The Tax and Budget Reform Commission (TBRC) of the State of Florida has approved seven proposed Constitutional amendments to appear on the ballot in November.  One of these, CP0035, is called Local Option Tax for Community Colleges.  This proposed amendment requires the Legislature to authorize a local option sales tax to supplement funding for public community colleges, and to provide a process by law to permit counties to submit a referendum to the voters for a local option sales tax for this purpose.

Under the new amendment, any taxes approved in a referendum would sunset after five years.  The amendment pertains to Article VII Finance and Taxation in the State Constitution and would give community colleges taxing authority similar to what local school districts, counties, and municipalities already have.

Miami Dade College, among others, was behind this proposed amendment which allows a referendum similar to one that passed in Dade County in the early '90s.  As I understand it, the following steps would have to occur before a community college could benefit from such a tax.

1.       The proposed amendment would need to have a 60 percent approval of the voters, statewide, in November of 2008.

2.       If approved by the voters, the Legislature would need to establish rules that would implement the local option sales tax.

3.       Once the legislature passes implementing legislation, then the counties would be authorized to place a referendum on the ballot if requested by the board of trustees of the local community college.

4.       If the referendum passed with 2/3 of the voters' approval in each and all of the counties of the college district, then the tax could be collected.

In the coming months, the SFCC Board of Trustees will discuss this proposed amendment and consider a public position with regard to the vote that will occur in November.

Some of you like numbers, but if you don't, then read no further.  This is definitely for the number crunchers. 

On May 28, the SFCC Board of Trustees adopted an operating budget for FY 2009 which runs from July 1, 2008 through June 30, 2009.  These charts compare the orignal budget for the 2007-2008 fiscal year (FY2008) to the original budget for 2008-2009 (FY2009).  As has been noted in other posts, the original FY2008 budget was reduced twice during the year, once following the special legislative session in September and then again in March. 

The headline should be "State Revenues Down One Million Plus!"  At the same time, we expect more students to enroll and pay 6% higher tuition rates.  On the other hand, at SFCC, nearly 80% of students receive some sort of financial assistance.  The greatest burden of paying the higher tuition and fees, and enduring the lower state revenues, falls back on the taxpayers, state and federal. 

Last night, the Board of Trustees approved our operating budget for the coming fiscal year which begins on July 1, 2008.  In my prefacing remarks to the board, I referred to the proposed budget as "tight" and then, not really feeling that was an adequate description, I struggled for more appropriate words--they didn't come. 

We head into the new fiscal year with $1 million less than was approved in the budget last year.  During the year, SFCC and other colleges and universities endured two budget reductions, one in the fall following a special session and the other in the spring following the first week of the regular legislative session. 

Those of us who have been around for more than a few decades develop a certain philosophical outlook that allows us to see beyond the immediate pressures.  Yes, our budget is "tight"--whatever that means--but we'll be fine.  Economies cycle.  What goes down, must come back up again--eventually.  In the meantime, we make the best of our circumstance and appreciate the glass that is actually much more than half full.  And we focus on our mission--helping our students improve their lives through education. 

I'm extremely proud of the faculty and staff of our college for the way they are dealing with this current budget valley.  A couple of weeks ago during a staff meeting at which we had finalized our proposal for board consideration, we reviewed our budget processes over the past few years.  We were particularly interested in learning from the experience but also in acknowledging our success in dealing with the crisis.  We identified about a dozen factors that have allowed us to weather the storm. 

