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Published on 5/5/2020.

Audit Committee Meeting

Tran Discussion: California is going to face a challenging 2020-21 budget year as result of the COVID-19 pandemic.  We do not know how the Governor and the Legislature will address the myriad competing budget needs.  The signals coming out of Sacramento indicate that we may not see a final state budget until September 2020.

Historically, we have seen the state defer payments to community colleges when it experiences cash flow difficulties. If that happens, CR will also face cash flow problems. In light of this, I asked the Board grant me permission to explore a TRAN to provide cash to meet our operational needs.  The approval to engage in a TRAN will be requested at a future Audit Committee and Board or Trustees meeting.

2020-21 Budget Forecast Discussion: We know that our public sector institutions, including higher education, will experience financial pain since the release of the Governor’s January budget.  Governor Newsom said at a press conference on April 2 that the January budget is no longer operable … The world has radically changed since the January budget was proposed.

CR will not be exempt from the fiscal pain.

The unpredictability and duration of the pandemic, and the resulting economic impact on the state’s budget, caused us to revise the multiple budget forecasts we developed last year. We have made it a customary practice to develop budget forecast scenarios based on available budget assumptions and to discuss those forecasts with the college community.

We shared four revised budget forecast scenarios with our constituent group leadership and the Academic Senate last week.  Our purpose in sharing those scenarios, even though they were based on assumptions available at the time the forecasts are developed, is to be in a position to anticipate potential budget challenges and take proactive steps to address the challenges. 

The revised forecast scenarios included a potential flat budget, a flat budget with a 1% COLA, a budget with a 4% deficit, and a budget with an 8% deficit.

Julia and I discussed the revised budget scenarios (included in this article) with the Audit Committee today. We shared a letter from Assemblymember Ting, Chair of the Assembly Committee on Budget that discussed the budget outlook and the timeline for approval of the state's final budget. We also shard a FCMAT document that speaks to budget forecasting.  

Regular Meeting of the Board

Comments/Board Business

Member Comments: Trustee Biggin commented that she’s been very active in CCCT meetings. Trustee Mathews mentioned that she attended a CCCT Webinar on April 23, 2020.

Board Committee Reports: Trustee Mathews mentioned that the Audit Committee met prior to the regular meeting of the Board and the President’s Evaluation Committee reviewed the results of the president’s evaluation. Trustee Dorn reported that board evaluation instrument was deployed with the expectation that trustees will respond by May 15.

Resolutions 759, 760 and 761: The Board approved the three resolutions that relate to the November 2020 election of the area 7 trustee.

Consent Calendar Action Items

Approve/Ratify Personnel Actions: The Board approved the hiring of Maureen Bell as a new Assistant Professor in the Nursing program. They also ratified my acceptance of Mark Winter’s retirement as Professor of Psychology (effective May 21, 2022) and Joe Hash’s revised retirement effective date of June 30, 2020.

Bond Project Status: We spent $100,000 in Measure Q expenditures during March. So far, Measure Q expenditures total $44,332,289.

Monthly Financial Status Report: We did not make any budget adjustments since the report presented at the April Board meeting.  I want to mention that, thanks to Kerry Mayer, Dean of Career Education, we will reduce the transfer out from the general fund to the Shively Farm by approximately $37,000. The reduction will be reflected in May 5 Board agenda.

Action/Discussion Items

Second Read of Board Policies and Administrative Procedures: The Trustees executed a second reading on several Board Policies (BP) and Administrative Procedures (AP) submitted by the Board’s ad hoc Group 3 (Dr. Colleen Mullery, Carol Mathews, and Dr. Bonnie Deister).

Organizational Reports

Academic Senate: Co-President Gary Sokolow’s reported noted that:

• The Senate formally changed its’ leadership structure. Erin Wall was elected to serve as Senate Vice-President for next year. Gary will serve as Senate President for the 2020-2021 academic year and Erin will assume the Presidency after Gary’s term expires.
• The Senate is working with the Administration to meet the challenges posed by the COVID-19 situation.

CRFO: President Michelle Haggerty’s report mentioned that she and other CRFO officers attended the spring meeting of other independent unions. Here are a few brief highlights of the meeting:

• The state budget is in flux.
• The recession is hitting at a good time for the state since the rainy day fund is currently at about $20 billion.
• The state has put out approximately $8 billion in funding for COVID.
• FACCC is advocating for AB2884 which allows community colleges to use restricted lottery funds for food and housing needs of students and AB897 that would increase the percentage of load a part time faculty can work from 67% up to 85%. FACCC is also calling for an audit of Calbright.
• All colleges represented at the meeting are struggling with how to support faculty as they transition to this new learning environment. It was apparent that CR has handled this crisis very well and has been quicker to come to decisions than some other districts.

CSEA: President Tami Engman noted that CSEA’s Association President, Mr. Ben Valdepeña, talked with our CSEA employees. She also mentioned that classified staff are looking forward to coming back to work on campus.

Management Council: President Ron Waters commented that CR has provided great leadership and communication throughout this COVID-19 situation. The consensus from our managers is that CR is well ahead of other colleges in planning and implementation of changes in an ever-changing time. He also informed the Board that the Management Council membership wanted to give Dr. Angelina Hill a special shout-out for her help and direction during this time.

