March 5, 2002

FROM:       David Habura, Interim Chancellor/CEO

SUBJECT:  CCS Guidelines for Hiring and Spending Freeze

The State’s revenue and expenditure forecast took a significant turn for the worse last month. As a consequence the Governor froze employment, travel and equipment purchases for agencies under his control, and called on institutions of higher education, and other agencies to do the same.

On January 7, 2002, I wrote:

"Because we are anticipating budget reductions next year, it is wise to act now to do all we can to mitigate the impact on programs and people. I recognize that an outright freeze on hiring now could produce uneven and often inappropriate consequences. On the other hand, filling every vacancy now can reduce flexibility and options next year. Therefore, I am asking that those with employment recommending or approval authority be sure to fully consider the consequences of each employment decision, in light of probable budget reductions, and that you affirm you have done this in your employment actions."

I regret that the worsening budget outlook for next year now calls for further action. I have discussed the broad elements of a freeze with representatives of the board, faculty, staff, and administration, including members of District Council. That does not necessarily imply consensus or agreement concerning the details that follow, but I assure you that the matter has been discussed before implementation.

I am asking that the Colleges, the IEL and the District exercise a spending freeze beginning March 6, 2002. The details of the freeze are described in CCS BUDGET ACTION below.

There will be several questions, so it may be useful to answer a few of the more obvious here.

Regarding Hiring:

Will the freeze impact individuals up for tenure this year?

No.

Does the freeze apply to all programs and all sources of funds?

Yes, at least for the present. It may be that we decide to exempt certain programs because of their funding source (e.g., federally funded), but we will need to discuss that further.

How can we be assured that a freeze will be fairly administered?

That is one of the toughest questions of all concerning any freeze. Regrettably, the very nature of a hiring freeze creates inequities. Positions open randomly over time without regard to employee groups or categories of employment, location, etc. so that it is virtually impossible to consider each decision against all others. We have given a panel consisting of the Presidents, Executive Vice President and Chancellor authority to grant exceptions. That is intended to bring those decisions closer to the point of impact. At the same time we have required that exceptions be subject to a before-the-fact advisory recommendation from the panel.

Does the freeze apply to recruitment for positions underway?

No. We do not know what our state budget will be. To stop recruitments in mid-process for positions that we might fill when we have final budget information would be unnecessarily disruptive. The determination point in these instances will be prior to the hiring decision.

We have left the option in 1.4 for the executives to decide not to initiate the recruitment processes, but have not made that a requirement of the freeze. The executive may proceed with recruitment, but then the position is subject to the freeze prior to the decision to hire.

What is the role of the panel (Presidents/Executive Vice President/Chancellor)?

The Board granted to the college presidents and the executive vice president responsibility and authority for hiring decisions within the respective institutions. Therefore the panel recommendation is advisory, not binding. The panel will assist the executives in making decisions in consideration of the impact on other district entities. The panel is not an appeal body.

Do these procedures apply to filling interim positions?

Yes, other than those positions the Board of Trustees has determined will be hired by the Board (chancellor, presidents, executive vice president). It is obviously not appropriate for the executives to apply a freeze to positions the Board reserves to its hiring authority.

CCS BUDGET ACTION

Guidelines for Hiring and Spending Freeze
Effective Starting 3/6/02

PURPOSE: To conserve funds and provide flexibility for the 2002-03 fiscal year.

  1. Hiring Freeze – Effective March 6, 2002, a hiring freeze is in place at CCS. The Hiring Freeze:
    1. Applies to all salaried positions where the Board of Trustees has delegated authority for hiring to the presidents, executive vice president, or the chancellor (see Board Policy 2.10.01). These are Administrative, Professional Exempt, Annually Contracted Faculty and Classified staff, other than the presidents, the executive vice president, and the chancellor.
    2. Applies to all funds administered by CCS.
    3. Applies to all vacant positions. Reasons for position vacancies include, but are not limited to:
      1. Resignation
      2. Retirement
      3. Long-term illness or disability
      4. New position
    4. At the discretion of the President, Executive Vice President or Chancellor, the freeze must be imposed:
      1. Prior to starting recruitment, or
      2. Prior to appointment (recruitment process has been completed).
    5. Exceptions to the freeze on appointments will be approved by the President, Executive Vice President, or Chancellor subject to the following prior consideration by a review panel:
      1. The request for exception will be reviewed and an advisory recommendation made by a review panel composed of the Presidents of SCC and SFCC, the IEL Executive VP and the Chancellor.
      2. The request for exception will include a written impact statement, which includes a statement concerning the consequences of leaving the position vacant and a discussion of alternative methods that were considered for fulfilling the position responsibilities.
  2. Overtime Restrictions

    No paid overtime is allowed unless approved in advance by a Vice President or equivalent.

  3. Other Spending Restrictions
    1. Travel
      1. In addition to the ongoing approval process, all out of district travel must be approved at the Vice President or equivalent level.
      2. Travel paid by student S&A funds is exempt from the freeze.
    2. Equipment Purchases - For this purpose equipment is defined as an item having a useful life of one year or more and a value of $5,000 or more. Includes equipment rentals or leases of $5,000 per year or more.
      1. All equipment purchases (and rentals) are frozen except for:
        1. Items purchased from Technology fee or S&A fee or State Capital funds.
        2. Items specifically required by a contract (sponsored program).
        3. Items required for health or safety reasons.
        4. Items already under contract.
    3. Exceptions will be considered following the procedures in 1.5 above.