1. Funding of community colleges and of SFCC had been excellent in 2005 and 2006.
2. Late in 2006, we could see the signs of an economic downturn, and then in March of 2007 we paid great attention to revenue forecasts and other information and immediately initiated cost-saving measures.
3. During the years when funding was good, we made sure that we had a healthy fund balance and that we used non-recuring revenues from various grants for non-recuring expenditures only--avoiding continuing obligations as much as possible.
4. During the good funding years, we aggressively pursued state grants to offset the start-up costs of new programs and program expansions such as in nursing and the radiography program.
5. During the good funding years, we benefited from special equipment funding associated with new facilties being built on the campuses.
6. We kept the open door open!  With universities restricting admissions and more people seeking to upgrade their employability skills, it was vital to our communities that we welcome all students and facilitate their successful matriculation.  The enrollment increase of more than 11 percent in 2007-2008 also brought additional revenues.
7. The schedule was managed to optimize class sizes--maintaining quality--while ensuring that students could register for the classes they needed to graduate in a timely manner.  An 11 percent increase in enrollment adds about two students per section (on average) without significant additional cost.  We did have to add some additional sections where classes were already full.
8. We froze certain vacant positions as they became vacant, and we delayed filling other vacancies when we could.  We also eliminated vacant positions whenever possible through reorganizations and reassignment of duties to others. 
9. We made the obvious reductions in current expenses, materials, supplies, services, etc., while at the same time absorbing increasing costs of utilities.
10. We reduced capital outlay expenses in the operating budget and sought other sources of funding for equipment and facilities improvements.
11. We used conservative budgeting practices, underestimating revenues while realistically estimating expenditures.
12. Everyone understood and everyone cooperated. It was a great team effort!

There are many stories behind each of these factors, as you expect.  They're interesting, but now we've got work to do--there are students to be served.

For many years, Highlands County high school students have come to the SFCC Highlands Campus to enroll in technical education programs, earning dual enrollment credit for their college-level coursework.  These same students, averaging about 120 per year, are offered transportation to the campus by the school district and returned to their high school for other classes that are required for high school graduation. 

The Career Academy at SFCC is intended to allow these same students and others to stay at the college throughout the day, taking their high school classes at the SFCC Highlands Campus.  The students would enroll in technical education programs, pursuing an associate in applied science degree or technical certificate for half of the day, morning or afternoon, and then attend their high school classes for the other half of the day.  The high school classes would be taught by high school teachers based at the SFCC campus.  The technical program faculty are associated with SFCC.  A facility, Building L at the SFCC Highlands Campus, is being renovated for the high school component of the Career Academy.  The technical classes are already established at the SFCC Highlands Campus.

The types of programs that will be offered to Career Academy students are Auto Collision Technology, Auto Services Technology, Electronics Technology, Network Support Services, Drafting Technology, Food Management and Production Services, Medical Secretarial/Office Systems, Air Conditioning and Refrigeration, Cosmetology (limited access), and Dental Assisting (limited access).

As everyone realizes, the economy of Florida is in a slump.  State revenues and school funding for the coming year will be lower than the current year, and schools and colleges are expected to provide education for more students with less funding to pay for it.  Obviously, school and college administrators are required by their boards to prioritize their planned expenditures, spending their limited resources on those programs and activities that would benefit the most students. 

The opening of the Career Academy may be delayed for a year for these reasons.  It is expensive to start a new program.  New faculty must be hired, facilities need to be prepared, and supplies and equipment must be purchased.  In this case, most of the expense is the responsibility of the Highlands County School Board.  The SFCC technical programs that these high school students would take already exist, but the high school teachers based at the college campus would need to be hired or transferred. 

Whether to open the Career Academy next fall or in the fall of 2009 is an important decision, one that the superintendent and the School Board have to consider very carefully.  We at SFCC are prepared either way.  If the opening of the Academy is delayed or not, we're ready to work with the School Board to make it happen and to ensure the educational experience for these students is relevant and rigorous, the best it can be to prepare these young people for further education, careers, and fulfilling lives.

One of the truly rewarding consequences of spending a career associated with community colleges is seeing what a difference these institutions make in the lives of people.  Nowadays, most educators counsel high school students to continue their education after they receive their diplomas.  We feel very strongly that everyone should go to "college" after high school.  Perhaps this is an unrealistic expectation, but let me explain. 

