I want to update you on where we are in the budget process and share some of the challenges we face as we develop a balanced budget for next year.

Lane Community College will face uncertainty in funding for the foreseeable future.  Our college and all the community colleges in Oregon are in the middle of the “perfect storm.”  The three tidal waves rolling over us are access, affordability, and quality.  Anything we do to preserve one of these impacts one or both of the others.  For example, limiting tuition increases may keep the college affordable, but it will impact access as we must reduce offerings and services or, if we keep doing everything, quality may erode.  Similarly, continuing to provide access to a broad range of offerings will require increases in tuition affecting affordability.  Maintaining access and affordability will spread resources too thinly and is likely to result in erosion of quality. This is a no-win situation but one we are stuck with for now as is every community college in the state.  As we approach balancing our budget for next year, we will be challenged to maximize access, affordability, and quality while recognizing the potential for one or more to be affected. (For a good discussion of this, we are placing a paper by David Longanecker, Executive Director of the Western Interstate Commission on Higher Education, on our budget website.) 

Process
The Executive Team has begun work to develop a balanced budget to present to the board. We are doing things somewhat differently this year.  Unlike last year, we will develop revenue and reduction options at the same time.  To allow time for this, the budget calendar has been revised, and the recommendations will be announced on April 8. (The new calendar has been posted to the web) 

Revenue  The only major revenue sources we have control over are tuition and fees.  You are aware that we increased tuition significantly last year and that we will increase another $2 summer term.  The board has asked us to develop models for differential pricing related to the cost of programs and potential for earnings following completion.  We will be discussing this with faculty and staff in affected programs as well as advisory committees prior to finalizing proposals. We will also begin hearings with students regarding tuition. 

Reductions  We have received the work of the Criteria Application Work Group.  This will be one important component to be considered.  We will have additional discussion with faculty and staff in areas that were reorganized as a result of budget reductions last year or were asked to raise funds.  We want to be sure we have accurate, timely information as we develop recommendations. 

Finally,  in terms of process, we are looking for appropriate ways to involve union leadership whose members may be impacted by final decisions. 

Guiding Principles
As we move forward with this work we will be guided by the principles approved 
by the board last fall. (See website for details)  The new vision, core values, and prioritized mission, approved by the board two weeks ago, will be central in our thinking. We plan to maintain our comprehensive mission.  As the Executive Team develops recommendations, we will plan for balance across the mission, paring back all aspects of the mission to some degree.  We will strive to avoid across-the-board reductions - death by a thousand paper cuts!  This of course means that more significant reductions will be made in some areas. 

Remembering what’s important
Our highest priorities remain placing students and their learning at the heart of what we do and creating the conditions where we can do our best work. We will remain committed to creating a realistic future even as we must deal with the present.  It will be important that the decisions we make in the next two months help us move toward the preferred future I described at in-service or, at the very least, do not raise additional barriers that we must overcome.  We will move toward that future in incremental steps.

Moving the college to fiscal stability continues to be extremely challenging.  The news does not get better, but we need to remember that as we navigate through this, a strong Lane will still be there.  We are likely to be smaller, but we will continue to offer extraordinary opportunities for many students.  We will face our challenges with optimism and a sense of hope and, yes, even a sense of humor.  We will treat each other with as much care and respect as possible, and we will keep the spirit that is Lane Community College.  This, too, will be a challenge, but I know it is one that all of us working together can overcome. I know the Executive Team is committed to getting through this with compassion, integrity and a certain amount of grace. 

Thank you for doing what you do every day in such an exemplary way.  Students are counting on that and so am I. 

Mary.