No Pain, No Gain: How One College Emerged Stronger from the Fiscal Crisis.

Due to state revenue shortfalls and mandated Medicaid and welfare expenditures, substantial cuts were made in state aid to higher education institutions in Maryland in 1992. To meet the fiscal crisis, Prince George's Community College (PGCC) implemented several cost containment measures that had been considered, but not acted upon, in the past. These included freezes on hiring and equipment purchases and the elimination of all conference travel, professional development and training events. An employee furlough plan was implemented, with 12-month employees losing 7 days, and 10-month employees losing 5. Additionally, an Instructional Services Fee (IFS) was implemented in spring 1992 to replace 271 separate student fees, raising revenue for the school through a system of three fee levels based on the expense of offering given courses. In 1993, three additional strategies were implemented to ensure that PGCC would meet its widening deficits. The first strategy was administrative reorganization, in which seven administrative positions were abolished (representing a 17% decrease) through combining divisions or offices within the school. The second strategy was a voluntary resignation incentive program offered to employees with a minimum of 20 years of service. Seventeen (10%) of those eligible applied and were approved. The third strategy involved cost savings through downsizing efforts, including eliminating vacant positions from the operating budget and reducing hours of operation, and resulted in the elimination of 17 full-time and 10 part-time classified staff positions. (MAB)