Subject: [Faculty-l] Expense-reduction measures
From: Presidents Office <[email-masked]>
To: [email-masked], [email-masked]
Date: Thu, 14 May 2020 09:25:12 -0700
List-Id: All-Faculty mailing list <faculty-l.lists.cca.edu>

Dear Colleagues,

This week, as we celebrate the extraordinary accomplishments of our
graduating students—539 remarkable artists, designers, architects, and
writers who have persevered to complete their degrees under the most
difficult of circumstances—it is with a heavy heart that I write to share
details of budget-reduction measures that we must now take to ensure the
future of our college.

As Provost Carland and I shared last month, the impact of COVID–19 on CCA
has been profound, as it has for colleges and universities across the
country. The necessary cancelation of summer programs and the associated
loss of housing revenue, along with increased expenses related to the
pandemic, will result in a net loss of approximately $3 million this summer
alone. And, while we are vigorously planning for and committed to
delivering a high-quality fall semester, we know the pandemic will have a
significant effect on enrollment and next year’s operating budget.

Across the higher education landscape, most public and private institutions
are anticipating major decreases in enrollment—with projected declines
between 10 and 30%. We don’t yet know exactly how this will affect CCA, but
in a time of tremendous uncertainty, we must plan and be prepared for a
loss of operating revenue in the range of $10 to $25 million or greater for
next year. Adjusting for this loss, we must make significant reductions in
our expenses to ensure the integrity of our academic mission and to secure
the financial well-being of our institution.

As I’ve communicated previously, we have already taken several measures to
reduce expenses: As soon as we became aware of the severity of this
pandemic, we put in place a hiring freeze, which we have extended
indefinitely. We suspended all non-essential travel and advised all
divisions to curtail expenses. The senior vice presidents and I took pay
cuts of 10% and 25% respectively.

At that time, we committed to paying all regular staff through May 15, the
conclusion of our academic year. We are extending that commitment through
May 25, to include the three paid holidays of the long Memorial Day weekend.

Following are the next steps we are taking to reduce costs in response to
the unprecedented situation that confronts us.

Suspension of 403(b) retirement match

CCA has been matching, up to 5%, the salary-reduction contributions that
many employees choose to make to their 403(b) retirement accounts. As of
May 31, the college will temporarily suspend its discretionary matching
contribution, but employees may continue their own payroll contributions if
they wish.

Executive pay reductions

In addition to the pay reductions already taken by the senior vice
presidents and myself in April, the remainder of the vice presidents will
take pay reductions of 5% effective with the next pay period.

Staff furloughs

On May 26, CCA will begin furloughs of approximately 90 staff positions
across the college, many associated with work reductions related to
COVID–19. The furloughs will vary from 50% to 100% of work time. The
decision to defer furloughs from May 15 to May 26 enables staff members to
be paid their full salaries for an additional week and to receive the three
paid holidays of the long Memorial Day weekend.

While on furlough status, staff members will retain their health benefits.
Furloughed employees will be able to apply for the increased levels of
unemployment aid available for those out of work due to the pandemic.

Both furloughed and non-furloughed employees will receive notification of
their status from HR tomorrow, May 15, and divisional leadership will
schedule follow-up meetings to discuss the transition.

How these measures affect staff members represented by SEIU Local 1021 has
been and will continue to be discussed in detail between the union’s and
the college’s bargaining teams. The college values the substantial
contributions the teams have made to our efforts to respond to the effects
of the pandemic on the CCA community.

Our college entered this period of unprecedented disruption from a place of
stability, and with discipline we will weather the storm. Please know how
much I appreciate the commitment and resilience of this entire community.
It is exceptional, and I know the difficult sacrifices we are asking each
of you to make are significant.

Our next all-staff meeting is scheduled for Wednesday, May 20 at 11:00 a.m.
and I, along with other members of the college’s leadership team, welcome
that opportunity to answer the questions you may have.

Sincerely,

Stephen Beal

President
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