Deep cuts are likely for Cuesta budget

Cuesta College trustees Wednesday adopted a tentative budget for the coming fiscal year, acknowledging that future cuts must be made to ensure the college’s fiscal survival.

The college is grappling with a $650,000 deficit, which is projected to grow to $1.1 million in the 2010-11 school year. That gap is anticipated to reach $6.9 million two years later in the 2012-13 school year if spending is not curbed or revenue increased.

Toni Sommer, vice president of administrative services, said the college has enough contingency money to keep the budget in the black until 2011-12 but told trustees that they should not rely on the one-time cash to balance the college’s $54 million budget. “We can no longer be everything to everybody — which has been hallmark of community colleges for a long time now,” said Interim President Gil Stork.

Fall and spring course offerings will stay the same but will likely have more students in them as the college works to offer courses and stay within the full-time equivalent student count it is funded for by the state.

In the past, the college has paid for as many as 400 students out of its general fund because of near-record enrollment numbers.

Cost saving measures have been initiated — including cutting the college’s summer program to save nearly $400,000.

Summer school will also likely be canceled again next year if additional state funding isn’t provided, Stork said.

An early retirement incentive was also offered to employees in April that could potentially save the college up to $1.2 million a year as the incentive is paid off.

It is not yet clear if the incentive, which was offered to faculty, classified and management employee groups, will be enacted. The deadline to apply for the early separation program is June 15, and trustees are expected to make a decision in July.

To make the incentive a financial gain for the college, 27 of 159 eligible employees would have to take the offer.

Stork said it is likely that the incentive will at least happen for the faculty group — citing six recent retirements and a number of other faculty members who have expressed interest.

Stork said administrators have spent the past year analyzing the budget line-by-line.

“The budget was previously not accurate in the sense that budget allocations and expenditures were not reflective of each other,” Stork said. “Somehow, magically, at the end of the year, a chunk of money would be used to cover the overspending. We can’t do that anymore.”

The college also plans to save money by cutting back hourly employees hired to do temporary tasks, limiting the amount of vacation time that staff accumulates to avoid cash pay-outs and by charging higher fees for community based programs that were typically free or low-cost.

Ancillary programs such as hospitality and viticulture will also be carefully reviewed.

“We are positioning ourselves to spend within our means,” Stork said. “We will still maintain our reputation for excellence but just be doing fewer things.”

Trustees will adopt Cuesta’s final budget in September.

Reach AnnMarie Cornejo at 781-7939.