Action Updates
Tuesday, June 16, 2009 I just wanted to send a brief note of thanks to everyone who helped yesterday with our demonstration against faculty and staff lay- offs. As you have probably heard we did not prevail and the lay-offs of our counselors was not rescinded. However, the total lay-off number is 23, not 30 or 37 which were numbers that had previously been discussed. Those who participated helped us be heard by the board, and we will be watching and proceeding with next steps. Look for a more detailed message from Cindy and a newsletter from MAHE. Stay strong and don't be discouraged by the discouraging actions of our college leaders. Thanks again, In solidarity, Sally Pierce, MAHE Crisis Team Chair
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An Emergency Letter to the Board of Trustees from the LCC Labor Coalition
LCC LABOR COALITION June 11, 2009
RE: URGENT Dear LCC Board of Trustees:
Today the LCC Labor Coalition met with David Hilquist and Catherine Fisher to discuss the proposed FY10 budget scheduled to be approved at the Monday, June 15, 2009 Board of Trustee meeting.
We were shocked and disappointed to learn the following:
· Marble Leadership Partners deliverable to LCC consists of a 23 page PowerPoint presentation. Despite numerous requests we have been unable to obtain any backup information. David Hilquist, Catherine Fisher, and David Fernstrum confirmed that they had never seen supporting documentation for the 229 “Improvement Opportunities” contained in the PowerPoint presentation. This is what we paid $350,000 for? See attached RFP, Scope of Work.
· There were numerous errors in the assumptions used for the FY10 budget that CFO Fisher identified for us.
· The process for determining any and all opportunities for cost savings was determined by three employees - Sr. VP Shanblatt, SR. VP Chase, and Dr. Knight, and David Hilquist, a financial consultant. We were told this group made the decision based upon “the experience of the people in the room, their understanding of the college, and how to make it more efficient and effective.” At least two of the people are new to the college (Knight and Hilquist). Is this the transparent and collaborative process you were expecting?
· We were not able to obtain any information on what specific positions were being targeted for layoffs or what process was used to recommend a projected employee reduction. We were also informed that nothing was written down. We were in attendance at the Board meeting where you, the Trustees, attempted to obtain this information and we are very frustrated that no one will tell us the process.
· David Hilquist, financial consultant, will continue to be a consultant but receive a title of Interim Sr. VP of Administration. There are several concerns: (1) He is a consultant, (2) He is being hired into this position while ignoring a national search for which he did not apply, (3) Without any consideration of Affirmative Action, (reference lawsuit from his prior college) and will supervise employees, (4) We are laying off other employees and hiring Sr. VPs, and (5) Hilquist will not be required to be present everyday for work. This is similar to the situation we had with Dan McCormick. Please note that our calculations show that David Hilquist will earn $210K for ten months work in 2009. This sounds reminiscent of Lee Whipple, and he is making more than our president as well.
· This is the second administrative position hired without a competitive search (e.g., Director, Institutional and Academic Policy, and now the interim Sr. VP Administration) and both from Illinois. Wouldn’t it be more appropriate to promote from within or hire Michiganders who are out of work? What happened to Michigan First? Why are we hiring administrators from Illinois while we are proposing to lay off Michigan administrators?
· We were informed that there would be increased consulting costs in the coming year due to collective bargaining. Didn’t the college hire 8 experienced human resource administrators with collective bargaining as part of their job responsibilities?
· There is $15,000 in the FY10 budget for a “dependent audit” to validate employee’s dependents covered by health care. Currently, MESSA, HAN, and Assure Care all perform this process. We do not understand the redundancy of this initiative. Secondly, we just hired 8 new human resource high level administrators and isn’t this something we could do internally?
· College has chosen not to maintain the tuition stabilization fund of $3.15M. By the college choosing not to use this tuition stabilization fund it is causing us to start off with a deficit. Coincidentally this is virtually the same amount of the budget shortfall.
· In the document FY10 Proposed Budget Narrative the college is recommending $3.075M for Plant Improvement. Coincidentally this is virtually the same amount of the budget shortfall.
· In the document FY10 Proposed Budget Narrative the college is recommending $3M for Technology Infrastructure. Coincidentally this is virtually the same amount of the budget shortfall.
· Despite the fact that we have an 18% enrollment increase for summer and historically we know that community college enrollment increases when the economy is in trouble, no increases in revenue have been incorporated into this budget, but rather administration is calling it a “wash.” However, they could not explain what that meant.
