The school has halved its projected deficit; board weighs more cuts.
Discounts include directors suffer a 5% pay cut and waive other benefits; Superintendent / President Kathleen Rose and senior management declining their salary increases by 5%; allow certain open positions to remain vacant in the coming year; and updating Gavilan’s lease with Morgan Hill for its campus there. Paid with Measure E funds, the Coyote Valley campus has lost money and the district will be working on a joint powers agreement with the Santa Clara County Training Academy.
“New estimates on expected local revenue for the district further reduced the forecast deficit for 2020-2021 to $ 4.5 million,” said Jan Bernstein Chargin, director of public information. “This will continue to decline as the college studies further reductions and brings additional proposals to the board in the coming months.”
Despite significant progress in reducing its budget, directors remained concerned at the June 22 meeting.
“The situation is very serious right now,” said administrator Jeanie Wallace. Referring to the current deficit, board chair Rachel Perez said: “We have to reduce it.”
Several options have been put forward to reduce the deficit. Vice President of Administrative Services Michael Renzi has suggested trans loans, similar to payday loans, an idea that has been greeted with concern by several trustees.
Another option was to review Gavilan’s salaries, as they represent 86% of the total budget. Following the cuts in salary increases for senior managers, there was some discussion that it may be necessary to reduce the salaries of other staff.
In a public letter to trustees presented at the June 15 meeting, former Gavilan College president and superintendent Steve Kinsella said, “The solutions lie in the 85% of salaries and benefits. If you reduce that number to 80%, your money problems will be solved. “
Administrator Laura Perry objected to staff knowing that pay cuts could happen because there might be a way to avoid them.
“You don’t have to panic,” she said. “The state always comes for us. ”
Administrator Irma Gonzalez again asked Rose to bring the Fiscal crisis and management assistance team to help put the college in the dark. Directors discussed the benefits of producing a five-year budget, but it was decided that due to the large projected deficit, annual budgets would be a better way to go.
Gavilan’s 2020-21 budget is expected in September.