First, some disclaimers.  What we mean by "college" is not necessarily the old image.  Not everyone needs a baccalaureate degree.  Furthermore, some may choose to delay going to college after high school for a variety of very legitimate reasons including military service, religious commitments, and family responsibilities, among others.  If you choose to join the military, one of the benefits you will gain is the opportunity to continue your education, either while in the service or after separation.  We urge you to take advantage of that privilege.  If you have a strong faith and responsibility to your religious traditions, by all means follow that path--it is a learning experience that is beyond high school that will help  you grow in your ability to deal with life's pressures and challenges, but don't forget to consider the long run and take care of the formal education you need to pursue your goals.  If you have family responsibilities that make it difficult to continue your education, come talk to us.  Many students balance college with family and job responsibilities quite successfully.  We can advise you on how to manage this.

It is very difficult in this millennium to find a fulfilling career without education beyond high school, and succeeding in the world of work without a high school diploma is just about impossible, unless you are very smart, very lucky, or both.  In Florida, the vast majority of today's high school graduates go to college right out of high school--about two out of three. Many of the others come back to college after military service, after raising families, or to seek new and different career possibilities. In DeSoto, Hardee, and Highlands counties, the percentage is lower than the state and national average, but it is still more than half.    

You may not realize this, but 85 percent of all adults over the age of 25 have a high school diploma, the most ever in the history of the United States--and the percentage increases every year.  You can verify this by visiting the U.S. Census Bureau Web site, where you should find a press release that reports this surprising statistic.  A century ago, 85 percent of adults did not finish high school.  Today, almost 30 percent of adults have at least a baccalaureate degree--also the most ever in history. 

The old notion of a "college education" needs to be updated.  Many people attend college to increase their knowledge and skills but without necessarily pursuing a degree.  Many jobs require a post-secondary certificate or license but not necessarily a college degree.  Many people who already have a college degree go back to "college" to prepare for new job requirements that may not have existed when they first took the job.  Many excellent careers do not require bachelor's degrees but do require various nationally accepted credentials.  Some of these careers offer an earning potential that is greater than other careers where a baccalaureate degree is expected.  In a nutshell, education should be a lifelong pursuit, because we live in a very dynamic world. 

I've known many people who were told, or who believed, they were not "college material."  I've seen them succeed in college.  Everyone is college material!  If you don't believe me, come visit us and find out what you can accomplish if you set your mind to it and if you get the kind of support you need to be successful.

The Florida Legislature is considering passage of a joint resolution proposing a constitutional amendment that would change the way education is governed in the state.  With passage of the joint resolution, the proposed amendment would appear on the ballot in November where it would require a sixty-percent approval of the voters before it would become part of the Florida Constitution.

There are several related issues in this debate. 

1. Should the chief education officer of the state be elected or appointed?
2. Should the State Board of Education be appointed or comprised of the elected cabinet officers?
3. How much and what control over education and higher education should be in the hands of the governor, the State Board of Education, the legislature, state-wide coordinating boards, and local boards of education or boards of trustees?

The current system of governance is relatively new having evolved over the past 10 years through a series of constitutional amendments approved by the people.  As it now stands, the commissioner of education is the chief education official in Florida and is appointed by the Florida Board of Education which is appointed by the governor.  One of the key principles behind this approach was the idea of a coordinated K-20 system of education for Florida.  Then, before the new system could even be fully implemented, the voters approved the creation of a Board of Governors for the university system, also to be appointed by the governor.  Immediately, questions of authority arose between the two boards, the governor, and the legislature over matters such as tuition rates, as well as the creation or elimination of programs.

The legislative joint resolution would place on the ballot a proposed constitutional amendment changing the Commissioner of Education to a state-wide elected position.  It would eliminate the appointed Florida Board of Education and replace it with the elected cabinet officers of the state who together with the commissioner would comprise the new Florida Board of Education.  This is the way it used to be in Florida. 

