College faces freeze

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June 22, 2007

Cut in state funding could halt pay raises

By Bob Belcher The Corsicana Daily Sun Fri Jun 22, 2007, 08:51 AM CDT

Navarro College trustees were told Thursday college administrators are considering recommending a freeze on pay increases for the next two years as a way to neutralize a state funding shortfall. The action would raise just over $1.6 million over the next two funding years, enough to cover a possible shortfall in state funding for health care benefits for college employees.

College President Dr. Richard Sanchez told trustees Gov. Rick Perry’s recent line-item veto of $151 million to community colleges for health benefits is the reason he and Darrell Raines, vice-president of finance for the college, began looking at ways to make up the anticipated shortfall. Barring action by the Legislative Budget Board or Perry re-instating the funding, the college will see the actual impact during the 2008-’09 budget year.

Also included in the plan Sanchez presented to trustees was a freeze on hiring for two open positions; one assistant dean in Ellis County, and one police officer’s position that would not be filled pending final resolution of the funding question. Sanchez said those savings, about $100,000, would be used for “emergency equipment purchases.”

Sanchez said he and Raines considered several options, among them tuition and fee increases, a freeze on all travel, eliminating tuition reimbursements and a possible tax increase. He cautioned trustees any tax increase above the “rollback” rate could trigger a voter challenge to the hike. Raising taxes to the rollback rate, he said, would provide only a “minimal” increase in revenue.

“Gov. Perry said that community colleges have plenty of money. I don’t know where he came up with that,” Sanchez said of Perry’s line-item veto. Sanchez said the action by Perry has upset a number of legislators, and the legality of Perry’s cut in funding for community college health benefits while leaving university health benefits intact will most likely be challenged.

Should the funding for health benefits be re-instated, the college could give pay increases to its employees, a recommended five percent in 2007-’08, and two percent in ’08-’09, Sanchez told trustees.

The majority of trustees at the meeting were not happy with the actions of Perry, nor were they in favor of a pay freeze.

“Could we not just do everything, or a combination of several things, but not as much?,” asked trustee Dr. James Price.

“I think our employees have to have insurance. They’ve got to have insurance,” board chairman Homer Wasson said.

“Anybody in his right mind wouldn’t do this,” Wasson added of Perry’s veto.

Trustee Liston Herod asked if employees could perhaps pay more of the cost of insurance, but Raines said the state set the rules for the costs of insurance and how much the employee had to share in the cost of the benefits.

“So they are setting the mandate but not the money,” said Herod.

“That’s not fair,” added Wasson.

At the request of trustees, Sanchez said he and Raines would develop several scenarios for their consideration to address the projected shortfall.

Sanchez will bring the proposals to the board at its July 19 meeting.

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Bob Belcher may be reached via e-mail at belcher@corsicanadailysun.com

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