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PCC Begins Budget Cuts to Offset Measure 47

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PCC executive officers have been meeting since the November passage of Measure 47 to plan reductions to the general fund budget for the next two fiscal cycles, 1997-99. The college is targeting cuts of approximately $3 million over the biennium to offset limitations imposed by Measure 47 on maintenance and equipment funding through bond monies.

The measure, which passed by state-wide ballot in the November general election, states that institutions cannot use bond monies for maintaining facilities or purchasing equipment. Because of this restriction, the college must use general fund monies, intended primarily for instruction and support, to pay for maintenance and equipment. Therefore, the college plans to cut $2.5 million from the budget to earmark resources for these items. Another $500,000 in cuts will be made to offset the deficit incurred from Measure 5 limitations.

College officials are basing these initial cuts on the supposition that property taxes lost due to the "cut and cap" aspects of the measure will be replaced by the State. Gov. Kitzhaber released his budget document in early December.

Following its release, PCC President Dan Moriarty called the Governor’s budget "enlightened" and "forward thinking" and said he was "hopeful that the Governor’s plan will be implemented. I am very impressed with the Gov. Kitzhababer’s commitment to education. It is apparent from the budget that it is his number one priority."

If replacement revenue is not made up by the State, the college will develop a plan to make deeper cuts to services and programs to balance the general fund budget. The current general fund budget for fiscal year ’96-97 is $87 million.

The details of the college cuts will be made public Friday, Jan. 10, in anticipation of the board of directors meeting the following Thursday, Jan. 16.

The president has been holding forums about the budget, including underlying assumptions and budget principles. College officials agree that strong instructional programs and student services which are cost-effective and support the mission and goals of the college, receive top priority. Essential services also receive high priority. The college’s investments in its facilities and technology will be maintained.

Contact: Jan Coulton, Public Affairs, 977-4374 or Susan Hereford, Public Affairs, 977-4421.

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