Administrative Reports

President/Superintendent's Report:  My written report included the following:

• California community colleges have been confronted with extraordinary challenges to help students complete the Spring 2020 semester. Several colleges have either canceled or postponed commencement ceremonies. Similarly, we made the decision to postpone the May formal commencement exercises in response to the COVID-19 pandemic. Postponing the formal commencement was a difficult but necessary decision. We do not want the spring semester to conclude without recognizing student achievement in some way. Therefore, Molly Blakemore will produce a congratulatory video. The video will be posted on the website mid-May.
• The Board and I have been actively advocating on CR’s behalf. We requested that our local legislators, the Chancellor, and the Governor support our nursing clinical students and to make sure that CR receives adequate funding in the state's 2020-21 budget. 
• The state encumbered funds for construction of the new Creative Arts building and for the completing working drawings for the new PE Complex. We are hoping to solicit bids for construction of the Creative Arts building next September/October.
• A recent edition of Morgan Stanley Research's “Sunday Start” series (Apr 12, 2020) included a state-level analysis of the COVID-19 recovery by the Biotech equity analysis team (Matthew Harrison, Zhen Zeng, Kostas Biliouris, Connor Meehan, Max Skor and Thomas Lavery). The analysts posited that reopening the economy will likely take time, will require turning on and off various forms of social distancing, and will only come to an end when vaccines are available. The analysts predicted that spring of 2021 will be the earliest the economy will be reopened. The model derived from analysis indicated that the country will see a multiphasic peak. The second peak may be seen in November/December 2020/January 2021 and will not likely be as severe as the first. See https://www.morganstanley.com/ideas/coronavirus-peak-recovery-timeline Conversely, the Centers for Disease Control and Prevention (CDC) Director Robert Redfield told the Washington Post on April 21, 2020 that the second wave of the novel coronavirus late in the year would likely be more deadly because it would overlap with flu season.  According to Redfield, “There’s a possibility that the assault of the virus on our nation next winter will actually be even more difficult than the one we just went through." Redfield also said that two coinciding respiratory outbreaks would strain the nation’s health care system even further than the current pandemic, which has been marked by shortages of ventilators, test kits and personal protective equipment.
• We are focusing our attention on recruiting local talent to our athletic teams. Bob Brown anticipates enrolling 144 local student athletes for fall 2020. This past year we had 97 student athletes enrolled. This represents a 48% increase.

In my verbal comments, mentioned that Julia and I discussed the four budget forecast scenarios with the constituent group leadership and the Academic Senate. I am appreciative of their comments and thoughts.

Vice President of Instruction Report: Angelina’s written report included the following:

• She is grateful to all the faculty who have spent countless hours reaching out to students and getting them to stay engage in classes. Despite the many challenges, our students are receiving high quality education. 
• The Administration, Academic Senate, and CRFO are actively planning for fall. The Academic Senate has:

• Refined the Distance Education Addendum to ensure quality and feasibility for all classes to move through the curriculum committee before December 30, 2020.
• Established a Correspondence Addendum so that courses in Pelican Bay can continue next year should faculty continue to not be able to enter the Prison, and so that non-credit classes in facilities such as the county jails can continue and reach community members in most need.  
• Drafted a policy for Regular and Effective Contact for all courses delivered face-to-face, via distance education, and correspondence.
• Drafted a policy for establishing and offering a Correspondence Education program. 
• Revised the distance education policy to effectively address all regulations, including Title V and ACCJC requirements, while relying on shared governance such that faculty can effectively teach in the fall in a way that can be sustained with regard to human and fiscal resources.  

The Administration and CRFO are:

• Working on a plan to prepare faculty to effectively teach online if we need to do so.
• Working on a comprehensive plan that will provide support for faculty doing this mission critical work and ongoing professional development and training so that we continue to deliver our students the high quality education they deserve.
• Worked to ensure that education continues at Pelican Bay and County Jails while exploring new methods of teaching.

Vice President of Administrative Services Report: Julia provided an overview of the Coronavirus Aid, Relief, and Economic Security (CARES) Act Funds.    We will receive $2,504,489 in total CARES/Act funding. We are obligated to distribute at least 50% of the funds, or $1,252,245, as direct emergency aid to students.  We intend to distribute aid to students by the second week of May. 

The remaining 50% is referred to as the Institutional Share.  We are waiting for clear guidance from the Department of Education on acceptable uses for the Institutional Share.  Discussions about possible uses of the funds are underway. 

Executive Director of Foundation Report: Marty’s report noted that:

• The Foundation Board approved Amy Hunt, a lawyer from Mitchell Law Firm, who specializes in estate law as a new board member.
• The District received a gift of equipment from the Humboldt-Del Norte Unit of CalFire for CR’s Fire Academy Program. The equipment is valued at $39,000.
• He secured a $6,250 gift from Dave & Gaby Somerville for 25 new Chromebooks for students. He also secured a $4,545 grant from the First Response Healthcare Student Support Fund to award 13 of CR’s low income nursing students with economic support.
• He is reaching out to 150+ individuals asking for their support on this initiative.
• He is partnering with the McLean Foundation and the Wiyot Tribe to develop native plant signage for interpretive trails at both the Gene Lucas Community Center and for the College of the Redwoods Eureka campus. Both trail systems will emphasize plants the Wiyot tribe have historically used for food, medicine, and basket making materials.