.  And, we agreed to salary reductions effective July 1 (Vice Chancellors and Presidents -5%, my reduction -7%.)  (Note: my pay schedule does not include step-and-column increases, and I do not receive COLA.  In January, I had informed the Board of Trustees that I would not ask for a raise for 2020-21.)

By themselves, these measures won't solve the District's expected budget shortfall, but they are a start.  We all have a part to play in helping the District and the Colleges—Coastline, Golden West, and Orange Coast—get through these current challenges. 

The Coast Community College District has a long and proud history, and this current uncertainty is a bump—but it won't keep us from accomplishing the work ahead.

John

John Weispfenning, Ph.D.
Chancellor

Chancellor Weispfenning Addresses State Budget Planning and Potential Impacts to the Coast District

As anticipated in my video message on Wednesday, Governor Newsom released his revised budget plan Thursday.

I will address the scariest number first. The governor's plan estimates that guaranteed funding for schools and community colleges will fall by more than 20 percent. This becomes our new floor in the 2020-2021 state budget discussions. While a 20-percent cut is unlikely for the Coast District, it is quite possible that we will see a cut to our state funding in the range of 10 percent.

A cut of 10 percent is roughly $20 million of the Coast District's General Fund budget. For context, the retirement incentive—designed to address budget challenges that existed before COVID-19—is projected to save the District $2 million per year. With COVID-19, we are looking at a budget challenge that is ten-fold worse.

The governor is seeking additional federal funding to offset these cuts, and the Coast District will work to inform our national leaders about the need to support education through a recession—so that we can help our communities recover.

As we work with our state and national leaders, we must also begin planning how we would address a large funding cut. That will require much of our bargaining and fiscal teams, in addition to requiring engagement of all faculty, classified staff, and managers.

There is no sugar coating this challenge. This is the most disruptive crisis in the Coast District's history and likely in many of our careers.

You rose to the challenge during the Great Recession. You rose to the challenge of hitting new achievement measures for our students. And you rose to the challenge just a couple months ago of moving thousands of courses online.

I have faith that the Coast District—with you as our faculty, classified staff, and managers—will rise to this challenge.

Be well,
John

John Weispfenning, Ph.D.
Chancellor

Message from the Chancellor, May 13, 2020


Chancellor’s Comments on Coast Enrollment and Funding

“We have the tools to work our way through this,” Chancellor Weispfenning said. “If we work together, we will weather this.”

SHARED PLANNING FOR A FUTURE THAT IS COMPLEX AND UNKNOWN: Thank you for your engagement in planning for the future of Coast. Since the adoption of the hiring freeze and incentive-retirement program, our HR teams have been very busy in communicating to employees. We essentially have two groups with different engagement needs: those eligible employees who are interested in taking the incentive and those who will continue on with Coast after June 30. Incentive-eligible employees should be receiving communications on requirements and timelines for the programs. You have likely also seen emails regarding in-person sessions to learn about the incentive and gain further understanding about Coast District retirement benefits. For those continuing after June 30, we are also beginning meaningful conversations about how we provide a high-quality experience for our students with fewer people. For all of us, it is important to know that the incentive is not guaranteed. Trustees will have final say on moving forward with the incentive program in late April. At that time, my recommendation on whether to proceed will rest on two considerations: Will we achieve our financial goals based on those who indicated interest in retiring? Will the experience and institutional knowledge being lost cause an unacceptable disruption of our mission to serve students and the community? We don't know the answer to either question today. Only time will tell, and that uncertainty is stressful. I acknowledge that stress. At the same time, I ask for your understanding as we address the complexities and unknowns of balancing the size of the District with our current and projected student enrollment. Together, we will take the necessary steps for the future while honoring the dedication of our long-serving faculty and staff.
Originally posted in the News Brief on February 7, 2020

