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