AUBURN | Budget woes continue to increase at Cayuga Community College after its Board of Trustees approved a resolution Wednesday officially declaring a state of financial exigency at the school.

In an 8-1 vote, with John Camardo being the lone trustee in opposition, the board agreed to the resolution stating that the state of financial exigency will remain in effect until the trustees believe that the college's budget has been balanced.

This declaration means that the college is recognizing the urgency to fix its current financial situation that has suffered in recent months due to declining student enrollment.

The resolution states that the college will agree to take all necessary measures to put its revenue in line with its expenditures, which could include layoffs or salary cuts, as nearly 80 percent of the school's budget is made up of staff costs.

As trustee Stan Kott read the resolution to the board, he explained that because CCC's spending exceeded its revenues for the 2012-13 fiscal year, its fund balance has dropped below the 5 percent required by New York state guidelines. The resolution agrees to keep the state of exigency in place until the school's fund balances have been restored to "sound footing."

"We've worked through a long, hard process to try and balance this budget and we've done about everything possible," said CCC President Daniel Larson. "Given where we are right now, I think this is necessary."

In May, CCC announced that it had closed nearly $1 million of a $1.5 million budget shortfall for 2012-13 but still had about $567,000 to cut before the end of current fiscal year on Aug. 31.

After the college asked its employees to take furloughs to help close  the remaining deficit, three of the four unions at CCC were able to reach agreements with the school. The fourth, the Faculty Association, was never able to settle on a resolution and could face layoffs if one is not reached by Aug. 31.

Larson said that the bargaining efforts have been helpful toward closing the college's budget gap, but also said that there has been no contact with the Faculty Association since the last proposal was not agreed upon earlier this year. Although negotiations have gone cold recently, Larson said that the school is still open to conversations with the Faculty Association.

"There's still the possibility for discussions to resume and the college is willing to entertain that," he said, "but so far, there's been nothing."

Staff writer Kelsey Durham can be reached at 282-2237 or kelsey.durham@lee.net. Follow her on Twitter @CitizenDurham.

(9) comments

sorter
sorter

Larson says "no contact" with the faculty? The faculty and the Board had a negotiations session on July 9. That was just last week. Who is he kidding? The Board? Himself? or both? It looks like Larson and the board are trying once again to blame the faculty for the incomptence of the board and Larson and his administration. Does anyone else realize that when a college board declares financial exigency the declartion is supposed to be accompanied by the resignations of the board and the president? They have all just admitted they have run the college right into the ground. They all need to do the right thing and replace thmeselves with some people who know how to run a college before its too late.

patchwork
patchwork

"With this declaration means is the college is recognizing the urgency to fix its current financial situation that has suffered in recent months due to declining student enrollment."

Due to declining enrollment or to unrealistic projections? If the financial condition was so fragile that a minor blip in enrollments practically puts them out of business, then there's more wrong than what we're being led to believe. Might be time to consider new leadership and a focus that gets back to the basics instead of wasting time and money on a ridiculous investment in a downtown theater.

fullytaxed
fullytaxed

That sounds like the most reasonable thing to do, replace both the president and board. I'm amazed that CCC still chooses to take on more debt and liabilities with the Music Theater. How many more staff will that cut. Who in their right mind would choose to attend a college that is in financial distress. I may be too late already sorter.

Sage
Sage

CCC does not choose this path, Dr Larson and the BOT does.

dgfenn
dgfenn

Once again Auburn figures out a way to botch up another asset.

Sage
Sage

CCC Board of Trustees Meeting
May 13, 2013
Mr. Camardo read the following resolution:
Wherefore, terms have been approved by the three bargaining units – Faculty
Association, Administrational Professional Group, and Educational Support Professionals –
and drafts of each memorandum have been exchanged; and,
Wherefore, the agreements are ready to be finalized and signed by the College President
and the respective unions; and,
Wherefore, the agreements will address the current operating budget issue and provide
time for the College community to address its future challenges;
Now, Therefore, Be It Resolved, the Board of Trustees directs the College President, and
College counsel, to finalize and sign the agreements with each bargaining unit.
Motion to approve made by Ms. Carnicelli, seconded by Mr. Fearon and carried 6 to 3 with Mr.
Camardo, Ms. Carnicelli, Mr. Coleman, Mr. Fearon, Mr. Klink, and Dr. Van Buskirk voting “yes”
and Mr. Edwards, Mr. Karpinski, and Mr. Kott voting “no”.

longhats
longhats

I agree with those on this board. I have not read that declaration of financial exigency means that anyone at fault resigns (althought I believe it's the 'right' thing to do). From what I read, it means that the college can take extraordinary means to balance the budget - like laying off tenured people....maybe even force retirement.....not sure about that one. Seems like this President has not thought about the long-term effects of some administrative decisions that have been made. It is also sad that he is blaming teachers for low enrollment - it's demoralizing when teachers are already doing handstands trying to find ways to retain students - many of whom just don't show up for class. They've already raised the class sizes at the college both in-class and on-line...it's very crowded in some classrooms and class management becomes even more challenging...but then I guess everything comes down to the teachers....Personally, I am very against this 'theater' - waste of money.

Interested Party
Interested Party

CCC draws 85% of its first time full time students from Cayuga, Oswego and Onondaga counties. The enrollment decline is no mystery-it's demographics. And Fall 2013 will not resolve the issue. An additional 15% decline in high school graduates from the three counties is projected by the end of the decade. And "traditional students" take a higher credit load, so the College should anticipate a higher student FTE decline. A prudent course would be to plan a 3+% reduction in operating budget every year for the next seven in today's dollars (approximately 4.5% in the later years), along with some gently encouraged retirements (balanced between faulty and staff). Otherwise every year is new pain, as misplaced optimism runs into the wall of reality.

As far as the theater, SUNY and the County covered the capital cost. The only question is what are the additional annual operating costs minus any “non-imaginary” offsets? Add that additional cut to the proposed annual 3+% reduction.

CNYresident
CNYresident

Ask the President where the funds for the LEGAL FEES to fight John Camardo's brother, Joseph in court! The College spent money on that defense-oodles of money!

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