another year, same as the last

The state released new information this morning regarding the magnitude of the state budget deficit for this fiscal year. Previously, it was reported to be projected at $1.5 Billion for the year; today's reports indicate a projection of $2 Billion.

Last year, the trend of escalating state budget deficit was a common quarterly announcement. It looks like the trend is continuing. Several economic indicators such as unemployment rates and income tax revenues demonstrate contrary evidence that the recession is over. Until those indicators begin a continuous and sustained upward trend the state revenues will not increase. It's really quite amazing how one instance of positive movement in an indicator stimulates the media to spin it into an economic turnaround.

We have already run forecasting models based on the initial deficit projection. Today, I have requested that we expand that modelling to a higher level of deficit reductions.

As you may know, we have adapted a strategic financial analysis model to our financial and budget processes. I am confident that we can maintain the financial strength of the college by using these analytic processes; however, I don't know at what expense to current operations.

As the year progresses, and the legislature reconvenes, we will be getting more news; and, I know it won't be any better than what has been released already. I'll try to keep everyone informed as we learn more.

Mike Kearns

safety is always on my mind

Can you imagine a new rendition of a favorite Willy Nelson song, "Safety is always on my mind". I don't want to claim that this haunts me on a daily basis, but it is something I think about several times every day.

The college is responsible for the safety of students, employees, visitors, passersby, and even those who access our websites. There are so many ways that we influence people to make decisions; whether it's to park their car in this space or that, to turn left instead of right, to enter through this door or that one, etc. Each choice has so many variables and consequences if the space is not safe and secure.

We've had folks slip and fall on wet floors because they were not aware of someone mopping; we've had lacerations, bruises, and contusions due to equipment malfunctions or misuse; we've had accidents in science labs, we've had people trip on cracks in the sidewalks, we've had people scared out of their wits because of "strangers", etc.

Safety is a concern for all of us. It takes a team effort to identify risks. What is normal to one person can be perceived as a risk of injury or personal security to another.

The college is making a concerted effort to heighten the awareness of personal safety in all aspects of operations. The Safety Committee meets monthly to discuss these issues. A regular agenda item addresses every incident report that is filed and recommends corrective action so that the incident won't be repeated. Dave Brusby is the chair. Blaine Yost, the Risk Management Officer, is a key member of the committee.

If you have concerns regarding any safety issue, please bring it forward to the committee. If you are troubled by bringing it forward yourself, ask your campus dean to do it for you. This is too important an issue to let it slide; yours, or another's, safety may be at risk!

Mike Kearns

conference update

This past Thursday and Friday, I attended the American Community College Trustees Congress with one of our board members. The hot topics were the nation's economy and the American Graduation Initiative proposed by President Obama, which has found its way through the House as HR 3221 and will be heading for a vote in the Senate very soon.

The most hotly debated topic in this bill relates to student loans. The President proposes the removal of private banks from the process and using the direct student loan plan of the federal govenrment as the only source of loans. This will eliminate the "middle man" costs which will be poured back into the amount available for lending. The banking industry is lobbying hard to get this removed.

As previously mentioned in my blogs, there is also $2.5B dedicated to community college renovations and facility construction, which has really piqued our interest.

The leadership and lobbyists of all our national associations are working long hours in their attempts to get this bill through the Senate. If it passes, we are probably a year away from the dollars actually becoming available.

The college has also been vigorously pursuing other competitive grants from the stimulus plan. Of the 3 opportunities submitted so far, we just received news that one was approved. It involves another partnership opportunity with the Local Workforce Investment Board. (This will be our second such stimulus funded project with them).

Politics and philosphy aside, it's great to know that stimulus dollars are finding their way to Mohave County. We all contribute through our taxes; it's refreshing to see it come back our way.

Mike

a proposed budget cut or an opportunity

The state has requested that Arizona Community Colleges respond to a proposed 15% midyear budget reduction. Mohave CC has been appropriated about $3.6M from the state for fiscal year 2009-10. A 15% reduction is about $540,000. Last year we were appropriated over $4M and were reduced over $1.2M by the time the fiscal year was finished.

The reduction proposal was not unexpected; state revenues have been less than the budgetted amount since the new fiscal year began on July 1. The shortfall continues to increase as each month passes. My expectation is that 15% will not be enough; I expect the total amount to be over $1M by the end of the year.

The college administrative staff has been targetting specific budget items for conservation and reduction in such ways that would not directly impact the delivery of instruction to students. In fact, some have added service while reducing cost.

We have viewed the reduction in state funding as an opportunity to not only review expense items but also seek out new revenues by increasing service in venues not previously served, searching and applying for new grants, partnering with other organizations and community colleges for the delivery of programs, and making sure we are accessing the federal stimulus dollars in as many ways as possible.

We also know that we can't continue to operate the organization in the time-honored traditional style of the past. Many of those traditions have added to the financial burdens that now have become a challenge to overcome in this economy. An organizational transformation of operating paradigms is necessary. Next week, the college will be undertaking the final stage of the strategic planning process; this topic has already arisen in previous stages, and looks to be one of the areas of focus of the college in the future.

MIke Kearns