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Yep, she sure does support education - I worked for the colleges for years - this has to hit below the belt. A letter from the Chancellor to employees. This has me concerned.
Dear Maricopa Employee, Governor Brewer recently made public her proposed 2011-12 budget, which included an 85% cut in the state's funding of the Maricopa Community Colleges. The cut would reduce state funding from $45.3 million to $6.9 million. This is on top of approximately $23 million in cuts made to our appropriation in recent years. While the governor's proposed cut is substantial and this is a proposal to be taken seriously, the process for setting the appropriation is underway and while this is not a final number, both the President of the Senate and Speaker of the House are favorable to the Governors recommendations. A loss of more than $38 million is significant. However, we must keep in mind the fact that this represents a reduction of 6% in the overall District General Fund budget. State aid is the smallest of the district's three main revenue sources that fund our operational budget, with property taxes being the largest, followed by tuition and fees. Our Governing Board will have the option of increasing tuition and the property tax levy. Neither has been raised in two years. Decisions on those items will be made later in the spring.
As to these cuts, we have been preparing budget contingency plans for some time, and will be able to accommodate approximately $10 million in permanent budget reductions. However if the cut is the $38.4 million proposed by the Governor, we will need additional solutions. To make up the potential difference in FY11-12, we are working on options which will have to come either from further budget reductions, an increase in revenues, or a combination of the two. As we look at budget reductions, we will look to maximize cost savings but will also continue to review services, operations and programs to assure they are mission critical and operating efficiently. We will be looking at reductions in a systemic manner but have no specific recommendations at this time. At the same time that we are facing large potential cuts in State aid, we also are looking at large increases in health care claims (approximately $10 million) and an increase in the rate that we are assessed by the AZ State Retirement System ($2.7 million). Nationally and locally, health care costs have increased significantly. The number of major health claims among Maricopa employees and dependents has been increasing over the past three years, including a 53% increase in the 2009-10 fiscal year. As a result, Maricopa’s premium increase is 26%, which means we will need to pay $10 million more into our health care plan in the coming fiscal year. The Employee Benefits Advisory Committee (EBAC), made up of representatives of all the District’s employee groups, has worked diligently to find ways to minimize the effect of such an increase on employees and has. The committee, which is credentialed by the Governing Board to conduct such activities, has constructed a plan to cover $5 million of this increase by developing new levels for deductibles, co-pays, and prescription plans. EBAC will request our Governing Board to fund the other $5 million. If the Board does not approve, employees will face further increases to cover the additional costs, effective the same date. Options would be discussed by EBAC, but could include additional expenses to be borne by employees. Those extra expenses could take the form of higher copays and deductibles. As we move forward with our budget reduction exercises, ongoing efficiency explorations, and our health care plan costs restructures, be assured that we will continue to inform you of our progress. Sincerely, Rufus Glasper
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