FY2025 Budget: Actions and Decisions

1. Manage and reduce expenses
   1. Spending freezes (See Spending Freezes Guidelines).
   2. Reducing operational and budgets.
2. Generate and increase revenue
   1. Strengthening retention efforts and building enrollments.
   2. Monetizing assets.
   3. Review cost reimbursement and new fees.
3. Improve systems
   1. Policy and practices.
   2. Process and engagement.
   3. Personnel.

1. Set up contingency, operating, and capital reserves.
2. Approve a reserve plans that includes methods to replenish the reserve fund(s) if funds are used or targets are not met.

1. Support for foundation workplans.
2. Support for grants and partnerships.

In November 2024, Pat Sullivan, the director of Office of Financial Management (OFM) sent a statewide memo to agencies proposing budget reductions, starting with pausing or delaying programs, and considering hiring or other freezes. He urged state higher education institutions, boards and commission and separately elected officials to follow the same process. 

On December 2024, Washington State Governor Jay Inslee sent a memo directing state agencies under his control to freeze:

• Travel
• Hiring
• Non-essential purchases.

The Governor's request and other budget restraints require us to implement a spending freeze (Freezes are defined as a halt on previously authorized and future spending in a specified category and are utilized to realize savings.) and reassess:

• Hiring
• Travel
• Equipment expenditures
• Non-essential service contracts

We will also implement temporary restrictions on previously approved hires, travel and purchases. Mid-year budget constraints are unusual but do occur when fiscal realities make them necessary.

While we seek to immediately reduce FY25 (the current fiscal year) expenses, the freezes are focused on state allocation savings and are conscious of minimizing impact on program and operations effectiveness. 

Seattle Colleges may not fill a new or vacant position for those supported by the following funds:

• 001 and 101 (State Allocation)
• 149 (State Tuition)
• 146 for Running Start
• International revenues

All active searches will be suspended.  (An active search is defined as a position that has already been approved through CTCLink, AND has been posted and opened for search, is currently accepting applicants or where applicants are under committee review, and where an offer has not yet been made and accepted. 

Other personnel costs, including stipends, sabbaticals, exempt non-represented reclassifications, reassigned time are also suspended.

Hiring and Other Personnel Costs Exceptions

This freeze on hires and other personnel costs does not apply to positions or expenses that are:

• Funded 100 percent by self-support or revenue-backed programs including but not limited to private or federal grants (146 or 148), auxiliary services (520), student activity fees (522), lab fees (148) or allocated capital funding (147). (These fund types are independent from and are not impacted by reductions in the state allocation.)
• Explicitly necessary for compliance or legislative mandate;
• Explicitly accounted for by a collective bargaining agreement article; 
• Necessary to protect life or public safety;
• Necessary to protect data privacy and cybersecurity;
• Positions that, due to required specialized technical skillsets or due to specialized work, have no viable backfill.

Additional personnel management decisions may be necessary per the discretion of the college president (for college budgets) or chancellor (for district/district-wide budgets).

Seattle Colleges is suspending equipment purchases from the following funds:

• 001 and 101 (State Allocation)
• 149 (State Tuition)
• 146 for Running Start
• International revenues

Equipment and Goods Purchases Exceptions

The freeze on goods and equipment purchases does not apply to equipment: 

• Funded exclusively by self-support or revenue-backed programs including but not limited to private or federal grants (145, 146 or 148), auxiliary services (520), student activity fees (522), lab fees (148) or allocated capital funding (147)
• With a cost of less than $10,000
• Necessary for compliance or legislative mandate
• Necessary to protect life or public safety
• Necessary to protect data privacy and cyber security
• Necessary to carry out the core functions of a program or unit, with president or chancellor approval.

Additional equipment purchases may be necessary, per the discretion of the college president (for college budgets) or chancellor (for district/district-wide budgets).

Equipment and goods include furniture, equipment, and software with a useful life of more than one year and an individual unit value of $10,000 or more, typically accounted for as Objects JB, JC and JQ (as noted in Section 75.70.10 of the State Administrative and Accounting Manual). The prohibition covers both purchases and leases of equipment (Object EH). Splitting purchases during any fiscal period is not allowed and subject to audit exceptions.

Seattle Colleges is suspending non-essential service contracts from the following funds:

• 001
• 101 (State Allocation)
• 149 (State Tuition)
• 146 for Running Start
• International revenues

Non-Essential Service Contract Exceptions

The services contracts freeze does not include contracts, contract amendments or other agreements related to: 

• Funded exclusively by self-support or revenue-backed programs including but not limited to private or federal grants (145, 146 or 148), auxiliary services (520), student activity fees (522), lab fees (148) or allocated capital funding (147)
• Necessary for compliance or legislative mandate
• Necessary to protect life or public safety
• Necessary to protect data privacy and cyber security
• Necessary to carry out the core functions of a program or unit, with president or chancellor approval.

Additional service contract decisions may be necessary per the discretion of the college president (for college budgets) or chancellor (for district/district-wide budgets).

Seattle Colleges is suspending out of state travel using the following funds:

• 001
• 101 (State Allocation)
• 149 (State Tuition)
• 146 for Running Start 
• International revenues

Representation and participation in WACTC commissions and councils, and with SBCTC-provided professional development and meetings will still be supported.

For non-SBCTC participation, employees will be required to attend conferences or meetings remotely if the option is given for all travel (in-state and out-of-state). If the option is not given, president or chancellor approval will be required.  

The number of attendees per department to any single event will require approval from the president or chancellor. 

International Program recruitment travel funded by international revenues requires Chancellor approval prior to submission for Travel Authorization. 

Travel Restriction Exceptions

The travel freeze does not apply to:

• Funded travel where the employee has been selected to present at a conference or workshop on a topic specific to their work for Seattle Colleges.
• Travel funded exclusively by self-support or revenue-backed programs including but not limited to private or federal grants (146 or 148), auxiliary services (520), student activity fees (522), lab fees (148) or allocated capital funding (147).  Important Note: Travel funding offered widely from district-wide available funds, regardless of fund source, will require college president approval. 
• College and districtwide official representatives to WACTC Commissions and Councils (e.g. WSSSC, WEC, BAC, DEOC, etc,) will still be expected to participate, remotely if available, or in person if unavailable.  

Additional travel approvals may be necessary per the discretion of the college president (for college budgets) or chancellor (for district/district-wide budgets).