News Releases

USM Presents Budget Plan To Trustees

January 14, 2008

Contact:  Robert Caswell, Executive Director,
Phone: 207-780-4200
Home: 207-839-2026

Judie O’Malley, Assistant Director
Phone: 207-780-4200
Home: 207-839-6402

University of Southern Maine officials met with University of Maine System Trustees Monday morning, January 14, to outline a budget plan that will balance USM’s budget, replenish reserves used to cover deficits, and make investments in marketing and related areas that will build the university’s revenue stream.

"We have put together a sound plan and instituted new policies and procedures that will put USM back on a firm financial footing," Interim President Joe Wood told Trustees. "These are challenging times, but I am proud of the way that the entire USM community has come together to help ensure that this remains a strong and vital institution that serves the people of Maine."

The plan calls for USM to cut a minimum of $2 million in fiscal years, 2008 through 2010. Those cuts will balance the budget at the end of 2010.  From that point through fiscal year 2014, USM will make loan repayments to the University of Maine System, which will replenish $8.2 million in reserves used to cover deficits. USM also plans to make internal reallocations to provide funds for investments in targeted areas.

Trustees approved Monday the internal loan of $8.2 million and the repayment schedule. (Editor’s Note: John Diamond, executive director of external affairs for the University of Maine System, will be distributing a news release Monday afternoon on the results of the Trustees’ meeting. For updates, please contact him at 973-3224,(diamond@maine.edu.)   

USM Interim President Joe Wood and Chief Financial Officer Dick Campbell told Trustees Monday morning that the $2 million target for the current fiscal year has been met through position eliminations and reductions in travel and equipment purchases.  An additional cut of as much as $900,000 will be made this year to cover increases in energy costs, a two percent decrease in the spring 2008 enrollment, and a decrease in revenue USM receives to cover the cost of administering grants.                                                                                               

Campbell reported that USM has targeted $1.8 million in savings in the next fiscal year, beginning July 1, 2008, by eliminating another 30 positions. The multi-year plan calls for the elimination of a total of 90 positions. 

“Even as we take short-term measures through position elimination and reductions in travel and equipment purchases,” Wood told Trustees, “we are moving toward making longer-term savings through layoffs and reorganizations of programs.”  Details of those layoffs and reorganizations, which will generate savings beginning July 1, 2008, will be announced later this winter and spring.

Wood said USM’s goal is to “lay a firm fiscal foundation for a new president and focus resources on those things that protect and build the quality of this university.”

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