COOS BAY —  Southwestern Oregon Community College will eliminate as many as 18 jobs as part of a plan to cover a $2.9 million budget shortfall.

Under a plan approved by the college’s board Monday, the school also will have to establish a $3 million revolving line of credit to pay employees and bills for the rest of the fiscal year. Before the school can do any borrowing, it has to show that its finances are being managed responsibly.

More than 30 people attended the special meeting Monday, which was marked with anger and sadness over the college’s financial woes. Interim President Patty Scott and members of the administrative staff spent two weeks poring through the budget and calculating how to close the gap with only seven months left in the fiscal year. They concluded they would have to cut jobs and consolidate work wherever possible.

 Scott presented the steps of the budget strategy and tearfully told the board and those who attended the meeting that more than $386,000 of the shortfall would have to be made up with peoples’ jobs.

“It the most painful thing I’ve had to do,” Scott said.

She said revenue projections in the school’s general fund had been overestimated by more than $1 million, and  revenue projections in other funds were overestimated by $240,000. Unbudgeted and underbudgeted expenses added another $1.5 million to the deficit. Scott said that a pattern of overspending and overestimating revenue since the 2005-06 budget year has led to the cutbacks.

Scott emphasized that the reductions in the proposal are short-term cost-cutting measures to assure a balanced budget. Some job losses may be permanent. More long-term solutions will be looked at in the future, she added.

In addition to reducing staff size, the college will save $459,500 by not filling vacant or soon-to-be vacant positions. More than $1.5 million will be cut from department budgets in materials, supplies and other spending.

A staff member asked whether the salaries the college paid to the Southwestern Oregon Community College Foundation director and administrative assistant could be reimbursed by the foundation — perhaps for the past three years —in order to save a jobs. Board member Marcia Jensen said she would be interested in proposing such a request to the foundation board.

Staff reductions will not be the only sacrifice college employees will have to make. They also have to take seven days of unpaid time off between Jan. 1 and June 15. Scott said fewer days were considered, but that meant more cuts in other places.

“I think we cut to the bone,” Scott said. “We tried to spread out the pain. We started with four days and ended up with seven in order to reduce the number of people who would lose their jobs.”

The board avoided a tuition increase. But fees will rise by $5 per credit, providing $181,000 in revenue.

The board had to declare a financial emergency in order to expedite staff layoffs. Scott did not recommend any immediate layoffs, but she said affected employees would be notified starting Wednesday, and all cut jobs within 90 days.

The votes to declare a financial emergency and to accept the proposal were unanimous. Board Chairman Lonny Anderson was absent.

Mike Gaudette, chairman of the budget committee, said the college may have to borrow even more money to pay expenses.

“I honestly anticipate it will be $5 million before the end of the fiscal year,” he said.

Though staff members at the meeting were pleased to see the administration and board addressing the college’s financial troubles, many were angry that the situation had gotten to the point of having to lay people off.

“You guys are there to protect us,” multimedia tech Dallas Petenbrink said. “I feel that failed.”

Petenbrink asked board members how they would avoid a similar situation in the future. Jensen said a financial review committee, which would include two members of the board, and a policy review committee had been set up to establish new guidelines, rules and regulations.

“Our governance model worked for about 10 years,” board member Harry Abel said. “The last three years it has not worked well, but we didn’t see it coming until later.”

Abel said the relationship between the board and former President Judith Hansen was based on trust. The board trusted the information the president presented. When the college hires a new president, that relationship will be different, and the president’s contract will be revised, he added.

For some in the audience, that explanation was not enough.

“Where were you?” computer information systems instructor Bill Yates said.

“You didn’t supervise. You just rubber stamped.”

Hansen resigned last month amid intense criticism from college employees and some board members. Three employee groups had chastised her with no-confidence votes, and the board had ordered an outside investigation of the situation.

Tom Nicholls, the director of enrollment management, expressed frustration about how complaints and concerns of staff members were handled. He said they were treated with arrogance and indifference.

“As you see, there were real issues,” he said. “This is a disgrace. It’s sad and the worst thing about it is that it didn’t have to happen.”