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Layoff notices to include top officials
The Advocate
Seven layoff notices were issued to faculty members Mar. 31 as part of preparation for the 2012-13 budget proposal and MHCC President Dr. John "Ski" Sygielski said he expects administrators to receive notices as well.
"There will be administrative layoffs," he said in an interview Tuesday night.
The names of the faculty members who are up for contract renewal will be listed in the April 13 board agenda according to vice-president of administrative services, Heidi Franklin.
"This doesn't necessarily mean those who received notices will not have a job," said Franklin. "They could possibly bump somebody with less seniority out of their position."
Franklin said two years ago when the college issued layoff notices in the budget proposal, the notices were not honored because of the raise in the reserve fund from five percent to seven percent.
"The more volatile revenue is, the more reserves you need to cushion your volatility," Franklin said about why the board decided to raise the fund requirement.
Franklin said even with "deep cuts in the middle of a biennium" the college was able to prevent any layoffs.
In response to the possibility of administrative layoffs, Franklin said administrators are non-represented employees and do not work under contract.
"It is clearly stated in the faculty contract that the college is to provide layoff notices by Mar. 31," she said.
In order to include the layoffs as part of savings in the budget proposed to the board on April 20, Franklin said it's in the college's best interest to issue those layoffs by the date stated in the contract.
"The college is only required to issue administrators a 60 day notice," said Franklin. "We haven't had to do that yet, but they will be in the proposed budget April 20."A second question that has arisen about the proposed budget is regarding the increase in P.E.R.S (Public Employee Retirement System) to $1.8 million, which Sygielski said is one-third of the projected budget shortfall.
Franklin said, "P.E.R.S is a retirement system that makes its money off of investing. They lost a certain percent of their portfolio when the economy started crashing in 2007 through 2008. In Sept. 2010 they set the rates for 2011-13 and had to make up for the losses in the portfolio, otherwise they wouldn't have enough money to cover obligations to pay retirements."
MHCC district board member Brian Freeman said in an email Wednesday, another reason for the increase in reserve requirement is due to the college's bond rating.
"Our bond rating is dramatically affected by our ability to live within our budget and our ability to maintain financial reserves," he said. "Over the last ten years since I have been on the board we have experienced extreme ups and downs in the funding we receive from the state."
MHCC has not been able to pass a bond measure for 38 years and Franklin said it's because of the reputation East County has for voting down any tax measures.
Another reason for bond measures failing, Franklin said is because of visibility in the community.
"The visibility of Mt. Hood isn't as good as P.C.C. (Portland Community College) is in Multnomah County," she said. "But MHCC isn't involved in the campaigning for a bond measure."
Freeman said, "If we want the voters' confidence that we are being prudent with their money, we must adopt budgets that provide funds to protect our infrastructure while maintaining a wage and salary structure that is fair and reasonable."
"The board is keenly aware of the many deficiencies in our infrastructure that need to be addressed and we are eager to ask our voters to help us fix them by passing a bond," he said. "We are asking all of our employees to understand the connection between the budget and the college's future and to help us persuade our voters that we deserve their trust."
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