Meeting of Friday, July 26, 2013
Ka Lama 102
1. Attendance. Chancellor Clyde Sakamoto convened the meeting of the Executive Committee at 2:32 p.m. Present were: Associate Vice President Michael Unebasami; Interim Vice Chancellor Debasis Bhattacharya; Acting Vice Chancellor Cathy Bio; David Grooms; T. Karen Hanada; Diane Meyer; Flora Mora; Brian Moto; Kī‘ope Raymond; Vice Chancellor David Tamanaha; and Stephanie Pratt.
2. UH Maui College Budget. Associate Vice President Unebasami led a discussion on the UH Maui College budget. Unebasami distributed a handout summarizing his comments. This information was presented to UH community college chancellors at an earlier meeting.
Unebasami summarized the results of Fiscal Year 2013, including General Fund (GF) year end balances. He reported that UH Community Colleges expended all but $3.70 out of a General Fund allocation of $107.6 million. Most General Fund dollars are spent on personnel costs.
Overall, Tuition Fee Special Fund (TFSF) carry forward balances declined for UH community colleges by 42%. TFSF represents about 1/3 of total operating expenses.
Unebasami reported that UHMC’s unencumbered TFSF Cash balance = $968K; however, Vice Chancellor Tamanaha has a different figure that will have to be reconciled.
All UH community colleges had to spend more in FY 2013 due to faculty collective bargaining obligations, budget restrictions, and budget reductions. Incremental TFSF generated in FY 2013 was insufficient to cover these requirements. FY 2013 General Fund Budget restrictions ($878K) were allocated based on cash reserves. Budget reductions ($2.049M) were allocated based on proportion of GF + TFSF. Budget reductions were offset by a UH System allocation ($1.0M) that was allocated based on enrollment factors.
All UHCC campuses met the minimum reserve requirement of 5% in FY 2013. This reserve is not an operating reserve, but a reserve kept for accreditation purposes. UHMC was “within range” with a carry forward balance of $2.006M or 7.6%. UHMC is the only community college that does not have a surplus over 10%.
For FY 2014, the State Legislature appropriated $4.0M more for UH Community Colleges. The budget reduction of $2.049M will be allocated based on proportion of GF + TFSF. A portion of the $4.0M additional funding ($1.22M) will be allocated based on the difference between incremental TFSF (assuming level enrollment) and faculty collective bargaining costs. The balance of the $4.0M appropriation ($2.78M) will be allocated based on enrollment factors and will be available to campuses based on performance funding initiative.
Total performance-based allocation ($6.243M) is composed of base year TFSF dollars and new GF dollars. Campuses must meet all performance targets to earn 100% of these funds.
Unebasami also reported that the Legislature included a proviso that requires the filling of unbudgeted UH positions to be reported 21 days before recruitment. (Casual hires are not considered positions.)
Tamanaha led a discussion on UHMC operational budget projections, based on an 8% enrollment drop and on level enrollment.