By Mark Hansel
NKyTribune managing editor
The Gateway Community and Technical College Board of Directors recommended approval of the 2016-17 budget Thursday evening, but not without some stipulations.
At a special meeting Tuesday, Board members expressed frustration that they were being asked to support the budget, with just two days to review the document.
They were also disappointed about the lack of detail provided in the unrestricted budget breakdown, which includes a reduction of more than $2.3 million, compared to the previous year.
“All I can do from this is, ‘the math works,’” said Board member Joseph Creaghead.
Interim Gateway president Dr. Vic Adams urged the Board to support the budget proposal.
“We’re building a structurally balanced budget,” Adams said. “I need the support of this Board.”
Board members were told Tuesday that the budget would be sent on to the Kentucky Community & Technical College System, and would almost certainly be approved, with or without their recommendation.
Gateway is in the midst of a search for a new president to replace Ed Hughes, who resigned abruptly in September after 14 years.
Since Hughes resigned several questions have been raised about his tenure, including the propriety of an incentive from the Gateway Foundation that is expected to pay him $348,000 over the next 10 years.
The Gateway Foundation is the independent, charitable arm of Gateway Community & Technical College. KCTCS legal counsel has indicated Hughes violated regulations by failing to report the money as outside income.
Adams, who has been in his role for just 40 days, is also the second interim president at Gateway since Hughes resigned. Dr. Keith Bird stepped down from the interim job in March, citing personal reasons.
Adams said it might send the wrong message to the prospective candidates for the president’s job if the Board chose not to recommend approval of the budget.
The Board agreed on Tuesday to meet again Thursday night and, in the interim, would develop a list of supplemental questions to be included with its recommendation for approval.
One of its primary concerns was that nearly $2 million of the proposed reductions would come from personnel, but there was no breakdown of where the cuts would be made.
Adams said Thursday that nine employees had already been informed their contracts would not be renewed. The list included one faculty member, two non-teaching faculty, two administrative staff and four staff members.
Approval of budget resolution comes with conditions
Communicating by email over the previous 48 hours, Board members developed the following list of Supplemental Questions to include with the 2016-2017 Budget Approval resolution:
*An explanation of underlying assumptions and strategic priorities in 2016/2017 Budget
*Sources of $3,278,000 reduction in expenses over the 2015-2016 Budget (This includes restricted and unrestricted funds
2015-2016 Budget Total Expenses: $37,149,500
2016-2017 Budget Total Expenses: $33,871,000
*Instructional Expense and Headcount by Programs of Study
The 2016-2017 budget includes $9,871,900 in Instruction Expenses, representing a reduction of $1,408,700 over the previous year. The Board wishes to better understand funding and faculty headcount by the Programs of Study listed on the college’s website here .
*Budget and Headcount by Department
The Board wishes to better understand the allocation of these funds and faculty headcount by the Organization Chart available on the college’s website here .
*Student enrollment by Campus and County, as well as a breakdown from the River cities
*Employment by level with year-over-year comparisons of administration, faculty, staff and vacant positions.
*Definition of “financial emergency” as it applies to notification of employees of a reduction in headcount due to termination, layoff, or contract non-renewal.
*Faculty and staff development budget
*If we continue to see a reduction in tuition dollars, can we afford to increase our commitment to those programs that do not generate tuition – like Ky Trains and other non–credit programs?
*What investment is being made to reverse the downward trend in student population? Looks like a “going out of business” scenario if we don’t do something.
*What is the cost per teaching hour for each program and what are the assumptions for participation in each program? Are some of these loss leaders?
*Does this budget assume further staff reductions if the attendance numbers are met?
“In order to accommodate the short timeframe in the budget approval process this year, the Board has approved the budget with the understanding that the information requested in the attached document “Supplemental Questions to 2016-2017 Budget Approval” will be provided in good faith as soon as possible.”
Initially, the Board had requested a response within 30 days, but Jamie Younger, vice president, business affairs indicated that timeline was unrealistic, so the “good faith” language was substituted.
Adams was able to answer the final question by explaining that the staff reductions just implemented would allow Gateway to submit a balanced budget projection.
Pam Duncan, KCTCS legal counsel, suggested the Board approve the list of supplemental questions as a separate resolution, to avoid any potential legal conflict, but Board members stood firm.
“The public expects us to know a little more than we have in the past,” Board Chairman Jeffrey Groob said. “I would not vote for this resolution if they are not linked.”
Field narrowed for next Gateway president
Jackie Cecil, director of human resources for KCTCS, said the list of applicants interested in becoming the next president at Gateway has been narrowed from 37 to eight.
“They submitted video presentations…and those presentations have been supplied to the screening committee,” Cecil said. “Once we have reviewed them, we will narrow down to the (three) finalists that will be invited to campus.”
Once that decision is made, the finalists will submit to a series of on-campus interviews on May 26-27. Following the interviews, the Board will meet in executive session, then make a recommendation to KCTCS president Jay Box, who will formally offer the position to the candidate that is chosen.
The goal is to have a new president in place by July 1.
Contact Mark Hansel at mark.hansel@nkytrib.com