College officials predict a tough budget year

BARSTOW • With the 2009-2010 fiscal year drawing to a close, officials at Barstow Community College are looking to tackle their toughest budget yet.

With less money coming in from the state, rising health insurance costs, and student enrollment growing, college officials expect that they will have to dip deeply into their reserves to balance next year’s budget.

No cuts in programs or staff have been decided on yet, and students will have to wait until the state budget is passed in fall before they find out if there will be any change in fees or course offerings. But one change students can expect is longer wait times for fall enrollment, since the school’s registration crew is short-staffed, school officials said.

In the school’s tentative budget, adopted by the board of trustees on Wednesday, the college is looking at a $1.7 million deficit this year, about $900,000 more than last year.

This fiscal year, the school expects to receive a total revenue of about $14.8 million. They anticipate spending about $16.5 million.

What is causing such a staggering deficit this year is a $500,000 rise in employee benefits — due to insurance companies raising their rates — and another $500,000 shortfall of funds coming from the state. 

The state funds the college based on a certain amount of full-time students that attend. The school receives about $4,500 per student.

However, due to cuts, the state is funding the school for only to 2,303 students, 111 less than last year.

Since the school currently serves a growing community of about 3,200 students, the school must pay the difference out-of-pocket, which makes up a large chunk of the budget.  

Luckily, the college district has been somewhat conservative in dipping into their reserve funds, currently tallied at $4.1 million, and will likely have enough to cover the expected costs.

“Fortunately we’ve had very conservative reserve (spending),” said Bill Orr, interim Vice President of Administrative Services. “We’re just getting to where we’re receiving so much less income that were really having to use the reserve.”

However, if the state budget calls for the school to go beyond their reserves, it could be in deep water.

But until the state budget is finalized, school officials will not vote on whether, or where, to make cuts, Orr said.

If the school were to make cuts in personnel, there are 8 vacant classified positions and 1 vacant faculty position that would likely go before the school would look at eliminating staff, school officials said.  

With growing enrollment, and the possibility of cuts looming overhead, trustees said it was time for the school to come together to focus on what is essential.

“These are things that cause us to come together as a college and look at, collectively, what are the priorities of this institution,” said college district President Thom Armstrong.

Given the severe budget crisis that the state faces, one thing officials are pleased about is that the school will continue to accept new students and have not yet cut any classes for fall enrollment.

“This shows that the college is doing everything it possibly can to provide the greatest number possibilities for students within the budget that we have,” said Virgil Stanford, incoming vice president of Administrative Services.

CONTACT THE WRITER
(760) 256-4122 or
rhong@desertdispatch.com