FHDA 2003-2004 Budget -- Drastic Action

By Andrea N. Leiderman

Foothill-De Anza is experiencing unprecendented budget shortfalls. Budgets are driven byt program expenses. State revenues do not meet on-going program expenses.

· Budget is driven by program costs; 85% of FHDA budget is salaries and benefits. · In this State budget, FHDA received $6m less than anticipated for '03-04; FHDA budget = $138m in revenues, $146m in expenses. · Shortfall due to rising medical costs (­ 15%), CalPERS increases (­ 20%); grant programs ending. · To close the shortfall Board froze the district's operating budget (known as "B" budget), saving $2 million. · The Board froze hiring. · The Board directed all surplus funds in 2002-03 returned to general fund to offset anticipated shortfall (typically, depts. keep these funds). · Board cut five management and administrative positions. · These cuts totaled $4.8 million in savings. · Additional $1.2 million shortfall required layoffs of 25 classified staff. · The Board voted 5-0 to layoff staff in response to $1.2 million shortfall. · Layoffs conducted by seniority and "bumping". · Due to State budget deficits, FHDA revenues are down $20 million in 2 years. · Despite unprecedented State budget deficit, Board gave faculty and classified a 2% salary raise. Other CCDs in County either gave an "off schedule" increase of 1% (not added to base salary) or froze or rolled back salaries. · FHDA fought hard along with other CCs and students to minimize budget hits to CCs. · In 2002, FHDA board made permanent the positions of 20 staff who were long time temporary workers - giving them benefits for the first time.