JOHN GRINDELPRESIDENT’S MESSAGEDECEMBER 9, 2002

As you may have heard, the Governor called a special legislative session today to begin dealing with a $6 billion mid-year shortfall facing the State. Among the proposals that the Governor has sent to the legislature is a $215 million mid-year cut to the community colleges.

The potential impact of this cut to Cerritos College could amount to as much as $3.2 million for the present fiscal year. Over the past six months we have enacted a number of cost-saving measures to deal with the budget crisis in Sacramento. These include:

• Implemented budget reductions for 2002-03 fiscal year
• Implemented early retirement incentive plan
• Issued COP to refinance existing debt
• Implemented staffing chill
• Implemented capital outlay chill
• Established “cap” for health insurance premiums
• 0% salary increases for all staff

Moreover, in conjunction with the Planning and Budget Committee we have already begun to identify possible scenarios for deeper cuts to our budget. Hopefully, the proposed cuts to the budget of the community colleges will not be as severe as the Governor is proposing.

I want to thank each and every one of you for your efforts during these difficult times. I assure you that I will continue to diligently work with my vice presidents, our board of trustees, and our local legislatures to maintain the excellence that our students have come to expect from us.

Given the size of the potential cut to the College?s budget at mid-year, I have decided to impose immediately the following freeze:

1) All new hiring requests

2) All capital expenditures

3) All travel (local and out-of state)

Any exceptions to this directive will need to go to the vice presidents and myself for approval. Come January, I hope to have a better picture of what will happen in Sacramento and will review the freeze again when we return from the holidays.

Again, thank you for your understanding and patience through this budget-tightening process. Between now and the time we break for the holidays, I will keep you abreast of the situation in Sacramento.