Victor Valley College and deficits

The Daily Press reports that the ACCJC is going to ding Victor Valley College due to financials.  What is particularly interesting about this is the issue of employee salaries and benefits.  The article states:

VVC’s Chief Financial Officer GH Javaheripour reported in September that the deficit for 2013-14 was projected to be $3.8 million. However, the college’s latest follow-up report to the Accrediting Commission for Community and Junior Colleges reveals a deficit that reaches $5.6 million in 2013 and is expected to increase by $700,000 due to rising health insurance costs and step and column salary increases.
The ACCJC wanted changes to collective bargaining.  The article states:

According to VVC’s March 17 report to the ACCJC, the ACCJC Financial Panel recommended that VVC balance its budget by altering collective bargaining agreements to restore some flexibility in spending, as well as reduce the rate of increases of benefits and personnel spending. This year college officials told the ACCJC that they would reduce their deficit in part by increasing their revenue by $3.25 million. Measures to do that include using $2 million from the interest of the GIC, recovering $250,000 of “mandated costs,” $711,000 from a Cost of Living Adjustment and $300,000 in growth funds. Another $2.914 million is being targeted for reductions in expenses through various negotiations with faculty, classified and management.
If the ACCJC gets its way, this would affect collective bargaining throughout the California Community College system.  Collective bargaining is one of the reasons why Unions exist.  

Comments

Popular Posts