District lacks cash to spend

The Coast Community College District on Wednesday night presented the board of trustees with a list of potential cost-cutting strategies designed to cover an estimated $20-million loss in state funding. Ideas included freezing health benefits, shutting down the district’s three campuses on Fridays, and eliminating contractually obligated salary increases.

The district, which includes OCC and Coastline Community College, is basing its projected loss on proposals from the governor and the legislative analyst’s office that have not yet been approved by the legislature.

The meeting focused on an expected $10.3-million deficit in the district’s general fund. District finance officials proposed filling the majority of that deficit, $5.3 million, with money it has in reserve for emergencies.

The district took $6 million out of its reserves to pay last year’s bills; when the next fiscal year ends, it must nearly halve its total savings — from $23 million to $12 million — over a two-year period.

Because of laws that prevent school districts from running too low on reserves, Coast Community College District has only a small amount of usable money left.

Outside of the reserves, the district is asking its three colleges to find a combined $2 million in savings. To cut spending by another $3 million, the district is also exploring 21 ideas designed by a committee of union representatives, administrators and financial analysts.

One of the most popular suggestions was implementing a partial hiring freeze. The district has 67 open positions worth more than $4 million annually. By not filling some of those positions, $2 million can be saved, said acting Chancellor Ding-Jo Currie.

In past times of financial difficulty, the district has tried to avoid layoffs when the state cut funding. No layoffs are proposed for the current recession, either.

Vice Chancellor C.M. Brahmbhatt said there have been no layoffs in his 23 years with the district.

“There was an unwritten rule: Protect jobs at all cost,” Brahmbhatt said.

Leaders from the unions that represent faculty, staff members and managers gave presentations to the board, asking the board to make decisions that shelter employees from cuts as much as possible.

“The reality is that we have a revenue problem, not an expense problem,” said Neal Kelsey, the executive director of the Coast Federation of Classified Employees. “The Coast students won’t be well served by gutting our programs and services.”

Many of the ideas that reviewed would require renegotiations of union contracts.

The district did not vote on any of the proposals and plans to have further meetings before making final decisions. The next meeting is scheduled for 5 p.m. Wednesday.

The board hopes to have a budget adopted by the end of June.