The legislative joint resolution also proposes a statewide coordinating board for public colleges authorized to offer associate and baccalaureate degrees--the 28 existing community colleges.  Over the years since 1999, eight of these community colleges have been authorized to offer specific bachelor's degrees in areas of critical need such as nursing, teaching, criminal justice, and various applied sciences.  Two more community colleges are approved pending funding, while several others are giving this strong consideration.   

Each of Florida's community colleges has a local board of trustees appointed by the governor which would have to approve any change in their mission such as the addition of baccalaureate degree programs of study.  The legislative joint resolution maintains and protects the authority of the local boards of trustees of these colleges.  In fact, it would establish their authority in the Florida Constitution for the first time.

At the heart of the matter is "control" of education, and in particular higher education.  There has been a four-way contest between the legislature, the Florida Board of Education, the Board of Governors of the University System, and the governor over that "Control."  Resolution of that debate has been and continunes to be the subject of litigation.   Frankly, this debate is not new and is not unique to Florida.  The joint resolution under consideration represents the Florida legislature's present effort to resolve the matter--until a future legislature and the people decide to change it again.

We know from experience, and from the model of the United States Constitution, that effective systems of governance require checks and balances.  Too much authority in any person, group, office, or branch of government has the potential for special interests to rule or for corruption to occur.  This will do long term damage to the system, to the state, and to the people.  We also know that excessive checks and balances often leads to bloated and expensive bureaucracy and political gridlock.  This can be a tremendous burden to the taxpayers and frustratingly unresponsive to the needs of the people.  The best system of governance for education balances these pressures very carefully.  There is an important role for elected and appointed officials and for professional educators as well.  Let's hope the Florida Legislature recognizes this in their joint resolution so that we have something worthy of our consideration on the ballot next November.

Yesterday afternoon, March 24, we joined a conference call with Senator Evelyn Lynn, Chair of the Higher Education Appropriations Committee.  It was not a pleasant conversation.  Along with approximately 20 other community college presidents, we heard about possible appropriations that would be as much as 6 percent less than what was received this year after the cuts.  In the current year, the SFCC budget absorbed two reductions for a combined $600,000 loss in state revenues. The first reduction was approved during the special legislative session last September, and we received official notification of the the second reduction last week after the governor signed the legislation.  This 4 percent loss of state revenue comes during a year when enrollment is soaring, up 15 percent and climbing.   

Community colleges, there are 28 in the Florida system, receive most of their operating revenue from the state.  For SFCC, tuition and fees amount to only about 17 percent of general revenues.  When the state economy is down and state revenues are down, community college funding declines.  For our system, the challenges that come with budget reductions are compounded because when the economy is down, people who are out of work or who are underemployed go back to school to improve their career prospects--thus, the large enrollment increases.  Add to this the squeezing out of students who want to attend one of the state universities, and you have the picture.

We did see this coming, fortunately!  In late February of last year, several of us attended a briefing by a trusted finance and political guru who knows the state economy better than most.  He warned us of the impending revenue shortfall.  We learned some time ago to trust his forecasts, and we immediately began to reduce expenses.  This is done by not filling vacancies that occur, freezing equipment and supply purchases, delaying new initiatives that are planned and budgeted, reorganizing to fill the voids created by the vacancies, and generally tightening our belts.  We managed to drive up our ending fund balance for FY2007 by a couple of percentage points, and this, along with continuing similar efforts during FY2008, softened the impact of the current cuts. 

And there was and is a silver lining.  The enrollment increase brought increased tuition revenues, and we are able to enroll some additional students without adding significant costs, but there is a real limit to this.  We also sought and received significant grant funding to support the expansion of the nursing program and the addition of the new radiography program.  There was a bit of luck as well--good timing!  The cuts came just as we were opening the new Health and Science Education Center.  With this facility, and any new facility, comes additional funding--from a different source than our operating revenues--a source that had not declined.  So our costs of operating the new facility, along with the new equipment and supplies, were mostly covered.  We were also fortunate that the previous two years of funding were among the best ever for SFCC and community colleges, when the economy was good.  We do our best to plan and budget for the long run, and it paid off.  We'll always accept good fortune when it shines on us.

