Clarendon College will immediately reduce its workforce expenditures by $77,469 in order to cope with the loss of an estimated $193,000 in state funding.
The CC Board of Regents held a called meeting Tuesday and approved budget cuts totaling more than $115,000. Regents also directed CC President Myles Shelton to determine which personnel will be let go in order to make up the balance of the reduction. Shelton must present his recommendations to the board next Thursday.
Shelton said the notice of an immediate reduction in state funding was received in a letter from the offices of the governor, lieutenant governor, and house speaker about two weeks ago. A plan demonstrating a seven percent reduction must be filed with the state by February 6.
“What makes this so difficult is that it comes so late in the fiscal year,” Shelton said. “A large portion of the budget has already been spent, and we have other commitments through May.”
CC officials will immediately initiate a hiring freeze except for essential positions, cut non-essential institutional travel, and enact other cost-saving measures.
The budget cut does not affect CC’s plans for capital improvements which are funded by other revenue sources, but it does cover all operational and personal expenses dependent upon the state appropriation, the state health insurance allotment, and the developmental education allowance, Shelton said.
State officials are dealing with a revenue crisis, expecting a $1.8 billion shortfall in this current fiscal year and an estimated $8.1 billion drop in revenues over the next two years. As a result, all state funded colleges and universities are dealing with the forced immediate budget cuts.
“All we know at this point is that the appropriations bill which has been filed in Austin for the next biennium is a zero-based budget,” Shelton said. “We’re going to have to be able to defend every dollar we ask for.”
Shelton said the situation does not mean the college is out of money, saying it is only the operational monies from the state that is hurt.
When the multiplier effect is considered, the shortage of state funds will have an estimated $1.35 million on the local economy in the college’s seven-county service area.
“The majority of our students and staff are here [in Clarendon] so obviously the greater impact will be here,” Shelton said. “We’re getting into the core functions of the college, but we’ve tried to cut where it will not affect instructional facilities or services to students.”
The administration met with faculty and staff last Friday, and any personnel whose jobs are in danger will be communicated within the next week.
“They understood the problem and that it was something that happened in Austin and that it’s not the fault of anybody here,” Shelton said of the faculty at last week’s meeting. “They are willing to make things work in order to provide services on this campus and to the community.”
Shelton also said the college is not considering local taxes as a solution to the funding shortfall.
“We’re not looking at a tax increase to solve this,” he said. “I think we’ve got to look inside to solve the problem that the state has created for us.”
For the future, Shelton said the college will have to look at raising tuition by $10 to $15 per hour. Such an increase would still keep CC’s cost to students much lower than most other colleges.
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