BEING PART OF PARTICIPATORY GOVERNANCE: Today, Dr. Dunn and I met with the District Consultation Council Budget Subcommittee. This followed several active weeks, as we reached agreements with our employee bargaining units this January on a hiring freeze and incentive retirement program, with trustee review and approval. Concurrently, in Sacramento, Governor Newsom put out his budget proposal. The rippling effect of the things that began this month will create waves for a long while. I fully expect the unexpected, as nearly every action has some unintended consequence. At the same time, I am confident that effects from the hiring freeze and retirements will be manageable—so long as we continue to work together and support each other. The harder part of the budget equation to manage is state funding and allocation. On Sunday, I leave with a delegation—including trustees—to advocate for the Coast District in Sacramento. The message we will carry is urgent. We are advocating for additional funding for our core academics, operations, and facilities. We are also looking for continued support for existing initiatives. The work we are doing in career education and comprehensive student support are yielding provable results. We want to keep up that momentum. With our state leaders we are also seeking clarity. To plan for the future, we must have confidence that the Student-Centered Funding Formula will yield the funds we expect based on our performance measures. Coast is a high-performing District. Your work should be recognized and rewarded. I continue to welcome your suggestions and participation. My appreciation goes out to all those who participate in the DCC Budget Subcommittee. Thank you to everyone who has joined in the various forms of participatory governance. There will be many more opportunities to join these conversations in the new semester.
Originally posted in the News Brief on January 24, 2020

A STRONGER PATH FORWARD: The hiring freeze and incentive for retirement acted on by trustees this week is a needed, and also challenging, step. The demographic trends for Orange County continue to point to lower student enrollment for our Colleges over the coming decade. This declining number of students puts significant pressure on Coast's financial health. College and District leadership carefully considered which of our available options would be least disruptive for our employees and their families. What emerged were the hiring freeze and incentive for retirement, essentially allowing some employees to choose to depart—perhaps a year or two earlier than planned—as we evaluate and restructure our services. I will not cast this as a step we would want to take outside of a pressing need. There will be significant challenges to overcome as people leave, taking their experience and skillsets with them. At the same time, those who remain will have a unique opportunity to shape their careers at Coast. For some, there may be opportunities for advancement or to try something new in a lateral move. All of us will gain a greater understanding and appreciation for the work of our retiring colleagues. As friends and coworkers begin the next well-deserved phase of their lives, this time of challenge may yet strengthen bonds and forge a stronger path forward for those of us who remain.
Originally posted in the News Brief on January 17, 2020.

CHALLENGES ARE EASIER TO FACE WHEN WE FACE THEM TOGETHER: As a result of enrollment trends and funding uncertainty, budget challenges will exist for this and following years. How is it possible to have a budget problem in the midst of one of the longest periods of economic expansion in California’s history? In plain terms, promises were made to college districts early in the rollout of the state’s new Student Centered Funding Formula. If kept, those promises would have recognized Coast’s efforts in student achievement and would have resulted in $25 million in additional funding total for our Colleges this year and last. But the State funding promises were not met. And combined with Orange County’s ongoing population trends, a weak funding model means that the Coast District will face ongoing budget challenges. We are acknowledging the reality of these challenges and exploring how we can meet them with a united front. I’ll spend the next few months reaching out to classified staff, faculty, and managers. As we address current budget issues and find a sustainable path forward, it’s important that we all share our expertise and knowledge of the District’s capabilities. This will be a challenging process, but challenges are easier to face when we face them together. 
Originally posted in the News Brief on September 6, 2019.

A START TO THE CONVERSATION: The state’s Student Centered Funding Formula, approved a year ago, was hurriedly designed and has given us several challenges because it was not fully funded. Some recent adjustments may make it more stable, but will limit any additional revenue for our colleges’ strong performance. Recession fears, changes in state funding priorities, and enrollment shortfalls mean the community college system, as a whole, is not as fiscally sound as the State’s economy suggests it should be. Normally, here in the Coast District, we would expect reserve funds to make up some of the lost funding, but we’ve gone to that well too many times already in the recent past, and the reserve has been drawn down. As a result, we need to begin now to plan the steps we will take if these trends don’t change. In my 2019-2020 Goals for the District, approved by the Board on Wednesday, one objective directs us to prepare strategies for managing funding shortfalls. Unfortunately, this planning activity comes at a time when unemployment is at record-low levels, construction is booming, and state tax revenues are as high as they’ve ever been. These funding shortfalls shouldn’t be happening while the economy is so strong, but they are. Through the summer and into the fall, I expect to lead conversations with the District Office and Colleges about these issues and what we will need to do fiscally to maintain the ability and effectiveness of the District to educate students. 
Originally posted in the News Brief on June 21, 2019.