More details on how the state budget cuts will affect Germanna

Friday afternoon, during a conference call with the Chancellor and presidents of all 23 community colleges, we heard the grim details on the cumulative effect of all of the cuts. The cumulative effect of the previous and new cuts in the VCCS budget will take over $105 million out of the combined budget by fiscal year 2012.

This recent cut will take $20 million out of this year’s budget because of the one-time use of the Federals stimulus monies, once the Federal Government approves this use. Beginning July 1, 2010, this total cut rises to nearly $46 million. On July 1, 2011, the stimulus monies run out and the total cuts made since 2007 rise to $105 million a year.

We now have the following clarifications regarding the Governor’s budget cuts:

• The one-day furlough applies to all full-time employees including faculty. Each college has the flexibility to determine the least disruptive date, but we were advised to wait on implementing until after the Assembly meets in the new year. This furlough day will not impact VRS final compensation calculations for those who are retiring.
• The State has been paying both the employer cost and the employee cost for VRS retirement contributions. Employees used to pay 5%. The state will not make the employer contribution in the fourth quarter. This will not affect service credits or final retirement amounts. Nor do the employees have to pay this contribution in the fourth quarter.
• We are being told that the VRS rate for fiscal year 2011 will jump significantly due to losses in the investment portfolio used to pay out, but details on how much and whether employees will have to pay any or all of this remains undetermined at this time.
• Those in the Optional Retirement Plan (ORP) are not affected this year. Whether the state contribution will change next year is also undetermined.

In the last two years, all 23 community colleges combined have seen an enrollment increase of about 20,000 students, roughly the size of 4 new state universities. Germanna's enrollment has climbed to its highest level ever.

Without a tuition increase or some other way of compensating for some of the lost revenue, Virginia’s community colleges will be reducing programs and services at the same time that huge numbers of additional students are coming to us for their education towards a good career.

We are using every efficiency and quality improvement we can. Nonetheless, we have reached past the point of doing "more with less."

I am confident in our faculty and staff. I have never been prouder in them than now, watching how hard they work with 25% more students than 3 years ago and fewer staff. It will be hard, but we will continue to do our best to serve our students and communities and fulfill our mission.