· We are adding 350 course sections; clearly we are going to see revenue from this increase in enrollment.
· Despite the fact that the Labor Coalition has recommended a reduction in the use of employees from temporary agencies, consultants, and overtime, approximately an additional $500K in temporary agencies and overtime alone could be cut. The cuts in these areas have been minimal.
· In the document entitled Proposed Budget Cuts there was a category cutting travel however we were informed Board of Trustee meals would not be cut.
· Over the past year there has been considerable senior college administration bloat. At one time the college limited the number of level 9 – Executive Director, level 10 – Deans, and level 11- Vice President. In the past year the position of Sr. Vice President was created, in addition to several new level 9 administrators.
The document entitled Timeline of Budget Events is inaccurate. It gives the impression that this was a collaborative process that started in January. Still to this day, we can not make informed recommendations since college administration will not disclose which employees will be impacted by the proposed layoffs. An outcome from our meeting today is a list of over 26 requests for additional items, and we are uncertain as to when this information will be received. Likewise, we believe the Board of Trustees has not had adequate time or information provided to support approval of the FY10 budget.
In the last two fiscal years the college maintained a tuition stabilization fund of $3.15M. We recommend that the college utilize $3.15M to maintain the tuition stabilization fund which will eliminate any alleged shortfalls in the budget. This money came from State appropriations and should be utilized in our general operating budget. This action leaves the college fiscally sound with an unrestricted fund balance of $15.5M in addition to the $1.2M contingency fund. Your approval of the FY10 budget as is currently proposed will in effect be voting to layoff up to 37 employees. In conclusion, the LCC Labor Coalition recommends that the Board of Trustees approve the FY10 Budget with any from the excess fund balance and commit this summer to working together toward identifying cost savings to avoid layoffs. Additionally we request that you rescind the notices sent to the three counselors.
We greatly appreciate your attention to our questions and hope that you will assist us in obtaining answers to these and other questions prior to considering any reduction in force.
Respectfully submitted,
LCC Labor Coalition
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Written on Wednesday, June 3, 2009, 11:07 p.m. by Sally Pierce, MAHE Action Chair: Hello! Several members and supporters came by the MAHE office on Tuesday, June 2nd, and worked until after 10:00 p.m. to help strategize and prepare for Thursday's demonstration. I have been receiving numerous e-mails and calls from members. It's good to hear all of the support and ideas. Cindy and I have made preliminary contact with the press. I'm working on more of that tonight and tomorrow morning. Thanks to all so far - WE HAVE TO KEEP GOING - OUR STUDENTS AND COLLEAGUES NEED US! Please talk to each other when you can. Collectively we can figure out many ways to resist the unnecessary lay-offs that Dr. Knight and the Board seem to be contemplating. Did you know that the college as has over $121 Million in reserve funds in the budget? Many of us can and have pointed to waste. If the LCC Board will demand that Dr. Knight listen to us, LCC labor stands ready to discuss what can be done to save jobs (Should we auction off a segue?) Additionally, the labor coalition brainstormed talking points at their meeting Tuesday, and our executive committee met to create a strategy to help us through this crisis. The MAHE Executive Board decided to send fewer delegates to the NEA RA in California this summer to preserve the funds we may need to have to defend our members and prepare for upcoming bargaining. Here are some other facts we have to share:
Please call my cell phone: 517-282-2725 with any concerns you may have. I will be available most of the morning on Thursday. We need members to continue to help write letters to the State Journal, write e-mails to the Board members, blog, write statements for public comment, call other members or board members and MOBILIZE! We are asking members to WEAR RED; a shirt, a scarf, a ribbon or hat, as a show of solidarity with us Thursday. We will be demonstrating at the Administration Building, 610 N. Capitol Avenue, Lansing, Michigan 48933, beginning at 4:00 p.m. The Board Meeting is scheduled to begin at 5:30 p.m. and we encourage participation during public comment. We've made a good start, but there is much more that needs to be done before tomorrow's demonstration. Please consider making one more phone call, or writing an e-mail - you get the idea. WE NEED YOU AND EVERY COMMUNITY MEMBER TO COME AND STOP THE MADNESS. In solidarity, Sally Pierce, MAHE Action Chair 517-282-2725 pierces@lcc.edu MAHE Office: 517-483-1891 mahe@lcc.edu
