World Photos by Alex Powers Southwestern Oregon Community College Vice President of Instruction Valerie Martinez speaks with members of the school’s board Saturday, during a board meeting as Vice President of Administrative Services Sheldon Meyer looks on.

COOS BAY — The embattled president of Southwestern Oregon Community College came under harsh criticism from the college’s governing board this weekend.

The board criticized President Judith Hansen’s handling of financial and personnel decisions Saturday at its annual retreat. Some board members contend there isn’t enough money to build a new campus planned in Curry County. They also asked the college’s lawyer to see if the college could get out of a contract with a recently hired vice president.

Then they ordered Hansen to help send documents to the Oregon School Boards Association so it can complete its report on the college’s management and organizational culture. Hansen said today there was an additional surprise request for documents.

These discussions all came just a couple of weeks after the board approved staff’s request to get a loan of up to $1.5 million to meet payroll and cover bills.

Board member Marcia Jensen suggested the depletion of cash reserves below $800,000 constituted a violation of the president’s executive limitations.

“I want you to know how sick at heart I am about this situation,” Jensen said.

Hansen wasn’t at Saturday’s meeting, having flown to Colorado last week on a family emergency. This morning, however, she returned to campus and was quick to dispute the contentions.

“The money is there in the budget to fund the Curry County campus,” Hansen said.

College officials have said more students are enrolling at the college this year. While state revenue to the college will drop slightly, Hansen said that increase in students will bring an unanticipated increase in tuition receipts, along with a 25 percent increase in federal financial aid. And more students are opting into student housing — an additional revenue boost.

Mike Ionno, the college’s interim chief fiscal officer, said similar depletion of cash reserves occurred before Hansen’s administration. He said Southwestern never put monies for the new campus in a separate fund. Instead, they were included in the college’s cash balance, first about $1 million in the middle 1990s, then another $1 million in 2003. Ionno noted that in 2003, when the end-of-year cash balance was $2.27 million, about $2 million should have been restricted to Curry County.

“It’s not necessarily a new issue, but it’s obviously an issue,” he said.

Hansen said the college is facing tight times. Over the past several years, it finished construction on three major projects: the Oregon Coast Culinary Institute, addition to campus housing and the recreation center. All of those projects began before her tenure as president, she said. But, the college now is paying on those loans, requiring it to tighten its fiscal belt.

“On my watch it requires us to be much more fiscally tight,” she said.

“Our whole country now is learning how to tighten their belts,” Hansen added. “We are fortunate at Southwestern ... we began tightening our belts before the state and nation began to tighten their belts.”

Since the college recently authorized the $1.5 million loan, there was general agreement that funds aren’t available to start construction on a new campus.

“It does not look like we can afford Curry campus,” said board member Rick Howell.

“Not from current funds. I would agree,” Ionno said.

To avoid the future loss of Curry campus funds, the board created a separate bank account specifically for the project. Chairman Lonny Anderson requested that the board be notified whenever funds are removed from the account.

“Up until now, we used these funds to pay our ongoing expenses,” he said. “Right now, we aren’t able to replenish those particular funds. It bothers me.”

Today Hansen said the college already has spent $400,000 for the first architectural and detailed development plan. It has $2.3 million in a state matching grant designated for construction, but first it has to spend its own $2.3 million share. Hansen said today, the college already has spent $700,000 toward the goal.

Once land use appeals for the new campus site are completed, the college will be able to let out bids and select a contractor. The college’s hope is to begin groundbreaking in spring.

The additional $1.6 million for the Curry project is in this fiscal year’s budget, Hansen said, with revenues scheduled to pay for that.

Ionno said, though, the college can expect to have another shortfall in available cash reserves in the spring.

He said the college should focus on managing a lot of little things well to get into better fiscal shape. Among his suggestions were improving the system for collecting tuition from students and better managing the purchasing of supplies.

He also recommended getting additional help for the financial office, namely a controller. He said the newly hired vice president, Richard Weldon, could fit that need.

The board disagreed.

Howell said he thought Weldon, who previously served as vice president for administration and finance at Coastal Carolina University in South Carolina, was more of a lawyer and less of the financial expert the college needs right now.

“It may not be a good selection, the right selection,” David Bridgham said.

Sheldon Meyer, whom Weldon was hired to replace, said it is his understanding Weldon already is under contract.

Anderson asked attorney Roger Gould to find out if the college could get out of the contract.

Several staff members complained about the selection of Weldon, noting that Hansen said she would postpone all new hires in light of the financial crisis.

Dean of Students Patty Scott said the financial aid office was understaffed by two people this fall, and Director of Enrollment Tom Nicholls said any savings from not hiring new staff was being lost from having additional overtime pay.

“You can sometimes be foolish in how you try and save money,” Howell said.

The board tentatively is scheduled to meet Oct. 15, in a closed-door session, to discuss a report on college management. In response to complaints about Hansen’s leadership, the board hired the OSBA to “evaluate, analyze and recommend improvement opportunities in the organizational culture, environment and management” of SOCC.

— Assistant Editor Elise Hamner contributed to this story.