Tags: 2018, featured, press release
Cuesta College is taking a proactive approach to address a projected deficit for the current fiscal year of $551,000 in its ongoing unrestricted general fund resources. The budget gap is created by the combination of slow enrollment-related revenue growth and rapid mandatory expenditure increases.
“Most of the college’s funding is derived from enrollment – from each Full-Time Equivalent Student (FTES),” said Cuesta College Superintendent/President Dr. Gil Stork. The college is targeting 8,309 FTES this year, down from the 8,646 FTES funded by the State in 2011-12. “Over recent years, the amount of FTES served by the college has decreased, thereby decreasing the amount of revenue we would otherwise receive from the State. If FTES continues to decline, the District could eventually face annual budget deficits of about $2 million if we fail to take action.”
Simultaneously, many of the District’s costs are rising, including a significant increase in pension payments to the California Public Employees Retirement System (CalPERS) and the California State Teachers’ Retirement System (CalSTRS). According to Dr. Stork, increased payments of over $600,000 for CalPERS and CalSTRS play a substantial role in the college’s budget deficit. “This year the budget deficit will be covered by District reserves,” said Dr. Stork. “However, this is not a sustainable practice.”
As a result, the college’s administration and Board of Trustees are implementing several proactive strategies aimed at permanently offsetting future budget deficits. They include:
The college is also examining alternative ways in which it can increase revenue by way of increasing FTES. These include:
Additional revenue-generating considerations include the possibility of increasing parking permit fees, introducing a technology fee, and leasing North County Campus property. At the November 2017 Board of Trustees meeting, the Board authorized the Superintendent/President to begin the Request for Qualifications and Proposal process for potential leasing of two auxiliary parcels on the North County Campus in order to develop a revenue stream for the District.
More information on the college’s funding is available in the Final 2017-18 District Budget. For questions, please contact the Office of the Assistant Superintendent/Vice President of Administrative Services at (805) 546-3120.
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