City College accreditation in jeopardy, report says Higher education Declining funds said to jeopardize accreditation of state's largest school

Tracey Western waits to speak to an admissions clerk on the main CCSF campus in San Francisco, Calif. on Friday, June 29, 2012. Tracey Western waits to speak to an admissions clerk on the main CCSF campus in San Francisco, Calif. on Friday, June 29, 2012. Photo: Paul Chinn, The Chronicle Photo: Paul Chinn, The Chronicle Image 1 of / 8 Caption Close City College accreditation in jeopardy, report says 1 / 8 Back to Gallery

As California cut millions from community colleges in recent years, City College of San Francisco dipped deeply into reserve funds to keep itself afloat.

It opened sparkling new buildings, but left little money for computers. It spent an unusually high portion of its budget on faculty, but pared leadership to skeletal levels, unlike other schools that won't "chop from the top," as students often demand.

Now City College is in trouble.

An accreditation evaluation obtained by The Chronicle before its expected release next week offers a rare look at the inner workings of the vast college and why its all-important seal of approval is in jeopardy.

"The Accrediting Commission has issued an urgent call to action, which we take seriously," said City College spokesman Larry Kamer, a consultant hired to represent the school during a tumultuous period.

City College is the largest school in the state, yet employs just 39 administrators.

More than 90,000 students rely on it for a leg up into higher education, to learn a vocation, study English or just take an interesting class. Nearly 2,700 people work at one of its nine campuses or 100 to 200 "instructional sites" - no one is sure of the number - peppered throughout the city.

City College won praise from the Accrediting Commission for Community and Junior Colleges for successes, such as its diverse faculty and high-quality, though insufficient, libraries and counseling.

But the accrediting team identified serious deficiencies, mainly the college's failure to realistically address its declining funds.

14 recommendations

The study makes 14 recommendations, from assessing whether every campus is needed, to improving the experience of its leaders. And it "makes clear that there are a number of very difficult choices that have to be made immediately," Kamer said.

In particular, administrators have done little to bring expenditures in line with available cash in the six years since the last evaluation.

City College "has been ineffective in developing and implementing a comprehensive budget planning system that addresses its lack of resources and declining budget," the study says.

The commission isn't expected to yank City College's accreditation when its report is made public. But the college may be placed "on sanction" - a watch list - for failing to satisfy all accreditation criteria, from financial planning to leadership.

Accreditation, while voluntary, ensures that students' credentials are legitimate. And schools can't offer financial aid without it. The federal government has also cracked down on accreditation agencies, requiring them to hold colleges accountable for showing that their vocational programs prepare students for employment.

Of the dozens of such programs at City College, only one, Culinary Arts, tracks job placements, the team found.

Money and leadership

But the most pressing problems involve money and leadership.

City College typically spends more than it has, this year by nearly $6 million, the team found. It also relies on one-time cash for ongoing needs, has let unfunded retirement obligations balloon and keeps financial reserves "well below the prudent level."

Meanwhile, few are minding the store. Several administrators are interim appointees, some with too little experience for a school of its size, the study found.

"Positions remain vacant and sorely needed," said the team, which found administrators "overtaxed with additional duties."

The study found no shortage of faculty. City College spends 92 percent of its operating budget on salaries and benefits. By contrast, the San Mateo County Community College District spends 85 percent on employees, and the East Bay's Peralta District 83 percent.

Karen Saginor, president of the Academic Senate, shrugged off the employees' high budget share, saying San Francisco is an expensive city.

"The college has made a choice about which it would rather have: administrators or teachers," she said, noting that faculty and staff have accepted salary cuts.

Yet there's more to the story. City College gives full-time benefits to half-time employees, college officials said. Department heads also enjoy unusually strong budgetary power, influencing their own salaries.

Tough assignment

Although Saginor called the accrediting team's conclusions harsh, she said they must be addressed.

"They want us to downsize our mission, and that will be tough for us," she said. "We don't want to downsize our mission."

At the City College board meeting Thursday, downsizing was in evidence as the trustees canceled 700 classes for fall and spring and approved a $187 million budget for 2012-13 that is $8 million less than this year's.

Last month, the trustees voted to place a $79 per parcel tax on the November ballot, hoping to raise nearly $16 million a year for eight years. And, anticipating the accreditation sledgehammer, they also agreed to bring in the state's Fiscal Crisis and Management Assistance Team for help in fixing their problems.

Trustee Chris Jackson, who opposed bringing in the crisis team, on Friday condemned the new study for its seeming indifference to the loss of millions in state funding suffered by the college.

$3 million in reserve

Jackson said City College has been forced to dig into reserves - down to $3 million instead of the recommended $10 million - and should be applauded for finding one-time money to plug holes.

"I'd rather fund teachers than hoard money," Jackson said.

Yet interim Chancellor Pamila Fisher and board President John Rizzo said the college will address the accreditation requirements.

"The silver lining is that they're making recommendations that could help us survive the cuts that we assume will continue for several years," Rizzo said, noting that 10,000 students already were unable to get into classes this year because of budget cuts.

"Now it's going to be more," he said. "It's very sad that the state is doing this to education."

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