Campus Budget Update

December 18, 2023

Dear College Community,

I wanted to provide the college community with a budget update.  VP Rios recently met with the College’s P&B committee and shared with them the following and we thought it important to share college-wide as well.

In November 2023, the Mayor’s Office notified all agencies, including CUNY, that based on projected revenue shortfalls, they were imposing a 5% budget reduction for fiscal year 24, July 1, 2023 – June 30^th 2024. In December, the University was informed of a community college base budget reduction totaling $23 million dollars effective immediately, Kingsborough’s portion of the reduction totaled $4.6 million dollars, $2.3 million in our current fiscal year and $2.3 million in fiscal year 24, July 1, 24 – June 30^th 2025.

CUNY, based on first quarter revenue to expenditure projections determined that 9 campus with projected year-deficits would be required to submit revised financial plan – deficit reduction plans, which includes the mid-year reductions. In KCC’s case, that amount is $2.3 million dollars.

• Please note that for Kingsborough, these budget reductions are in addition to the $3 million base budget reduction at the beginning of this fiscal year.
• In addition to the City reductions to KCC of $7.6 million for fiscal years 2024 and 2025, CUNY imposed a mandated savings target of $5.894 million for fiscal years 2023 and 2024.
• We fully exhausted our Federal stimulus funding in fiscal year 2023. Between fiscal years 2023 and 2025, our resources have been reduced by $11.194 million in fiscal year 2024. This amount will increase to $13.494 million in fiscal year 2025.

We will be submitting a deficit reduction plan to CUNY indicating how the $2.3 million budget reduction will be mitigated. Similar to the budget reduction plan submitted last year, our submission will include additional non tax levy support and savings in various expense categories (full time staffing, part time staffing, teaching adjunct staffing, and OTPS).

As you know, the majority of all CUNY college expenditures are on personnel services. At KCC, 92% of our tax levy expenditures are personnel, as such, any deficit reduction plan will have an effect on campus staffing levels.

It is important to know that CUNY has implemented a hiring review process for 9 campuses (KCC is among them) to monitor and ensure approved savings plans are being met. The hiring review process will require us to submit requests to search for positions and the following requirements must be met:

• Vacancies must have occurred in the current fiscal year (7/1/23-6/30/24)
• 2 Vacancies must be given up for every new hiring request
• Exclusions to the above are Public Safety, Health & Safety and Revenue Generating.

Our structural deficit is a result of enrollment decreases the residual effects of the Pandemic, coupled with lack of Stimulus funds.

On a positive note, in Spring 2023 and Fall 2023, we have achieved an increase of 5% in enrollment each semester. Increasing enrollment will be instrumental in decreasing and eventually eliminating our structural deficit. I am confident given the proven efforts of our college community and especially our enrollment management, advisement and student affairs teams that we can achieve additional increases in the Spring and the coming year.

CUNY is working and advocating our government partners for additional resources that will off-set some of these reductions. The Universities fiscal year 2025 Budget Request to the State and City includes $429 million in additional resources, of this amount, $76.4 million is intended for Community Colleges. VP Rios will provide budget updates to the college community accordingly.

Colleagues, while I know that we face challenging times, I know that there is no challenge we cannot overcome as a college community.   I thank you in advance for cooperation and commitment to the work of student success.

Schrader