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Holland College is wrestling with a projected deficit of $1 million, first discovered in August. Jake Baird, who was appointed executive director of human and corporate services when the deficit was detected, had the task of trying to reduce it. Baird says it has been cut to a projected $100,000. He told The Surveyor he has done that by reviewing all the accounts. The cuts have been made on what he termed "discretionary expenditures," such as materials and supplies, equipment and travel expenses. "We thought of it as in, 'If I missed this meeting what would be the impact?'" Baird says. Other cuts have been made by detecting clerical errors in which expenses had been entered twice. Baird said additional cuts involved eliminating "wish lists." He is quick to point out there have been no layoffs or salary cuts, although some vacant positions have not been filled and temporary or casual positions have been carefully monitored. Any job decisions have been based on the immediate need for the service. "We've had to make some adjustments," added Baird. "We hope they are just temporary." The discovery of the deficit happened well into the fiscal year, which begins in April, when budget reports from each division are entered into a computer to form the projected budget. This past spring, however, a new computerized financial system, ORACAL, was installed. There were start-up problems and difficulty converting data. So, it was not until the detailed budget was produced three months later that the problems were uncovered. "I can't promise you a balanced budget, but we'll come close," Baird says. "It's obvious we want a balanced budget. We don't want otherwise." Spending has not been stopped completely, but every expenditure is monitored. Baird hopes the $100,000 projected deficit carried into next year will not have a serious impact on the new budget. He says one possibility is to increase the revenue for the college. He suggests a number of ways this could be done, from increasing class sizes to looking to the provincial government for more support. Baird refuses to speculate on the possibility of raising tuition fees. He says that overall there will inevitably be some impact on programs. Baird stresses that no decisions have been made and none will be, until the beginning of the next fiscal year. He says he hopes to avoid another deficit next year by establishing a better planning process and by analysing the budget earlier. "We'll get on to it earlier," he says. "The analysis should happen before the fiscal year begins." He says he feels much more positive about the financial situation today than he did when he first confronted it last August. "I like more of what I see," Baird says. "I'm not disappointed where we are now."
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