Next year will be a very significant challenge!  We won't know the extent of the reductions until next month, or perhaps well into May.  In the meantime, we are planning for all contingencies.  Our first priority will be to make sure that our students have the classes they need, taught by the very best professors we can find, and that the faculty will have the supplies and equipment they need to do their jobs.  Beyond that, we'll endure until better economic times return, as they certainly will. 

Last night the SFCC Board of Trustees authorized us to enter into negotiations for architectural and engineering services as well as construction management for renovating the SFCC Auditorium.

This wonderful auditorium was conceived and built almost one billion seconds ago.  No one knows for sure how many performances, meetings, graduations, and other events have occurred in this concert hall during that time span (30 years for those of you who have run out of fingers and toes).  The creation of this facility was a community effort, as the plaque on the building proclaims.  The leaders of that effort were certainly visionary, and we all owe them our deepest appreciation, not only for their vision, but for their generosity as well.  This past season was my sixth, but I know there are many among you, our loyal patrons, who have been enjoying this cultural enrichment here in Florida’s Heartland for most of that 30 years.  Imagine how different life in our part of the state would be without this invaluable resource—I can’t.

We have a responsibility to protect this investment and to make sure that 30 years from now audiences will look back and thank us for our vision, our generosity, and for continuing to offer fine entertainment suited to the varied tastes of our patrons.  That is why we are undertaking the challenge of renovating the facility—to make the cultural experience even more enjoyable.  Modern performances use technology, sets, lighting, sound, special effects, and tricks of the trade that could not be anticipated back in 1978.  Building codes have changed, engineering of safety and environmental factors have improved, and even the comfort level of the seating available in modern auditoriums is far superior.  This community deserves a state-of-the-art theater and performance hall that can accommodate just about any production and any concert we desire to offer our audiences.

Last year we completed a feasibility study and determined that we can modify the stage area to accommodate modern sets, we can improve the sight lines and comfort for our patrons, and we can enlarge the lobby and other ancillary spaces necessary for today’s and tomorrow’s performances.  We have most of the money required, but we will need more to do the job the right way.  I’m confident our current patrons will be even more generous in their support than the amazing people who built this auditorium in the first place—almost one billion seconds ago.

Our preliminary plans call for completing next season's performances by early April of 2009, then immediately commencing with the renovation work—on a very fast track.  We would finish  the work in time for the opening of the 2009-2010 season, perhaps with a later than usual start. We do not want to miss a single show.

We could not do this without our loyal patrons!   I know that I speak for our Board of Trustees, the faculty and staff, and all of as at South Florida Community College when I say thank you for your patronage. 

Proposals are under consideration in the Florida Legislature that could expand the mission of community colleges in our state and at South Florida Community College.  I'm not wise enough to predict which legislation will win the current debate, but it seems clear to me that a consensus does exist among legislators about certain key ideas. 

There is a need for more baccalaureate degree opportunities for the people of our state.  That need could best be met through the existing system of community colleges.  We are the best institutions to accomplish this because we are local, accessible, affordable, and cost-effectively operated.  Already, nearly half of the state's 28 community colleges offer these degrees, or are planning to in the relatively near future.  We can do this without abandoning our primary mission, in all its essential comprehensivenss, while maintaining our "open door." 

South Florda Community College hosts a number of universities, public and private, that offer bachelor's, master's, and even one doctoral degree.  This is done through partnerships with these institutions.  This remains the most cost-effective strategy for accomplishing the objective of enhancing advanced degree opportunities for our citizens.  In the future, probably five or more years, it may be feasible for us to offer some of the high demand majors that are critical to our area.  This would include teacher education, nursing, and some of the applied sciences.   We will certainly evaluate our options.