Council was informed that Debbie Thompson gave the District financial report to the Chancellor's Executive Council (CEC).  The report showed that enrollment was down.  Reyes said that the recommendation given to CEC was to delay new faculty announcements, and to delay the faculty matching program.  Reyes said that the current deadline to announce new faculty positions is September 15^th.  The matching program was explained to Council.  A point was made that it looked as if the administration was setting up for a freeze on new faculty positions.  Reyes reported that one item mentioned was transferring faculty and staff from colleges with declining enrollment to growing colleges and the District Office.  Discussion ensued.  Another item was to review class size to make it more cost effective.  Other items mentioned for review for cutting expenses were an early retirement incentive with most saving redistributed to a centralized pool, solar power, having positions pulled from colleges into a district pool thus creating a centralized pool, reviewing District programs, etc.  Reyes told Council that he asked at CEC to bring this to Council for discussion and feedback and recommendations.  Barry Vaughan suggested for the Senate Presidents to go back to their colleges and investigate areas of waste especially in administrative areas so those items can be take n to CEC.  A question was raised if the hold harmless was going to happen again this year.  Discussion ensued explaining what hold harmless meant and entailed.  A point was made that Council needed to be proactive and bring back positive ideas for recommendations to CEC.  A suggestion was to send this request to the general faculty.  A question was raised about the District Office which has the fourth largest budget in the District; bigger than seven colleges.  Council was reminded that in the past, Council had asked for audits of MCLI, Human Resources, and IT and only an audit of MCLI was done.  Another suggestion was to have District Office staff moved out to the colleges.  One Council member asked if he could talk about this with his college's budget committee.  Reyes responded yes, and cautioned that positive statements were needed.  Discussion ensued regarding public relations in this matter.  Another point was made that any cuts should come from the bureaucratic level and not from the teaching and learning level.  Discussion ensued regarding keeping areas of teaching and learning and things directly supportive of teaching and learning untouched.  A question was raised if there was a list of District Office people and what their positions' duties/responsibilities are.  Council was told that this was being reviewed and it was found that the District Office had 243 MAT (management) positions and 123 PSA (support) positions for a ratio of approximately 2 MAT to 1 PSA at the District Office.