MEMORANDUM

To:�� Clyde Sakamoto

From:�� flo wiger

�� Suzette Robinson

Date:�� September 19, 2006

Re:�� OCET BUDGET DEFICIT 2005-06 ACTIONS

�� and 2006-07 PLANS

The following actions have been taken to address the deficit in three of the programs�OCET, Culinary Arts, and Oral Health Center.

OCET ACTIONS

1. Personnel reduction:

The following personnel have left for a variety of reasons.

�� Melissa Yoshioka

�� Phyllis DeAquino

�� Brian McKinnon

�� Lynn Britton

�� Robert Kellogg

Results: personnel saving of over $225,000/yr.

2. Marketing reduction:

OCET printed a mid-cycle summer brochure with grant funds. The brochure reminded people of the summer offerings and kept the OCET classes in the minds of the community.

Results: Savings on printing cost is $3,000.

For the fall 2006 cycle, 10,000 instead of 63,000 brochures were printed. As recommended by LERN, the international organization for continuing education, brochures were sent to past and present customers only. Additional brochures were placed in strategic places throughout the community. Printing and mailing costs went from $15,000 to $2,500 per printing of the brochure. Although brochures will be printed two times during a cycle instead of once, the cost savings is still substantial.� An additional $15,000 cost savings annually is realized due to printing reduction.

Results: Savings of $15,000

3. Business Plans

Included in the OCET annual program review were business plans for PACE, VITEC Business, CompTech, Maui Language Institute, and Contracts and Grants.

Results: Initial data indicates that each program experienced salary savings due to loss of key personnel and cost reduction plans for operating expenses were reduced to minimum. The details will be in the 2006 annual program review report.

4. Increased new class offerings:

LERN recommends that each cycle include at least 20% new� class offerings totaling 60 new classes each cycle. However, due to lack of staff in program coordination, the present staff was able to produce 40 new classes in fall 06.

5. Maui Language Institute:

The Maui Language Institute hosted four international contract programs in summer 2006.

Results: The net profit from the four events is $50,000

6. Grants:

The A&B grant for Small Business Project went well with classes filling in Kihei and Kahului. Lahaina had smaller enrollments, but classes were appreciated by the community.

The First Time Managers� project sponsored by RDP is progressing as planned. Seventeen companies with 28 employees are involved in the program. Participants have taken an on-line assessment and the coaching sessions started this week.

Results: Both projects netted OCET $55,000

7. Community Donation:

Tri-Isle, Inc. donated to Maui Community College�s OCET program a trailer truck worth approximately $20,000. The CDL program had one truck, which was donated by HC&S; however, that 40-year-old truck was in need of repair on a fairly regular basis. This meant that the CDL students did not have the opportunity to have consistent and continuous on-the-road training. This additional truck will minimize down time for our CDL students to have the on-the-road experience.

Results: $20,000 truck donation

OCET FUTURE PLANS:

1. Lumens On-line Registration

The Lumens on-line registration system, recommended by LERN, is an essential program management software that will allow OCET to accept 24-hour registration of students, to collect fees, to manage class information, and market classes. This system will provide program support to the limited OCET staff.

Funding Source: PCATT $43,000

2. RDP Projects:

Three RDP projects�CDL student subsidy, financial aid staff member, and Radio Frequency Identification (RFID)�are being investigated for the spring 07 semester. If funded these three project will help the OCET customers get CDL training at a reduced cost ($1,000 subsidy per student), financial aide support by finding other external funding sources, e.g., WIA or ETF to assist in funding, RFID training for businesses/community people.

Funding Source: RDP $100,000 approximate

3. Civil Defense:

The Maui County Civil Defense office has partnered with OCET to provide grant management for the Civil Defense Grant/Manager project.

Funding Source: County of Maui $22,000 indirect costs

4. Robert Wood Johnson:

OCET will work with its long-term-care partners to develop strategies needed to ensure a stable, adequate nursing workforce. Confirmed.

Funding Source: Robert Wood Johnson Foundation $40,000

5. A&B:

OCET will again apply for funding to provide training for small businesses.

Funding Source: A&B Company $25,000

Culinary Arts Program

1. Personnel reduction:

The Culinary Arts program restructured its personnel and reduced its workforce by ??? people.

Results: Personnel savings is

2. Consultants:

Representatives from Sodexho conducted a financial review.

Results: In their review, they noted that the percentage of food raw materials was higher than industry average; this could be attributed to the instructional nature of the program as well as commercial efficiencies associated with standard menus.

3. Refining of procedures:

The culinary program has refined its procedures when catering fundraiser events to insure the reimbursement of the funds from the UHFoundation.

Results:

4. Non-credit options:

The culinary program has worked with OCET if offering more non-credit classes.

Results:

5. Internal audit:

An internal audit has been conducted by two business faculty members who offered a number of strategies to assist in the process by which the culinary program does its business.� Robyn�s report?

Results:

A former administrative services director, now the Director of the University Center, has been tasked with�.

Results:

6. Curriculum remapping:

The Business/Hospitality department chair is working with the culinary arts faculty in remapping its curriculum.

Results:

CULINARY ARTS PLANS

1.The Culinary Arts program is about to execute an agreement to publish and market a cookbook from which the program will derive royalties

ORAL HEALTH CENTER ACTIONS

Results:

ORAL HEALTH CENTER FUTURE PLANS

1. Department of Human Services Task Order

The Allied Health department chair is working with the State of Hawaii Department of Human Services to create a task order that will financially support the services offered by the MCC Oral Health Center.

Results: If approved, the task order will pay for the salaries for a number of faculty and staff, freeing their salaries to help reduce the Oral Health deficit.

2. Mobile Van

The County of Maui and ORS have resurrected negotiations to execute the sub recipient agreement to utilize the mobile van, which will increase capacity.

Results:

3. Additional staff:

Allied Health will acquire a fiscal support specialist to assist with financial accounts for Oral Health and other Allied Health programs.

Results: